While cryptocurrency is revolutionizing the current financial markets, there is still work to be done to get traders to buy in. An upcoming crypto exchange, Encrybit, took it upon themselves to learn exactly what issues traders are facing and the concerns they have as the industry begins to take shape.
Based on survey result from 1108 traders, the insights were pretty clear that the three main concerns traders have with cryptocurrency are security, high trading fees and lack of liquidity. Other key findings were that the advanced features traders rely on were not functioning properly or non-existent on current platforms.
Cryptocurrency is the favorite hacking target of hackers as accounts can regularly exceed million dollar valuations with little to no safeguards in place. This was evident in the survey results with security on a cryptocurrency exchange as the main concern for traders, as traders are skeptical of depositing their hard earned money. Proper security measure are especially necessary as to attract more users to the crypto trading industry. All this has put more pressure on creating a highly secured platform for trading and Encrybit has taken up that challenge.
“There are many hurdles to overcome with regards to crypto exchanges, specifically the regulatory work that must be done,” explains Jiten Rajput, co-founder at Encrybit. “We are focused on learning as much as we can from traders to build the ‘People’s Exchange’, which delivers the highest levels of security and best trading experience that meets all the needs of cryptocurrency traders.”
The survey is a perfect representation of customer demands as the legitimacy of the cryptocurrency industry begins to lay its foundation amongst the traditional trading systems.
Other important insights from the survey include:
In highly volatile markets sometimes profitable trades have been placed, but due to the exchange’s inability to handle high volume trades it has resulted in the day trader missing the opportunity to earn profits.
The largest exchanges do not support fiat currency which means traders are forced to buy BTC/ETH from a ‘gateway’ exchange before transferring it to the crypto exchange to trade with. This process takes time as well incurring a fee for the transfer.
Binance and Huobi are the two most likeable cryptocurrency trading platforms.
Over 60% of current crypto traders are not aware or using any type of charting when performing their trades. This can be seen as a missing feature on many current platforms.
The majority of features requested were features already found in traditional stock trading platforms.
What was evident from this survey was that there is a growing desire to start trading in cryptocurrency once the hurdles outlined in the results are addressed. As cryptocurrency continues to become more mainstream and consumer demand grows, banks and regulators are being forced to adapt to this new form of trading. At the same time, the exchanges know the need for the highest safeguards and standards possible required to gain trader trust and adoption at increased rates.
While once at odds with one another, there appears to be a relationship forming between banks, regulators and exchanges as the desire to invest in cryptocurrency becomes as simple and efficient as stocks & bonds have been for the past couple of decades. Exchanges like Binance, Huobi, Okex, Bitfinex, Bittrex, Coinbase and countless others are already ahead of the game, but as Encrybit has prioritized the needs of its traders, it is well positioned to overcome them all as the industry leader.