Binance, OKEx, Bitfinex, and Huobi are cryptocurrency exchanges. All of them have a 24-hour trading volume for most popular cryptocurrencies and those numbers vary significantly. Do those numbers matter? Of course. Trading volume is among the most significant factors to consider before choosing an exchange. However, it is not the only one.  

A huge number of community members have changed their minds about using trade volumes as the main metric for exchange rankings after the results of CER researches were published. Making the industry transparent and reliable was the reason why Crypto Exchange Ranks launched an extensive rating service based on the actual data. Not long ago, CER took the following factors into account when ranking an exchange including liquidity, cybersecurity, withdrawal & limits as well as public opinion. However, the balance of an exchange is also a serious point to consider. 

This is where we made a decision to go further and start an initiative of detecting a hot and cold balance which is beneficial for all the parties involved. We found that the total hot and cold balance is the most important metric which determines the reliability and sustainability of crypto exchanges’ rank. 

Fake Trade Volumes

Certainly, trading volume should be considered when choosing an exchange. Although, when the numbers are fake it seems like there’s market demand which in turn attracts more users. Earlier, we’ve published a research explaining how falsified trade volume influences the crypto industry development. However, it wouldn’t hurt to explain it one more time:

• due to fake volume numbers, traders overvalue currencies because high volume means lower volatility;
• falsified volumes make users believe that they will trade faster thus pay for less delay;
• fake trade volume can cause cyber-attacks because malicious users tend to hack the largest traders;

Consequently, fake trade volumes significantly decrease the reputation of an exchange. Of course, it is still one of the most important factors to consider but it can’t be the only one. 

Blockchain Balance RTD Validation

Aside from detecting hot and cold wallets, we’re also checking their credibility. In order to provide the best and most efficient results, we utilize a wallet evaluation system consisting of four main components including CER strategic partners, an exchange, CER team, and CER community.

The exchange. 

It can provide the information or confirm the credibility of the found addresses. Here are the advantages:

• proving to be a fair player on the crypto market and earning the trust of the community members;
• confirming to have a real trade volume;
• increasing income;
• getting new users and clients.

Partners of CER.  

The partners of CER take an active part in detecting wallets of exchanges and ensuring those are credible. Here are the following advantages:

• taking part in cross-sales of products and attracting new investors;
• increasing the brand reputation by supporting CER global initiative;
• getting access to unique data thus improving research algorithms;
• being informed about CER partners’ contributions via mail, on blog and landing pages.

The community of CER. 

BTC/ETH addresses are submitted by transparency hackers. The advantages are the following:

• getting financial rewards for finding public addresses;
• receiving all the benefits of a closed CER community membership;
• being informed about CER partners’ contributions via mail, on the CER blog and social media;
• becoming a regional representative of CER.

The team of CER. 

The professional team validates and approves the address. We are the last to verify and publish the information to the CER dashboard.

How to take part in a Transparency Hacking Initiative?

The entire cooperation procedure is quite easy and straightforward. 

• In case if you’re an exchange then register here and verify your corporate account. It’s also necessary to submit hot and cold addresses. It’s noteworthy that the addresses won’t be disclosed to any third parties unless they signed an agreement with CER.
• If you want to become a partner and take part in the crypto transparency movement then don’t hesitate to contact us on [email protected]  
• If you are a cybersecurity specialist who wants to become a transparency hacker, then register here and start getting rewards for your findings!

What do we want to achieve for The Crypto Community?

Ideally, we and our community expect to find more trustworthy crypto exchanges as well as new ways of calculating the ratio between trade volume and exchanges’ assets in order to avoid money laundering. Furthermore, when our initiative would be running at full capacity steadily, we portend cryptocurrencies as well as crypto exchanges to compete with conventional financial institutions providing a secure, fast and transparent way to carry out financial transactions.  

Conclusion

CER is developing rapidly. Currently, 18 world-known and reliable exchanges are evaluated on the platform. At least 200 others are listed on CER and can be evaluated on order. We provide 4 dashboards for making informed and safe trading decisions. Due to arbitrage widget, one can make profits on currency movements with no risks. With the help of the Trading Dashboard, it’s possible to compare current and historical prices and utilize tools and indicators for the technical analysis. The real-time market data is displayed on the Liquidity Dashboard. There is also a Blockchain Balance Dashboard. Currently, we have 11 hot addresses and 9 cold wallets which allows getting the information about exchanges including inflow, outflows, balances, amounts, and number of transactions. Register on CER now, Utilize the above-mentioned Dashboards and Make your Contribution!