At the peak of a cryptocurrency exchange bubble, Cryptsy earned itself a niche as a versatile player in the field. Traders coming to explore various new altcoins would be like a beacon. The shine, however, didn’t last as many soon discovered. Read here.
One of the many attractive features of the platform was how it was equipped to handle a wide range of cryptocurrencies — just like moths and a flame. There were many to follow depending on the next trend, and not just Bitcoin on the menu. But the saying in the previous sentence is ‘all that glitters is not gold’. Soon, many traders found themselves in trouble.
Security was a significant issue. Hack and stolen funds became horror stories spread like wildfire. They would have been logging in, only to have their accounts emptied as if a ghost had raided their wallets. For many, excitement meant the nightmare of trading quickly. There was a lot of wavered trust within the community, and each theft was like getting punched in the gut.
User experience varied greatly. The interface was at times great, often awkward and confusing. Trading across charts could be as confusing as untangling a ball of yarn in some ways. A few users were impressed with the speed of the support team to reply to the query, while others weren’t happy with the lack of replies to their queries. Your patience is wearing thin in a manner akin to the personnel on the other end of the line at customer service.
Time passed and whispers started to form that the organization was mismanaged. And many users dropped ship on rumors of an internal struggle. Almost it felt like a vessel being taken on by the sea with no captain in sight. As users look for more reliable options, use began to dwindle on the once bustling exchange.
From this I gained some key things. Before getting into any platform, it’s necessary to do an extensive research. Be willing to dig deep and don’t take things at face value. As for reviews, security protocols, and community feedback, seek them out. The have learned the hard way that appearances can be deceiving.
Secondly, diversification came up in a very glaring way. Trusting 100% of your egg on one basket can sometimes create a chaos. If that basket drops, you just have a mess on your hands. It is possible to minimize risk by spreading investments across several exchanges.
The fast paced world of cryptocurrency serves as a stark reminder with cryptsy. Being seduced by quick profits is very quickly a cautionary tale. Traders are forced to behave on the defensive as things change, and yet have to stay informed. Balance is everything in this land of the unexpected and chasing shiny objects without taking risks is the wrong play.