In 2024, the U.S. approved its first Bitcoin (BTC) ETF, marking a milestone in cryptocurrency's integration into global assets. For retail investors, trading through a cryptocurrency exchange remains the simplest entry point.
This guide covers:
- Definition and function of exchanges
- Popular exchanges in Taiwan
- Global rankings of top exchanges
- How to research exchanges
- Historical collapses and associated risks
What Is a Cryptocurrency Exchange?
Fiat currencies like USD or TWD are government-issued, while cryptocurrencies (e.g., Bitcoin, Ethereum, Tether) are decentralized digital assets.
⚠️ Caution: Many cryptocurrencies are scams. Always verify information from credible sources before investing.
Exchanges function similarly to stock brokerages, facilitating crypto trades.
2024 Top Global Cryptocurrency Exchanges
Track major exchanges via:
- CoinMarketCap
- CoinGecko
🔍 Note: Listing ≠ safety. Even top-ranked exchanges have collapsed (see historical cases below).
Top 10 Exchanges (as of June 2024):
| Rank | Exchange | Founded | Key Features |
|------|----------------|---------|---------------------------------------|
| 1 | Binance | 2017 | Largest volume; 415+ coins |
| 2 | Coinbase | 2012 | NASDAQ-listed; US-regulated |
| 3 | OKX | 2017 | Focus: derivatives + DeFi wallet |
| 4 | ByBit | 2018 | #2 in derivatives trading |
| 5 | Upbit | 2017 | Serves Korean market primarily |
👉 Compare fees and security features
Exchange Spotlights
Binance
- Pros: Low fees, high liquidity, educational resources.
- Cons: Regulatory scrutiny in some countries.
Coinbase
- Pros: Strong compliance; ideal for beginners.
- Cons: Limited advanced trading tools.
OKX
- Pros: Robust API for traders; growing Asian user base.
Local Exchanges in Taiwan
- MAX: TWD trading pairs
- ACE: User-friendly interface
- BitoPro: Institutional services
🔗 Tip: Use local exchanges for fiat on/off-ramps but store assets in cold wallets.
Notorious Exchange Collapses
Mt. Gox (2014)
- Lost 850K BTC ($600B at current prices).
- Lesson: Even "too big to fail" exchanges can implode.
QuadrigaCX (2019)
- Founder’s "death" locked 190K users out of funds.
- Netflix documentary: Trust No One: The Hunt to the Crypto King.
FTX (2022)
- $8B shortfall led to SBF’s 25-year prison sentence.
How to Choose Safely
✅ Do:
- Prioritize exchanges with audited reserves.
- Diversify assets across hot/cold wallets.
❌ Don’t:
- Store life savings on any exchange.
- Fall for "guaranteed returns" schemes.
FAQ
Q: Are decentralized exchanges (DEXs) safer?
A: They reduce custody risk but require self-management of private keys.
Q: How often do exchanges get hacked?
A: Average of 1–2 major breaches/year (2020–2024 data).
Q: Should I use leverage trading?
A: Only if you understand liquidation risks.
👉 Explore secure trading strategies
Final Advice
Cryptocurrency investing is high-risk. Stick to reputable platforms, stay informed, and never invest more than you can afford to lose.