Over the last one decade, cryptocurrency exchanges have played a huge role in making adoption, trading and storing of assets accessible to users. While there have been pockets of challenges, significant successes have also been recorded. Of course, it's normal for an evolving industry to have some shake-ups before getting the records straight but what is important is what the players are doing to ensure stability of the industry.
In the course of my crypto journey, I have discovered that the primary things users look out for before choosing an exchange are: trading fees, available trading pairs, user interface, security measures, customer support e.t.c but with the recent realities emerging from the shocking collapse of FTX, the recent closure of Bittrex, Binance saga with SEC and the lawsuit against Kraken, it's important for investors to note that the listed factors above aren't enough in choosing a CEX if the investors want to have peace of mind over there assets. What then must users consider in addition to the above factors.
User protection fund: This is a fund set aside to reimburse users for losses or damages resulting from certain activities or transactions.
Proof of reserve: proof of reserve has become one of the major yardstick to test the integrity of an exchange. This mechanism is what gives users assurance that an exchange do actually own crypto assets they claim to have in there custody. It's also important for users to check if the wallet address of this PoR is made public.
Compliance to regulations: Whether we like it or not, it has become imperative for exchanges to comply with certain regulations. Of course many will claim that crypto is meant to be decentralized. No doubt about that but it's not funny when an exchange just announced bankruptcy overnight leaving investors in shambles, regulations can cub this kind of uncertainty hence it is important to consider this. All this and many more like partnership with world class brands and personalities who wouldn't want their names to be soiled are what to consider when choosing a crypto exchange.
The question now is do we have exchanges with all this qualities? Let's discuss.
You've got a free upvote from witness fuli.
Peace & Love!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
A few exchanges have user protection funds and have also made their proof of reserve publicly available. For example Bitget has over $300 million set aside as user protection fund while Binance has about $1 billion as SAFU. These two exchanges have also made their PoR public. Though when it comes to compliance to regulations, the former exchange is known to be more compliant. As we all know, the latter exchange has been on the news for non-compliance to regulations for the better part on this year.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think you said it all well. I had to get on my toes and make some research after what happened to Binance recently to find out what is the issues with exchanges, why do they rise up to the global rank and then began to have issues. Turns out they either fail in one or two aspects you mentioned. But notwithstanding, we still habe a good number of exchanges up and running at places where other are stopped.
I think traders should keep eyes on them and have a plan of where next to move to if there be any issues.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think there exist such Exchanges, say Binance tho are surrounded with some challenges of late & Bitget which is striving hard in terms of fostering crypto/web3 adoption in millennials as well as Gen Z's.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Crypto industry is fiercely competitive, it takes a lot of innovation and constant upgrading to stand out from the pack. I've followed the growth of the later CEX you mentioned and I must say it's been remarkable. The team has been consistently pushing the exchange to the top and they are now reaping the benefits as they keep expanding. Even their native token BGB, has been solid, recently setting a new ATH. It's safe to say that such rapid growth means they tick a good number of the factors users consider when choosing an exchange.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I share your sentiment mate. The exchange recent step to launched a personal annual report feature within the app, where you can review your 2023 trajectory, first transaction, cumulative transaction quantity and amount, monthly trading trends, follow-up data, financial income, and more. In addition to hosting of the 2023 Recap & 2024 Plans event, where they shared their insights and outlook on the crypto market, as well as their roadmap and vision for the next year inspired confidence
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit