The Bitcoin bull run between 2020 and 2021 brought a lot of new entrants into the market. Current trading platforms have the necessary tools for the pros to trade and bag profits. When it comes to beginners, trading can be tricky. Here’s us addressing the problems beginners may face with cryptocurrency exchanges.
Bitcoin year-to-date growth is more than 300%, and altcoins (cryptocurrencies other than Bitcoin) followed. The massive rally brought a lot of new people into the industry.
Some of the big companies like Microstrategy, Square, Tesla, Grayscale Investments and BlackRock showed interest and added cryptocurrencies to their balance sheets. We witnessed El Salvador become the first country to make Bitcoin legal tender, and several other countries showed similar interest.
In terms of adoption, the rate rose by 880%, according to a recent Chainalysis report. Crypto.com analysis shows that there are 220 million active users of crypto. The number doubled between February and May.
Adoption is indeed a great thing, and cryptocurrency is over a decade old. Fortunately, there are numerous sources of useful information available for the new entrants to learn more about crypto.
On the other hand, trading cryptocurrencies is still a complicated task.
Problems beginners may face with cryptocurrency exchanges
Complicated user interface
It may take some time for users to get their heads around cryptocurrency.
If we consider a cryptocurrency exchange, the user interface generally consists of a market candlestick chart, order book, trading pairs and several other advanced features.
Despite the efforts to simplify the trading interface, it is impossible to remove the essential features required for trading. Though the tools offer great advantages to the pros in trading, beginners may have some difficulties.
Accounts and custody
Almost all cryptocurrency exchanges require a user to create an account to use their services. In addition, know-your-customer (KYC) verification is mandatory to trade cryptocurrencies. The verification may take a few hours or even a few days. This may even result in the loss of opportunities for users.
Cryptocurrency exchanges can be custodial and require a user to deposit their funds into the exchange’s accounts. This negates the fundamental principles of cryptocurrencies, such as self-custody and control over wealth. However, self-custody can be one of the biggest problems beginners face with cryptocurrency exchanges.
Not your keys, not your coinsas long as the cryptocurrencies are in the exchange’s account, a user may not have complete control over them. A beginner in crypto looking for self-custody may not find centralized exchanges suitable.
Technical issues and security breaches
Exchanges can go down when there is a big movement in the market. At that time, funds will not be accessible. Remember custody?
Also, there’s a history of exchange hacks that has resulted in the loss of user funds. Several data leaks also lead to many phishing attacks.
Fees and pairs
Exchanges make money through trading fees. There is also a fee on the deposit and withdrawal of cryptocurrencies. Furthermore, if a user is not able to find their preferred pair, they may need to go through multiple transactions. This will eventually increase the total fees.
Finally, you may not see your new favorite altcoin on the exchange.
So what’s the solution to the problems with exchanges?
In the last few years, there has been a rapid growth in a new form of crypto exchange called instant cryptocurrency exchanges.
Their main offering is to provide the users with an easy way to exchange cryptos. ChangeHero is one such instant cryptocurrency exchange that solves the challenges beginners may face with cryptocurrency exchanges.
The interface of ChangeHero is clean and eliminates complicated trading features. There will be no more order books and charts. ChangeHero takes care of the trades for you and delivers you an easy-to-use cryptocurrency exchange.
ChangeHero makes sure that the necessary information is readily available to the users.
The best part is thatthere is no requirement to create an account on ChangeHero to exchange cryptocurrency. One can initiate an exchange from the widget on the homepage. You can choose from 70 cryptocurrencies, and there are over 4,000 exchange pairs.
ChangeHero is non-custodial, and there is no requirement to create an account. As there is no account, this eliminates the need for deposit and withdrawal fees to conduct an exchange.
Like we mentioned earlier, exchanges make money only through fees, and ChangeHero is no exception. For the ‘best rate’ transaction, the fee will be 0.5%, and 0.7% in case of a ‘fixed rate’ transaction.
ChangeHero complies with anti-money laundering (AML) and KYC regulation and uses a risk-based mechanism to enforce KYC procedure. A user might be asked to go through a KYC verification if the transaction gets flagged by the system.
ChangeHero is integrated into various exchanges. If an exchange is down, there will be no impact on the platform. A beginner can enjoy uninterrupted service on ChangeHero.
ChangeHero does offer a solution to the problems beginners may face with cryptocurrency exchanges. However, it comes with some drawbacks, such as the lack of advanced trading tools and features.
Despite the limitations, ChangeHero is an essential alternative to trading platforms.
ChangeHero is easing the process of exchanging cryptocurrencies. This indeed benefits crypto beginners and also drives mass adoption. The platform is apt for beginners in crypto who want to swap without worrying about order books or accounts.