The Banking Executive Magazine - November 2022 Issue

How To Pick The Best Crypto Exchanges? between orders that are makers and those that are takers, charging a different percentage accordingly. Makers orders add liquidity to an exchange, meaning they do not fulfil standing orders. Takers or- ders, meanwhile, remove liquidity from an exchange by completing orders that are waiting for a trade. Depending on the exchange, maker fees are usually slightly less than taker fees, but this is not al- ways the case. • Withdrawal Fees: Many exchanges charge fees to withdraw coins from their platform. This can be an issue if investors prefer to move their crypto to a secure third-party wal- let or onto another exchange. Withdrawal fees typically vary by cryptocurrency. • Other Fees: In more advanced trading strategies, like margin trad- ing, there are additional fees asso- ciated with borrowing money. Beginner-friendly exchanges like Coinbase and Gemini offer quick buy features that charge higher fees. These fees can be avoided by learning how to buy and sell on an exchange’s trading platform. If you make purchases using a credit card or debit card, you may be charged a premium by both the exchange and your card issuer. RANKING CRYPTO EXCHANGES Various approaches can be used to rank crypto exchanges. These in- clude: Ranking by volume Crypto Exchanges may be ranked by trading volume and market capital- ization. Some platforms, like coin- marketcap.com, provides regular updates of crypto exchanges ranking based on 24 hours trade volume. Ranking according to selected criteria Cryptocurrency trading exchanges may also be ranked according to se- lected criteria. For instance, Forbes and Investopedia have their own se- lected criteria to rank cryptocurren- cies. Forbes Ranking Forbes ranks crypto exchanges ac- cording to key variables. In 2022, Forbes performed an in-depth assess- ment of the features and options of- fered by nearly 25 cryptocurrency exchanges, crypto trading apps and brokerage platforms that offer crypto trading options. Forbes used 10 key variables to assess the quality of each crypto exchange trading platform: 1) Basic Trading Features. Key met- rics included the number of cryptocurrencies available to trade, the number of fiat curren- cies accepted, the exchange’s overall liquidity and trading fees. 2) Advanced Trading Features. Forbes looked at the availability of complex trading features like advanced order types and vol- ume discounts for frequent trad- ing. 3) Margin Trading. Is an assessment of margin trading rates. 4) Platform Availability. While some of the best crypto ex- changes are available every- where, others have widely varying degrees of accessibility of different features in various countries and in the United States. 5) Customer Service. Is measured according to the available types of customer support. 6) Educational Resources. Forbes evaluated the educational con- tent offered by each platform. 7) Crypto Rewards Credit Card. Some platforms offer crypto re- wards credit cards. 8) Security and Storage. Forbes as- sessed the types of storage op- tions, security and insurance available, and any large-scale hacks of each exchange over its lifetime. ISSUE 167 NOVEMBER 2022 the BANKING EXECUTIVE 11 Table 1. Ranking crypto exchanges by trading volume 1 2 3 Binance Coinbase Exchange FTX 9.9 8.0 8.0 $18,971,511,46322.94 $2,179,333,77334.44 $1,692,093,35830.04 904 731 753 16,330,4 1,151,029 2,320,741 # Name Exchange Score Volume(24h) Avg. Liquidity Weekly Volume Source: coinmarketcap.com