The CoinSchedule Exchanges Rank – Finding The Most Popular Crypto Exchanges
I remember in the early days of Bitcoin back in 2013 when life was simple: you had one Bitcoin exchange called MtGox and that was it. Sure, you had a new one here and there but about 80% of all Bitcoin trades were done in MtGox.
Once MtGox folded, new exchanges started to fight to get top spot. That, combined with the ever increasing market cap and trading volume of Bitcoin, made this industry flourish. We had many more hacks, lots of drama and lost funds.
Today we have a plethora of exchanges. I have a friend that works in an exchange and he recently told me that there are now over 7,000 by his estimates.
The Challenge of Rating Exchanges
This used to be simple: show the exchanges ordered by reported volume and voila!
However, today there are a few complicating factors:
- Some exchanges realised that increasing volume is a nice way to market themselves as more established, so they manipulated their volumes.
- Some exchanges offer leveraged trading and so their volume shows up much higher as the actual amount deposited by customers.
- Some exchanges may pay for users to use them, especially in low-income countries where this is easier to do.
- There are exchanges in highly regulated jurisdictions (such as the USA) and others in loosely regulated ones, where it’s easier to get away with items 1, 2 and 3 above.
So with all of these problems, it’s not surprising to see the recent reports claiming that most of the reported volume is fake.
Say Hello to the CoinSchedule Exchange CSRank
Today we are announcing our new algorithm to rank exchanges: CoinSchedule Exchange CSRank.
How does it work? Well, instead of just using the exchange reported volume, we take several other parameters into consideration:
- Estimated web traffic
- Countries from which the traffic originates
- Age of the exchange
- Consistency of reported trading volume
- And many others…
The result can be seen here: https://www.coinschedule.com/cryptocurrency-exchanges
What do you think? Tell us in the comments!