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A Closer Look At Cryptocurrency Trade Volume

cryptocurrency trade volume
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EDITOR'S NOTE: It’s interesting to hear the term “digital gold” emerge as the popular Bitcoin and crypto frenzy began to a peak. “Gold” is a safe haven asset. The crypto space is more like the Wild West. And when you think about the metaphor—America’s westward expansion coupled with the gold rush of the 1840s—pioneers and gold diggers certainly didn’t brave the westward trails to seek “safety.” But the digital gold narrative sure makes such risks easier to swallow, or easier to get fooled. The article below discusses the importance of cryptocurrency trade volume. There are hundreds of crypto exchanges out there, some centralized, others decentralized. For those seeking safety in an unproven asset, not only are they taking big, perhaps even misguided, risks trading crypto, they can’t even be certain as to whether their exchange adds yet another layer of risk. For those wagering a huge segment of their personal capital (and hopefully that number shrinks as people wise up), it shows you how the power of popular myth can get almost anyone to leave unguarded the gates of reason.

share of cryptocurrency trade volume, by exchange tier

Data: CryptoCompare Research; Chart: Kavya Beheraj/Axios

Equity and bond markets may be closed, but crypto never sleeps.

  • And one thing that's apparent for crypto traders: exchange matters. These assets are volatile enough. Investors shouldn't also have to worry about platform risk, Axios Crypto author Brady Dale writes.

What's happening: Data firm CryptoCompare graded 150 exchanges, assessing them for regulatory compliance, security, the quality of their markets, recent adverse events and other factors.

  • As of February, 96% of exchange volume takes place on the 78 exchanges that CryptoCompare graded in its "top tier."
  • Only Coinbase, Gemini, Bitstamp, and Binance earned its highest rating of AA, and they now control 36.3% of the market.

Originally published on Axios.

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