Top 5 Issues with Existing Crypto Exchanges and How a Newcomer Will Level Up the Game
Crypto exchanges are essential for the health of the cryptocurrency market, yet they are not without their problems. Some of these can endanger the whole industry, unless existing market leaders work towards their resolution.
One new player on the market called VFIN is planning on meeting these challenges head on. Let’s see which are the core issues the exchange will try to tackle.
The weak points of current exchanges according to their users
A study among cryptocurrency exchange users managed to pinpoint the exact issues they perceive with current solutions on the market. Here are the top five, starting with the most important ones.
Security: 40% of respondents claimed that they are not comfortable with the current level of security offered on crypto exchanges. This is a very considerable issue, yet it is not without a cause — with multiple cases of stolen funds, hacker breaches and exchanges going bust due to illiquidity events, people are right to be concerned. This is calling for increased care in the design of the technical infrastructure behind the exchange, but also for additional mechanisms such as external audits on funds storage. Regulatory oversight, while not necessarily encouraged, might prove necessary at least in the short term in order to protect investors and their money.
High fees: High trading fees (37% of users) and withdrawal fees (16% of users) are the second biggest concerns of traders and investors. These can sometimes go as high as 5% or more, which pushes the break-even point further. Considering that merely 10% of all day traders reach that point, it can be a considerable challenge for those who like to frequently place orders and move their money.
Customer support: One third of users complain of bad customer support, which can be frustrating especially when dealing with delayed deposits or withdrawals. Even some of the leading exchanges are known to offer poor service, leading to many complaints and loss of trust on behalf of users in the reliability of the exchange.
Lack of trading options: One fourth of users claim that there aren’t enough crypto pairs to trade with. This issue is especially prominent with smaller and some medium-sized exchanges. The lack of trading options can result in user dissatisfaction, as they are either forced to swap first to another currency (for which they have to pay fees), or to outright search for other options outside the exchange.
Bad UI and UX: While this concern is at the bottom of our list, it is one that is not to be underestimated. 20% of exchange users are reporting that the user interface of their preferred platform is cluttered and that the user experience is not intuitive. Especially for new investors it could be overwhelming when confronted with multiple options that are not well explained or with processes that consist of multiple steps. This can be solved through an interactive onboarding process, free guides and knowledge resources that are directly available in the menu, as well as with a more careful approach when it comes to the UX / UI design.
The VFIN exchange — a new alternative
The VFIN exchange attempts to solve all of the aforementioned issues by targeting them directly with a specific mix of technical and methodological solutions engineered after years of planning.
Security is at the core of VFIN’s efforts in designing a crypto exchange like no other. It all starts at the technical backbone used to ensure that the potential success of direct attacks from hackers will be minimized as much as possible. Beyond that, however, VFIN incorporates additional mechanisms that are aimed at ensuring the safety of investors’ funds and to reduce the possibility of illiquidity events. Most of the funds will be stored in cold storage, while regular independent third party audits will confirm that the majority of investors’ money is not outside the exchange.
VFIN plans on offering fees way below the industry average. To encourage fast adoption, during the first two years of the exchanges’ launch, the trading and withdrawal feels will be reduced by a considerable percentage. A wide variety of trading pairs is envisioned already for the first phase of VFIN, providing great conditions for experienced cryptocurrency users who want that high degree of flexibility.
Customer support in multiple languages will be one of the top priorities for VFIN, but even more importantly, the exchange will work towards the implementations of a highly intuitive UX and UI, an interactive onboarding process and multiple FAQ sections and knowledge resources that will overall minimize the total number of support inquiries.
The VFIN exchange is envisioned to become a one-stop ecosystem for cryptocurrency traders and investors. If you are interested in learning how you can become one of the first users and an investor in the project entitled to a percentage of all future trading fees, visit their website and consider signing up for the whitelist: www.vfin.tech