| Evaluation parameters
Before proceeding to the rating itself, I will share with you a list of parameters by which I will evaluate exchanges
Trading volume
Many consider this indicator to be the most important. The logic is simple - the larger the trading volume, the more users. The more users there are, the higher the trust. The higher the trust, the better the exchange.
If everything were so simple, I would stop only on this parameter. However, “those who fumble” would throw slippers at me. And there are reasons for that. The main thing is the cheating of trading volumes.
In particular, Bitwise, one of the largest cryptophones in the world (https://www.bitwiseinvestments.com/about ) in 2019, conducted a major study on the topic of inflated trades. Then the situation was extremely unpleasant (and even caused a whole series of scandals). It turned out that more than 95% of all volumes are hyped, fake
Number of trading pairs
This is not the most significant parameter, but it can be important for those who want to trade unpopular altcoins. In fact, there are a huge number of useless coins on which there are no volumes. And only from time to time there is a feeling that they come to life. I'll tell you more about it below
Trading opportunities (and other nice tools for the trader)
This includes the possibility of trading with leverage (risky!), futures, the so-called staking (the ability to earn passively, having a certain cryptocurrency in your portfolio), the ability to take a crypt on credit, or lend, and the like
Now exchanges are overgrown with more and more functionality and the presence of additional functions that distinguish them from competitors play an important role
Features of regulation, the location of the crypto exchange, how long it works
This is another important parameter that people usually turn a blind eye to. However, it makes itself felt when the persecution by the state begins. This practice is especially popular in China (their constant swings in the regulation of the crypto market have already led to the outflow of miners from the country)
What is also important is that its attitude to users from the CIS depends on the location of the crypto exchange. In particular, to those living in Crimea (the so-called "gray zone" for many crypto exchanges) and Belarus.
There are cases when a cryptocurrency exchange blocks users from a certain country without explaining the reasons. In this matter, you need to be careful
Scandals
Perhaps one of the most important parameters. Scandals and problems in the work of crypto exchanges happen all the time. The main thing is how the crypto exchange itself reacts to them
Several high-profile scandals:
The large Wex crypto exchange and the missing $450 million.
This story is also closely related to the next exchange. In fact, WEX has simply become a continuation of an even more well-known, in a bad sense, crypto exchange. And you've definitely heard about her! |
How to choose the best crypto exchange?
General Discussion -> Transcripts & Audio 2017 & 2018
