The main reason why virtual currencies (cryptocurrencies) are more flexible and instantly available for inbound and outbound funding than foreign exchange funding is due to the difference in their underlying technology and operating model. Here are a few key reasons:

1. Decentralization and blockchain technology

Decentralization: Cryptocurrencies are based on blockchain technology and do not rely on a centralized institution (such as a bank or payment processor). This means that transactions can take place directly between the two parties to the transaction without the need for intermediary approval or processing.

Blockchain: Blockchain is a distributed ledger technology where each transaction is verified and recorded by multiple nodes in a network. This decentralized verification mechanism allows transactions to be quickly confirmed and recorded on the blockchain.

2. 24/7 Operation

Continuous operation: The cryptocurrency market is global and operates 24/7 without the opening and closing time constraints of traditional financial markets. This means that you can trade and transfer cryptocurrencies at any time without time constraints.

3. Transaction Confirmation Speed

Fast Confirmation: Transaction confirmation times for mainstream cryptocurrencies (e.g. Bitcoin, Ether, etc.) typically range from a few minutes to a few hours (depending on network congestion and miner fees). In contrast, traditional bank transfers can take hours or even days, especially for cross-border transfers.

Instant arrival: Many cryptocurrency exchanges and wallets support instant arrival, especially for transfers within the same platform, which can be done almost instantly.

4. Cost and Efficiency

Lower Transaction Costs: Cryptocurrency transactions typically have lower transaction costs, especially for small transactions. Transfer fees and exchange rate differentials can be higher in traditional financial systems.

Simplified process: The cryptocurrency transaction process is relatively simple, reducing many of the complex steps involved in traditional financial transactions, such as auditing and clearing. This greatly improves the efficiency of the flow of funds.

5. Smart Contracts and Automation

Smart Contracts: Blockchain platforms such as Ether support smart contracts that can automatically execute transactions when specific conditions are met. This automated mechanism further enhances the flexibility and speed of trading.

Limitations of the Traditional Forex Market

Banking system: Forex transactions and transfers rely on the banking system and need to be approved, cleared and settled by banks, all of which take time.

Business Hours: Banks and financial institutions have fixed business hours and may experience delays when trading across time zones.