Low-quality crypto exchanges account for 64% of trading volume

CryptoCompare's latest report found that low-quality exchanges dominate the crypto market in terms of volume.

Although reputable exchanges such as Binance and Coinbase saw a significant increase in market share this year, investors still seem to prefer trading through riskier platforms.

The company shared its July review with CryptoSlate, where it found that crypto traders preferred small and riskier exchanges over the high-volume, regulated ones.

The report also found that some of the industry's most trustworthy exchanges, ranked AA for their security and performance, saw their trading volume increase by 29 percent from June.

AA exchanges such as Coinbase and Poloniex represented only 5 percent, or $31 billion, of total aggregate volume traded on cryptocurrency exchanges in June.

Lower quality exchanges-those with D-F ratings-represented 64 percent, or $316 billion, of total trading volume in June.More frequent and more valuable trades on small exchanges.

The report found that lower quality exchanges not only dominate the market in terms of trading volume, but they also have the largest average trade size.

These exchanges had average trades of 3.7, 1.6, and 1.1 BTC, respectively.

The volume may stem from the competitive advantage of these exchanges; these more loosely regulated exchanges are better suited for laundering money or obfuscating the origins of illicit funds.

The Hong Kong-based exchange also overtook both OKEx and Binance in crypto-to-crypto monthly volumes, trading over $45 billion in June alone.