The recent Bitcoin bull run not only resulted in gains for the HODLers but also many new users entered the market. While some may feel comfortable with the tools currently available, there are still many issues. Let us address some of the problems beginners may face with cryptocurrency exchanges.
In the last year, Bitcoin grew more than 300%, and Altcoins (cryptocurrencies other than Bitcoin) followed. The impressive bull run gained a great deal of attention from all sets of people.
We have seen large companies like Microstrategy, Square, Tesla, Grayscale Investments and BlackRock investing in cryptocurrencies. On the other hand, El Salvador making Bitcoin a legal tender and other countries showing similar interest fueled the growth of adoption.
Recently, Chainalysis reported that the global cryptocurrency adoption rate grew by 880%. Research conducted by Crypto.com showed that the number of crypto users doubled between February and May. As of June 2021, there were over 220 million active users of crypto.
Wait, isn’t adoption great?
It is indeed great, and it’s a good time to be in the cryptocurrency industry. And the new entrants have plenty of resources at their disposal to get to know the basics.
But, it’s a completely different game when it comes to exchanging cryptocurrencies. There are several problems beginners may face with cryptocurrency exchanges.
Problems Beginners May Face With Cryptocurrency Exchanges
Complicated User Interface
There is a notion that cryptocurrencies are complicated, and using the exchanges can be overwhelming at times. Almost all the trading platforms interface includes a market candlestick chart, order book, trading pairs and several other advanced features.
Many are doing a great job at simplifying this. Still, we cannot remove some of the essential tools required for trading. Despite the advantages these tools offer, the complicated user interface may scare off beginners.
Accounts and Custody
Most cryptocurrency exchanges require users to create an account to access their services. Furthermore, KYC verification is a mandatory requirement to trade cryptocurrencies on the platforms.
In some cases, the verification may take a few days to complete, which may result in the loss of opportunities for the users.
Cryptocurrencies go on the narrative of financial freedom and complete control of an individuals’ wealth by themselves. Whereas exchanges are custodial and hold the cryptocurrencies of the users. This is the biggest problem beginners may face with cryptocurrency exchanges.
Every beginner should ask themselves why is it bad to keep cryptocurrency on exchanges.
Because as long as the cryptocurrencies are in the exchange accounts, the user does not fully have control over them. In other words, not your keys, not your coins. Beginners looking to trade while keeping full control over their funds may not find centralized exchanges suitable.
Technical Issues and Security Breaches
You must’ve seen the memes on some exchanges going offline when there is a big movement in the market. Not only the exchange is offline, but your cryptocurrencies in the exchange account will not be accessible.
Also, several hacks resulted in the loss of user funds in the past. Data breaches also took place in which bad actors used the user data to run phishing attacks.
Fees and Pairs
To conduct a trade on a cryptocurrency exchange, a user would need to deposit cryptocurrencies, place the orders, then finally withdraw the funds. All these steps may include fees, and that’s how exchanges make money.
Also, a user has to go through multiple transactions to achieve their preferred pair if the exchange doesn’t offer it. The multiple transactions also add up to the fees.
Besides, the selection of cryptocurrencies may not be huge on the exchanges.
But, what’s the solution to the problems with exchanges?
Unlike the traditional trading platforms, ChangeHero is an instant cryptocurrency exchange that mostly solves the problems beginners may face with cryptocurrency exchanges. The user interface of ChangeHero eliminates complicated aspects of trading and delivers a clean UI with all the necessary information.
There is no requirement to create an account on ChangeHero to exchange cryptocurrency. Also, no need to worry about order books, charts, ChangeHero takes care of everything.
A user can start exchanging cryptocurrencies right from the homepage. ChangeHero offers 70 cryptocurrencies for instant exchanges, and there are over 4000 exchange pairs.
In terms of fees, ChangeHero is non-custodial, and you don’t have to create an account. This, in turn, eliminates the deposit and withdrawal fees when conducting an exchange.
The only fee ChangeHero charges are the commission to process an exchange. For the Best Rate transaction, the fee will be 0.5% and 0.7% in case of a Fixed Rate transaction. The platform does comply with the AML and KYC regulations and follows a risk-based ranking approach. A KYC verification will be implemented if a transaction is flagged by the system.
As ChangeHero is integrated into various exchanges, even if one is down, it will not affect the functioning of the service. Users of ChangeHero get uninterrupted service.
ChangeHero does offer a possible solution to the problems beginners may face with cryptocurrency exchanges. But, the platform does have limitations such as no advanced charting tools, margin trading, etc.
However, ChangeHero and other instant cryptocurrencies exchanges function as an alternative to the traditional trading platforms.
ChangeHero is on a mission to simplify the cryptocurrency exchanges and contribute to mass adoption. If you are a beginner looking to quickly exchange cryptocurrencies without any complications, then ChangeHero is the place to go.