[DPRating] Crypto Exchange Ranking: Good Exchange is half winning
by DPRating Team
- When looking into exchanges, what factors should we take into account?
- How should one choose an exchange?
Dimensions
Team Dimension:
Evaluate the founding team, the investors, and how long the exchange has been in operation. The founding team affects the strategic thinking and capabilities of the exchange. Is the exchange backed by investors with a history of good investment? Has the exchange been running long enough to prove it can provide consistent service?
Development Dimension:
Evaluate the stability and security of the exchange. Stability measure whether users can always visit the site smoothly, or whether there is any lagging in the trade even when trading volume is very high. Security is critical for exchanges and a huge factor in winning users’ trust.
Community Dimension:
Evaluate the popularity of the exchange — how many people are talking about it on social media platforms such as Twitter and telegram? How many unique visitors does it receive every day?
Trading Dimension:
Evaluate the listed tokens. Determine the liquidity, trading volume, and how many tokens are available for trading. Trading is, of course, the most important dimension and the core service of any exchange. A good exchange should list as many tokens as possible while maintaining a quality barrier of listing. The liquidity affects how easily you can sell/buy tokens. Volume distributions mean the distributed volume of all listed tokens.
A few tips on choosing your crypto exchange:
- Try at least 3 exchanges. Not necessarily for arbitraging, but different exchanges do deliver different experiences. Is this exchange stable? How fast is the deposit and withdrawal process? Is trading smooth? How responsive is the customer support?
- Each exchange has its own target clients. You should choose the one that fits your trading needs, depending on how much money you trade and what kind of crypto you want to trade. If you trade in large volume then you have to consider an exchange’s liquidity; if you actively participate in ICOs than you may look into exchanges that actively list new tokens.
- There are many recent innovations in the exchange business model. Many new exchanges have introduced a new mining through trading mode that guarantees immediate, significant profits. If you trade with these exchanges, bear in mind the potentially high risk.
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