Analyst firm BrokerChooser assessed the investment security of digital asset trading platforms and provided a ranking of the twenty largest cryptocurrency exchanges.
The ranking was based on factors such as “regulation, consumer protection, fairness and transparency”. According to the BrokerChooser report, first place with a score of 4.1 out of 5 went to US cryptocurrency exchange Coinbase, which outperformed competitors in most categories.
In second place with a score of 4.0 was FTX US Derivatives, the options and futures market owned by the FTX.US exchange. It should be noted that FTX.US itself was ranked seventh.
The UK-Luxembourg-based Bitstamp platform ranked third with a score of 3.8. The study notes that the exchange has not encountered any regulatory problems in the past five years. Bittrex and Gemini round out the top five safest exchanges with a score of 3.7.
Among other popular exchanges, Crypto.com ranked eighth and Binance.US ninth. Binance itself ranked 15th and KuCoin 18th. In terms of regulation, FTX US Derivatives, Gemini and Kraken Futures received the highest score, while KuCoin and ByBit came in last with a score of 1.0.
In the consumer protection category, Gemini took the lead with OKX coming in last place. Coinbase ranked first in transparency with a score of 4.8, while half a dozen exchanges scored just 1.0, including Binance, OKX, KuCoin, Gate.io, Bybit and Phemex.
As a reminder, in 2021, shareholders filed a class action lawsuit against Coinbase, accusing it of providing false information about its financial position when it listed on the Nasdaq stock exchange.