February 12, 2020 London

The Benchmark ranks over 160 active spot exchanges globally to bring transparency and accountability to the cryptoasset exchange landscape by providing a framework for assessing risk. A grade is assigned to each exchange to help identify the lowest risk exchanges in the industry.

The analysis reveals a shift in the top five exchanges with itBit, the US and Japanese regulated exchange, taking the number 1 spot for the first time. It is followed by Gemini (2), Coinbase (3), Kraken (4), Bitstamp (5), Liquid (6), Bitfinex (7), OKEx (8), bitFlyer (9), and OKCoin (10).

CryptoCompares Exchange Benchmark plays an important role in providing institutional and retail investors with a secure, trusted marketplace. We encourage all initiatives that help to foster best practices among trading venues in this fast-growing industry, said Gabor Gurbacs, director, digital asset strategy at VanEck.

Charles Hayter, co-founder and CEO of CryptoCompare, commented,

The industry needs reliable metrics to evaluate the vast number of cryptocurrency exchanges globally and we have been extremely pleased with the response to our analysis since launch last year. Our cryptocurrency Exchange Benchmark aims to provide this transparency by assessing exchanges using a clear methodology to assess risk. The result is clear data on which exchanges are managing multiple risks in the most effective manner, improving decision-making for market participants.

CryptoCompare launched the Exchange Benchmark in June 2019 to evaluate cryptocurrency exchanges globally. Initially ranking over 100 exchanges, it now includes analysis of more than 165 crypto exchanges globally. It employs a qualitative (due diligence) and quantitative (market quality based on order book and trade data) approach and uses correlation-of-volume-to-volatility and standard-deviation-of-volume as inputs to the analysis.The Exchange Benchmark does not rely on aggregate volume data in its analysis due to concerns over volume manipulation, wash trading and trading incentives.

The ranking components include: geography; legal/regulatory; investment; team/company; data provision; trade surveillance; market quality and a penalty factor for negative events. Analysis is based on public information and detailed methodology is made freely available, underscoring CryptoCompares commitment to bringing greater transparency and improved decision-making to the cryptocurrency marketplace.

The full report can be found here.

Originally posted here:

CryptoCompare Ranks Top 10 Bitcoin (BTC) and Cryptocurrency Exchanges - The Daily Hodl