Apr 13, 2022 - Economy

For crypto traders, exchange matters

Share of cryptocurrency trade volume, by exchange tier
Data: CryptoCompare Research; Chart: Kavya Beheraj/Axios

Crypto traders are chasing quality.

Why it matters: Crypto assets are volatile enough. Investors shouldn't also have to worry about platform risk.

What's happening: CryptoCompare, a data firm, graded 150 different exchanges, assessing them for regulatory compliance, security, the quality of their markets, recent adverse events and other factors.

  • Each exchange got a grade from AA to E. Exchanges graded B are "acceptable risk."

By the numbers: As of February, 96% of exchange volume takes place on the 78 exchanges that CryptoCompare graded as B or higher, putting them in its "top tier."

  • Only Coinbase, Gemini, Bitstamp, and Binance, earned an AA, and they now control 36.3% of the market, according to CryptoCompare.
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