CoinbaseGlobal (NASDAQ:CURRENCY) has been ranked as the safest cryptocurrency exchange for investors, followed by FTX US Derivatives, Bitstamp, Bittrex and Gemini among a list of 20 trading platforms, according to a report by BrokerChooser.
the The exchanges were ranked based on the so-called BrokerChoosers safety methodology, which is based on four main pillars: regulation, consumer protection, market fairness, and transparency, according to the report. Those pillars contain 16 combined subcategories related to a number of qualitative and/or quantitative factors.
currency basis (CURRENCY), the largest crypto exchange in the United States by trading volume, earned an overall security score of 4.1 out of 5, according to the report. It was ranked as a Tier 1 (best performing) exchange for most subcategories and is “well known for its strong security features,” BrokerChooser noted, adding that COIN is the most “transparent” exchange (4.8/5) as it “does a good job of making information readily available to the public in terms of its corporate structure, financial statements, and legal documents, as well as having a relatively simple product offering.”
Also, in the week ended May 27, Stephen Glagola, analyst at Cowen highlighted Coinbase’s “security infrastructure and regulatory compliance as a structural advantage over major global competitors.” While its stock price is hovering around record lows amid a broader crypto slump, Coinbase recently entered the fortune 500 list of the largest US companies by revenue.
FTX US Derivatives, a regulated crypto futures and options exchange and clearing house, received a safety score of 4.0. Formerly known as LedgerX, FTX US Derivatives ranked well on most pillars except “transparency”, with a score of 2.3, implying that it offers “little to no financial or legal transparency and complex products”, according to the report. By comparison, its parent company FTX (safety score of 2.6), owned by famed billionaire investor Sam Bankman-Fried, was ranked the 11th most secure crypto exchange out of a list of 20 exchanges.
UK-based Bitstamp (security score of 3.8) was marked as the third most secure crypto exchange, with pillar ratings of 4.0 on “regulation”, “market fairness” and “transparency”. “. It keeps 98% of its assets in crypto cold storage, a secure way to store crypto against potential hacking violations, according to the report. In addition, the company “offers simple and straightforward products, has not experienced any regulatory incidents in the last five years, and has an extra layer of protection with a crime insurance policy that covers theft, and also uses two-factor authentication and the white list of addresses.
By contrast, Binance (security score of 1.6), the world’s largest cryptocurrency exchange, ranked only 15th among the most secure exchanges, with the worst pillar rating in “transparency” (1, 0). But its US arm, Binance US (safety score 2.8), managed to break into the top 10 cohorts, with the best pillar rating in “regulation” (3.5) and consumer protection” ( 3.5).
The safest cryptocurrency trading platforms (other than those listed above) in descending order are: Kraken Futures (3.4), Crypto.com (CRO-USD) (3.0), Kraken (2.8), Phemex (2.1), Huobi Global (1.8), MEXC Global (1.8), Bitfinex (1.6), Gate.io (1.5), KuCoin (USD-KCS) (1.4), Bybit (1.3), and OKX (1.1).
Previously (May 23) FTX said it will be at the find new brokerage firms.