Pitfalls of Current Cryptocurrency Exchanges

Opinion

There are several aspects of the cryptocurrency market which are in need of improvement, one of which is that of exchanges. Numerous cryptocurrency exchanges are riddled with errors, inadequate security, or technical issues, making investors worried about the safety of their assets.

Here is a non-exhaustive list of issues that most exchanges currently face.

Exchanges are not secure enough

Exchanges either losing funds or being hacked is an all-too-common occurrence. The most recent time this happened was when BitGrail users lost their Nano that they left on the service. Whenever something like this happens, not only does it harm the victims involved, but it also damages the reputation of cryptocurrency as a whole. By extension, it harms the markets.

The industry needs exchanges which take asset security seriously. Without the right care and attention, the market will eventually suffer as it will sully people’s opinions of the asset class in general.

Atrocious customer service

Exchanges are notorious for offering poor customer service to the point where sometimes a user will not even get a response. In many instances, if somebody does get a response from support staff, it can take up to weeks for it to arrive. With cryptocurrency being such a volatile market, people do not have the time to wait that long for assistance. A wait of that length can mean the difference between a substantial profit or a huge loss.

Latency problems

Many exchanges suffer from latency issues, whereby it can take a worryingly long time to make a trade. This issue is less important to those who hold their funds for months, but day-traders need a service which can handle their transactions at low latency speeds, it is necessary that they can make trades in quick succession.

Complex user interfaces

There are at least a dozen cryptocurrency exchanges which have horrible user interfaces. All too often there are design problems within the exchange that make it confusing for even highly experienced users to understand. In some industries, it is okay to have a complex and cumbersome interface because nothing is at stake, but with cryptocurrency, if the design of an exchange is too poor then it can cause users to lose their money by pressing or doing the wrong thing. It is unacceptable that users are punished by low-quality designs and features.

Lack of User Participation

Communities should be able to have a say in important decisions regarding their exchanges. This gives users importance and status beyond that of a mere trader. It makes them useful regarding the future of the exchange. Providing users with a democratic voting method regarding an exchange would also likely boost the morale of participants as well provide transparency between the exchange and its customers.

 

Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.

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