Different KYC requirements and disorganized on boarding procedures for customers. Each exchange stipulates its own set of KYC and on boarding procedures that vary vastly from one another and are generally unorganized and slow.
Lack of majority of trading instruments such as crypto currencies and ICOs actively trading in one platform. There is no uniform set of crypto currencies and ICOs that each exchange must carry to make itself relevant. With the intensity of the ICO market and demand for trading of crypto currencies increasing, exchanges are failing to keep up with the in demand trading cryptos.
Major lack of sophisticated trading technology.
Most exchange trading platforms are slow and unsophisticated, designed with limited functionality and not at all conducive for professional sophisticated active traders. They lack advanced trading functions, and smart order execution systems.
Lack of liquidity in exchanges, leads to significant trading blocks moving the exchange price of a particular crypto outside the present intraday range of the currency. Not only does it create an inefficient trading market for the traders, it also poses a larger issue of receiving bad execution pricing and being penalized for trading anything above the bare minimums in trade size.
Limited means of account funding and withdrawal. Account verification and certification allow for funding and withdrawal to be both tedious and sometimes unsafe, as not all exchange are regulated in registered jurisdictions, leaving your banking and biographical information vulnerable.
Lack of uniform pricing amongst exchanges. Prices vary from exchange to exchange, ranging from a few dollars to a few hundred dollars. This creates both an opportunity and problem. The opportunity is to arbitrage between exchanges. However, the restrictive and inefficient nature of having multiple accounts across various exchanges hurdles the average trader from participating in this arbitrage. The problem this creates is an inefficient trading market where all traders cannot receive the best price at
the present time of trading.