What are the disadvantages of cryptocurrency exchanges?

[krauzzer02]

Exchanges have different types of identity when it comes to disadvantages, high fees, low account security, withdrawal or deposit delays, Slow response or no response from support at all etc. its pretty easy to track all those exchanges so I'm not going to mention those exchanges one research leads to a bunch of results and reviews about those platforms, well it sucks to pay overpriced fees for trading and withdrawal added by the platforms rules and disadvantages, have to research first before dealing with centralized exchanges.

[1715675779]

1715675779

[1715675779]

1715675779

[1715675779]

1715675779

[Barcode_]

Some crypto-currencies exchanges are charging their customers extremely high fees for withdrawals, and I always try my best to avoid using their services, because I believe one of the main reason for using crypto-currencies instead of fiat money is to save money on transaction cost, and it totally makes no sense to me when I see the high withdrawal fees charged by some of the crypto-currencies exchanges.

[manggis97]

Now many blockchain project already make product to make more easy to buy and sell crypto just like buy mineral water,  one of that project is Pundi X that has live product already and the development of this product keep growth.  I have seen video from Pundi X twitter official that shown many people already used this product for daily transaction. Mass adoption of crypto is just beginning and will be keep bigger .

[wayancrypto]

Currently alot of exchange has low liquidity because the trading volume is very low, and this one of the advantages of crypto exchange. All exchange should be has program to attrack new trader and investor by give education by online or offline how to trade and to explain what is benefits of crypto and blockchain technology. With alot of trader on the platform will create better liquidity in trading.

[Coin_trader]

Trading fees and some other transaction fees are the disadvantages of the trading exchanges, these charges are killing the small traders and make it difficult for them to use those good trading exchanges that charge higher fees in comparison to those small exchanges.

[iMark]

There are many but this ara the things that bugs me most. most exchanges does not support deposits or withdrawals of fiat currencies,Does not support margin trading and lending,Wait times high because of low liquidity,Slow customer support.

There are exchangers that do have those features or functions it would just matter on how you do search up.

Thats Right, I think there are some exchanges that provide features like lending, of course with conditions such as identity verification, you can get it on poloniex. they have that feature, and in my opinion almost all exchanges have the option to receive deposits and withdraw to fiat

[dunfida]

Trading fees and some other transaction fees are the disadvantages of the trading exchanges, these charges are killing the small traders and make it difficult for them to use those good trading exchanges that charge higher fees in comparison to those small exchanges.

Then what would you suggest? Knowing that Exchangers are also businesses and they would really need to profit out from trades. Common fee ranges arent really that high where small traders cant able to cope up with it. I dont see fees are disadvantanges unless if they set out high % then it would be an another issue. The thing i do complain with exchange is that when they do set out KYC since they are following government rules then as a user or trader we wont really have any choice.

[wayaneka]

Disadvantages of crypto exchanges is they can not give high level of security for fund all users, when exchange get hacked the user can be loss some or all of the fund, and the fund of user should be guarantee safe by exchange. When exchange get hacked they should be take responsibility and make sure all of ther user will not loss. I really like Binance that was create Secure Asset Fund for Users (SAFU) to protect their user.

[1Referee]

Disadvantages of crypto exchanges is they can not give high level of security for fund all users, when exchange get hacked the user can be loss some or all of the fund, and the fund of user should be guarantee safe by exchange.

There are no guarantees in exchange land, especially with how most of them don't want to get rid of instant withdrawals. Bitmex manually processes withdrawals once a day, which is something I would like to see other exchanges do as well, but that would piss off their noob and arbitrage users, so they don't.

It's up to you to accept the risk of having the exchange you send your coins to not lose them, because exchanges will always be a hot target due to their hot wallets.

I really like Binance that was create Secure Asset Fund for Users (SAFU) to protect their user.

I saw the term SAFU pop up a few times on social media and thought it was a meme sort of a thing, lol. Interesting.

[sedahan13]

Disadvantages of crypto exchange is many of them can not guarantee the fund of all user if they get hacked or others similar case. So trader has another risk from that, beside the high fluctuacion of crypto. So i hope all exchange provide guarantee with insurance for fund of all user.  I support for decentralized exchange to be more popular and more decentralized exchange launching with better feature than centralized.

[LUCKMCFLY]

I think the main and most alarming considerations for the disadvantages are:

1.- To enter a position you must choose to enter only with Stop Loss, or not place Stop Loss but Take Profit.
2.- That do not allow entry through Margin Trade, but simply to trade only in the bull market, that is, only buy currency and wait for it to increase to obtain profits.

There are many level 1 exchanges, which have these disadvantages, in the case of (1.-) you have to choose between entering with Stop Loss, which forces you to stay on the chart as long as necessary to see if it arrives to your  profit, I think this is not good for the trader , because it creates dependence and much more stress than normal. And if it enters placing the Take Profit and does not protect with Stop Loss, in less than 10 seconds the market can come against, and if you are not in the graph you can move to a very losing position.

For the case (2.-) we know that the market corrects, and many exchanges do not allow entries in Margin Trade, which limits the ability of the trader to trade with the freedom it deserves.

[Distinctin]

Disadvantages of crypto exchange is many of them can not guarantee the fund of all user if they get hacked or others similar case.

That's the risk, so we should be more careful in choosing an exchange, only choose those we feel we are secured and will cover the insurance
in case their site is hack. Unfortunately, I don't find anything like that in the market, hopefully there will be one in the future.

So trader has another risk from that, beside the high fluctuacion of crypto. So i hope all exchange provide guarantee with insurance for fund of all user.  I support for decentralized exchange to be more popular and more decentralized exchange launching with better feature than centralized.

Full of risk here but we can get a good reward, I'm expecting that every trader is already aware of these things as they might read some feed back from traders on the exchanges that were hack before. It's their decision whether to still trader or not, I don't know about coinbase, i guess they have insurance, just not sure about it.

[Coin-Desk]

There are many difficulties in cryptocurrency exchanges. Firstly, cryptocurrency exchanges require a lot of capital. And many of them are cryptocurrency exchanges because of which cryptocurrency exchanges cannot be beneficial. Exposing cryptocurrency increases human tension. Because of which many people are under pressure. And this human pressure is never good for the body. To exchange cryptocurrency, there is a good idea about the market. Because of the price of cryptocurrency when it can be increased or decreased. At any moment the price of cryptocurrency can be reduced, resulting in many losses. There are also many more difficulties with cryptocurrency exchange. Many people have benefited from cryptocurrency exchanges.

Thank you.

[guoyu78]

I think the main and most alarming considerations for the disadvantages are:

1.- To enter a position you must choose to enter only with Stop Loss, or not place Stop Loss but Take Profit.
2.- That do not allow entry through Margin Trade, but simply to trade only in the bull market, that is, only buy currency and wait for it to increase to obtain profits.

There are many level 1 exchanges, which have these disadvantages, in the case of (1.-) you have to choose between entering with Stop Loss, which forces you to stay on the chart as long as necessary to see if it arrives to your  profit, I think this is not good for the trader , because it creates dependence and much more stress than normal. And if it enters placing the Take Profit and does not protect with Stop Loss, in less than 10 seconds the market can come against, and if you are not in the graph you can move to a very losing position.

For the case (2.-) we know that the market corrects, and many exchanges do not allow entries in Margin Trade, which limits the ability of the trader to trade with the freedom it deserves.

Well, it depends on the trading platform you are using or the exchanges you are using, most exchange now have upgraded and does allow entry into margin trading and if I may understand you clearly, are you saying most exchanges does not have facility for stop loss in trading which I believe is not true, there are couple of exchanges available that allow stop loss though some of them don’t allow this because it reduces their profit but I can confidently tell you that Binance, poloniex,coinbase and karaken allow this tools.

[akram143]

I think cryptocurrencies leads to the next development of the world so the Christie exchanges must be more convenient and trustable for everyone can you only the strong field are going higher and higher otherwise there are some of the disadvantage are also here in exchanges we all know that but we cannot regret that it need to be changed but definitely the future will have some changes also.

[neonshium]

Every day the popularity of cryptocurrencies is increasing. Millions of people – traders, politicians, financiers, analysts-follow the dynamics of their rates. However, nowadays, the use of digital assets is difficult. Even the purchase and exchange of cryptocurrencies are associated with problems - currency rates on different platforms are very different, and a solid commission is charged when withdrawing funds.

I first selected the no KYC requirement because this is my best concern when I want to register on an exchange, I rather split my coin between different exchange and trade within the limit set by this exchanges than to carry out a KYC process which is also the main reason crypto was created to fight against.

I also selected low trading fees because most exchange has hilarious trading fees and I believe a DEX with a very low trading fee would be nice.

[iv4n]

Every day the popularity of cryptocurrencies is increasing. Millions of people – traders, politicians, financiers, analysts-follow the dynamics of their rates. However, nowadays, the use of digital assets is difficult. Even the purchase and exchange of cryptocurrencies are associated with problems - currency rates on different platforms are very different, and a solid commission is charged when withdrawing funds.

I first selected the no KYC requirement because this is my best concern when I want to register on an exchange, I rather split my coin between different exchange and trade within the limit set by this exchanges than to carry out a KYC process which is also the main reason crypto was created to fight against.

I also selected low trading fees because most exchange has hilarious trading fees and I believe a DEX with a very low trading fee would be nice.

Over the time we all have to do kyc, to verify somewhere if we wish to continue with using their service. I avoid doing that, like you I split my amount and I trade on several exchanges. Exchanges are working under a law of the country where they are registered, I don`t think it`s disadvantage, for some it is, but it`s more like a minor obstacle. Who from us doesn`t like low trading fees, it`s sure advantage for traders.

[MFahad]

Some crypto-currencies exchanges are charging their customers extremely high fees for withdrawals, and I always try my best to avoid using their services, because I believe one of the main reason for using crypto-currencies instead of fiat money is to save money on transaction cost, and it totally makes no sense to me when I see the high withdrawal fees charged by some of the crypto-currencies exchanges.

Cryptocurrency Exchanges want their customer to keep the funds within the exchange. In order to discourage the withdrawal from the exchange, they charge high fee.

I myself keep some funds always in the exchanges even if i am not trading. I know that if i move my finds out to my wallet, then few days later i might have to trade and transfer funds back to exchange,so to avoid High transfer fee i keep my funds within the exchange.

[LUCKMCFLY]

I think the main and most alarming considerations for the disadvantages are:

1.- To enter a position you must choose to enter only with Stop Loss, or not place Stop Loss but Take Profit.
2.- That do not allow entry through Margin Trade, but simply to trade only in the bull market, that is, only buy currency and wait for it to increase to obtain profits.

There are many level 1 exchanges, which have these disadvantages, in the case of (1.-) you have to choose between entering with Stop Loss, which forces you to stay on the chart as long as necessary to see if it arrives to your  profit, I think this is not good for the trader , because it creates dependence and much more stress than normal. And if it enters placing the Take Profit and does not protect with Stop Loss, in less than 10 seconds the market can come against, and if you are not in the graph you can move to a very losing position.

For the case (2.-) we know that the market corrects, and many exchanges do not allow entries in Margin Trade, which limits the ability of the trader to trade with the freedom it deserves.

Well, it depends on the trading platform you are using or the exchanges you are using, most exchange now have upgraded and does allow entry into margin trading and if I may understand you clearly, are you saying most exchanges does not have facility for stop loss in trading which I believe is not true, there are couple of exchanges available that allow stop loss though some of them don’t allow this because it reduces their profit but I can confidently tell you that Binance, poloniex,coinbase and karaken allow this tools.

Well, I mean open a position: Stop Loss and Take Profit at the same time. I understand that only Bitfinex and Bitmex allow it, previously Kraken, but Kraken no longer owns it.
Why do I say it? If I enter a position with Stop Loss, I must be waiting on my PC until I reach my goal, if I place it automatically, it should not be pending on the graph, and what will happen if I lose, simple I assume my loss and if I win excellent But both they are only in Bitfinex and Bitmex. In poloniex, you can also enter a margin, but you do not have: Stop Loss and Take profit that can be set at the same time ... Only Stop Loss or Take Profit.

[JohnBitCo]

I think the main and most alarming considerations for the disadvantages are:

1.- To enter a position you must choose to enter only with Stop Loss, or not place Stop Loss but Take Profit.
2.- That do not allow entry through Margin Trade, but simply to trade only in the bull market, that is, only buy currency and wait for it to increase to obtain profits.

There are many level 1 exchanges, which have these disadvantages, in the case of (1.-) you have to choose between entering with Stop Loss, which forces you to stay on the chart as long as necessary to see if it arrives to your  profit, I think this is not good for the trader , because it creates dependence and much more stress than normal. And if it enters placing the Take Profit and does not protect with Stop Loss, in less than 10 seconds the market can come against, and if you are not in the graph you can move to a very losing position.

For the case (2.-) we know that the market corrects, and many exchanges do not allow entries in Margin Trade, which limits the ability of the trader to trade with the freedom it deserves.

Well, it depends on the trading platform you are using or the exchanges you are using, most exchange now have upgraded and does allow entry into margin trading and if I may understand you clearly, are you saying most exchanges does not have facility for stop loss in trading which I believe is not true, there are couple of exchanges available that allow stop loss though some of them don’t allow this because it reduces their profit but I can confidently tell you that Binance, poloniex,coinbase and karaken allow this tools.

Well, I mean open a position: Stop Loss and Take Profit at the same time. I understand that only Bitfinex and Bitmex allow it, previously Kraken, but Kraken no longer owns it.
Why do I say it? If I enter a position with Stop Loss, I must be waiting on my PC until I reach my goal, if I place it automatically, it should not be pending on the graph, and what will happen if I lose, simple I assume my loss and if I win excellent But both they are only in Bitfinex and Bitmex. In poloniex, you can also enter a margin, but you do not have: Stop Loss and Take profit that can be set at the same time ... Only Stop Loss or Take Profit.

I think stop loss or take profit is a very good feature which should be implemented in every exchange. Due to ever changing volatile marketing, we never know when the price can dump and we might mot be available online to sell. This is where stop loss comes in handy and it prevents us from big loss.
Stop loss is so much used today but not many exchanges offer this feature.