The approval of the Bitcoin ETF was an important event in the crypto industry. But after the approval, we can all see Bitcoin and some other altcoins falling, as well as market volatility. But cryptocurrencies are not the only thing that has fallen recently. The other day, Binance dropped out of the top 5 crypto exchanges for the first time on the CoinGecko website and ended up in 10th place. Meanwhile, WhiteBIT exchange rose by one position. But this is not the only fall that has happened to Binance.
In 2023, cryptocurrency exchange has faced a series of challenges and regulatory scrutiny. These challenges include:
- Regulatory troubles: Binance has faced scrutiny and warning from regulators in various countries, counting India, Italy, Germany and more, regarding potential regulatory violations or lack of proper licenses.
- Legal issues: the exchange has been involved in legal disputes, including an SEC lawsuit for allegedly operating a “web of deception”, as well as investigations for alleged money laundering.
- Liquidity problems: Binance has experienced major liquidity problems, which caused concern among clients and investors. There were reports of high rates of withdrawals from the platform.
On January 17, CoinGecko published their 2023 crypto industry report, which shows that centralized exchanges are still leading, even with all the issues Binance has been facing. Due to the issues with the authorities, Binance lost part of the market. Even though that it still remains in the top, his dominance has slightly decreased.
However, trading volumes on crypto exchanges increased until March and remained low from April to October, with the monthly volumes in December being the same as in March. Thence, it seems the only impact on the markets due to the Binance’s problems was a decrease in the exchange's market share compared to others.
Everyone knows that Binance is famous for its ties to Russia. And although they recently announced their withdrawal from the russian market, the fact that the rights were transferred to a company that suddenly appeared out of nowhere is worrying. Not to mention Binance's accusations of facilitating the trading of several cryptocurrencies that the SEC has recognized as securities, as well as a fine for allegedly funding Hamas and violating sanctions.
“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” Treasury Secretary Janet Yellen said in a statement. Yellen said groups like Hamas’s Al-Qassam Brigades and ISIS had used Binance to conduct transactions.
According to the report, Binance’s dominance has dropped from 64% to 44% in terms of volumes. At the same time, Bybit experienced a significant growth, increasing its market share from 1% to 9%. I wonder if Bybit will be able to be hot on Binance’s heels this year. Bybit is followed by OKX and HTX, significantly increasing their market share.
Looking at the report, we can also see that 91,4% of cryptocurrency spot trading took place on centralized exchanges. That’s why we’re going to look at some of them, which become a popular one in 2023:
Kraken
Kraken is a United States-based cryptocurrency exchange that was founded in 2011. The exchange platform allows users to buy, sell, and trade over 200 cryptocurrencies using various fiat currencies. Kraken is well known for its low fees, advanced trading tools, and user-friendly interface. They have a wide range of trading options, cost-effective NFT marketplace, high security standards, and regulatory compliance.
Kraken also offers Kraken Pro for seasoned traders, where they can have access to advanced tools for charting, real-time assets price tracking and a built-in trade analyzer. And offers the opportunity to earn staking rewards by staking cryptocurrencies and fiat for period of time. Staking allows earning rewards for helping to validate a transaction added to a blockchain network.
WhiteBIT
WhiteBIT is one of the largest European crypto exchanges founded in 2018. The exchange features are:
- user-friendly interface, quick deposits and withdrawals.
- WhiteBIT meets KYC and AML requirements.
- WhiteBIT offers low trading fees and provides discounts for holding their native coin, WBT. WBT holders can enjoy free daily ERC-20/ETH withdrawals, free daily AML-checking and increased referral rates.
- They have top-level safety, with 96% of user funds stored in cold wallets and WAF for protection from hacker attacks.
- The company provides the trading competition for traders of different levels of experience to participate in and demonstrate their trading skills.
The WhiteBIT Ecosystem includes:
- WB Network — its own blockchain, which has high transaction speed, low transaction cost and excellent security rating.
- WB Soul — web3 tool, that allows users to create their identity through blockchain without revealing their data.
- Whitepay - SaaS, which offers POS terminals, payment pages, and a donation platform for accepting crypto payments and donation.
- WhiteSwap - its own decentralized exchange, which allows users to buy and sell cryptocurrencies and earn passive income with their coins.
Coinbase
Coinbase is US-based crypto exchange, which is one of the most liquid regulated crypto spot exchanges in the world. The exchange offers a multi-platform wallet that support multiple ways to manage keys and sign transactions when interaction with application. Coinbase Wallet is a self-custody wallet that allows users to store and manage all of their crypto. You don’t have to be a Coinbase user for using the wallet. It’s a big advantage for traders that transfer between numerous fiat currencies and cryptocurrencies. They also have Advanced Trade for advanced users, which has more tools, security for their traders and access to real-time order books.
It’s always important to choose the safest crypto exchange, specifically after all these hacker attacks that have been going on. In my opinion, these three exchanges are the best choice for trading and do not worry about safety of your funds.
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