A lot of it has to do with the amount of leverage you're allowed to take on these exchanges. If you have 20:1 leverage, your collateral will automatically be liquidated (or purchased) if the price moves 5% out of your favor. This causes death spirals as more crypto gets dumped (or bought in case of short selling) magnifying the movement.

Crypto needs a strong financial network of derivative products. There need to be instruments to hedge the price risk for short periods. There's no reason you shouldn't be able to cap movements for a fixed time period, limiting the amount you can lose. So if I want to use it as transfer of fiat, I should be able to do so within a reasonable timeframe.