Would you pay 2 BTC for a verified account on a crypto exchange?
That’s what some users did back in 2017 during the crypto market boom.
Having thousands of new users knocking on your door sounds like a dream for most exchanges.
Yet, this wasn’t quite the case when the crypto market spiked in December 2017.
If you’ve been around the crypto space even before the 2017 boom, you might remember how new users scrambled to get a piece of the crypto pie - prices were skyrocketing toward new weekly All-Time-Highs, Bitcoin broke $20K USD, and even ICOs were thriving.
December 2017 may be long over, but it has taught exchanges and users alike very valuable —albeit painful— lessons that we can learn from to prevent history from repeating itself.
Read on to find out how you can avoid disruptions and seize market opportunities 👇
2017 Crypto Market Rush: Overwhelming volume led top exchanges to shut doors on new users
The volatility of crypto prices sent the market into a frenzy, with an enormous volume of users flocking to various platforms and hoping to profit off the crypto bull run. The crypto market was accelerating at breakneck speed, resulting in increased traffic and never-seen-before volumes on platforms worldwide.
Owing to the tremendous YTD gains of various cryptocurrencies and overwhelming demand, crypto exchanges had to turn away new, unverified users due to the lack of infrastructure to support the burgeoning volume on their platforms.
The challenges faced mainly included technical difficulties such as outages, crashes, and servers that could not accommodate the increased demand. Support and verification teams were also under immense pressure to speed up KYC processes.
💡 Fun Fact: What is KYC?
Know-Your-Customer/ Know-Your-Client processes refer to processes that businesses have in place in order to verify the identity of their clients either before or during the time that they start doing business with them.
As a result, many of these exchanges were forced to put a halt on onboarding new users until they were able to resolve the backlog of technical issues and support existing clients. The demand for registered accounts was so high that users with registered and verified accounts were profiteering off online forums by selling their verified accounts for up to 2 BTC!
With platforms unable to onboard and verify the high volume of new traders, many were left out of the hype. For unverified users, and users who failed to sign up with any platform, this would incur substantial opportunity costs and loss in profits.
Sounds like a tricky situation to be in, doesn’t it?
What can you do to ensure you don’t miss trading opportunities?
No one wants to pass on a good trading opportunity, or forfeit potential profits if they had the choice. That’s why we’re here to share two easy ways you can navigate these problems and never miss market opportunities in the future.
1. Complete KYC Early
While companies and platforms have scaled since and are in a better place today, you still don't want to risk missing any opportunities in this exciting space.
By drawing on lessons learnt from the whole 2017 debacle, you can prevent history from repeating itself. KYC processes may seem like a hassle, but it’s definitely wise to complete it as soon as possible - this will insure you from disruptions to your trades in the case of a bull market. Complete KYC early and you’ll thank yourself when the market picks up again!
2. Ensure you have sufficient balance
Want to make sure you’re always ready to trade? To insure yourself against any unforeseen mishaps, we highly recommend maintaining a comfortable account balance to ensure smooth and seamless trading experience.
Coinhako currently supports both crypto and fiat deposits (cleared at 10AM and 4PM daily). For more information about deposits, click here.
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All opinions expressed here by Coinhako.com are intended for educational purposes, taken from the research and experiences of the writers of the platform, and should not be taken as investment or financial advice.