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What does off-exchange trading USDT profit (How can off-exchange USDT enter the exchange)

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What does off-exchange trading USDT profit? What is the difference between the p

What does off-exchange trading USDT profit (How can off-exchange USDT enter the exchange)

What does off-exchange trading USDT profit? What is the difference between the profit model of centralized exchanges and decentralized exchanges?

On the traditional Internet, users can buy, sell, and hold cryptocurrencies such as Bitcoin without intermediaries. However, on the blockchain, this value transfer method allows individuals to participate in the financial market. By using smart contract technology for the buying and selling of digital assets, people can have safer investment choices.

The peer-to-peer electronic payment system allows individuals to make payments to third parties or receive funds from other service providers. Therefore, they can not only send messages in a fast and cost-effective way but also directly accept cryptocurrencies, creating higher economic returns for their customers.

Due to slow network speeds and high costs (such as expensive fees), most people are unable to purchase these things with their own funds or even access what they want.

So we know a very simple question: Why is it necessary to use fiat currency to settle cryptocurrency transactions? Because there are currently many cryptocurrencies in the market that cannot be used as currency. Therefore, if such transactions are to be conducted, there must be a country’s support.

To address this issue, FINRA, the largest securities regulatory body in the United States, has issued a report on Bitcoin futures, listing Bitcoin ETFs, Bitcoin investment funds, and Bitcoin option products. However, Finra now states that its company does not intend to continue launching this product and intends to operate it as a cash-like tool while minimizing risks.

According to CFTC documents, “Bitwise and the Bank of New York Mellon have also been exploring the possibility of using the platform from October 2017 to March 2019.”

How can off-exchange USDT enter the exchange

According to Coindesk, shortly after the launch of USDT on exchanges such as Binance and Kraken, trading delays occurred. It is reported that due to the increasingly stringent regulatory environment and the inability to cash out digital currencies, how can off-exchange USDT enter the exchange?

First, it is necessary to manage funds (including fiat currency) through a centralized system. Generally, exchanges will monitor and process users’ assets when they deposit. However, without strict verification, their operations may be affected by certain issues, so it is necessary to keep their accounts in a secure place, which allows them to participate more confidently. If possible, it is necessary to use a third party to custody accounts and store funds.

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