Cryptocurrency exchanges are utilized by cryptocurrency holders to retailer their crypto property or to commerce cryptocurrencies. There are a whole lot of exchanges out there at the moment, and it may be tough for cryptocurrency holders to decide on which trade most accurately fits their wants. Actually, most merchants use a couple of trade — each to hedge threat and to reduce advantages. How do merchants make their choices? Under, you’ll discover some attention-grabbing and even stunning insights.

How was this survey performed?

On this survey, the BDCenter digital company teamed up with the sociology division of the Belarus State College, publishing the report in October, 2019. Greater than 800 merchants from 75 international locations had been requested 30 questions. Researchers had been searching for solutions to the next 4 teams of questions:

  • What makes a crypto trade engaging: Is its low charges, a lot of out there pairs, quick withdrawals or one thing else?
  • Do Foreign exchange merchants typically change to crypto buying and selling?
  • What do customers count on from a buying and selling platform?
  • Does buying and selling conduct range from one demographic or regional group to the opposite?

Merchants worth simplicity

One of the attention-grabbing takeaways from this survey is that merchants search for simplicity — and most cryptocurrency trade fails to ship. 80% of members admitted to having entered the market lower than three years in the past and understandably sought instruments for learners. 71% of members make demo accounts, with tutorials additionally being among the many key elements of selecting an trade. 37% of exchanges have an intuitive, easy-to-use interface, whereas the remaining are overloaded with options and diagrams.

What are the qualities of an ideal trade?

Other than being beginner-friendly, an excellent trade have to be quick and keep away from charging clients for something however the buying and selling itself. Simply over half of the respondents mentioned that deposit and withdrawal velocity is an important issue (54%), in addition to the dimensions of the commissions (53%). The bulk (65%) discovered that transaction charges are high quality — however solely 36% suppose {that a} payment on withdrawing crypto is appropriate. Relating to fiat withdrawals, the extent of approval is even decrease (29%).

Surprisingly, security considerations aren’t so excessive on merchants’ checklist: solely 37% named it amongst their priorities — simply above the liquidity (34%). Merchants appear to belief exchanges with their cash: 32.5% mentioned they retailer all their crypto property there. That is an attention-grabbing truth contemplating that exchanges’ losses from hacks in 2019 exceeded $292 million value of cryptocurrency. Nonetheless, nearly 70% of members mentioned that they are going to contemplate switching to a different platform if their present trade will get hacked.

Associated: Crypto Hacks: Crypto Alternate Hacks & Cryptocurrency Hackers

One trade isn’t sufficient

Plainly no trade fairly suits the perfect profile. 40% of the members said they use three or extra exchanges frequently — and solely 19% use only one.

This may be partly as a result of problem of forex pair availability. Not like Foreign exchange platforms, which supply roughly the identical set of pairs, crypto exchanges differ wildly on this regard. Some function a whole lot of pairs, some lower than a dozen, some enable withdrawals in fiat, some do not. The number of buying and selling pairs is a precedence for 44.5% of merchants.

It is also value declaring that exchanges’ efforts to interact their viewers via competitions, affiliate applications, and many others. are largely unsuccessful. Whereas 57% took half in at the least one trade airdrop, contests and different actions have attracted solely 10% and 13% of purchasers, respectively. Simply 11.6% favor exchanges which have a referral program.

Asia merchants favor greater than two exchanges

Amongst Asian merchants, the bulk (59%) makes use of three exchanges or extra and prioritize the dimensions of buying and selling charges when selecting a platform (59%). Curiously, the variety of out there buying and selling pairs is much much less vital (22%). 65% admitted having misplaced property resulting from fraud — greater than exchanges getting hacked (45%). 75% go to crypto trade websites day by day — the best proportion amongst all of the areas below examine.

European merchants care extra about safety

European customers, particularly, are inclined to prioritize low charges and the deposit and withdrawal velocity (each 56.6%). They’re additionally security-sensitive: Solely 20% admitted storing all their crypto on exchanges, and 85% mentioned they’ve by no means misplaced property to hackers. 90% mentioned they would go away a platform if it will get hacked. The overwhelming majority (77%) makes use of browser interfaces to commerce.

Individuals love decentralized exchanges

Probably the most attention-grabbing perception about United States merchants is that 59% use decentralized exchanges — greater than in every other area. Surprisingly, not one of the respondents claimed to make use of scalping. As a substitute, 50% depend on impulse buying and selling. For the newest information, American customers are inclined to go to specialised crypto websites (68%). The recognition of Telegram is at 50%, whereas Instagram is relatively excessive on the checklist of information sources (23%).

Russian merchants don’t love OTC providers

Greater than in every other area, Russian merchants are inclined to depend on only one trade (27%). Few use decentralized platforms (23%). The selection of trade is pushed by the number of forex pairs (60%) and the dimensions of charges (52%). Russians are extra vulnerable to commerce in altcoins than their colleagues in different areas (64%), however the proportion of over-the-counter service customers amongst them is the bottom (17%). That is additionally the area with the best incidence of feminine merchants (12%).

Desktop-only buying and selling vs. smartphone-only buying and selling

The provision of a cell software appears extra vital for merchants preferring to commerce utilizing smartphones than those that use solely desktop variations. But, there’s a distinction within the solutions relating to the usage of a pleasant interface: This parameter isn’t vital for merchants preferring to commerce through smartphones as for desktop customers. The explanation for that is that the cell model is extra compact and permits us to see the working place at one other location, in contrast to the desktop model, that’s generally difficult.

Not like the merchants who use desktop variations, 83% of merchants who use smartphones to commerce have an interest within the score of the trade. 42% of customers buying and selling through cell units are from 35 to 44 years previous. Superior merchants favor desktop variations. Solely 11% of respondents buying and selling through cell units have greater than three years of expertise.

The views, ideas and opinions expressed listed below are the writer’s alone and don’t essentially mirror or signify the views and opinions of Cointelegraph.

Oluwatobi Joel is a U.S.-based freelance copywriter, neighborhood supervisor, blockchain professional and serial entrepreneur. He has labored with numerous blockchain startups as a advertising and marketing strategist.

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