There are no one-size-fits-all solutions for choosing a crypto exchange, but Swapzone has already done all the valuation for you. You see a rating formed by implementing a few essential tips during our providers’ research: that can help avoid potential problems that could harm our clients’ trading strategy. In this article, we unveil the curtain of our internal processes to tell you how we determine providers’ ratings on Swapzone so that our clients always get the best rates and services.

Trusted Exchange Providers: Why is it Important?

As you no doubt know, the cryptocurrency market has exploded in recent years. The total value of all coins as of September 2022 is over $900 billion U.S., but that doesn’t mean everyone who wants to invest in them can afford to do so. In fact, according to estimated data, only 10 percent of Americans own crypto or have invested in it at all — and that means there’s plenty of room for growth. But how does one decide where to buy or exchange the coins? Like any investment opportunity, exchanges come with risks and rewards. That’s why it pays to choose carefully when deciding which exchange provider will best suit your needs: from security measures and user experience down to speed and ease of transfers (not to mention reputation), there are a number of factors you should consider when choosing an exchange provider for your investments in cryptocurrencies such as Bitcoin or Ethereum.

And here comes the turn of Swapzone — to ease this challenging process we’ve already compiled and reviewed leading cryptocurrency exchanges, and carefully accessed the providers by rating, rate, transaction time, stability, and diversity of assets.

Exchange Reputation and Legality: Before the Start

The evaluation process begins even before an exchange becomes a partnering provider on Swapzone — we make sure that it is legally compliant. Prior to integrating any of the exchanges, we check their terms and conditions, user agreement, and privacy policy. We also check if the exchange provider is licensed in accordance with all prescribed rules.

Also, one of the most important factors to consider when evaluating a cryptocurrency exchange is security. Cryptocurrency exchanges are targeted by hackers who want to steal users’ funds. Therefore, it’s important that an exchange has taken measures to protect user assets.

If not corresponding to these parameters an exchanger could not be included in the providers’ list of the Swapzone exchange aggregator.

What Determines Providers’ Rating

After identifying the legal status of an exchange provider, we examine several other factors before assigning a specific rating.

User Experience: Reviews

The user experience is significant to the exchange provider as it determines how satisfied the users are with their service. If a company has a bad user experience, then it suffers because in the competitive crypto space customers usually don’t use the platform again.

A most indicative way to determine if an exchange provider has a good or bad user experience is through reviews. You can find out what people think of the customer service of any certain exchange by reading comments in the ‘Reviews’ section on our website. We collect reviews after any transaction held on Swapzone through our providers so that our own rating is relevant and up-to-date. If you see that there are many negative comments about poor customer service, then this might be an indication that there is something wrong with the chosen exchange provider when compared with others in its field of work. We usually take a closer look at any negative reviews and investigate controversial situations with the provider.

Speed and Ease of Transfers: Transaction Time, Restrictions, and Limitations

The top exchange providers have an excellent reputation for fast, secure transfers. They allow you to transfer coins and tokens in a matter of minutes, so you can pay your bills without waiting for days or even weeks.

With some exchanges, however, you may find that the minimum amount you can send is more than what you need. Other exchanges require a separate registration process if they don’t accept fiat currencies from your country (for example US dollars), yet some do not require any registration or KYC procedures.

All these features also affect the rating positions of exchange providers: we compile the indicators and make adjustments to the rating depending on how much any of them affects the client.

The Range of Available Crypto Assets and Pairs

We are primarily interested in providing our users with a number of rates and pairs to compare and choose from, so the possibility of our exchange providers offering a significant amount of assets also influences the provider’s popularity on our website. The more trading pairs an exchanger has, the more likely it is to take advantage of being the “best choice”.

The number of assets and payment methods (crypto to crypto/ fiat to crypto) does not affect the rating directly, yet providing more choices for the users can lead to more transactions, more reviews, and if the exchanger provides quality service — a better rating, therefore.

Despite the fact that the average number of assets from our partners is around 300, in total it is possible to exchange more than 1000 assets on Swapzone — we collect all coins and pairs from all exchangers here.

Exchange Benefits: Fees and Rates

Basic crypto exchanges charge fees for trading, depositing, and withdrawing funds. These fees can vary depending on the type of cryptocurrency being traded and the currency used as a payment method.

Usually, if an exchange doesn’t charge any transaction fees when buying or selling cryptocurrencies then it’s likely they’re doing something shady with their business model such as stealing user data/information through phishing attacks or running away with investor funds when things go south (like Mt Gox).

Fees and rates are determining factors when forming the list of offers for a specific exchange pair — as the users proceed to the exchange they see the rated list of different offers formed by estimation of rates and fees. As an exchange aggregator, we do not charge any additional fees, yet there are still ones the exchange provider requests.

Some exchanges offer better rates than others, yet provide only floating rates. Other exchanges might charge a fee for transferring funds to another account or out of the exchange altogether (such as via bank card). There are floating and fixed rates, some exchanges provide them both and some specify a particular type of rate.

We also compare payout and estimate and monitor the deviations — if the difference is substantial the provider could get a “Payout worse than estimate” badge.

Technical Stability and Support

The more uptime the exchanger demonstrates, the fewer technical issues experiences — the smoother experience its clients have. We carefully monitor the performance of our exchange providers to override one in time so our users do not lose any money or time due to technical troubles on the provider’s side.

Frequent technical problems and user complaints can negatively affect the rating of the exchanger on Swapzone. If any technical issues caught you up as a user while using our services please do not hesitate to contact support through the chat form.

Conclusion

Keep in mind that each exchange has its own pros and cons. For example, one exchange may offer lower fees but have a less user-friendly interface, while another might be more expensive but more secure for investors. No exchange is perfect, but there are some that stand out because of their ease of use, security features, or low fees.

Swapzone frees your time by researching different exchanges and understanding what each one offers so that you can choose before making a decision and finding the right fit for your needs.

The most important thing to remember here is that you should never invest more than what you can afford to lose. If you can stick by this rule of thumb all the way through, then we believe that your experience will be very positive.

New to trading? Try crypto trading bots or copy trading