There are so many cryptocurrency exchanges these days and with new ones popping up every day, it makes it really hard to choose which exchange to use. This isn’t the only challenge on finding the right exchange system. Many exchanges have had problems with fund withdrawal, provide bad customer service, have been victims to scams and hacks or are even fraudulent systems to begin with. Surprisingly, there is little to no official regulation yet, which is why it is extremely important to do your homework when it comes to what systems you should use for exchanging your digital currencies.
Even though there is a lack of regulation in the crypto industry there are still those who dedicate themselves to keeping it honest and safe to use. One such organization is Cointelligence, a crypto company that devotes itself to due diligence and uncovering crypto scams. This self-funded company has built themselves a reputation for providing well-researched and impartial ratings of ICOs, STOs, IEOs, as well as exchanges. Their list of cryptocurrency exchanges is created through a combination of anonymous raters and specific fact-checking that protects their ratings from both bias and error and has since its launch successfully rated over 80 cryptocurrency exchanges: https://www.cointelligence.com/exchanges_list/
The rating system for this cryptocurrency exchanges list is comprised of 4 different factors that determine whether an exchange is reliable, user-friendly, transparent, and safe to use.
The first measured factor is accessibility and usability. The company starts by creating an account in each exchange, which assists them in establishing its level of accessibility and helps them measure how user-friendly it is. They then begin assessing other factors of the exchange some of which are the quality and speed of customer support and the methods of payment.
The company also tests the financial benefit to a user. They start by calculating to estimate how much a user can profit from using an exchange. Then, they start reviewing other financial factors, such as trading volume, flat currency support, number of markets available, number of tokens, and the types of insurance and their coverage.
An important part of the rating system is the measuring of the team behind the exchange. Cointelligence checks whether the team has enough experience in the industry or if they have someone on the team with some background in fraud prevention and risk management to help them sustain and protect their exchange.
The last element of the cryptocurrency exchanges list rating system is risk. The company uses a risk assessment process that measures if the exchange site has undergone any attacks or hacks in the past, and if they have concrete security protocols in place, a strong insurance system, withdrawal process, and their regulatory compliance.
This lack of regulation and numerous scams has many scared about whether they should be using cryptocurrencies at all, however one shouldn’t be frightened of the technology but rather be cautious about how they use it. It is the responsibility of traders to carefully inspect each exchange and find a trustworthy system to use.