BTER

 
BTER exchange

The History and Challenges of a Cryptocurrency Exchange


BTER, a cryptocurrency exchange platform, was created in 2012 by Jinan Manwei Information Technology co., Ltd. It looked to establish a trusted and efficient platform to trade cryptocurrencies. As a hybrid exchange that is both fiat-to-crypto and crypto-to-crypto, BTER wanted to act as a bridge connecting the conventional financial and new digital asset markets. Unfortunately, the exchange suffered a considerable setback with a massive security breach in 2015 that damaged its reputation and long-term sustainability.


BTER Initial Aims and Services


BTER joined the cryptocurrency exchange market with the aim to provide a comfortable platform to trade a wide range of digital assets. The exchange was to provide both fiat-to-crypto and crypto-to-crypto trade, enabling users to exchange conventional currencies such as US dollars (USD) and Chinese yuan (CNY) with cryptocurrencies and vice versa. This feature was to make the exchange more appealing to a wider population, including first-timers to cryptocurrency trading.
With a reportedly 100 cryptocurrencies that were accepted, BTER aimed to provide a variety of digital currencies to its traders. A large array would, theoretically, appeal to traders with differing investment strategies. The exchange included trading resources, such as a computer program named BterTrader to enable users to monitor their trading history, observe market depth, and analyze moving averages. Mobile applications came in Android and iOS.


Security Measures Adopted by BTER


In order to ensure user funds and data security, BTER took a series of measures. This included a web application firewall (WAF) to shield against web-based attacks, manual authorization of withdrawals to hinder unauthorized purchases, and two-factor authentication (2FA) via one-time codes with Google Authenticator to enhance account security. The exchange further asserted to keep most of the funds in cold wallets, offline storage systems that are resistant to online hacking attacks.
But, as the next security breach proved, such measures were not enough to avert a substantial loss of assets. This event exposed the vulnerability of cryptocurrency exchange security, even when standard security measures have been adopted. It is a warning to every exchange and user.
The 2015 Security Breach and Its Aftermath
BTER was hit by a severe security incident in 2015, with a loss of 7,170 BTC worth around $1.6 million at that time. This damaged the reputation and users’ faith in the exchange severely. The loss of funds raised severe doubts over the efficiency of the security that BTER had in place and its capability to guard user funds.
After the breach, BTER moved to rectify the situation and reimburse users. The exchange reopened markets and created a plan to compensate users for their losses. BTER agreed to draw upon a portion of its trading fees to pay back missing funds. The exchange attempting to assume responsibility for the breach and reimburse users was viewed by some as evidence of good faith, but the effect on its reputation in the long term was unavoidable.


Fee Structure and Investment Program


BTER first promoted competitive fees, saying that they had some of the lowest trading and withdrawal fees in the exchange market. Both the purchase and sale of cryptocurrencies were charged at a 0.2% fee by the exchange.
BTER also had a special investment program that guaranteed investors returns of 10-12% annually, with daily dividend payments. Advertised interest levels were 0.1% to 2% annually, and purported to be free withdrawals. But the specifics and viability of this program are not known, and prospective members should always be vigilant and do proper research before taking part in any investment program issued by a cryptocurrency exchange.


The function of BTER in the cryptocurrency market and its current status


BTER’s presence within the cryptocurrency market was, at one point, considerable, especially in China. The exchange provided a platform upon which a plethora of cryptocurrencies were made tradeable and allowed for the exchange of fiat currencies with digital ones. Its reputation and competitiveness were nonetheless severely damaged by the 2015 security breach.
It is hard to determine the current operational status of BTER, and there is a possibility that the exchange is no longer actively operating. There is a lot of competition in the cryptocurrency exchange market, and exchanges have to be highly secure, transparent, and maintain user trust in order to continue operating. The happenings of the year 2015 probably made it hard for BTER to recover and get back to the market.


Lessons Learned from BTER Experience


BTER’s history bears some useful lessons to both cryptocurrency users and exchanges:
Safety first: Exchanges have to ensure security and take strong steps to save user funds and data.
Transparency is a necessity: Exchanges ought to be transparent in their operations, security measures, and any risks involved in the use of their platform.
Risk management is of paramount importance: Exchanges need to have good risk management practices to reduce potential losses.
User trust is essential: Exchanges need to establish and maintain user trust via ethical practices and honest communication.
For users, BTER’s experience highlights the need to diversify assets within several exchanges and wallets, select trustworthy platforms with robust security controls, and properly research any investment schemes prior to taking part.

The story of BTER is a reminder of risks and challenges in the cryptocurrency exchange market. Even though the exchange had the vision to offer a secure and efficient platform to trade digital assets, the 2015 security breach effectively damaged its reputation and long-term survival. The takeaways from the experience of BTER point to the need to ensure security, openness, and risk management by both exchanges and users in the cryptocurrency market. Users should carry out extensive research and take precise precautions before accessing any cryptocurrency exchange.

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