Encrybit Team Revealed Real-time Cryptocurrency Exchange Problems Survey Insights

Thanks to 1108 Participants!

What are the biggest problems that you see in currently available exchanges?

Each exchange has certain pros and cons. The main issues faced are:

  • 40% of participants said that security is a major concern.

    40%
  • 37% said high trading fees are the chief hurdle.

    37%
  • 36% mentioned lack of liquidity as a concern.

    36%
  • 33% of the participants say that unethical response time from exchange support team on issues like account suspension, 2fa issues, withdraw and deposit information, missing funds while trading.

    33%
  • 22% complained about a lack of crypto pairs hindering good quality trading options.

    22%
  • 21% said current exchanges are not user-friendly and have a non-interactive platform user-interface.

    21%
  • 18% are upset with high withdrawal fees.

    18%
  • 9% opted for nothing and a few had no idea about the issues on trading platform.

    9%

Other individual issues faced by traders are as follows:

  • Advanced trading features such as stop-loss not working properly, and missing trailing-stop-loss functionality.
  • Most traders expect USDT pairing prices to rise when BTC is in a downtrend, but there are only a few coins available in USDT pairing. This is limiting and frustrating for traders.
  • 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.
  • Exchanges unable to keep their new account opening facility open all the time due to influx of people. Because of this issue, many affluent traders were not able to register at their desired exchange.
  • Due to lack of liquidity or slow system execution, sometimes orders are not placed on time. Supply and demand is low on the exchange for some coins so the trader has to wait for required buyer/seller to arrive on the exchange.
  • Fork and airdrop policy is hit-and-miss. Some exchanges pass on coins received in airdrops and forks to their customers. Others are reluctant to do so or flatly refuse and keep them for themselves. This is an unnecessary stress and unethical.
  • 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.
  • Unexpected shutdown of trading platforms, subsequently taking hours or days to get back in action, and that all with no information or notification from exchange support.

Which exchange do you like the most? Mention the features you're fascinated by.

Virtually all respondents referred to centralised exchanges here. These remain the primary choice for traders until decentralised exchange (DEX) versions can improve their value proposition. The current generation of DEXs suffer from poor usability, scalability and liquidity and are not credible alternatives for wide-scale use at present.

  • 27% of participants pointed towards Binance for its good volume and airdrop policy.
  • 19% to Huobi.pro for its superior arbitrage opportunity.
  • 14% of the participants prefer Okex.com because of it’s trading platform and volume.
  • 11% to Bitfinex - Best UI for on-the-spot TA and algorithmic trading options, trading with margin and direct withdrawals in fiat currency.
  • 9% of participants said Bittrex is their favourite because it has good GUI, good coins, easy and simple to use.
  • 13% had a mixed choice of exchanges they like to use such as Kucoin, Bitstamp, Poloniex, Bithumb, Upbit, Coinbase (GDAX) and Hitbtc.
  • 7% of participants didn’t have any preferred exchange which may indicate a need for a better trading platform, or that they are comfortable with any of the existing trading platforms.

Which trading indicator or chart do you think is missing with the currently available exchanges?

This can be a very personal choice for a trader. Often they will have invested lots of research and time to gain expertise with a particular set of indicators.

60% 10% 30%
  • As most of the participants are casual traders, 60% of them said nothing.
  • 10% were not sure what trading indicators are.
  • 30% of them are aware and said the following:
    • [Trading Chart] Line chart and Candle sticks are most common, but Mountain, Bar chart, Renko and Kagi chart is missing.
    • [Trading Indicator] ADX and Stochastics are not available on most of the exchanges.
    • Volume, MACD, SMA, EMA, RSI (Lack of customization).

What are the trading features you want to see in trading software within an exchange which fulfils your trading requirements?

Again this question received a wide variety of answers.

  • As there were many casual traders, 13% of the participants had no expectations for trading features.

Other individual responses included:

  • Back testing and Forward testing facility
  • Alarm function which sends notification via email/sms when the price of a coin moves past set trigger points.
  • Multiple chart windows for better trading and strategy formation.
  • Comparison of different cryptos to aid better trading decisions.
  • Social trading is missing with crypto exchanges.
  • Paper trading.
  • View all fundamentals and technical info for new and current coins.

What do you want to see in Level 1 and Level 2 features such as "Buy/Sell" and "Order Book"? Do you have any suggestions to make it better compared to currently available exchanges in the market?

Level 1 provides only top potential bid/ask for listed price, whereas level 2 provides all available potentials bid/ask for listed price. Some exchanges provide all the available orders in their level 2 order book whereas some show less of them by merging several near-priced orders together. Again this was a more technical and professional question.

  • And so 65% said nothing.

Other suggestions included:

  • Stop-loss and limit feature
  • Alerts on, below or above coin price
  • Order book should have easy to understand UI
  • There should be a graphical representation of the order book.
  • Trailing stop-loss to manage risk levels.

Please add any other issues faced and/or your suggestions/expectations from an exchange.

Again a mixed response from professional and casual traders. The more general responses were as follows:

  • 20% of participants expect an exchange which is simple and easy to use with interactive user interface.
  • 29% demand expedited fiat withdrawals to their bank account.
  • 32% are concerned for security of their deposits.

Other individual responses included:

  • The exchange’s dashboard should have a newsfeed which showcases the latest updates in the crypto world.
  • Integration with modern features like Face ID and NFC.
  • Referral bonuses.
  • Traders' community where traders share thoughts and ideas with each other - such as a discussion forum or chat room.
  • Same fee structure for maker and takers.
  • Margin and lending facility with lower fee.
  • Most traders expect transparent trading and holding policies along with low withdrawal fees.
  • Some traders says they expect all well known coins in USDT pairs.
  • Customer support needs to be timely.
  • More security features like biometric verification via mobile (Face ID and touch ID).
  • Knowledge centre and blog to educate new comers about the crypto exchange and trading features.