CryptoCompare Launches Benchmark Rankings for Cryptocurrency Exchanges | ELEVENEWS
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CryptoCompare Launches Benchmark Rankings for Cryptocurrency Exchanges

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Cryptocurrency data and indices provider CryptoCompare is working to make it easier to spot good, and bad, crypto exchanges.

Announced Wednesday, the company has launched a benchmark ranking of over 100 active spot exchanges from across the globe, offering users a “comprehensive, granular and reliable source of information on the best trading venues.”

CryptoCompare’s Exchange Benchmark was launched to address the need for reliable metrics to evaluate the large number of cryptocurrency exchanges now offering services around the world.

The firm explains:

“Employing both a qualitative (due diligence) and quantitative (market quality based on order book and trade data) approach, the product does not hinge on aggregate volume data but, rather, uses correlation-of-volume-to-volatility and standard-deviation-of-volume as inputs to CryptoCompare’s 30+ metrics. This is due to existing issues with volume manipulation, wash trading and trading incentives.”

The first analysis, based on exchange data for the period May 1–31, suggests the most trusted three exchanges are Coinbase, Poloniex and Bitstamp in descending order of ranking. BitFlyer, Liquid, itBit, Kraken, Binance, Gemini and Bithumb complete the top 10, again in descending order.

Under the benchmark system, exchanges are graded from high to low – through AA, A, B, C, D, E, F – based on their total cumulative score relative to the pool of exchanges included in the rankings.

The ranking components include: geography, legal and regulatory, investment, team and company, data provision, trade surveillance and market quality. The firm’s analysis is based on public information, and its methodology has been explained in a report.

The benchmark data will be available to the public on the firms website from Thursday, a representative told CoinDesk.

CryptoCompare cites research indicating that many exchanges are wash trading and using incentivised trading schemes to inflate volumes.

The Exchange Benchmark, CryptoCompare says, indicates the problem has been getting worse, with lower quality exchanges (ranked C-F1) increasing market share by 30 percent in the last 12 months.

Charles Hayter, co-founder and CEO of CryptoCompare, said:

“In response to industry concerns over inflated volumes and the lack of reliable metrics for assessing cryptocurrency exchanges, we are excited to launch the CryptoCompare Exchange Benchmark. We look forward to bringing greater transparency to the digital asset class and improving decision-making for market participants by providing a dataset they can trust.”

Bitwise Asset Management also recently published a list of the 10 exchanges that it found are seeing real volume.

It said in a March report that around 95 percent of volume is being faked, and that the real spot market for bitcoin essentially exists on 10 exchanges conducting nearly $300 million in daily trading volume. Its list also includes Coinbase, Bitfinex, Gemini and Binance, as well as Bitfinex and Bittrex, which aren’t included in CryptoCompare’s top 10.

CryptoCompare said its Exchange Benchmark will be fed into its aggregate indices to create reference rates for the top exchanges.

source:coindesk.

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Amun Launches Exchange-Traded Product Using Bitwise Crypto Index

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Swiss-based fintech firm Amun AG has released plans to launch a new exchange-traded product (ETP) that will use the Bitwise 10 Select Large Cap Crypto Index as a benchmark. This is the fifth ETP the Swiss SIX Exchange has permitted.

Bitwise Index Services, a subsidiary of Bitwise Asset Management, licenced its index for the first physically replicated crypto index product. The Amun Bitwise Select 10 Large Cap Crypto ETP is available to anyone outside the U.S., and will trade with the ticker symbol KEYS.

“We are thrilled to partner with Bitwise to bring the most broadly diversified crypto ETP to investors in Switzerland,” said Hany Rashwan, CEO of Amun. “Bitwise is the global leader in crypto indexing, and we are excited to launch a product that builds on their expertise.”

Bitwise develops, calculates, disseminates, and licenses cryptocurrency indexes and conducts research in the area of cryptocurrency investing. Its parent company Bitwise Asset Management created the first crypto index fund in 2017.

The Bitwise 10 Select Large Cap Crypto Index is designed to track the performance of up to 10 of the largest crypto assets in the world, as measured and weighted by free-float and inflation-adjusted market capitalization. Though it excludes privacy coins and Platform Dependent Tokens on third-party blockchains.

Constituent securities must meet a variety of criteria to qualify for the Index, including rules related to security, liquidity and institutional support, according to the press release. The Index is rebalanced and reconstituted on a monthly basis.

As of a rebalancing on May 31, the index is weighted with Bitcoin comprising 67.8 percent, Ethereum 11.5 percent, Ripple 8.33 percent, and Bitcoin Cash, Litecoin, and EOS comprising around 3 percent. Stellar and Cardano represent around 1 percent of the basket.

To serve as the underlying assets of the ETP, the index must be approved by SIX and must be both supported by appropriate market makers and available for custody at leading institutional custodians. Currently only eight cryptos make all the requirements.

However, “SIX is a forward-thinking regulator, however, and as the space matures, we expect to see more assets qualify,” said Matthew Hougan, Global Head of Research at Bitwise.

Coinbase Custody and Kingdom Trust currently serve as custodians, though the market makers have not been disclosed yet.

Amun previously released a number of crypto ETPs on the Swiss national market, including one holding the top five cryptocurrencies in a basket (HODL), and ones holding Bitcoin (ABTC), Ethereum (AETH), and Ripple (AXRP).

“Crypto is moving forward on its journey to becoming a mainstream, regulated financial asset,” said Hougan. “Nasdaq Nordic has also allowed crypto ETPs to launch, and regulators are deeply engaged in the US, Europe, and Canada. This is just the next step in that development.”

source:.coindesk.

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Crypto Trading Tools: What is The Big Deal?

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Mechanics are not defined by their toolboxes, which means that any person has to learn and perfect their skills to become successful. Nonetheless, any reasonable person will agree that some tools are useful to perform some crafts. This statement is also true when it comes to trading: even though you need to learn all the basics to achieve profitability and consistency, crypto trading tools can help you out during your journey.

This is sponsored content.

CHARTING TOOLS FOR TECHNICAL ANALYSIS

Even though some market participants lean solely on the fundamentals, most traders prefer to take a look at the price action before making a move. To do so, they usually pick a charting software and become familiar with it. As CryptoCoinTrade points it out, “charts provide precise information about price fluctuations of a certain currency over a specific time period. It is an essential tool for all traders and those in the crypto community are not an exception.” Here are two examples of two very powerful Crypto Trading Tools:

TradingView is one of the best charting software for cryptocurrencies. Source of Image: Facebook.

TradingView.
 This online software is an excellent tool both for beginners and savvy traders. It comprises most of the preferred technical drawing tools, such as trend lines, horizontal and vertical lines, channels, geometrical figures, pitchforks, Fibonacci tools, and even chart pattern drawing tools. It also offers multiple technical indicators such as moving averages, RSI, MACD, Stochastic, and Bollinger Bands. Furthermore, TradingView allows premium members to work with multiple charts and indicators at the same time while providing an alert system. Thanks to this feature, traders can receive a signal through email or SMS when specific conditions are met. For instance, a user could decide set an alert to be informed by TradingView when Bitcoin (BTC) breaks a support or resistance zone. Indeed, TradingView can be very useful if used properly.

Coinigy. Coinigy is another online service that is providing charting services to the crypto trading community. In addition to encompassing most of TradingView’s features, Coinigy also has access to a wide variety of exchange feeds. Although this is not relevant for traders who focus on the largest cryptocurrencies, Coinigy can be an asset for traders who are looking to benefit from the larger volatility on digital coins that have a smaller market capitalization. Moreover, the platform offers an API service which lets users connect all their exchange accounts directly to Coinigy and ultimately makes a trader’s life more manageable!

GENERAL INFORMATION ABOUT THE CRYPTO MARKET

In order to get a solid grasp on the market, it is essential to use some tools that specifically provide general data about the market. Otherwise, you will, sooner or later, make a mistake or miss a very important piece of information that would have changed your trading plan. Here are some tools that can help you while you try to keep the bigger picture in mind.

CoinMarketApp. This app is a mobile replica of CoinMarketCap, a website that is very popular among crypto-enthusiasts. Having said that, CoinMarketApp provides data about all coins listed on significant exchanges, including but not limited to trading volume, price fluctuations, market capitalization, Bitcoin dominance compared to the rest of the market. It also displays a very frequently updated newsfeed, which can be very useful if you are looking to stay informed about the overall crypto market.

Avoiding the herd mentality can help you to become a successful trader. Source of image: Pexels.  

Crypto Fear & Greed Index.
 Although every virtual token has its own price action, most cryptocurrencies are still following the lead of BTC. For that reason, it can be quite useful to know whether the crowd is either looking to buy or sell Bitcoin. The Crypto Fear & Greed Index, which is part of Alternative.me, is nothing more than a very comprehensive sentiment analysis tool. Thanks to a gauge that goes from 0 to 100, this index informs the user whether market participants are currently fearful or greedy. The closer it gets to 100, the greedier people are, which is a sell signal. It is relevant to point out that sentiment tends to be used as a contrarian indicator because most of the time, the crowd is wrong.

Conclusion

Traders have higher chances to improve their game and to become profitable once they learn how to use basic but yet essential tools. Even though each individual has its own preference, all successful investors have a system and follow a precise trading plan. To respect their rules, they need to maintain a consistent approach and therefore use the same tools over and over. Although we do not claim that we covered every potentially helpful tool, we are pretty confident that you have enough material to get started.

Disclaimer: This article is sponsored content. Chepicap has not written this article, nor do we endorse any content within the article. It should be clear for readers this is not investment advice. As always, do your own research.

Source.chepicap

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Crypto-mining firm GAW Miners LLC’s investors given Class status by U.S District Court

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Less than a year ago, Homero Joshua Garza was sentenced to 21 months imprisonment, followed by three years of supervised release. He was also ordered to pay restitution of over $9 million by the U.S. Attorney’s Office of the District of Connecticut. The Founder and CEO of GAW Miners LLC, Garza, was prosecuted for defrauding victims out of their money, in connection with the illegal procurement of cryptocurrencies on the firm’s behalf.

The case in question is in the news again after Bloomberg reported that investors in the controversial GAW Miners LLC’s cryptocurrency mining products can “pursue securities fraud claims” against the firm’s co-owner as a class.

The US District Court judge, Michael P. Shea, ruled that a company making misrepresentations about its computing capacity is a common issue to all class members. Over 212,000 users who executed 33 million transactions with the company were defrauded of the money they had invested in.

Investors had alleged that the mining firm did not use the profits generated from mining digital currencies for any of the mining pools’ computing power. According to the lawsuit filed against GAW Miners LLC, the company was involved in a Ponzi scheme wherein money was poured into the pockets of existing clients by new clients the company brought in, which was a clear violation of the U.S Securities and Exchange Act.

According to the report, the U.S District Court gave the concerned parties until July 5 of this year to raise any doubts about the modified class action, in an attempt to avoid standing problems.

Source :ambcrypto

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