So many crypto exchanges... but how many survived?

As of April 2025, there are 817 crypto exchanges across the globe.

But wait — it gets serious.

A study from the University of Vaasa found that nearly 40 percent of these exchanges have already failed. The study was done by Assistant Professor Niranjan Sapkota, who analyzed why these failures happened. He is an expert in international financial markets.

• Around 20 percent of those failures? They disappeared without saying a word to users.
• Another 5 to 9 percent? Gone because of scams.
• And the rest? Shut down due to business losses, legal pressure, hacks, or internal chaos.

The truth is, many of these failures could have been avoided.

If you are planning to start your exchange or already running one, this is for you. In the next section, we will explain the top 10 reasons why crypto exchanges fail and, more importantly, how you can avoid them.

10 Mistakes to Avoid in Crypto Exchange Development (With Easy Fixes)

Starting your own crypto exchange is a big step. But small mistakes in the beginning can cost you a lot later. Let’s go through the most common problems and how you can avoid them.

1. Picking the wrong tech stack

Using outdated or mismatched tools makes your platform slow and hard to fix. If your backend isn’t strong, it might crash during busy times or fail when adding new features.

👉 Tip: Choose a tech stack that supports Web3, is easy to scale, and allows real-time updates. Tools like Node.js and GraphQL are good choices. Also, make sure your tech team is familiar with the tools you pick, so they can build faster and better.

Also Read: How to choose the right technology stack?

2. Not knowing what your users really want

Guessing what users need usually leads to the wrong features. Many exchanges fail because they don’t solve real problems for real users. People in 2025 want easy trading, quick actions, and clear insights.

👉 Tip: Talk to your users often. Use surveys, feedback forms, and session recordings. Look at what they like and what they skip. This will help you create features that make them stay.

3. Forgetting about future growth

Building a small system might save time now, but it won’t handle thousands of users later. If your system crashes under pressure, users won’t come back.

👉 Tip: Use cloud platforms like AWS or Google Cloud that can grow with your traffic. Add auto-scaling and load balancing. Plan for growth from day one, not after problems show up.

4. Making onboarding slow and confusing

First impressions matter. If users find it hard to sign up, they will quit. Long wait times, tricky forms, or unclear steps make people leave before even trying your platform.

👉 Tip: Make the signup process fast and smooth. Use tools that verify ID quickly with just a selfie or document upload. Try to keep the whole process under two minutes. Make it look modern and clean, too.

5. Bad mobile experience

Most users in 2025 trade on their phones. If your app is slow or confusing, they won’t give it a second chance. A good mobile experience is no longer optional — it’s expected.

👉 Tip: Design with mobile-first in mind. Use lightweight UI frameworks that load fast even on older phones. Test your app on different devices and with slow internet to make sure it works for everyone.

6. No social features inside your exchange

Trading feels better when it’s social. People like to learn from others, share ideas, and see what top traders are doing. Without social tools, your exchange may feel cold or boring.

👉 Tip: Add features like copy trading, leaderboards, and trade sharing. Let users follow their favorite traders or chat in discussion boards. These features increase trust and keep users engaged longer.

7. Building everything as one big system

Crypto trends change quickly. If your exchange is built as one large block, adding new trends like NFTs or RWAs becomes hard and slow. You'll waste time and money just trying to update things.

👉 Tip: Build your platform in pieces (modules). This makes it easier to update or replace just one part without breaking the whole thing. It also helps your dev team work on different features at the same time.

8. Not showing real-time data

Traders need live data to make quick decisions. If your platform has delays or shows old numbers, users will stop trusting it. They’ll switch to platforms with better tools and real-time updates.

👉 Tip: Add dashboards that show live profit, asset values, and trading fees. Let users set custom alerts and get updates when something important happens. Make the data clear and easy to read.

9. Only supporting a few blockchains

If your exchange only supports one or two chains, users might feel limited. Many traders now prefer faster and affordable chains like Solana or Arbitrum.

👉 Tip: Support multi-chain trading from the start. Add Layer 2 options and bridges that let users move assets easily. This gives users more choices and helps your platform grow globally.

10. Treating security as an afterthought

One security breach can destroy your reputation forever. In crypto, people want to know that their money and data are safe from day one.

👉 Tip: Add features like two-factor login, cold wallet storage, DDoS protection, and regular smart contract audits. Make sure your security is always up to date. Don’t wait for a problem to happen; build safely from the start.

If you're serious about launching a successful crypto exchange, these tips can save you time, money, and stress. Avoiding these common mistakes helps you build trust and keep users happy. Start smart, plan ahead, and always put your users first.

Conclusion:

These are the top 10 mistakes to avoid when building a crypto exchange. As the saying goes, "Prevention is better than cure." Take your time to build your crypto exchange carefully. Understand what your users need, study the latest trends, and find ways to stand out from your competitors.

If you already have a crypto exchange, consider upgrading it now. Choose a company that develops crypto exchanges, like Hashcodex, to offer the best solutions for your platform. A reliable partner can make all the difference in ensuring your exchange runs smoothly and securely.

If you're starting from scratch and want to build a crypto exchange without making mistakes, it's important to learn from the best. Look at successful companies that develop crypto exchanges, like Hashcodex. Whether you're hiring a company or building your team, ask the right questions from the start to ensure your crypto exchange is set up for success.