Traders Union: Crypto Exchange Evaluation Methodology
At Traders Union, we have developed an objective and thorough evaluation system for cryptocurrency exchanges to guide users in selecting the most reliable platforms. This document outlines the key parameters we use in our assessments and their role in the overall rating.
We analyze each parameter to provide transparent and fair ratings. Currently, cryptocurrency exchanges are evaluated based on more than 140 specific measurable data points, and this list continues to grow to ensure the most comprehensive analysis possible.
Comprehensive Cryptocurrency Exchange Evaluation System
To provide users with a transparent and equitable evaluation of cryptocurrency exchanges, we have developed a sophisticated scoring system based on key evaluation parameters. Each parameter carries different weight in the overall score, reflecting its importance in the context of crypto trading. The highest possible score an exchange can achieve is 10 points.
Overall Score Composition
The table below outlines the comprehensive methodology we use to evaluate cryptocurrency exchanges. Each exchange is assessed across several key parameters, all weighted based on their importance to the overall user experience. This scoring system ensures a transparent and fair comparison of exchanges, based on the measurable parameters and user’s feedback.
| Parameter | Weight | Description | Key Factors |
|---|---|---|---|
| 20% | Assesses the competitiveness of trading fees and transparency of deposit/withdrawal charges | Spot and futures trading fees, deposit fees, withdrawal fees, fee transparency, tiered fee structures | |
| 20% | Evaluates exchange security and regulatory compliance | 2FA, cold storage, insurance for assets, KYC/AML compliance, government-regulated licenses | |
| 15% | Measures user experience and satisfaction | User reviews, feedback scores | |
| 10% | Evaluates deposit and withdrawal methods for speed, ease, and reliability | Available methods, processing times, fee transparency, support for cards, wire transfers, payment apps and crypto | |
| 15% | Evaluates the quality and functionality of the platform and trading tools | Platform features, API, trading bot support, advanced order types, TradingView integration | |
| 15% | Analyzes available cryptocurrencies, fiat currencies, markets, and investment products, such as staking, farming, and other yield-generating tools. | Spot, futures, options markets, supported coins, fiat trading pairs, staking programs, farming options, asset variety, investment products, market accessibility. | |
| 5% | Assesses the availability and responsiveness of customer support channels | Availability of live chat, email, phone support, multi-language support | |
| 100% |
Understanding Each Evaluation Metric
Our cryptocurrency exchange evaluations are grounded in several critical parameters to ensure a thorough and unbiased assessment. This section provides a detailed look into each parameter, explaining its role and significance in the overall rating.
Commissions and Fees
We assess exchange fees by examining spot and futures trading costs as well as P2P exchange costs, deposit/withdrawal charges, and any other applicable fees. Our analysis considers the transparency and competitiveness of fee structures to ensure users are not subject to hidden or excessive costs.
Each factor within the "Commissions and Fees" category is scored according to clearly defined criteria, contributing to the final rating.
| Spot trading fee, taker | ||
|---|---|---|
| Spot trading fee, taker |
Criteria
≤ 0.15 % ≤ 0.21%, but > 0.15% > 0.21% |
Score
1.5 0.75 0.2 |
| Spot trading fee, marker | ||
| Spot trading fee, marker |
Criteria
≤ 0.1% ≤ 0.2%, but > 0.1% > 0.2% |
Score
1.50.75 0.25 |
| Futures trading | ||
| Futures trading |
Criteria
Yes
|
Score
1
|
| Futures trading fee, taker | ||
| Futures trading fee, taker |
Criteria
≤ 0.055% ≤ 0.07%, but > 0.055% > 0.07% |
Score
1.50.5 0.25 |
| Deposit Fee | ||
| Deposit Fee |
Criteria
No
|
Score
0.75
|
| Withdrawal fee | ||
| Withdrawal fee |
Criteria
No
|
Score
0.75
|
| P2P Trading | ||
| P2P Trading |
Criteria
Yes
|
Score
0.75
|
| P2P taker fee | ||
| P2P taker fee |
Criteria
= 0 > 0 |
Score
0.5 0.1 |
| P2P maker fee | ||
| P2P maker fee |
Criteria
= 0 > 0 |
Score
0.5 0.1 |
| Total Score | ||
| 10 points | ||
| Total Score |
Score
10 points
|
|
Security and Regulation
The score for this parameter is determined by the level of security protocols and regulatory compliance of a cryptocurrency exchange. Exchanges with high-level regulatory licenses, such as government-backed licenses, score higher, especially when regulated across multiple jurisdictions. Key factors include the implementation of 2FA, cold storage for user assets, insurance coverage, and adherence to KYC/AML regulations. While a long market history is considered beneficial, it is not weighted as heavily as robust security practices and regulatory oversight.
| Parameter | Criteria | Score |
|---|---|---|
| Tier-1 regulation (in the US, UK, Germany, Spain, France, Australia or Singapore) | Yes | 3 |
| Government-regulated (all other regulations) | Yes | 1.5 |
| Cold Wallet Storage | Yes | 2 |
| 2FA | Yes | 2 |
| Successful Hack Attacks | No | 0.75 |
| Mondatory KYC | Yes | 0.5 |
| Investor Protection Fund | Yes | 0.5 |
| Facial Authentication | Yes | 0.25 |
| Total possible points | 10 |
User Satisfaction
At Traders Union, we use the Customer Satisfaction Score (CSAT) as a unique metric to gauge user satisfaction. This score is based on the analysis of reviews posted by our global community on each crypto exchange's profile page. With over 13 years of collected reviews, we have developed a deep understanding of customer satisfaction across different cryptocurrency exchanges.
Where:
ni = the number of reviews with i
stars
pi = the points associated with i
stars
i ranges from 1 to 5, representing the star ratings
Using the given star-to-points mapping:
- 1 star = 1 point
- 2 stars = 3 points
- 3 stars = 5 points
- 4 stars = 8 points
- 5 stars = 10 points
Deposit and Withdrawal
The Deposit and Withdrawal section also assesses the cost-efficiency of using different payment methods. Exchanges are rated not only based on the variety of available options but also on the absence or presence of fees for deposits and withdrawals.
Here’s the updated point-based evaluation table:
| Payment Method | Criteria | Score |
|---|---|---|
| Variety of Crypto Payments | Yes | 1.5 |
| Credit/Debit cards | Yes | 1.5 |
| Bank Wire | Yes | 1.5 |
| PayPal | Yes | 1 |
| Apple Pay | Yes | 1 |
| Google Pay | Yes | 1 |
| Advcash Wallet | Yes | 0.5 |
| P2P (Peer-to-Peer) | Yes | 1 |
| Deposit fee | No | 0.5 |
| Withdrawal fee | No | 0.5 |
| Total possible points | 10 |
Trading apps & tools
The Trading Platform and Tools section evaluates the technology and features provided by cryptocurrency exchanges to enhance the trading experience. Exchanges are rated based on their availability across devices, the functionality of advanced trading tools, and integration with popular charting and automation systems like TradingView. The presence of APIs, trading bots, and advanced order types also play a crucial role in enabling users to make better trading decisions and automate their strategies.
| Parameter | Criteria | Score |
|---|---|---|
| Android App Score | 0.05 per each 0.1 point | 0-2 points |
| iOS App Score | 0.05 per each 0.1 point | 0-2 points |
| 2FA | Yes | 1 |
| Face ID | Yes | 0.5 |
| Mob Indicators | Yes | 0.5 |
| Alerts | Yes | 0.5 |
| Advanced Order Types | Yes | 0.5 |
| Trading With Bots | Yes | 0.5 |
| Copy Trading | Yes | 0.5 |
| API | Yes | 0.5 |
| TradingView Integration | Yes | 1 |
| Desktop app | Yes | 0.25 |
| Extra trading platforms | Yes | 0.25 |
| Total possible points | 10 |
Supported coins & markets
The Supported Coins & Markets section evaluates the diversity of tradable assets and market access offered by cryptocurrency exchanges. This includes the number and variety of supported cryptocurrencies and fiat currencies, as well as the availability of trading markets such as spot, futures, and options. Additionally, the section takes into account investment tools like staking and farming, which allow users to earn on idle assets. Exchanges providing access to a broader selection of markets and assets receive higher ratings in this category.
| Criteria | Score | |
|---|---|---|
| Supported coins (spot) | ≥500 | 3 |
| ≥250, but <500 | 2 | |
| ≥50, but <250 | 1 | |
| <50 , but > 0 | 0.5 | |
| Spots = 0 | 0 | |
| Fiat-based pairs | Yes | 1.5 |
| Futures | Yes | 2 |
| Options | Yes | 0.5 |
| NFT | Yes | 0.5 |
| Copy trading | Yes | 1 |
| Staking | Yes | 1 |
| Yield farming | Yes | 0.5 |
| Maximum | 10 |
Clients Support and Contacts
The Client Support and Contacts section assesses the quality and availability of customer support provided by cryptocurrency exchanges. Prompt and efficient customer service is crucial for resolving issues and ensuring smooth user experiences. Exchanges are rated based on the number of support channels available, response times, and multilingual capabilities.
| Parameter | Criteria | Score |
|---|---|---|
| Live Chat | Yes | 3 |
| Multilingual Suppor | Yes | 2.5 |
| E-mail Support | Yes | 2.5 |
| Phone Support | Yes | 2 |
| Total possible points | 10 |
Our Core Principles
Transparency: We ensure that our evaluation process for cryptocurrency exchanges is clear and accessible to all. Transparency is essential to build trust and provide clarity in our assessment methods, allowing users to understand exactly how ratings are determined.
Data-Driven Analysis: Our assessments are based on comprehensive data collected from hundreds of cryptocurrency exchanges. We currently evaluate over 100 specific data points, and this list is continuously expanding to ensure the accuracy and reliability of our reviews.
Objective Criteria: We apply impartial and unbiased criteria in all our evaluations, ensuring fairness. This objectivity is key to maintaining the integrity and trustworthiness of our ratings.
Focus on Investor and Trader Interests: Our primary goal is to cater to the needs and interests of cryptocurrency traders and investors. With years of experience and a vast database of exchange reviews, we prioritize providing relevant insights to help users make the best choices.
Continuous Improvement: We are dedicated to constantly improving and refining the evaluation information we provide. This includes staying updated with the latest market developments and incorporating user feedback to enhance our evaluation methods.
Team of Analysts
Our team of analysts is constantly working to improve and refine the information we provide. With a wealth of experience and expertise in the financial markets, they ensure that our evaluations are thorough and up-to-date. You can learn more about our analysts and other team members involved in this work by visiting their profiles:
Analysts
Invited experts
At Traders Union, we often bring in external experts and editors to evaluate brokers, ensuring a higher quality and more comprehensive assessment. This approach leverages diverse perspectives to enhance the accuracy and reliability of our broker reviews.
Experts and employees who are not listed in this section may also participate in the work.
How is the analysis of the results obtained?
To derive a common assessment score for each crypto exchange, our experts created a unique script that processes meticulously categorized data. This script analyzes parameters such as crypto exchange reliability, trading conditions, customer support, and regulatory compliance using advanced algorithms. The resulting score determines each crypto exchange's rank in our rating system, ensuring unbiased, transparent, and consistent evaluations, thus providing traders with a reliable resource for decision-making.
FAQs
How often do crypto exchanges check and update the Traders Union rating?
This process is carried out regularly every month.
Can you review and update the criteria for evaluating crypto exchanges?
Yes, we regularly review and improve our methodology to ensure it stays current and reliable. We also digitize and add new data points to enhance the depth of our evaluations. However, the core principles of how we assess exchanges and form rankings remain unchanged. To maintain transparency, any updates are reflected on our methodology page.
How many people are involved in assessing cryptocurrency exchanges?
The staff of the analytical department has 15 employees who, based on the results of each reporting period, inspect companies, and form the current rating of crypto exchanges.
Do you continuously update the list of exchanges you evaluate?
Yes, we regularly expand the list of cryptocurrency exchanges we assess, incorporating new platforms as they meet our evaluation criteria. To date, we have already evaluated around 200 exchanges, ensuring that our ratings remain comprehensive and relevant for users. A large amount of data allows us to identify industry leaders more accurately and also provides the broadest picture of market trends and exchange performance.
