And other things crypto traders care about
Two technological developments are taking over the world right now. They are Artificial Intelligence and Blockchain. Everyone knew from the onset that AI would change the world, but blockchain wasn’t taken seriously initially. However, the adoption of bitcoin began to grow and the value began to surge.
It is now hard to find someone who is quite knowledgeable in tech who doesn’t know what bitcoin or blockchain is. 2017 was the year of the ICO. The radical surge in the value of crypto coins made a lot of projects grow overly optimistic. But so far in 2018, it has been the “silence of the lambos”.
The significant drop in the value of crypto coins witnessed in this first half of 2018 has made ICOs less attractive but made trading more attractive. People are getting to know about other coins and various projects in the crypto ecosystem, particularly the ones that can give a better hedge against losses. The importance of a credible and transparent cryptoexchange cannot be underrated as more and more people look to open trading accounts to move money around, make gains and hedge against losses.
A survey was created by Encrybit, an upcoming cryptoexchange based in Hong Kong, to consider the major concerns of investors and traders concerning the current exchanges they use in trading. The survey was carried out between the 23rd and 30th of April 2018 and gathered data from 1,108 people. Five major aspects were considered and this is what the survey yielded:
1. The biggest problems of cryptoexchanges
While many would assume that security seems to be the only major problem, people with actual user experience have other issues. 40% indicated that security indeed is the biggest challenge, but 55% attributes that to fees; 37% indicated that high trading fee seems to be the major concern and 18% said high withdrawal fee is the biggest problem.
I find this to be a major concern also as I know a friend who has some money in an exchange and cannot withdraw it because the withdrawal fee will wipe out the gains and even a significant part of the capital.
43% indicated problems that has to do with the features of the exchange; 22% said lack of crypto pairs is the biggest problem while 21% said the user interface is inconvenient. 36% indicated lack of liquidity, 33% stated the problem is poor customer support while 9% said they had no issues.
2. The most preferred exchange and the feature that makes them preferred
Binance leads here by 27% because of its good volume and airdrop policy. Huobi.pro at 19% because of its arbitrage opportunity (over others). 14% says Okex.com because of its trading platform and trading volume. 13% had a mixed choice of other exchanges such as Hitbtc, Kucoin, Poloniex, Coinbase (GDAX), Bitstamp, Bithumb, Upbit. 11% went for Bitfinex because it has the best user interface for technical analysis, algorithmic trading options, trading with margins and direct withdrawals in fiat currency. 9% said Bittrex because of GUI, good coins and how easy it is to use. 7% states they have no preferred exchange.
3. The trading indicator that is missing in current exchanges
60% of survey participants said nothing is missing. 10% said they don’t know what trading indicators are. 30% sited the following to be missing in trading chart; mountain, bar chart, renko and kogi chart. In trading indicator, ADX and Stochastics. Also, lack of customization regarding volume was also sited.
4. Trading features that would be a delight to see
13% of survey participants had no expectations. Others had varying expectations like social trading, paper trading, back testing and forward testing facility, multiple chart window, comparison of different crypto coins, ability to view all fundamental and technical information, alarm function which send notification via email and SMS.
5. The topmost expectation from an exchange
32% of survey participants prioritized security of deposits. 29% demanded expedited fiat withdrawals into their bank accounts. 20% wants an exchange that’s simple to use with an interactive user interface.
Of course, there was the opportunity to give suggestions and the suggestions came in various ideas. Many of the ideas highlighting a simple solution to some of the problems raised in the previous areas of question. There are suggestions like; newsfeed at exchange dashboard, referral bonuses, integration with modern features like Face ID and NFC, low withdrawal fees, more coins with USDT pairs etc. You can see the full information from the survey here.
In conclusion, the world of cryptoexchange still requires a lot of growth and improvement. Many of the issues raised won’t be strange to a regular crypto trader but ought to be known for good decision making. We hope the trading platforms get better and more transparent for traders. However, Encrybit is working to create a user friendly cryptoexchange platform that addresses many of the problems sited in this survey. As cryptocurrency adoption grows, there will be need for more trading platforms with good offers. Is 2018 the year cryptocurrency finally goes institutional and mainstream? We’ll have to wait and see.
Encrybit Survey: What people are concerned about in a cryptoexchange was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.