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One thing a lot of people are concerned over is the time it takes for Bitcoin transactions to confirm. This is especially true when moving funds to and from an exchange platform. Gemini, the bitcoin exchange operated by the Winklevoss twins, is introducing zero-confirmation deposits. This is quite a risky move, as zero-confirmation transactions are subject to double spending.
Introducing zero-confirmation bitcoin deposits is a significant step for the Gemini exchange. Allowing customers to instantly trade their balance without having to wait half an hour will attract more people to the exchange. Deposit delays have been a problem in the world of cryptocurrency for quite some time now. With the bitcoin transaction volume increasing, and the network capacity remaining fixed, confirmations can take much longer than needed.
Zero-Confirmation Bitcoin Deposits Come To Gemini
This is why the Gemini exchange becomes one of the first in the world to allow zero-confirmation deposits. Withdrawals from the platform are confirmed as soon as possible already. With a new aggressive fee algorithm, the exchange pays these costs out of their own pocket. Unfortunately, doing the same for bitcoin deposits has proven to be a much bigger challenge. Gemini can’t control transaction fees on deposit transactions, yet they want to avoid hours of delays.
Every Bitcoin deposit on the exchange will be run through a proprietary analysis to determine its expected confirmation time. Once the transactions passed the criteria, the amount will be pre-credited to the Gemini exchange account in question. In doing so, the company allows users to sell BTC for USD or Ether much faster and more efficiently. Moreover, this allows users to participate in the daily two-sided auction without delays.
Additionally, Gemini improved their Instant ACH deposit system. Funds being available for trading right away is important, both for US Dollars and cryptocurrencies. This new feature will be quite useful to frequent traders on the platform. Gemini is making major strides to become a bitcoin exchange platform with mainstream investor appeal, that much is certain.
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