What to Look For in a Crypto Exchange
In November of 2022, the stunning collapse of the world’s 3rd largest crypto exchange, FTX, sent shockwaves through the volatile cryptocurrency industry, leaving investors with jitters over the safety of their digital assets.To get more news about
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According to blockchain analytics firm Nansen, customers of Binance, the world’s largest crypto exchange, withdrew almost 2 billion dollars worth of crypto in a single day and $8.7 billion within a week in the wake of FTX’s downfall.
Indeed, 2022 proved to be an extremely tough year for the crypto sector, and crypto exchanges in particular.
In June of that year, many crypto investors panicked when Binance temporarily paused Bitcoin withdrawals, allegedly due to a “stuck transaction” that was causing a backlog, according to chief executive Changpeng Zhao.
Shortly after FTX went belly up, another cryptocurrency exchange, BlockFi, filed for Chapter 11 bankruptcy, leaving over 100,000 creditors on the hook.
Meanwhile, the price of Bitcoin, the world’s most popular cryptocurrency, plunged to a record low of $16,000 in November of 2022, more than 400% off the high of $69,000 it had reached just a year before.
Given last year’s crypto calamities, it’s completely understandable that both existing and potential crypto investors have been left a little spooked.
The paramount concern when investing in any type of financial instrument, regardless of whether they’re traditional or digital, is that your assets will be secure and readily accessible.
So, in view of today’s shaky environment, where is an investor wanting to trade in digital currencies to turn, and what should they look for in choosing a reliable exchange?
After all, it’s not like the market is dead –there are still huge opportunities for profits. Bitcoin’s price has already doubled since bottoming out last year.
Key Reliability Factors
Some of the essential things to look at when considering a crypto exchange are verifiable reserves, high liquidity, and maximum transparency.
One example of a platform that excels in these areas is Bitget, a top 10 spot trading and top 5 futures trading platform, according to Coingecko, and the third biggest crypto derivatives exchange in the world, according to a report published by the Boston Consulting Group.
High Liquidity
The main factor that provides liquidity is the number of users on the platform and the volume of trade on the exchange.
Bitget enjoys a high degree of liquidity thanks to its 8 million registered users in more than 100 countries and regions around the world, as well as large institutional investors.
Coinmarketcap reports that Bitget’s liquidity score is higher than other major exchanges like KuCoin and Gate.io.
There are currently 478 coins and 540 trading pairs available on the exchange, with 24-hour volume reported to be nearly $700 million, according to Coingecko.
What to Look For in a Crypto Exchange
