Alexandra is a software engineer who specializes in core banking systems development for financial and IT spheres. Taking strong interest in blockchain, cryptocurrencies, and IoT, Alexandra got deep understanding of the emerging techs believing in their potential to drive the future.
The cryptocurrency exchange platform Encrybit conducted a survey on the cryptocurrency exchanges. It has revealed the weak points of the sphere and identified the needs of professional traders.
As the crypto sphere is relatively young, cryptocurrency exchanges are on the cutting edge of the blockchain-based projects – and that’s why mistakes are inevitable. Encrybit, a new a cryptocurrency exchange platform, works to create a solution that meets all the demands and expectations of traders. The company has chosen solid approach to the issue and conducted a survey to find out the current problems of cryptocurrency exchanges and the expectations of traders. The thorough examination of the topic has lead to some amazing insights.
The Top Problems of Exchanges
The problem with the highest number of votes is security, which is followed by the high trading fees. There is a minor difference in the results between the high trading fees and the lack of liquidity. The work of exchange support teams also leaves much to be desired. The lack of cryptocurrency pairs which is hindering good trading opportunities is also a common problem for most of the exchanges. Interface was not left behind as well: traders would like it to be more user-friendly and interactive. High withdrawal fees are also one of the problems faced while trading.
Exchanges: The User’s Choice
The respondents were asked to name their favorite exchanges and the features that make them stand out. Binance received the highest votes for its good volume and airdrop policy. Huobi.pro became second in line for its superior arbitrage opportunity. A better UI and margin trading facility makes Bitfinex a good choice. Bittrex with reasoned selection of coins is favorable to some traders. Other platforms worth mentioning are Kucoin, Bitstamp, Poloneix, Bithumb, Upbit, Coinbase (GDAX) and Hitbtc.
Missing Trading Charts and Indicators
Trading charts and indicators are tools used by professional traders to form trading strategies and plan their next move. As majority of the traders are not professional, there is little response to this question. The ones who answered pointed to the fact that ADX and Stochastics indicators aren’t available widely. Speaking about charts, traders complained that mountain, bar, renko and kagi charts were missing.
Expected Trading Features
Apart from the issues, the survey’s intention was to gather traders’ expectations. In terms of trading, the features demanded are back testing and forward testing facility which can help in making better trading decisions. To prevent loss of any opportunity an alarm function is desired: it sends alert notification via SMS/email when the price of selected coins moves up or below the threshold. Multiple charts in one window would enable better analysis. Social trading, which helps newbies to learn from experienced traders, also got to the list of features traders want to see at crypto exchanges.
Suggestions for Level 1 and Level 2 of Order Book
Order book is the most important element of an exchange. Traders were asked to suggest features that can enhance order book. This question required some professional background from the respondents. Stop loss and limit feature, trailing stop loss to manage risk levels got recalled as the demanded feature concerning stop loss. Traders also had concerns for the design. They would appreciate if it had better UI and graphical representation.
General Exchange Expectations
In such a way, top three requirements for crypto exchanges are security, better user interface and expedited withdrawals. It ought to go without saying that proper liquidity and good trading volume have to be achieved as well.
No crypto exchange is perfect at the moment. Some of them are better, but no players on the market can meet all the requirements of professional traders. Bitcoin was introduced to the public less than a decade ago – and the crypto boost is a trend of the last few years. The story of cryptocurrency exchanges has just begun – and their future is extremely promising.