Crypto Exchanges in 2024: Here’s The Down Low

Here’s a top tip for when the bull market comes around: make sure you have accounts already set up and good to go on a variety of exchanges. Trust me, when cryptos are starting to pop, you don’t want to be trying to open an exchange account in a rush. Been there, done that, no thanks. 

That’s simply because, when things start going crazy, exchanges will be overwhelmed with newcomers trying to get in on the action. Sign-ups will take longer, perhaps leaving you hanging for days, if previous bull markets are anything to go by. All the while, the coin or token that’s only listed on the exchange you’re trying to sign up to is mooning and all you can do is watch helplessly from the sidelines.

So, today’s video on the top crypto exchanges for 2024 could be one of the most important ones you watch this year. We’ve analysed six of the best exchanges in the business using a number of metrics - all to help you get your ducks in a row in good time. 

Now is the ideal time to tackle admin like this. Make sure that you use a strong password for each exchange you create an account with, enable added security features like two-factor authentication and go through all necessary KYC procedures. Then, when the bulls start running, you’ll be able to sit back smugly and enjoy the ride.

You can watch that video here.

📈 Crypto Market Forecast 📈

While the crypto market rallies, the regulatory concerns continue to pile on. As you might have heard, the US senate has been calling for scrutiny of the crypto industry due to its alleged role in funding Hamas and other militant groups. However, that’s just half the story - there’s also the US House of Representatives, which is believed to be pro-crypto. 

Well, this pro-crypto attitude is about to be put to the test, because an anti-crypto politician in the House recently announced that he will be introducing a bill to accompany Elizabeth Warren’s anti-crypto bill in the House in the coming weeks. Given Cynthia Lummis’ surprising anti-crypto comments recently, it’s possible we will see further surprises from other House politicians. 

At the same time, the IRS is on the brink of implementing its controversial tax rule, which could require DeFi protocols to collect KYC from their users. The IRS was kind enough to extend the comment period for this to mid-November, but it’s possible that it will push ahead with the tax rule, which has its roots in the infamous infrastructure bill of 2021. 

On that note, if you have an account on the Kraken crypto exchange, then there’s a chance that your data will be shared with the IRS sometime this week. This is due to a court order issued to Kraken earlier this year, asking the exchange for detailed data about any users who had transacted more than 20k of crypto in a year between 2016 and 2021.

Why does this matter? Well, former Kraken CEO Jesse Powell was reportedly part of a Signal group called ‘Exchange Coordination’ which included SBF, Tether CEO Paolo Ardoino, Tron founder Justin Sun, and Binance CEO Changpeng Zhao. It’s safe to assume that any coordination, if it occurred, involved accounts with more than 20k in transactions.

What’s interesting about Kraken is that most of its trading volume appears to take place between stablecoin and fiat pairs. As such, you could say that Kraken appears to be the Curve Finance of centralised exchanges. Given this apparent role, it’s possible that entities related to Tron and Tether have accounts on Kraken. If they exist, the IRS will find them. 

Speaking of stablecoins, it appears that the scrutiny of them is ramping up again. In case you missed the news, the SEC is reportedly investigating PayPal over its PYUSD stablecoin. This is not that surprising considering that PYUSD was issued in partnership with Paxos. Some of you will recall that Paxos faced scrutiny over BUSD earlier this year. 

However, it’s possible that the scrutiny of stablecoins is starting to broaden. That’s because Worldcoin recently announced that it would stop paying its orb operators in USDC, starting from November. It’s possible that this decision was purely financial (e.g. Worldcoin running out of money). But, it’s also possible that it was related to stablecoin regulations. 

This seems likely because many regulators in non-USD jurisdictions, namely the European Union, have been scrutinising USD stablecoins of late. Some of you might recall that MiCA includes restrictions on USD stablecoins. Worldcoin distributing USDC to people in these countries was therefore likely causing lots of issues. Good riddance, honestly.

💯  Deal This Week 💯

As you will have seen from our video on the top exchanges today, Bybit is one of the largest and most well known out there. While many associate it as a futures exchange, it has greatly expanded its altcoin offerings and currently has over 200 altcoins on their books. 

It’s not only the features, functionality and safety that make this exchange stand out. It’s also the exchange where we have been able to secure one of the best promotions for Coin Bureau users. 

We have been able to secure up to $40,000 in signup bonuses and 0% on maker fees for 30 days. This is exclusive to Coin Bureau fans and is a limited time offer. All you need to do is create an account in the link below.

👉 Give Bybit a try! 

🇰🇷  Crypto-Crazy Koreans 🇰🇷

For years now, the South Korean crypto markets have held a unique place in the crypto industry due to the ‘kimchi premium.’

For those unaware, the kimchi premium refers to the phenomenon of crypto assets trading on Korean CEXs tending to be priced significantly higher compared with the international markets.

If you’re wondering how this is possible, considering the ‘obvious’ arbitrage opportunity, then the answer lies within the texts of South Korea’s financial regulations.

You see, since 2016, South Korea has implemented strict laws to ensure money does not flow out of the country. Notably, these laws make it impossible for users of local crypto exchanges to deposit or withdraw funds unless they have a ‘real-name bank account’ linked to their crypto trading account.

They also make it hard for institutional investors to participate in the local crypto markets. This is why retail traders often dominate trading activity on local crypto exchanges such as Upbit, Bithumb, Coinone, and Korbit.

Peculiarly, this retail trader dominance has led to the creation of an interesting metric known as the ‘KPI’ or the ‘Korea Premium Index’ which is often used by investors as an indication of retail trader sentiments.

The higher the KPI, the more likely you are to see altcoins pumping. For example, when you browse through the top gainers on CoinMarketCap, you will notice that sometimes random altcoins pump for no reason at all.

More often than not, these pumps are triggered by retail trading activity on South Korean crypto exchanges. This has even earned South Korean traders a reputation for having an incredibly high risk appetite.

If you’ve been following our weekly market reviews on YouTube, you’d know that the $LOOM token recently pumped for no reason at all. This too was due to South Korean traders degen-ing on the local crypto exchange Upbit, after another unrelated company that went by the same name was acquired by the video messaging startup Atlassian.

On that note, a recent research report by Kaiko has found that BTC and ETH only account for 9% and 2% respectively of the trading volume on Upbit. The vast majority of South Korean crypto trading volumes are entirely made up of altcoins.

This is the polar opposite of what happens on US crypto exchanges such as Coinbase. Specifically, a recent research report by DeSpread notes that institutional investors, whose investment strategies focus on portfolio stability, account for approximately 85% of Coinbase's total trading volume.

This results in assets such as BTC and ETH, which possess the highest market capitalisations among crypto assets, occupying a relatively high proportion of trading volume on Coinbase.

The Coinbase-Upbit comparison only gets more interesting when you realise that both exchanges recorded similar trading volumes this year (as per Kaiko).

Like Coinbase in the US, Upbit is a giant of the Korean crypto industry. This is likely due to the exchange's reputation of being the first one to secure a licence from the country’s financial regulator. The DeSpread report notes that Upbit recorded its highest trading volume of $36 billion this February and that it has consistently accounted for about 80% of South Korean crypto total trading volume.

Given the increasing regulatory uncertainty in the US, I wouldn’t be surprised if the South Korean crypto markets eventually eclipse those of the US. Upbit even overtook both Coinbase and OKX in trading volumes for the first time in July this year.

With its dominant influence on altcoins, it’s important to start paying more attention to the South Korean crypto market.

📊 Guy’s Personal Portfolio 📊

For a few months, there has been very little movement in my portfolio. However, recent shifts in the market mean that unique opportunities are starting to present themselves. As such, I’m gearing up to make some long-awaited adjustments. In anticipation of this, I am converting all of my USD and USDC holdings into USDT. This is because of the number of altcoin pairings that are available for USDT compared with other stablecoins. 

BTC 41.56% | ETH 29.43% | USDT 25.54% | ATOM 2.42% | DOT 1.04%

🔮 Video Pipeline 🔮

  • The Biggest Money Laundering Scandal Ever: Billions of illicit funds!
  • The Cashless Society: This Scares Me!
  • My Trading Strategy Revealed!
  • Price Predictions: BTC, ETH & SOL!
  • Shrinkflation: Here is How They Are Robbing You!
  • Crypto Investing on a Budget: The Optimal $100 Portfolio

🏆 What's New at This Week? 🏆

Zengo Wallet Review: A Revolution in Secure Self-Custody (No Seed Phrase!)

M6 Labs: Greatest Bull Market In History Is Beginning!

Coinbase Review 2024: Complete Exchange Overview

Polygon Review 2024: A Guide to the Polygon Ecosystem!

📖 Quote of the Week 📖

It’s been almost a year to the day since FTX collapsed and took with it the deposits of millions of users. We then had to watch as the mastermind of the biggest ever financial fraud went on a media blitz attempting to downplay his crimes. There were many in the ecosystem who thought that these antics, coupled with his powerful connections, would see him beat the rap. Well, this week we learned that even the supposedly smartest of media darlings couldn’t escape the long arm of the law. Enjoy this bit of crypto karma, it’s long overdue. 

“The arc of the moral universe is long, but it bends towards justice” - Theodore Parker

Team Coin Bureau

Disclosure: Authors may own cryptoassets named in this newsletter. These are unqualified opinions, and a Coin Bureau newsletter, is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor.

Guy Turner

Guy is one of the founding members and face of the Coin Bureau. Like many of us, he is just an average joe who became “crypto curious” back in 2013. After recognising the potential of blockchain technology, Guy set off on a mission to create crypto educational content, working with others to start the Coin Bureau website and released our first video on YouTube in 2019. You can learn more about him in his Who is Guy? blogpost.

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