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DemaTrading.ai Survey Shows Poor Customer Service Is Costing Crypto Exchanges

Validated Individual Expert

Index solution provider DemaTrading.ai has conducted a wide-ranging survey of the leading cryptocurrency exchanges. Its results are drawn from conversations with over 30 exchanges and 50 investors and reveal some of the most common reasons why exchange customers stay inactive.

The survey identified the following primary reasons behind customer inactivity:

Too many options: The average exchange has hundreds of assets listed. The average customer doesn’t want to research all of these assets and often ends up not choosing anything at all. 60%+ of the digital assets on exchanges are not traded at all.

Poor customer choices result in bad experiences: Since most customers don’t want to spend weeks researching assets, they end up choosing only a handful of cryptos to trade. This gives them a higher risk profile, as they are exposed to only a few assets. A customer buying a token that slowly dies is catastrophic, as they will probably never invest in cryptocurrencies again.

Managing a portfolio takes too much time: The risk-averse customer knows how to spread well, researches all assets, stays up to date with the market, and rebalances growth differences frequently to maintain the same risk profile. However, frequent portfolio rebalancing takes a significant amount of time when performed manually. Investors often don’t want to actively manage their portfolio.

Absence of index fund options: An index fund contains a list of assets within a certain category such as Proof-of-Stake, metaverse, layer two, NFTs, or DeFi. This makes it very easy for a user to invest in sectors they see potential in. They don’t have to research every single asset in the industry, they are less overwhelmed, their risk profile improves, and since an index is automatically rebalanced, no active management is needed. They can simply buy, or even better DCA, sit back and relax.

DemaTrading.ai has developed a trading engine that optimizes the trades in a basket or portfolio (based on an index) by training models with machine learning. Not only does this help to execute orders at a better price, but orders are spread out so that the liquidity on an exchange increases. A sophisticated (market) maker module is built in, so that users on the exchange are able to faster buy and sell their assets. This makes the product more profitable for exchanges and their users.

Compared to an average buy & hold strategy, investing in an index increases the average yearly trading volume, and is usually safer as the investor places his chips on many positions at the same time. This is a reason that big exchanges like Binance and Bitpanda are rolling out similar solutions.

Through DemaTrading.ai’s Portfolios-as-a-Service, digital currency providers and asset managers get access to institutional-grade Indexes.DemaTrading.ai offers a fully hands-off plug-and-play infrastructure solution for exchanges, brokers, payment solutions/apps, and (digital) asset managers. After a successful pre-seed from a private round of investors and angels, DemaTrading.ai is currently raising its next funding round.Missing indexes on your favorite exchange? Contact DemaTrading.ai for more information.

About DemaTrading.ai

DemaTrading.ai was founded in 2021 with the mission to make crypto accessible for anyone, regardless of their background. There is a lot of potential in crypto and DemaTrading.ai believes that everyone willing to participate in the crypto market should be able to do so. That’s why DemaTrading.ai is building automated crypto portfolios that make it possible for everyone to make smarter investments with no effort.

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