Top 3 European and Asian Exchanges in Comparison

At first glance it can be noticed the difference between European and Asian crypto exchanges. This distinction lies in the number of added cryptocurrencies and trading pairs.

On the European one, the number of coins is only a few tens, while on the Asian, the number of added cryptocurrencies is more than 150 on each.

The situation with the number of trading pairs is exactly the same: in European crypto exchanges the number does not exceed 100, while in Chinese there are more than 500 trading pairs.

Listing Strategies and Trading Volumes of Crypto Exchanges

According to data, we can see how platforms conduct their listing strategy. This factor can greatly impact on trade: often by adding to the European crypto exchange, the cryptocurrency begins to increase significantly in price due to increased interest. It happens in relation to the fact that the exchange has the right to add only those coins that have been legalized and that are in a full compliance with the law. All in all, the community is convinced of the strength of the project and is ready to consider it for long-term investments.

Undoubtedly, if a coin is added to the Asian platform, then interest in it would also increase significantly, but often this is due to short-term profit and to the desire to catch X-s. After all, a new cryptocurrency comes to them every week and the chances of making money for traders increase. However, after a while, we can observe a significant decrease in interest among such coins, because their trading volume is reduced in ten times, comparing with the listing date.

Accordingly, we can notice that the higher the popularity of the exchange and the more it is legalized, the stronger the increase in the coin price while listing. The exception is IEO projects, from which X-s are always expected.

The second marked difference is the trading volume: for Asian exchanges, this indicator varies over $ 500 million, while for European ones around 100 million — the difference is 5 times!

Perhaps this is related to a large number of cryptocurrencies on Asian exchanges and to simpler trading rules concerning legislation, since on European platforms they require personal identification and tax compliance. On Asian exchanges, it is simpler: you can trade anonymously, but some procedures require KYC, for example, to participate in IEO projects.

The Neironix analytics department, identified another reason why such a difference in trading volumes happens: this is due to the reluctance of the majority to reveal their financial transactions in the cryptocurrency market. And it is Asian crypto exchanges that provide such an opportunity, while the policy of Western legislation requires mandatory going through KYC and AML procedures from exchanges and traders.

Fiat, Stablecoins and Exchange Tokens in Comparison

The third difference is the top 3 trading pairs at exchanges, which show that Europeans like to trade cryptocurrency to fiat (USD, EUR) more than to stablecoins. Although both Coinbase and Bitfinex have trading pairs with USDT, USDC.

However, we must say that these Asian crypto exchanges don’t add traditional money, such as the dollar and the euro, to their platforms. They prefer to use stablecoins, which occupy up to 20% of the number of all trading pairs on exchanges. Which is also quite clear evidence of their listing policy. Frequently this involves the fact that by adding fiat currencies, strict compliance with the law is necessary.

An interesting feature is that Asian exchanges use exchange tokens, but European ones do not. Moreover, exchange tokens (Binance Coin, Huobi Token and OKB) are in the top 3 among trading transactions on each platform. This means that these cryptocurrencies are highly popular among traders and investors.

SUMMARY

In reference to the above mentioned comparison, we found that the trading volume on Asian crypto exchanges is several times higher, due to the greater number of added cryptocurrencies and trading pairs, and to the chance to trade without observing strict legislative norms.

While adding traditional currencies, it is necessary to observe a complete regulation and comply with all the laws of the country which can be considered as the potential territory for trading. Therefore, Asian platforms do not add pairs with the dollar and euro, but use stablecoins instead.

There are also traditional currencies and stablecoins on western platforms, but traders prefer to use pairs only with traditional currencies. Eventually, the trading volume on stablecoins on these platforms is always small.