CEX.IO has been ranked among the top tier cryptocurrency exchanges in the world by the analytical platform CryptoCompare. CEX.IO, a multi-functional digital currency exchange, earlier this year secured a DLT provider licence from the Gibraltar’s regulator, the Gibraltar Financial Services Commission. CEX.IO Secures Licence in Gibraltar
CEX.IO was given a 16thplace ranking, thus entering the group of top-tier exchanges. Some of the 148 other participants received considerably lower scores.
In its Exchange Benchmark for Q3 2019, CryptoCompare assessed 164 crypto exchanged applying what it terms an innovative ranking methodology:
“We adopt an innovative ranking methodology that utilises a combination of qualitative (due diligence) and quantitative (market quality based on order book and trades) metrics, without using volume directly in the ranking. We assign a grade to each exchange which will help identify the highest quality, lowest risk and most reliable exchanges in the industry.”
Its 64 qualitative metrics include due diligence and quantitative metrics, for example, market data based on order books and trades, which means that trading volume and liquidity are not used as the only measures of performance, since, as CryptoCompare believe, these two metrics are too easily manipulated. Instead, their overall ranking is made up by applying the following components and weightings:
- Legal/regulation (which includes registration, KYC/AML compliance and procedures, sanctions compliance and statement) – weighting of 20%
- Data provision (which includes average APT response time, connectivity etc.)
- Security (which includes SSL rating, cold wallet usage, custody provision and processes) – weighting of 20%
- Team/exchange (which includes top management identity, experience, training etc.)– weighting of 15%
- Investment (which includes VC funding, whether large or small VC funding etc.) – weighting of 5%
- Trade monitoring (which includes market surveillance and how this is conducted) – weighting of 5%
- Market quality (which includes average spread, liquidity, stability etc.)– weighting of 15%
- Penalty factor: negative reports– weighting of -5%
CEX.IO was set up in 2013 as the first cloud mining provider and has since developed into a multi-functional cryptocurrency exchange with a following of over a million users. The exchange offers a multi-level account system with an individual approach to each customer from first-timers to institutional traders. Trading is cross-platform via its website, mobile app, REST API and WebSocket. It also offers instant Bitcoin trading through a simplified bundle interface.
To view the CryptoCompare Exchange Benchmark report, follow this link: Exchange Benchmark Report Q3 2019 CryptoCompare
For more information on CEX.IO, visit their website: CEX.IO
