How are exchanges ranked?

[Virtualsnipe13]

Over the years, everyone has been searching for an exchange that can go the distance, so we test transparent CEXs and, most times, try new ones to see if they can meet our trading needs.

Yesterday I saw a tweet of CoinGecko with the top ten CEX by market shares of April, Binance is 1st at 38% with no exchange competiting with them when it coming to market, Gate.io is 2nd with 9% coming from 5th place year with 6.8% guess there putting effort in making their exchange user friendly, and Bitget at 3rd place with 7.2% I could remember they use to be 4.6% they're also putting effort to be in the top 3 cause they still growing and have been around for 3 years or so, 2nd and 3rd place haven't been around for long but they beat my expectation surpassing MEXC at 4th, OKX at 5th and Coinbase at 6th which have been in the top 5 for year, guess then need to put more effort in making their exchange user friendly for investors. https://x.com/coingecko/status/1919738931312263318

Do you thing each exchange deserves the rank given to them?

[Upgrade00]

Do you thing each exchange deserves the rank given to them?

It's an objective ranking and not a subjective opinion one, so there's no question of deserving a rank when it is based on spot trading volume.

A subjective ranking will be based on factors like security, user experience or customer service.

[Potato Chips]

This is based on market share by spot trading volume, and speaking of trading volumes, it is an open secret that exchanges inflate their volumes up to a certain extent—yes, even the popular exchanges.

Because of this, I do have some doubts about the ranking accuracy. 🤔 Perhaps, some of them would have been a little lower or higher than their current rank. It is believable that binance is still at the top spot, though. I believe they still have so much hold in the crypto community—top exchange.

[Darker45]

Perhaps Binance deserves it. It seems they remain as the most popular exchange all over the world even after getting kicked out from one country to another. The second in rank up to the bottom could be interchanged.

So, don't celebrate too much believing all your shilling efforts to promote a mediocre exchange were effective. Perhaps you all received your bonuses because of the ranking. Congratulations! You must have done your fair share in marketing your brand.

But don't jump into conclusion and make us believe that your exchange is the third best in the world. It isn't.

[The Sceptical Chymist]

Perhaps Binance deserves it. It seems they remain as the most popular exchange all over the world even after getting kicked out from one country to another.

Yeah, they're popular because they operate in more than one country, deal in fiat and thus act as an on-ramp for people with cash to buy crypto--but I can't pinpoint the reason at the moment, but they've left a sour taste in my mouth for at least a few years now.  It doesn't help that they delisted some of the popular privacy coins (like 'em or not, they're an important part of the cryptocurrency world).  On the other hand, every legitimate exchange has at least one master to answer to, and it's safe to assume Binance was given orders to nuke coins like XMR by the US government at least. 

The bottom line for me is that centralized exchanges can be ranked according to whatever criteria one chooses, but they're just spying eyes for the regulators and who knows if they even care about their customers' privacy, e.g., not handing out customer data without a proper court order.  I just don't trust 'em.

[Darker45]

Perhaps Binance deserves it. It seems they remain as the most popular exchange all over the world even after getting kicked out from one country to another.

Yeah, they're popular because they operate in more than one country, deal in fiat and thus act as an on-ramp for people with cash to buy crypto--but I can't pinpoint the reason at the moment, but they've left a sour taste in my mouth for at least a few years now.  It doesn't help that they delisted some of the popular privacy coins (like 'em or not, they're an important part of the cryptocurrency world).  On the other hand, every legitimate exchange has at least one master to answer to, and it's safe to assume Binance was given orders to nuke coins like XMR by the US government at least. 

There's nothing to pinpoint really. It must be an interplay of several factors. I was also curious about this exchange. If my memory serves me right, just shortly after Binance was born, it immediately shot to the top. Perhaps the timing was also perfect. It was during the time when the ruling exchanges like Bittrex started to crumble down. And then they were able to keep the lead.

You can't expect anything from CZ and Binance. They aren't eXch. They're not advocating let alone fighting for anything. Principles to them are secondary. They're simply making money. They will meekly follow as they're told by the powers that be. They'll bend a knee, suck balls if necessary. That's the way to preserve your business interest.

The bottom line for me is that centralized exchanges can be ranked according to whatever criteria one chooses, but they're just spying eyes for the regulators and who knows if they even care about their customers' privacy, e.g., not handing out customer data without a proper court order.  I just don't trust 'em.

To a certain extent, highly compliant and highly cooperative centralized exchanges like Binance are like honeypot systems. It's like they're there for regulators and other powerful government agencies to easily gather valuable information.

[Iamcrypticguy]

This is based on market share by spot trading volume, and speaking of trading volumes, it is an open secret that exchanges inflate their volumes up to a certain extent—yes, even the popular exchanges.

Because of this, I do have some doubts about the ranking accuracy. 🤔 Perhaps, some of them would have been a little lower or higher than their current rank. It is believable that binance is still at the top spot, though. I believe they still have so much hold in the crypto community—top exchange.

Maybe or maybe not, but I'm a lil bit surprised coin base isn't getting the volumes or used to get, Binance is still the boss ahah, Bitget is thriving too, probably their new onchain products has added to their trading volumes for last month. like you said, maybe CH should do a ranking on compliance, security etc let's see their results

[Potato Chips]

maybe CH should do a ranking on compliance, security etc let's see their results

What is CH? Do you mean Coingecko? they have something close already. You've probably heard about it— it's their trust score concept, and they have their own methodology for it. By default, exchanges are also ranked based on trust score in the website.

If you're curious about their methodology on this—could change over time though:

Crypto Exchange Ranking (Updated Jan 2023)

Crypto exchanges, similar to trading pairs, were also ranked based on their reported volumes. It worked in the earlier days but eventually became a meaningless number as they exchange race heated up and many sought ways to make themselves appear as the “top” exchange.

Through Trust Score, we once again refreshed the standards of crypto exchange ranking to rank them by various metrics, which can be classified into seven (7) different categories:

    

• Liquidity/Web Traffic Quality – Reported volume, order book depth, order book spread, trading activity as well as overall web traffic quality.
• Scale of Operations – Measures an exchange’s overall trading volume, order book depth & order book spread relative to the rest of the industry.
• API technical coverage – Measures an exchange’s capability in terms of API availability & coverage
• Cybersecurity – Evaluates how well prepared an exchange is against external facing threats towards its platform (servers, web services, front-end), users (account safety features) & more.
• Team Presence – Evaluates if an exchange team publicly discloses team profiles on reputable sites (minimally top management such as C-suite figures).
• Past Incidents – Used to record if an exchange has had negative past incidents (eg. regulatory troubles, hack incidents, withdrawal issues, user account disputes & more).
• Proof of Reserves – Evaluates if an exchange has publicly disclosed reserves stats, or has taken steps related to auditing or reporting to relevant authorities regarding assets & liabilities.

[Darker45]

Maybe or maybe not, but I'm a lil bit surprised coin base isn't getting the volumes or used to get, Binance is still the boss ahah, Bitget is thriving too, probably their new onchain products has added to their trading volumes for last month. like you said, maybe CH should do a ranking on compliance, security etc let's see their results

Or perhaps it's not their new onchain products but their shills like OP and you that made them more popular? What do you think? It's very possible, right? You're all hardworking. You must be doing a very good job. Keep it up! Thanks to you shills it's only a matter of time before you will dethrone Binance.

How would Coingecko do a ranking based on compliance, security, etc? By asking the very exchanges they're ranking? Or by taking their claims as truth? They aren't a government agency or a legitimate audit team to be given access to the systems that are actually in place and how they're actually working. Just like their ranking based on volume, it won't be reliable.

[bias]

You can't expect anything from CZ and Binance. They aren't eXch. They're not advocating let alone fighting for anything. Principles to them are secondary. They're simply making money. They will meekly follow as they're told by the powers that be. They'll bend a knee, suck balls if necessary. That's the way to preserve your business interest.

Some people think that Binance "fights" for keeping crypto on top and acts like it does it for them and crypto principles. That's totally absurd and fully false. None of the "top-tier" CEXs protect anything, all of them work for making money. However, even if some wanted to, they simply can't. Either you, as an exchanger, will comply, or you will be shut down. Like eXch.

To a certain extent, highly compliant and highly cooperative centralized exchanges like Binance are like honeypot systems. It's like they're there for regulators and other powerful government agencies to easily gather valuable information.

To which certain extent are you referring? The infinity? Firstly, Governments can ask whatever, and secondly, they don't ask them, but demand from them. Totally different.

[Virtualsnipe13]

Seems I got it wrong as I thought it's ranked by security and regulation, Binance would always be at the top cause the amount of whales using them from all part of the world. I'll always be a loyal user as they are the first exchange I used in my learning stage

[bias]

Seems I got it wrong as I thought it's ranked by security and regulation, Binance would always be at the top cause the amount of whales using them from all part of the world.

Not solely because of the whales. It has more because of its availability to many countries. Thus, more volume than any other.

I'll always be a loyal user as they are the first exchange I used in my learning stage

Anyone can choose the exchanger that they want to trade with. However, we should always have in mind that all of them are companies that target money. They are not our friends and certainly not our wallets. So, don't put everything you've got on them because of your loyalty.