Cryptocurrencies are now a decade old. It all started with an obscure paper written by the anonymous and famous, Satoshi Nakamoto and the launch of the first cryptocurrency, Bitcoin. In the coming years, crypto assets have made their impact known across the globe.
Altcoins: The Explosion
Although Bitcoin is still the industry leader in terms of market capitalization, it is not the largest cryptocurrency that caused the industry to really kick off. Vitalik Buterin’s crypto ecosystem Ethereum was the turning point. It allowed anyone to launch his or her own cryptocurrency, piggybacking on the main Ethereum network. Today, there are more than 2,000 active crypto assets.
With such a vast number of crypto assets, market places were the next logical step, where people could buy, sell and exchange the assets. Thus, crypto exchanges were born.
Crypto Exchange Issues
Crypto exchanges, as the name suggests, are online marketplaces where crypto holders can buy and sell cryptocurrencies just like traditional ForEx or stock exchanges. These exchanges, although working in a similar manner to regular ones, have one distinct feature.
Being totally virtual and online, they are not bound by a physical place and anyone from any part of the world can register and start trading (barring some local legislation). This means that people have multiple options when it comes to trading places.
Crypto exchanges though come with big issue. With so much complexity involved, many exchanges do not provide the best of services. A particular exchange may have very cheap trading fee, but it will counter that with a high deposit or withdrawal fee. Some of the issues most faced are:
- Deposit Methods are Limited: An investor or trader may not have the option to deposit his fiat or crypto through the method he or she prefers.
- Limited Trading Pairs: Many exchanges offer a very small selection of cryptocurrencies to trade from. Even the largest exchanges, that may have very broad selection of crypto assets, have limited trading pairs and traders may not always find the cryptocurrency or its relevant trading pair to buy or sell.
- Lesser Known Exchanges: Many exchanges have support of a larger selection of cryptocurrencies and their trading pairs, but not many people know about it
- Security Concerns: Crypto exchanges are prone to hacks and other phishing attacks due to the large volume of cryptocurrencies. Traders are mostly wary of shifting their exchange due to security concerns. This means exchanges that offer a higher security are still not preferred.
Cryptowisser is an online information platform dedicated to the crypto industry, particularly the traders. To help its users, it held an online survey, asking about the exchange they used and what they particularly looked for in an exchange. The survey was answered by nearly 300 participants. The results were alarming. According to the survey, 86% of traders were using an exchange that did not satisfy their need. In short, an overwhelming majority was using a “wrong” exchange.
The survey went deeper than just noting that people were using an exchange that did not suit their needs. Nearly 10% of the people responded with surprise on the withdrawal fee their respective exchanges charged them for moving out their assets. This was not limited to cryptocurrencies only, but on fiat withdrawals as well.
On this, one of the of co-founder of Cryptowisser said about this issue, “the results of the survey simply shows that it is very important to carefully consider the offering of a cryptocurrency exchange before starting to trade there. Choosing the right cryptocurrency exchange is not as important as choosing the right cryptocurrency to purchase, but it is so much more important than the general public thinks”
For traders and new entrants, who are not sure on which exchange to use, Cryptowisser has a simple six question survey. The questions are easy, such as preferred fee, deposit methods and cryptocurrencies that the test taker would like to purchase. After answering these questions, the user is given a list of exchanges that satisfy their need. The list is easy to understand and has the information displayed, highlighted for ease of use.
Cryptowisser also has a list of the most safe cryptocurrency wallets, debit cards and merchants. This allows users of any level to quickly view what crypto related service best suits them. Cryptowisser, in its goal to give crypto traders the best of information, gives all of this information free of cost.
So, are you using the correct exchange or the wrong one? Head over to Cryptowisser and know for yourself.