5 Common Issues Beginners Encounter With Cryptocurrency Exchanges – Block Build Africa

Between 2020 and 2021, there was a bull run in bitcoin that attracted many new players to the market. The tools needed to trade and make money are available on existing trading platforms.
Trading can be challenging for newcomers on cryptocurrency exchanges. The development of Altcoins (cryptocurrencies other than Bitcoin) has mirrored Bitcoin’s YTD growth of more than 300%. Numerous new people entered the industry as a result of the large upswing.
Some major corporations, like Microstrategy, Square, Tesla, Grayscale Investments, and BlackRock, have shown interest in cryptocurrencies and included them in their balance sheets.
Also, El Salvador become the first nation to recognize Bitcoin as legal cash, and a number of other nations have expressed interest. Chainalysis reported that the adoption rate increased by 880% in 2021.
Also read, Top 5 Cryptocurrency Exchanges
According to a Crypto.com estimate, there will still be 220 million active cryptocurrency users in 2021. Between February and May 2022, the number increased twofold.
Although adoption is a good thing, cryptocurrency has been around for more than ten years. Thankfully, there are lot of places where newcomers can learn more about crypto and find valuable information, such as online platforms.
However, trading cryptocurrencies is still a challenging undertaking, and using cryptocurrency exchanges can present a number of challenges for newcomers.
Issues Newcomers To Cryptocurrency Exchanges May Run Into
Payments on trades made by users are how exchanges generate revenue. Additionally, there is a fee for both depositing and withdrawing cryptocurrency.
Furthermore, a user might need to complete repeated transactions if they can’t discover their desired pair.
The overall fees will eventually increase due to this. Lastly, it’s possible that you won’t find your new favorite altcoin on the exchange.
You must be aware of exchanges shutting down during significant market movements. Your funds won’t be available at that point. Consider custody.
Additionally, there is a history of exchange hacks that cost users money. Numerous user data exposures also result in a lot of phishing attempts.
People may need some time to fully understand bitcoins. Additionally, a novice may become overwhelmed by the intricate nature of trading bitcoins.
The convoluted user interface of the exchanges is the main problem that needs to be addressed. Take a look at a cryptocurrency exchange. The user interface often includes an order book, trading pairs, and a market candlestick chart.
The key functionality needed for trading cannot be removed, notwithstanding efforts to make the trading interface simpler. Although the tools are very beneficial to professionals in trading, they can be challenging for novices.
To use the services of almost all cryptocurrency exchanges, a user must first register for an account. KYC verification is also required to trade cryptocurrencies.
The verification process could take several hours or perhaps several days. The users may potentially lose out on chances as a consequence of this.
Exchanges for cryptocurrencies can be custodial and demand that users deposit money into their exchange accounts.
The fundamental ideas of cryptocurrencies, such as self-custody, and asset control, are undermined by this. One of the main issues newcomers to bitcoin exchanges may run across is self-custody.
A user might not have total control over cryptocurrencies as long as they are in the exchanges’ accounts.
Centralized exchanges might not be appropriate for a crypto novice seeking self-custody.
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