Which Cryptocurrency exchange to use in Iran?
I am writing these words at the time when in Turkey, our Western neighbor in Iran, more than 400,000 users have lost their crypto funds due to the shocking flee of young Thodex exchange CEO. In Iran, it is more like the calm before the storm: Although no one has escaped yet, the government has arrested Sina Stavi, the young CEO of Cryptoland exchange and the generous buyer of Jack Dorsey's first-ever NFT. We know that there is always a possibility of losing capital in the centralized exchanges as centralized systems intrinsically suffer a single point of failure. But this becomes even more frightening when lack of regulations and compatible infrastructures greatly increases the likelihood of failure.
Iran has a big share of the global cryptocurrency market. With the collapse of the stock and housing markets, many people have turned to cryptocurrencies. These, along with the fact that Iranian users cannot use global exchanges have increased the market volume of cryptocurrency exchanges in Iran. While today more than 24 exchanges are serving Iranian users, none have yet adapted government regulations. In fact, there is no clear law in Iran concerning cryptocurrencies. This increases the risks of using centralized exchanges in a country, Where, people, tired of never-repeal inflations and centralized economic policies, see cryptocurrencies as a lifeboat to rescue themselves from the inevitable fluctuations of the capitalist economy.
In an attempt to analyze the quality of Iran-based cryptocurrency exchanges, we at Coiniran conducted a research project to rank all exchanges which are operating in Iran. The aim was to analyze the quality of Iranian exchanges and introduce those with better qualities. Our first benchmark was published in the fall of 2020 and gained lots of attention locally and globally. In the first edition, we evaluated four Iranian exchanges with the highest market volume subject to various qualitative and quantitative metrics. At the time, we believed that the evaluation of a cryptocurrency exchange should not be only based on its market volume, but should be based on the quality of services and transparency of information in it. For this reason, we tried to develop a creative methodology in order to better evaluate exchanges. Now we are happy to announce that the second edition of our benchmark has developed its methodology and evaluates 24 exchanges according to more than sixty qualitative and quantitative metrics.
Hundreds of hours of research have been done to identify exchanges with higher qualities. While this benchmark evaluates all cryptocurrency exchanges which are operating in Iran, it can not introduce a suitable place for investment and trading activities. Who can guarantee that these newborn platforms with centralized architecture will never be attacked by black hackers or that their young CEOs will not flee the country with a suitcase full of private keys?
The aim of Coiniran research is to increase transparency and improve the performance of Iran-based cryptocurrency exchanges and not more!
With these lines in mind, we can answer the primary question of the text: which Cryptocurrency exchange to use in Iran? In fact, I want to explain how one would benefit more from the reading of the Coiniran benchmark report.
First, we should know all risks associated with using centralized exchanges. Actually, we need to know that the lack of government supports and the absence of determinable laws increases all the risks associated with the centralized mode of exchange. Second, we should become familiar with the decentralized methods of exchanging cryptocurrencies. There are many platforms on which users can exchange their crypto assets in an autonomous and decentralized manner. Generally, these so-called DEX exchanges do not restrict users due to their nationality or race. It means that Iranians can easily use these platforms and avoid using centralized exchanges. Finally, if one, aware of all the risks and familiar with the decentralized modes of exchange, still needs to use Iranian platforms, the Coiniran benchmark would be a very beneficial and in-depth reference for her to get informed about the quality of Iranian platforms.
After all, please keep in mind that this ranking does not indicate the permanent and inherent superiority of one exchange over other exchanges. It also does not introduce a suitable place for investment and daily tradings. The purpose of this study is to increase transparency and as a result, the quality of exchange services. It is true that some may be professional traders, but perhaps for most of the cryptocurrency enthusiasts in Iran, as the old saying goes, “Hodl” is still the best trading act in the world of cryptocurrencies.
Read more about the Coiniran benchmark here.
