The November of 2022 was a dark month for crypto investors worldwide. The sudden, unexpected, and shocking crash of FTX, the world’s third-largest Crypto exchange, caused havoc in the markets, prompting historic falls in crypto valuations and loss of investor trust that could take years to earn back.
Following the crash, the crypto market’s overall valuation fell below One Trillion Dollars after enjoying years of relative stability. FTX’s shocking failure has many people questioning the legitimacy of the dozens, if not hundreds, of crypto exchanges people trade daily.
This post is directed towards assuaging these concerns by identifying a list of tried and tested crypto exchanges that are not looking to follow the cursed path of FTX, at least shortly.
Here is a disclaimer, though, instead of relying completely on this list or blindly trusting any pundit, it is advised that you spend time doing your due diligence to make double-check the solvency of the exchange you choose to trade through. Spending a few hours on a Google search supported by fast-paced broadband like Spectrum is enough to help you understand the overall performance of the exchange you will spend your money on.
Now, before we jump onto the list of exchanges, let’s take a step back and look at the cautionary tale of FTX, which prompted us to create this list in the first place.
REASONS UNDERPINNING FTX’S SPECTACULAR FAILURE
Technically speaking, FTX’s crash happened because of a solvency of liquidity crisis. In very simple terms,, the exchange did not have enough hard cash, fiat currencies, or any other form of physical assets to back it up. So, following the publication of a damning report, a rush of users flooded the exchange demanding the return of their money, over 6 Billion Dollars; FTX lacked the cash to comply.
FTX tried to raise this capital by offering to sell a portion of its business to its competitor Binance, but the deal soon fell through, striking the last nail in its coffin. Within days the exchange crumbled, the CEO had resigned, and a hoard of investors was left stranded in the wind.
To prevent something like this from happening to your hard-earned cash, always perform due diligence and trade crypto through legitimate exchanges like the ones mentioned below.
2 OF THE MOST LEGITIMATE CRYPTO EXCHANGES OPERATING IN THE MARKET
BINANCE
It’s no wonder that Binance has topped this list; it is the largest cryptocurrency exchange in the world, after all. Despite its size, the platform has one of the lowest fees or commission rates in the market, attracting several investors.
The platform allows users to trade in a range of cryptocurrencies totaling about 150. Moreover, users can access several different types of orders and trading options.
In addition to being a mere exchange, the platform is a one-stop shop to follow all major and current trends in the crypto world. The platform offers several live charts and market trends insights that are helpful for small-scale traders.
Recently, Binance has courted controversy because it came under the radar of the Securities and Exchange Department and is currently under investigation. But investors can sleep soundly knowing that the investigations have nothing to do with solvency or liquidity issues but focus on tax evasion.
COIN BASE PRO
Like Binance, Coin Base Pro is a well-established cryptocurrency exchange offering users the trade-in over 250 different types of currencies. But unlike Binance, Coin Base Pro’s fees and commissions are markedly higher. In turn, the platform offers its users a friendlier usage experience which is relatively easy to learn and get used to.
The platform also offers its users a robust financial ecosystem and is affiliated with over 13 global financial institutions. Coin Base is valued at about 80 Billion Dollars’ worth in assets, making it a very safe option for investors looking to minimize their risks.
The platform has another variant of Advance Trade directed more toward meeting the needs of bigger and more experienced investors.
WRAP UP
The crypto world has finally started recovering from last year’s horrific FTX crash, with major currencies like Ethereum and Bitcoin rising in value. But despite this recovery, investors should not forget to learn from past mistakes and try to trade only through large-scale and established exchanges that have solid assets backing them up.
The exchanges mentioned in the blog are two of the most well-established and largest exchanges in the world and enjoy the confidence of critics and enthusiasts alike.
