In this article, we’ll tell you how we rank the exchanges on Coinranking. It will help you to evaluate the hundreds of exchanges, knowing how we set up the list.
We rank all exchanges based on trading volume. So, let’s begin with what that actually means:
Trading volume explained
Trading volume is the total value of all trades on an exchange made in a certain time period; usually within the past 24 hours. This total value consists of both buying and selling coins and represents the overall activity of an exchange.
Some exchanges will have more volume, making it easier to trade certain assets; a low volume could be a sign of an exchange being less popular. So, looking at the trading volume could help you to pick the right exchange for your next trade. Why? Read further!
Why we use trading volume for our ranking
Trading volume is an important indicator to measure the liquidity of exchanges. Exchanges with higher trading volumes generally have higher liquidity, which means they are more likely to meet all buy and sell orders.
High volume = a lot of activity on an exchange
Low volume = little activity on an exchange
Exchanges with a high trading volume usually are more reliable. Traders pay fees to trade; the more traders trade and pay, the more exchanges earn, the more continuity and safety is ensured. Exchanges with more earnings are able to develop their services and are less likely to go bankrupt in the event of a setback. The chance of losing your coins will get smaller.
How we prevent manipulation
Unfortunately, some exchanges manipulate their rankings by artificially inflating their trading volumes. We are dedicated to bringing more transparency to the crypto market. That’s why we’re looking for ways to filter out wash trading behavior, which results in fake volume.
If someone reports verifiable instances of wash trading on specific exchanges, then we will take appropriate measures against it.
Ready to make your next trade
You now understand the list of crypto exchanges, and that means you may be ready for your (first) trade… exciting! And no need to panic; we do have a guide for picking an exchange. As well as the article about how we rank our cryptocurrencies might help to understand the setup of the list of coins.
Good luck! 🌙