What Is Coin Purity In Crypto?
Oct 15, 2021
Coin purity is an important concept to understand and take note of, as part of your crypto trading journey. As part of your crypto trading journey, you will constantly come across the term coin purity. You may have heard of the term coin purity, but what does it mean? What does it tell you about the coin? And should you be concerned? MEX Digital looks at each of these questions and more, to give you a better understanding of the term: coin purity.
What is coin purity?
In traditional finance, coin purity refers to the tangible composition of a coin. Coins (like cents, pennies, and Dollars) are made up of specific types of metals or precious metals. For example, gold coins are rated on their purity in relation to the karat, fineness, and a permitted allocation of impurities. In a similar way, crypto coin purity is rated in accordance with their source. Coins that enter a trading ecosystem from dubious sources, or unverified channels, are regarded as being impure. Alternatively, coins that enter a trading ecosystem from verified, legitimate sources are considered authentic and pure, and can be used for trading.
Why is coin purity important?
Coin purity is important as it is a way to curb the spread and influence of scams, scam coins, and ponzi schemes. By choosing to trade with an exchange which uses coin monitoring technologies you can prevent the continuation of potentially bad actors from influencing or participating in legitimate crypto trading activities. Similarly, understanding the concept of coin purity is important for getting to grips with market caps.
How MEX Digital ensures coin purity
To ensure coin purity, crypto trading ecosystems and platforms must commit to high levels of compliance and consistent monitoring. In this way, both crypto traders and crypto trading exchanges can work together to:
- Eliminate impure coins from circulating
- Counteract crypto trade manipulation
- Uncover and report potential crypto scams or ponzi schemes
- Play an active role in weeding out criminal activity, and ensuring that the crypto trading space remains a legitimate, secure trading environment
As part of our compliance measures and commitment towards ensuring coin purity at MEX Digital, we use a combination of strict regulatory adherence and state-of-the-art Anti-Money Laundering (AML) software. All cryptocurrencies traded, sold, bought, and stored on the MEX Digital exchange are verified for their legitimacy and authenticity.
Now that you know a little more about coin purity, we hope you’re feeling more confident as you begin your crypto trading journey with us.
Remember, proper diligence and sound judgement should be used in evaluating the risks associated with these activities. Trading cryptocurrency carries significant risk and losses can exceed deposits. Refer to our Terms and Conditions and disclosure material.