Just 2 of the top 10 crypto-only exchanges rated as trustworthy

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A new report found eight out of the ten most popular crypto-only exchanges are not trusted. So which exchanges can you trust?

CryptoCompare launched its most recently monthly report overnight – and the news is not good for users who trade predominately on crypto-to-crypto platforms.

These platforms accounted for 84% of the total reported market volume in June.

The top ten crypto-only exchanges reported volumes of between $28.3 billion (CoinTiger) and $42.13 billion (Binance).

However just two exchanges, Binance and OKEX, were judged to be ‘trusted’ and received ‘A’ grades in CryptoCompare’s new exchange benchmark ratings system.

BitZ was the next ‘best’ performer with a C grade. Only ‘AA’ to ‘B’ grades are classed as “trusted”.

Crypto exchanges

CryptoCompare’s exchange benchmark rating system

Launched in June the system grades exchanges from ‘AA’ to ‘F‘ on a range of criteria including geography, legal and regulatory, investment, team and company, data provision, trade surveillance and market quality.

There’s a particular focus on wash trading, trading incentives and volume manipulation.

Eight of the top 10 crypto only exchanges scored ‘D’s and ‘E’s in the system: ZB, CoinBene, Bitforex, HitBTC, DigiFinex, LBank and CoinTiger.

Fiat-to-Crypto platforms are more regulated

By contrast all but two of the most popular fiat to crypto exchanges in June were trusted. Coinsbit which was graded an E and P2PB2B which was ungraded.

The results suggest that the more onerous regulations imposed on fiat platforms helps mitigate against wash trading and other sharp practices.

Fiat-to-Crypto platforms report lower volumes

Total volumes on fiat platforms was not nearly as high, with the top 10’s volume ranging from Coinsbit’s $2 billion to Bithumb’s $13.9 billion.

Coinbase and bitFlyer were both awarded the top grade of ‘AA’, with Bithumb, Bitfinex, Upbit, Kraken and BitBank scoring ‘A’s and ‘B’s.

While Bithumb was the top fiat to crypto exchange in terms of total volume in June with $13.9 billion, that represents a drop of 37% on its May figures, despite Bitcoin’s price peaking in late June.

Other interesting finding from the report:

  • Most exchanges (75%) charge taker fees while 24% implement trans fee mining. The tiny remainder don’t charge fees.
  • Decentralized exchanges account for just $126 million of the total volume in June. IDEX led the pack with $53.9 million, an increase of 33%
  • CME dominates regulated Bitcoin derivatives, although its volume decreased from $11.3 billion in May to $7.9 billion in June. Grayscale’s Bitcoin Trust jumped almost 50% to $1.87 billion traded in June.
  • In June, BTC trading into USDT represented 69.4% of total volume (traded into fiat or stablecoin), which is a drop from 76.2% in May. Tether is still the most popular stablecoin for Bitcoin trading representing 97.1% of the total.