The cryptocurrency markets are in their infancy – and accordingly suffer many problems that time and technology will resolve. Some of the problems include:
Despite the claims of blockchain’s revolutionary technology, it takes far too long for transactions/trades to clear the chain.
Opening an account with many crypto exchanges can be a time consuming and frustrating experience.
It takes an excessive period of time for deposits to be posted to an account.
While coins can be safely held in hard wallets, hard wallets can become lost, stolen or damaged.
While coins can be sorted securely on hard wallets, what protects the flat balances at the various exchange from hackers or exchange bankruptcies?
Hard wallet depositories are akin to buying Gold in the backyard. It is an irony that cryptos represent the most advanced internet/financial/commercial technology, yet crypto traders are storing millions of dollars on a USB device. REALLY?
The bid/offer spreads at many exchanges are far too wide. It is often difficult and time-consuming to “cross the spread” (buy at the offer or sell at the bid).
The price of the same coin varies considerably from exchange to exchange. This makes charting extremely difficult.
Good luck receiving guidance from an exchange’s help desk. In fact, has anyone even spoken by phone to a support person at any exchange?
The transaction fees at some exchanges would add time to Bernie Madoff’s sentence.
It can take forever to withdraw funds from an exchange – many exchanges limit the amount of each withdrawal and intentionally hold customers funds as long as possible.
Moving coins from one exchange to another (either directly or with a hard wallet as the pivot) can be a time-consuming activity, preventing aggressive arbitrage operations.
The website/trading platform of some exchanges crash when a trader most needs to place an order.
The cryptos are far too volatile. The volatility will prevent wide commercial/institutional acceptance over the long haul.
The lack of unified price settlements will also prevent commercial/institutional acceptance.
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