Bitcoin Exchanges Reveals Massive Rise In Demand
The performance of Bitcoin this 2017 is nothing but spectacular. Since the year started, the cryptocurrency’s value continued to rise shocking investors who were, at first, not too keen on investing in these type of assets.
Seeing their colleagues raking in profits from investing Bitcoins earlier, the rest of the investors can no longer stand idly. Everyone wants a piece of the action and is now planning to diversify their portfolios by including cryptocurrencies.
There is just some minor problem though. Apparently, Bitcoin exchanges just can’t handle the massive influx of traders who want to try their hand on the cryptocurrency. In fact, a lot of exchanges have stopped accepting new clients for now.
A massive influx of new clients begging you to take their money is the best kind of problem any business could dream of having. Nevertheless, bitcoin exchanges are now having to cope with such a situation by finding ways to reduce the load. As a result new traders are left with fewer options as, one by one, venues have been closing their doors to clients.
Try Again Next Year
Whether you are trying to get into the bitcoin world for the first time or are a veteran investor attempting to diversify your trading venues, you have likely noticed it isn’t easy to open an account with many exchanges these days. These companies are bombarded with applications and support teams are failing to maintain a timely service. A number of them have already given up on accepting new clients for the time being, so as to be able to handle existing business.
Bittrex acknowledged previously reported users’ complaints and explained its decision to halt new registrations by writing that: “We are excited to have so many new users who want to join the Bittrex community. Unfortunately, we have to make a few upgrades to our support and backend systems to handle the increased traffic and load.”
CEX.IO explains its suspension of new registrations in a similar way: “Every day, an enormous number of users registers on our exchange…this has been putting additional pressure on our support and verification teams. Currently, we’ve come to a point when the number of tickets submitted to our support team became critical.”
And Bitfinex has this message to anyone trying to sign up: “The reason we have decided to temporarily stop accepting new accounts is that we cannot undermine the quality of our services for our existing traders by flooding the system with new, small accounts.”
Other exchanges might not have announced an explicit decision to stop accepting new clients, but many people are complaining that this is what is happening in effect as their applications are simply not being handled. If you are waiting in line forever while the price of bitcoin is going up, the feeling can be agonizing.
Meanwhile, having to rapidly onboard so many new clients has made providing normal service much more challenging for exchanges. Kraken for example acknowledged that: “Performance is extremely degraded and unreliable. Clients can expect severe latency and difficulty interacting with all web and API services. Requests will frequently timeout and fail. At the moment, the only solution is to wait and try again later.”
What recent exchange issues have affected your trading? Let us know in the comments section below.