What makes a good crypto exchange? I rated Binance, KuCoin, Cryptopia, Coinbase, and DeltaExchange across 6 key categories.
The reality is no exchange is perfect. Most exchanges excel at something while being very weak at something else. So understanding these strengths and weaknesses are absolutely critical. Depending on what you are looking for you can make a case for many different exchanges. If you are an experienced trader with multiple needs then it may be very important to have accounts on many exchanges. Arguably more importantly having access to multiple exchanges diversifies your risk.
I've narrowed down the key categories down to 6:
- Depth of Coins
- Liquidity and Volume
- Analysis and Charting Tools
- Order types
- Fees and Customer Service
- Security and Regulation
The first category is the depth of coins. The key factors here are how many coins offered, and how many pairings of those coins are offered?
Liquidity is the next category. How easy is it to get in and out of coins? How wide are the spreads?
Good traders require strong analysis tools. Whether it is educational, charting, mock trading, or algo building. We need the tools to succeed!
Does the exchange offer leverage? Shorting? Contigent orders? Advanced traders need advanced options when it comes to order types.
It is well known that high fees are one of major causes of underperformance...which exchanges are the most fee friendly?
The reality is no crypto exchange is truly secure (always recommend cold wallets), but the differences in security between exchanges can be massive.
Finally I put it all together for a total score. Despite some exchanges rating a lot higher than others, they all have the strengths and weaknesses. If you want a fiat on ramp: Coinbase. Liquid alts: Binance. Some mid-caps that aren't on Binance: KuCoin. Micro-caps: Cryptopia. Leverage and great fees: DeltaExchange