What is it?
In simple terms CoinNext is an Altcoin Exchange. It is an exchange just like BTC-E and Bitstamp but in addition to trading Bitcoin to USD it allows for trading of other pairs of coins. It is directly comparable to Cryptsy, however it is fully transparent.
What is so different about CoinNext and why is it the next big Altcoin exchange? This time the exchange is transparent and no anonymous. This means that it is easier to trust the exchange more and to know that it would not pull a MtGox on your bitcoins.
The team consists of 2 founders. The engineers and product developers were both early Bitcoin adopters and already had experience building Bitcoin startups. The team previously built and sold a Bitcoin startup which gave them enough experience to undertake the difficult task of starting a regulated fully transparent exchange. The team started working on Coinnext in late 2013 and as active coin traders themselves they decided to build the exchange for themselves to use.
It is no secret that a successful product is developed to fulfill a service that is missing on the market. The main problem with cryptocurrency exchanges was the lack of trust. Many of those exchanges are anonymous and are hosted off shore, so while they provide a much needed service they are able to get away with the low trust issue because there is no other alternative. Coinnext aims to rebuild that trust with the consumer as a cryptocurrency exchange. It is an exchange where the developers (and the consumers) would feel comfortable trading, one that is transparent and professionally built from the ground up.
Based on what are Altcoins added?
Every altcoin exchange faces similar diffculties, one of which is what Altcoins to add? There are so many Altcoins out there and an exchnage needs to figure out which ones have enough value in order to add to the trading platform.
Let us first take a look at how Cryptsy adds Altcoins to its exchange. If you did not know by now, Cryptsy is the largest Altcoin exchange right now. They add Altcoins based on a voting system. The way the system works.
The system is a mix of incentivized voting ballots. Every user gets a free vote for a coin. Voting with bitcoin donations is also another method for Cryptsy’s users to voice an opinion on which altcoins should be added. User input is important to this process being open.
Coinnext took a different approach to adding Altcoins, according to CoinNext:
We do not utilize a voting system like some exchanges have incorporated, we feel they don’t convey the democratic effect for which they were originally intended for. So we deliberately chose to avoid any kind of voting mechanism and take the much more liberal approach of adding and supporting every and any coin for which there is enough trading demand for.
Coinnext does not have 300+ coins on the exchange because they only launched 2 weeks ago. Coinnext manages to add 2-3 new coins per day. They look at basic parameters when adding coins, they will not list coins such as “Coinye” because of copyright violations, but for coins which do not face any legal risk Coinnext gives almost any coin a chance.
We don’t feel the exchange should have power over what coins to trade, but we don’t think a voting contest is a solution either . If there is a demand for a certain coin, people should be able to trade it on a reliable and safe exchange, and that is what we want to provide with Coinnext.
Since Coinnext is newly launched they are currently offering zero trading fees for the first 3 months as a way to promote the exchange. Because many altcoins are not worth very much, the fact that you can trade them with zero fees is a huge plus. The lack of fees makes Coinnext currently the cheapest exchange to trade your coins, so take advantage of this opportunity and sign up HERE. There is no ID verification required beyond verifying your email, so do not be worried about taking time to get your account verified you can sign up and start trading in minutes.
Will Coinnext be able to handle growth?
The cryptocurrency market grows exponentially and startups that are in the crypto market must be scalable and be able to handle growth. Competition will heat up and more companies are going to try and take a bite out of the market profits. According to Coinnext:
For us, our most important role is to be there for our traders, now and along the way of this growth path. We might not exactly be sure yet where cryptocurrencies will take us, but as an exchange we have the crucial role to stay on the edge of that highway of innovation we’re all driving on.
Coinnext uses Cloudflare Hosting which should mitigate DDOS attacks, they use the google app for business engine which is clearly scalable and is used by many successfull companies. Coinnext has the latest version of SSL (patched hearbleed) and uses HTML5 to support mobile devices as well. Overall the website is developed on a professional level and with the added transarancy of the founders and developers Coinnext is the next big Altcoin exchange. Sign up while the trading fees are still zero and follow them on twitter @coinnext to hear the latest updates, news, and promotions.