Cryptocurrency & Blockchain Business
Bruno Cerqueira

How to innovate and simplify the cryptocurrency exchange space

Share on facebook
Share on twitter
Share on linkedin
Share on telegram
Share on whatsapp
Share on pocket
Share on vk
Share on reddit

If there’s a market that exploded with new users over the last year we can all agree it’s in the cryptocurrencies space, although cryptos have been traded these last couple of years, the boom experienced in 2017 brought millions of new traders to the market, some of them with zero knowledge on how an exchange works or how to trade any asset.

Even worst, this boom created the opportunity for new exchanges to arrive, most of them in the altcoin division with absurd complexity and poorly user-friendly experience and design, which only adds on to trader’s frustration and many times loss of capital by doing thigs the wrong way.

Currently there are literally hundreds of cryptocurrency exchanges available and yet there are still issues to be solved both for experienced and newcomer traders.

I came across a survey done by Encrybit that I wish to have seen sooner in this market, basically it addressed traders complaints, wishes, frustrations and sentiment regarding current cryptocurrency exchanges offers in general, which provided some insights that are clearly in tone with my owns.

Let’s analyze the survey questions and the answers provided by 1108 participants:

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.

  • 27% of participants pointed towards Binance for its good volume and airdrop policy.
  • 19% to for its superior arbitrage opportunity.
  • 14% of the participants prefer 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.

  • 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).

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.

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.

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 center and blog to educate new comers about the crypto exchange and trading features.

The Encrybit proposal

With all this gathered data and insights, Encrybit proposes to position itself has a reference for all traders, if you’re like me, and the majority of people who took part in this survey, you know there’s still a lot of work to be made in order to simplify the trading process for newcomers and, at the same time, provide more efficient and advanced tools to more experienced traders keeping all operations safe, fast, efficient and pleasant to use.

What is Encrybit?

Encrybit is a cryptocurrency exchange platform offering powerful trading solutions for crypto traders to utilise their trading skills.

  • Social trading functionality enables users to share trades and ideas within the community.
  • Encrybit’s order matching algorithm can handle 1M orders/second with three tier security to safeguard all crypto assets.
  • Encrybit’s powerful built-in technical analytics will enable professional level TA capabilities for a large and constantly growing number of cryptocurrencies.
  • The Encrybit custom market overview enables users to set up their ideal trading environment. From here users can reach extensive market research, analytics, strategies, signals and social feeds.

What features encrybit proposes

  • Trailing- Stop Loss / Limit
  • Stop – Loss / Limit & Trailing Stop Loss
  • Interactive technical charts and tool to analyze coin growth
  • Social trading with Crypto exchange
  • BI structured profit and loss reports
  • Feature to set alerts / notification on movement
  • Others to be reviewed from the survey results

In order to achieve this Encrybit is planning a private sale phase for their ICO, for more details check their website.

To be honest, I’m not really into the ICO scene these days, but has a trader myself, this is a project that caught my attention and may be of interest to you has a trader or investor.

If you enjoyed this article please share it for others to read

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on reddit
Share on telegram
Share on whatsapp
Share on pocket
Share on email
Share on vk

Leave a Reply




News by Month
Scroll to top