How Many Cryptocurrency Exchanges Are there?

Jump to page contentsdropdown-arrow

How Many Cryptocurrency Exchanges Are there?

Cryptocurrency exchanges oversee the trading and sometimes the valuing of cryptocurrencies, and form an integral part of the industry. There are various types of exchanges, with some being centralised and others decentralised, but their role is almost always the same. The difference lies in the way that transactions are carried out.

What is the Exact Number of Exchanges Today?

Since crypto regulation in many countries is still either limited or non-existent, there are no rules about setting up a cryptocurrency exchange. Whilst a reputable exchange invests in powerful servers and security features, you can technically create your own exchange online in a surprisingly simple way. Although, creating your exchange is no guarantee that users will use it.

It is difficult to determine the exact number of exchanges at any one moment since these do not need to register with any centralised authority. We estimated 504 cryptocurrency exchanges as of to date, but this can change at any moment. 259 of these exchanges are tracked on CoinMarkeCap, while others are still in their start-up period.

According to CMC, we have 18,998 markets in which we can trade crypto. This means that there are 18,998 different trading pairs (ex. USD/BTC or XRP/ETH etc etc.) available on 259 exchange platforms. If we do some simple maths, we can note that on average, an exchange platform has 73 markets for its users to trade in.

Because they are so ‘easy’ to create, many exchanges are set up and then close after little or no interest. Those who are interested in creating an exchange may also opt for a white-label solution. This means that you can buy the architecture of an internationally know exchange and then re-brand it completely and put it to market. Crypto users today are more aware of potential frauds so they normally opt for the bigger, more reputable exchanges.

Which are some of the Most Reputable Exchanges?

In order to make the list of reputable cryptocurrency exchanges, a platform needs to operate in a safe and secure environment. There are many ways to achieve this, such as by abiding by industry best practices, complying with regulation, and implementing a strong firewall.

Some of the best exchanges also decide to be based in countries that are creating cryptocurrency legislation. By doing this, they can attract cautious traders who prefer dealing with a company that operates within a regulatory framework.

One such example of this is Binance, which relocated to Malta after the country passed several industry regulations. Binance is one of the largest cryptocurrency exchanges by trading volume, and has a great reputation with its customers. Although it was successfully hacked in 2019, no users lost their funds, and this gave the platform a significant boost in its overall reputation.

Coinbase, an American company licensed to carry out money-based transactions, is another of the most reputable exchanges. The company also has an office in the UK, where it received an e-money license from the FCA, which means that it needs to adhere to strict compliance conditions which make its operations safer. Coinbase is probably best known for allowing the purchase of Bitcoin and Altcoins with PayPal, apart from also accepting card payments and bank transfers.

Whilst BitMEX has not registered with any legislative board so far, the Hong Kong-based platform has a strong reputation for safety. Specialising in futures and perpetual contract trading, the P2P exchange is best-suited to experienced traders. Newbie investors should have a look at these exchanges instead.

Recently Similar Guides

cex-promotion exmo-promotion

Latest Guides

Changelly,Exchange Platforms,Intermediate,Shapeshift

An Alternative To Shapeshift

Shapeshift is a popular instant cryptocurrency exchange which allows users to trade a variety of cryptocurrencies. As it gained popularity it ended up becoming a victim of its own success, experiencing a rising number of issues and even multiple hacks. Today, Shapeshift has improved its services, yet its reputational damage lingers, with many looking for […]

20 August, 2019
Intermediate,Investment,Trading

Best CFD Brokers

When you’re an experienced investor who understands the movements of a certain market, you may wish to broaden your horizons and try more advanced trading products. Contracts for Difference (CFDs) could be one such product for you. Working with an online broker, you can trade CFDs in a variety of markets and countries, with a […]

16 August, 2019
Intermediate,Investment,Margin Trading

Your Ultimate Guide To CFD Trading

Contracts for Difference, better known as CFDs, are a trading product which is ideal for speculating on financial markets. Best-suited for experienced traders, understanding what CFDs are and how they work can be somewhat confusing. This detailed guide will explain all you need to know about them, and if they are the right trading product […]

14 August, 2019
Binance,CoinEx,Exchange Platforms,Intermediate

An Alternative To Binance

Binance is one of the largest cryptocurrencies in the world, offering a range of features at competitive prices. The exchange, which is based in Malta, accepts users from around the world and is a much-loved platform by the crypto community. Binance: An Overview Trading over 100 different cryptocurrencies, Binance can cater to traders looking to […]

9 August, 2019
Coinbase,Exchange Platforms,Intermediate

An Alternative To Coinbase

Coinbase is one of the world’s largest cryptocurrency exchanges, trusted by millions around the world. It is based in San Francisco, USA, and it is considered to be the largest Bitcoin broker today. Apart from being a traditional centralised exchange, Coinbase encompasses several other cryptocurrency-related services, such as a wallet and developer API. Due to […]

9 August, 2019
Advanced,Bitcoin,Intermediate,Investment,Margin Trading,Trading

5 Ways To Short Bitcoin

Short selling Bitcoin and other cryptocurrencies is a way to make money when the value of a coin drops. It is an advanced investment option, better suited to experienced traders due to the high risks involved. This guide will show you five different ways to short sell Bitcoin. What Does Short Selling Bitcoin Involve? Short […]

7 August, 2019
Cryptocurrency,Intermediate,Investment,Trading

How To Day Trade Cryptocurrency

Although cryptocurrencies were first invented by Nakamoto as a way to facilitate payments and get rid of financial intermediaries, they quickly evolved into trading assets due to their high volatility. As a result, asset and forex traders from traditional markets began trading crypto, as a way to turn a profit. While there are many ways […]

6 August, 2019
Bitcoin,Intermediate,Investment,Trading

How Can I Make Money With Bitcoin?

The constantly developing cryptocurrency industry is leading to new opportunities for you to make money with Bitcoin. Often likened to the goldrush which hit California in the nineteenth century, Bitcoin has generated some great returns for the more astute amongst its adopters. Today, there are many creative ways to make money with Bitcoin, and you […]

2 August, 2019