If you have started to think about entering the cryptocurrency world, there is a probability that you might notice yourself being alarmed and discouraged by the number of exchanges that are available for Crypto. As most investors proclaim, choosing the perfect exchange is what one should focus on. Each exchange differs based on its features, offerings, and fees, and in the long run, it is capable of making a difference to your trading strategy. 

To make your job easier, we have reviewed and listed major crypto exchanges available in the current market and have also rated them. 

Rating Criteria 

We have successfully provided our ratings based on what the exchange scores in six various categories, including:

  • Fees
  • Mobile App
  • Trading Platform Features 
  • Regulation 
  • Customer Support 
  • Payment methods 

We have gathered the information necessary to compare each of the categories we have mentioned so that we could rate exchanges properly by creating a metric. 

Each of the factors is scored from 0 to 10, with 0 being the least and 10 being the most. The factors are listed below. 

Anonymous Live Accounts 

Our reviews and data collection is mainly done through live accounts and such accounts are usually made by our reviewers to test out the platform. The brokers would never know that the account was made to ensure authenticity, making the customers as well as reviewers to experience the platform similarly. 

Fees

The fees are one such thing that could be the biggest consideration for any trade before fixing the right platform. But, this fact is negligible to short-term investors or even long-term investors, who might find a slighter effect on their total income. But it is entirely different for regular traders,  as being careless about fees can bring a major impact on them. 

As per our findings, 17% of the overall rating offered to the exchange is linked to fees. We have three different types of fees, which we will rate on a scale of 0 – 10, like:

  • Trading Fees
  • Deposit Fees
  • Withdrawal Fees

Trading Fees

Trading Fees are generally charged by exchanges in the form of spreads or commissions. However, the majority of the exchanges are usually a combination of the two. 

Basically, the trading fees are charged on the average number of trades that a normal trade would encounter within the time period of 30 days. This includes the product classes like futures and derivatives as well as spot markets. On top of that, we also check whether the exchange has a specific maker-taker structure as well. 

Deposit Fees 

Moreover, we examine the deposit fees which generally have two forms. 

  1. The fees charged for deposits by the crypto exchange via bank transfers, debit cards, electronic wallets, Skrill, or Paypal. 
  2. The fees charged for deposits by the crypto exchange through an external wallet. 

Withdrawal Fees 

There is a possibility that a crypto exchange might charge an additional fee for the asset withdrawal. 

Mobile App 

Given the importance of cryptocurrency markets in the current world, we have analyzed if there is a mobile application to make crypto exchanges hustle-free. This particular category covers 16% of our rating and it also comprises the following elements;

  • App availability 
  • Customer rating 
  • Update frequency 
  • Data privacy 
  • Compatibility

App Availability 

Initially, we examined if there is an app to be downloaded for exchanges, we also checked if it will be compatible with Android as well as iOS. 

Customer Rating 

After identifying that the exchange has a compatible app, the next step becomes its quality check, and there would be no better way other than through customer reviews. The iOS app was evaluated based on the ratings provided within the App Store and the Android app was evaluated based on the ratings provided by Google Play. 

Update Frequency 

Once a mobile application is launched, it must be checked frequently to ensure the elimination of bugs. Therefore, one of the crucial determinants is the frequency of updates. 

According to our findings, those with frequent updates were rated more compared to the other. 

Data Privacy 

We have included the most important criterion, Privacy while assigning a ranking to the mobile application. We consider apps that do not share personal information as safer, whereas the other one is considered to be the least safe. 

Compatibility 

While examining the compatibility of the application, we can tell that apps that are compatible with several other devices are compatible and others are not. For example, the iOS app can be downloaded on Apple Watch, iPad as well as iPhone, whereas the comparison is also possible within the Android operating systems as well. 

Trading Platform Features 

The parameter that we consider while evaluating trading platforms are;

  1. Markets Supported 
  2. Cryptocurrencies Available 
  3. Liquidity 
  4. OTC Trading
  5. Security 
  6. Order Types 

Markets Supported 

It was the foremost element that we considered for evaluation. For example, crypto derivatives and futures received a higher grade than those of the spot-only exchanges. Also, exchanges like leveraged tokens were provided with a higher ranking. 

Moreover, exchanges like forex, commodity markets, and commodity markets were also considered during the rating process. 

Cryptocurrencies Available 

It is obvious that exchanges having higher cryptocurrencies available for trading were given a higher score than that with lower cryptocurrencies. 

Liquidity 

Liquidity becomes a concern while trading as you are dealing with the exchanges having the least liquidity. Therefore, there could be issues like, 

  1. Having trouble selling assets during an emergency since there wouldn’t be enough buyers.
  2. Being forced to pay more due to lack of orders. 

OTC Trading 

While judging a trading exchange, it is inevitable to ignore over-the-counter desks. The following are the factors to be considered;

  1. Whether there is an OTC trading in the exchange platform 
  2. The minimum order limit for the OTC trading desk
  3. Its degree of competitiveness 
  4. Whether an OTC-focused support system was provided or not

Security 

Security measures are always a key factor when discussing a platform’s measures. Some of the important areas are:

  1. Availability of two-factor authentication for major account changes as well as withdrawals
  2. Ensuring the exchange is insured
  3. Examining the percentage of exchange’s assets that are kept in cold storage 
  4. The exchange’s history of breaches
  5. Whether there is an advanced system to detect fraudulent activities and stop it

Order Types 

There are a number of orders which are different from one another which directly affects whether or not the exchange is suitable for advanced investors. The order types are:

  1. Market order
  2. Limit order
  3. Stop order
  4. Limit-stop order 

Regulation 

Since the number of frauds in the cryptocurrency world has been increasing, the investors are more likely to look for secure means. Therefore, this has greatly contributed to our banking system and has occupied 17% of the overall score of the exchange. 

For instance, regulated exchanges obtain higher scores and vice versa. 

Customer Support 

Customer support is significant in the rating process and it comprises 17% of the overall rating. There are a few factors to be considered in this regard:

  • Live Chat Service 
  • Email Support
  • Call Support 
  • FAQ Sections 

Live Chat Service 

It was one of the first things that we checked. Once the presence is ensured then the second thing was evaluating the benefit of a Live Chat System. They usually resolve basic consumer queries and concerns. Platforms that provided a live chat system received greater points in this category. 

Email Support 

Email Support has played a major role in our rating process. Mainly, we focus on two different aspects:

  1. The typical turnaround times for the email responses 
  2. The effectiveness of the solution offered 

Call Support 

Most of the exchanges do not offer a call support system, and those that do, only provide the facility during the daytime. This becomes a concern since the cryptocurrency market trades 24×7. Therefore, we are discussing whether the call support service is available 24×7. 

Other factors regarding the category included the waiting time taken to talk with the representative and the quality of responses provided for the issue addressed. 

FAQ Sections 

On top of the call support system, we also inquire about the availability of the FAQ section, where the basic questions would be answered. Therefore, exchanges with the FAQ page were rated more than the others. 

Once the presence of an FAQ selection is ensured then the remaining g factors to be checked are:

  1. Its extensiveness
  2. Updates in the FAQ section to include the current common queries 

Payment Methods

Crypto exchanges are generally accessible to worldwide investors. Therefore, it becomes really crucial to have a wide range of payment options so that every user can add and withdraw money easily. Thus, we have examined a few of the payment methods and have rated them according to whether the exchange accepts such payments or not. 

  1. Bank transfers 
  2. Payment via debit or credit cards
  3. Payment through a cryptocurrency wallet
  4. Transfers via International Wire Transfers, PayPal, Skrill

For the ranking, the number of fiat currencies that are withdrawn or deposited is taken into consideration. Therefore, those exchanges that support more fiat currencies scored greater than the other.