A recent survey carried out by Encrybit has outlined some of the core issues faced by cryptocurrency exchanges at this time. The opinion-based survey was carried out April 23-30, 2018, using Google Forms. A significant amount of responses were gathered from the survey – 1108 in total. Such a wide base means that that the findings are statistically significant and representative of the overall cryptocurrency community. Some of the key issues as per the survey are outlined below.
- 40% said security was the primary concern.
- 37% said that high trading fees are problematic.
- 36% indicated that liquidity is a concern.
- 33% said that the response time for exchanges was unethically long
- 22% complained about the lack of trading pairs.
- 21% said that the user interfaces were not friendly enough.
- 18% were upset with high withdrawal fees.
According to the survey, the most popular exchanges include Binance (27%), Huobi (19%), Okex (14%), and Bitfinex (11%). All of these exchanges are based in Asia. Again the quality of user interface plays a key role in the popularity of exchanges, as well as the fees, liquidity, and cryptocurrency pairs on offer. The primary suggested improvements from the survey included an intuitive user interface (20%), such as that proposed by ETERBASE, as well as expedited fiat withdrawals (29%). 32% of users also indicated they were concerned about the security of their deposits.
Security will always remain a concern regarding cryptocurrency exchanges, and there are only two real avenues. The first is government intervention, where exchanges are regulated and insured. Coinbase is an example of this, with FDIC insurance on fiat deposits and third-party insurance on cryptocurrency deposits. The second is that users familiarize themselves with hard wallets, 2FA, and best practices, such as not keeping large amounts of cryptocurrency on centralized exchanges. While some make a case for decentralized exchanges, no appropriate product is currently available.
One of the most common criticisms of cryptocurrency exchanges has always been the slow response of exchanges’ customer services, who sometimes fail to respond at all. Some users report taking up to six weeks getting verified on exchanges such as Kraken and Coinbase. This is possibly due to the influx of new users in a particular time period, which the network is not able to manage. But a failure to respond is still a cause for concern. Customer service does not appear to be a priority among most cryptocurrency exchanges, and since there is no formal authority to complain to, users most often vent on sites such as Reddit.
The EncryBit survey is the most comprehensive to date regarding customer satisfaction levels on cryptocurrency exchanges. Encrybit is aiming to resolve the current issues in the cryptocurrency exchange industry through a better UI, improved security, vastly cheaper fees and a focus on customer support. Given the low levels of customer satisfaction in the cryptocurrency exchange industry, a high-quality exchange will be more than welcome.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.