Coinbase is Safest Crypto Exchange Overall: BrokerChooser
Coinbase is the safest among all cryptocurrency exchanges globally in 2022, according to research by BrokerChooser.
The largest crypto exchange in the US by trading volume is well known for its robust security features, according to the research.
On a scale of 5, Coinbase received 4.1 for the overall safety score. The exchange was also ranked as a tier 1 for other sub-categories.
While FTX US Derivatives was second with a score of 4.0 and Bitstamp was third with a score of 3.8.
BrokerChooser analysed the largest cryptocurrency exchanges on four main pillars: regulation, consumer protection, market fairness and transparency to reveal the safest exchanges for investors.
In terms of safest exchanges for regulation, FTX US Derivatives, Gemini and Kraken Futures shared the top spot with an overall score of 5 on a scale of 5, BrokerChooser revealed.
The research also revealed that the least safe exchange for regulation was Kucoin and Bybit, with an overall score of 1 each.
In the safest exchange for consumer protection category, Gemini led the table with a 4.8 score out of 5.
The research revealed that Gemini has a high level of protection for both crypto and fiat holdings, and the exchange has not experienced a hacking incident in the last five years.
The least safe in the same category was OKX, with a score of 1, as the exchange has lacked in sharing information on how they protect either crypto or fiat holdings.
The company has also been a victim of two major hacks. In October 2017, around $3 million worth of crypto was stolen, with $5.6 million being taken in a separate incident in August 2020, BrokerChooser's research revealed.
Regarding safest exchanges market fairness, FTX US Derivatives and Bittrex received a perfect score of 5 out of 5.
The main reason to support this score was their appropriate policies to restrict proprietary trading and employee trading, BrokerChooser stated.
While OKX, Gate.io and Bybit were the least safe crypto exchanges in the same category with a score of 1 out of 5, respectively.
These exchanges have no credible data about measures in place against prop trading and employee trading or detailed coin listing criteria.
Along with the availability and use of untrustworthy stablecoins on their platform, these exchanges also issue their own utility tokens.
Transparency is an important aspect of crypto exchange platforms as it helps ensure customers feel protected. Coinbase was again the leader of this category with an overall score of 4.8 out of 5.
Coinbase's key attraction for customers has been their readily available information for the public regarding corporate structure, financial statements and legal documents, and having a relatively simple product offering, BrokerChooser research revealed.
While in the same category, Binance, OKX, KuCoin, Gate.io, Bybit and Phemex were the least safe, with a total score of 1 out of 5, respectively, as they all offer limited or no information about their finances and products. Also, the information that they do offer is not credible or is too complex for the average consumer to understand, the research added.
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