Cryptocurrency trading is an exciting yet fast-paced world. But when technical failures strike, traders are left vulnerable, as demonstrated by the recent 100-minute outage on South Korean exchange Bithumb. For investors, disruptions like this underscore the importance of understanding platform reliability and the protections available in the crypto space.
Bithumb’s Outage: What Happened?
On a recent Tuesday night at 9:40 PM KST, users of the Bithumb platform found themselves unable to trade, cancel, or modify orders for over 100 minutes due to a technical failure. The disruption stranded traders during critical, round-the-clock market activity. Although the details behind the outage remain undisclosed due to “internal security concerns,” Bithumb confirmed all emergency maintenance procedures were completed and pledged compensation under the Korea Digital Asset Exchange Alliance’s guidelines.
With crypto’s never-ending market activity, even a short downtime can lead to unexecuted buy or sell orders, especially during volatile price movements. One frustrated trader described the experience as a “taste of hell,” emphasizing why beginners should diversify and avoid going all-in.
Industry-Wide Challenges in South Korea
Unfortunately, outages like this are nothing new for Bithumb or other South Korean crypto platforms. According to lawmaker Lee Hun-seung, Korea’s five top crypto exchanges reported 89 technical failures between 2018 and 2024, with Bithumb responsible for 41 incidents.
While these platforms shelled out nearly $2.74 million in total compensation, Bithumb’s share was approximately 660 million won. Other exchanges, such as Upbit, Coinone, and Korbit, were also implicated, though not all offered monetary redress to affected users.
The lack of uniform regulatory standards for crypto exchanges compared to traditional securities firms remains a key issue. Many exchanges can define their own compensation policies, leaving users without much recourse during outages.
How to Protect Yourself as a Trader
Crypto investors can take several steps to protect themselves during such uncertainties:
- Use multiple exchanges: Diversify your trading platforms to minimize risks of being locked out during outages.
- Set stop-loss orders: Automate risk management to reduce losses in volatile scenarios.
- Prioritize exchanges with robust security: Choose platforms with proven reliability and transparency about their downtime procedures.
For those seeking reliable trading tools, the Coinbase platform is highly rated for beginners and pros alike. With a user-friendly interface, enhanced security measures, and 24/7 customer support, it provides a dependable alternative. Check out their platform here: Coinbase.
Conclusion
Bithumb’s outage highlights the evolving challenges of cryptocurrency trading, particularly in markets like South Korea. Traders must balance opportunity with risk management to navigate these unpredictable terrains. By staying informed, diversifying platforms, and adopting best practices, you can mitigate potential losses and focus on maximizing gains in this dynamic market.
