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Doubtful cryptocurrency exchanges still dominate market

While Coinbase platform and other well-known exchanges see perspective in its market, the most part of digital currency investors still rely on shaky exchanges to buy, sell and trade.

coinbase sees less operations than minorPhoto: Flickr

The cryptocurrency trading market is going strong, despite the threat, which bares the exchanges with less than stellar reputations because of regulatory compliance and data security issues, that are still lagging there. And these middling exchanges still get lion’s share of crypto trades.

Besides the fact, the crypto sector is rapidly gaining ground, there is still the alarming data, according to Cryptocurrency data and indices provider CryptoCompare, which presented a report regarding the market’s reliance on what is considered “low-quality” exchanges.

While some of the industry’s ultimate exchanges, as for example Coinbase and Poloniex are, show significant gains in crypto market in July, less-reputable or simply small exchanges with ratings of “D” or “F” hold approximately more than 60 percent of traded value.

For example, the San Francisco-based Coinbase with a CryptoCompare’s highest rating of “AA” has  much less trading volume than a “D” graded platform LBank, which sees on the daily basis trades in 15 times more, than a trustworthy Coinbase.

Ratings of companies providing services on the cryptocurrency market are based on indicators such as the geographical location of the exchange, the presence of legislative and regulatory requirements, the quality of the team and services of the company, including the quality of the data provided.