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What Was the First Crypto Exchange?
#crypto trading#Cryptocurrency trading#crypto exchange+1 more tags

What Was the First Crypto Exchange?

Whether we are talking about crypto, stocks or commodities, everything has to start somewhere. Today we will find out what the first cryptocurrency exchange was, when and how it was created!

When you think of the first cryptocurrency exchange, your mind probably jumps to Mt. Gox, however it was none other than the now defunct Bitcoinmarket.com. The first idea of the site was proposed on the Bitcointalk forum.

Bitcointalk is the oldest bitcoin forum out there, and it is here that Satoshi Nakamoto used to post (you can still find his old posts). The member “dwdollar” made his first post about the exchange he was creating on January 15 2010; which you can find in the screenshot below along with a link to the forum. Two months later, on March 17, 2010 Bitcoinmarket, the first cryptocurrency exchange went live.

Prior to dwdollar’s exchange there was no real consensus regarding the value of BTC. However when Bitcoinmarket first went live Bitcoin was priced around $0.003. Back then you would need 333 Bitcoins to buy a single dollar, while as of today you need$27,653.59 to buy a single Bitcoin!

The first ever method of exchanging USD for BTC was Paypal. However, by the summer of the year 2011, PayPal fell out of favor due to the increasing number of scammers, and many traders looked to buy Bitcoins elsewhere. At around the same time, among other exchanges, the one that was to monopolize most of the Bitcoins transactions and also fall prey to the largest theft in Bitcoin’s history was launched. It’s name was none other than Mt.Gox.

Satoshi first post
Satoshi first post
Satoshi Nakamoto
Satoshi Nakamoto

First post from dwdollar about Bitcoinmarker.com

https://bitcointalk.org/index.php?topic=20.0

The largest exchange of the early days

Mt.Gox used to have a monopoly on Bitcoin’s trading volume accounting for 70% to 80% of its total trading volume at its peak. Sadly in 2014, bad times followed for the crypto community as it was discovered that Mt.Gox had been continuously hacked for years starting in late 2011.

A hacker figured out how to gain access to exchange wallets and has been stealing funds in 90% of the cases as soon as they appeared on the exchange.

Ultimately it was reported that a staggering 850,000 BTC had been stolen, accumulating in 7% of the total supply of Bitcoin. What is even worse is that the CEO knew about this theft for 8 months before going public.

The exchange filed for bankruptcy while its CEO spent a year in jail in Japan.

Mt Gox
Mt Gox

We will now jump on to the largest exchange operating today.

The largest exchange today

The largest exchange by reported volume according to CoinMarketCap is none other than Binance. The company was launched in China in July 2017 by Changpeng Zhao.

The company was able to grow very quickly due to how much it values its customer. The first example of this came shortly after Binance was launched when the Chinese government decided to shut down all exchanges.

The government demanded that all ICO exchanges return the funds to the investors. Binance went beyond that and actually returned the funds of the investors at their original investment rate.

A second example can be found when the company was hacked off $40 million in May 2019. Zhao was transparent about the incident and reimbursed its customers from the company’s pockets.

Finally, let's have a look at how we started!

Cryptohopper’s first

We also have a history, which starts in September 2017 with our first Cryptohopper (which can be seen below) and our first exchange Poloniex. As time passed by, our platform grew and by March 2020 we are now offering 18 exchanges with many more on the way. Connect to your favorite exchange today and start trading with Cryptohopper!

First bot
First bot
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Disclaimer: Cryptohopper is not a regulated entity. Cryptocurrency bot trading involves substantial risks, and past performance is not indicative of future results. The profits shown in product screenshots are for illustrative purposes and may be exaggerated. Only engage in bot trading if you possess sufficient knowledge or seek guidance from a qualified financial advisor. Under no circumstances shall Cryptohopper accept any liability to any person or entity for (a) any loss or damage, in whole or in part, caused by, arising out of, or in connection with transactions involving our software or (b) any direct, indirect, special, consequential, or incidental damages. Please note that the content available on the Cryptohopper social trading platform is generated by members of the Cryptohopper community and does not constitute advice or recommendations from Cryptohopper or on its behalf. Profits shown on the Markteplace are not indicative of future results. By using Cryptohopper's services, you acknowledge and accept the inherent risks involved in cryptocurrency trading and agree to hold Cryptohopper harmless from any liabilities or losses incurred. It is essential to review and understand our Terms of Service and Risk Disclosure Policy before using our software or engaging in any trading activities. Please consult legal and financial professionals for personalized advice based on your specific circumstances.

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