It’s never too late to get invested in cryptocurrencies. However, the threats posed by hackers, the high withdrawal fees, and many other crucial factors can hamper the process. With more than 200 operating crypto exchanges, there are a lot of choices available, but the selection should be made after weighing parameters like liquidity, fee schedule, country (headquarters), trading facilities, etc.
On June 20, 2018, the world’s sixth largest crypto exchange Bithumb was hacked. Hackers stole cryptocurrencies worth $30 million. This is one of the largest thefts of its kind and not every crypto exchange is able to compensate the damage. That’s why individual and professional traders spend weeks and months choosing the best crypto exchange in terms of safety, fee policies, and liquidity. It’s not surprising as when it comes to big money — nobody wants to be fooled.
This summer Hacken launched a new product that will ensure better transparency of the exchanges securing your funds. Crypto Exchange Ranks does analysis, scoring, and benchmarking, making choosing a crypto exchange far easier.
The CER provides 24/7 analysis of data taken from real accounts opened on every crypto exchange. The information is thoroughly analyzed with advanced approaches to economic-mathematical modeling, artificial intelligence, machine learning, linguistic programming, and cybersecurity assessment. The processed data turns into inputs for a multi-factor scoring model to get the most precise estimation.
As a result, the clients receive accurate and up-to-date ratings of trading platforms that significantly enhance everyday decision-making processes.
We have identified 9 main problems that can hinder the success of a trading platform. You are most probably aware of liquidity, lack of cybersecurity, and expensive withdrawal processes. But have you ever heard of “kitchen-cheating?”
You won’t probably find any valuable information on Google. The term supposes fake exchanges and brokers create withdrawal barriers for the clients so they can no longer trade or invest successfully. The term comes from conventional stock exchanges; nevertheless, the situation of kitchen cheating is possible in crypto as well.
We interviewed the product owner, Dmytro Shestakov to get an insight on how the product was developed and how it works.
Once Dmytro Budorin (CEO of Hacken) and I were brainstorming on the idea of creating the product that will analyze the reliability of ICOs based on virtual screening models. However, after organizing some focus groups with our colleagues from China and the Republic of Korea, we found out that the crypto exchange rating is more topical. People need the ultimate solution on what crypto exchange to use and why. More of that, they need a multi-faceted product.
Well, definitely the product development is the toughest thing. However, it was not easy to organize a team of specialists who would be able to turn the idea into reality.
We hired only the specialists with the senior level of expertise. Every team member has enormous experience in the realization of complex decisions.
We have 5 main directions:
It’s literally everyone! Individual investors, institutional investors, traders (HFT), crypto exchanges, independent governmental agencies, and traditional financial institutes. By latter, I mean the establishments which don’t have direct exposure to cryptocurrency but they need tools to analyze risks.
Wrapping up: There is no doubt a need for a reliable system to evaluate cryptocurrency exchanges exists. No one has ever defined the main parameters, the scope of data, and types of specialists needed to analyze the trustability of a trading platform like CER has today. Until October 1, 2018, you can explore Crypto Exchange Ranks scoring dashboards for free.
Now, have a look at how the CER will change the rules of the game.
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