CryptoCompare’s inaugural Exchange Benchmark was launched in response to industry demand for reliable metrics to evaluate the vast number of cryptocurrency exchanges globally. Employing both a qualitative (due diligence) and quantitative (market quality based on order book and trade data) approach, the product does not hinge on aggregate volume data but, rather, uses correlation-of-volume-to-volatility and standard-deviation-of-volume as inputs to CryptoCompare’s 30+ metrics. This is due to existing issues with volume manipulation, wash trading and trading incentives.
The analysis, based on exchange data for the period 1st-31st May 2019, reveals the most trusted exchanges to be: (1) Coinbase; (2) Poloniex; (3) Bitstamp; (4) bitFlyer; (5) Liquid; (6) itBit; (7) Kraken; (8) Binance; (9) Gemini; (10) Bithumb.
The ranking components include: geography; legal/regulatory; investment; team/company; data provision; trade surveillance; and market quality. Analysis is based on public information, and detailed methodology is made freely available, underlining CryptoCompare’s commitment to bringing greater transparency to the cryptocurrency marketplace.