Do you have an interest in trading digital assets? If ‘yes’, then you will need a cryptocurrency exchange. Exchanges are platforms designed to operate like forex markets, but they deal with digital tokens.
One of the leading cryptocurrency exchanges in the market is CEX.IO. As other exchanges such as Poloniex and Coincheck post history tainted with marks of successful hacking, CEX.IO has never been hacked since inception. This leads to the main question: “Is CEX.IO the most secure cryptocurrency exchange?”
This CEX.IO review is a comprehensive interrogation of its system to help you make the crucial decision whether to join it or not. Welcome to the review to discover the special features that have made the exchange a gateway to the cryptocurrency world.
What Is CEX.IO?
CEX.IO is a cryptocurrency exchange which was established in 2013 when it operated as a Bitcoin exchange and a cloud mining platform. A CEX.IO cloud mining review reveals that the mining pool (commonly known as Ghash) grew to become one of the largest Bitcoin mining pools with over 42% of the total Bitcoin hashing power in 2014.
The company operates out of the UK and offers its services under laws and regulations of jurisdictions it operates in. In the UK, it is registered as a private limited liability company. Other registrations include:
- Registered with FinCEN in the US.
- Registered with the Information Commissioner’s Office of the UK.
- Registered as a Payment Card Industry Securities Standards Council compliant.
Early in 2015, CEX.IO terminated cloud mining to concentrate on exchange services. This focus has been crucial in helping CEX.IO development put extra effort into securing the platform and increasing the listed tokens.
CEX.IO: A 4.5 Star Rated Cryptocurrency Exchange
For many people, the greatest concern when joining cryptocurrency exchanges is the danger of getting attacked. CEX.IO wins a high rating of 4.5 because it does not have a history of hacking like many exchanges. Whether handling large quantities of digital assets or just a few coins, users can have the peace of mind that they will not be easily attacked.
At a time that many governments have been cracking down on exchanges to get a firm grip on cryptocurrencies, many traders feel secure at CEX.IO because it is compliant with legal requirements in most countries. This implies that users can rest easy without worrying about waking up and finding the exchange has closed shop.
However, the rating is pulled down to 4.5 because some people feel that they are asked to produce too much information when opening their accounts. There is fear that the details users provide at the exchange could be reached especially by tax authorities.
The cost is also considered highly punitive. Many people, especially those using credit cards, feel they are unnecessarily getting penalized.
How Does CEX.IO Operate?
CEX.IO operates as a centralized exchange that requires users to deposit the funds they want to trade in the platform’s vault. Its operations, therefore, commences with the user joining the platform in order to gain the trading interface. Here is the process:
- Visit the CEX.IO website and register for a trading account.
- Setup the 2-factor authentication process to make your account more secure. You can opt to get authentication via Google or a mobile phone SMS.
- Verify the CEX.IO trading account. You will be prompted to provide a name, address, photo of yourself, and proof of address. If you want to use credit cards, a selfie with the card will be required.
- After verifying the account, you can fund it using bank wire transfers, credit cards, and other cryptocurrencies.
Once the funds are on the exchange account, go ahead and buy the preferred tokens such as Bitcoins and Ethereum. The trading process simplifies the process based on fill-or-kill (FOK) orders. Here is a demonstration of how to make a deposit in your account and buy Bitcoins:
During the purchase process, CEX.IO takes about 120 seconds to make adjustments for risk mitigation and displays the tokens that will be deposited in the user’s account. This implies that you do not have to struggle with calculating the transaction fee because everything is already worked out.
The CEX.IO Transaction Fee and Limits
To trade at CEX.IO, a transaction fee of 0.2% is levied on all buy/sell operations. However, you can opt to pay a higher fee of 7% to use the the instant buy/ sell method.
In addition to the transaction fee, you will be charged a deposit fee of 3.5% when using credit cards. Withdrawals will attract an additional $3.8 for credit cards and 1.2% for those using bank transfers.
While CEX.IO indicates that this fee is within range, it is one of the highest in the industry. For example, Binance exchange charges users a flat rate of 0.1% and gives them an option of pulling the cost further down if they pay with BNB.
Is CEX.IO Safe?
This is one question that every user coming to CEX.IO asks before starting to use the platform. As indicated earlier, the development team at CEX.IO has been very aggressive in enhancing the platform’s security. Here are some of the strategies used to secure users’ assets:
- The user account is secured with 2-factor authentication.
- The exchange claims to use cold storage to secure user’s assets.
- The exchange is registered with FinCEN and follows all the strategies to help prevent cybercrime and protect users’ assets.
- The data at CEX.IO is encrypted to ensure that attackers cannot simply gain users’ information.
This https CEX.IO review found that the exchange is a well-thought out platform that was carefully designed with the user in mind. Here is a summary of its pros and cons.
- The exchange has a very reliable support system.
- The exchange supports fiat currencies.
- Their website is very easy to navigate and use.
- Allows margin trading.
- It is one of the most secure exchanges.
- The exchange does not have a history of successful hacking.
- Available in multiple platforms such as Android phones, iOS phones, Rest API, and WebSocket.
- Global coverage with a presence in more than 99% of all countries across the globe.
- The list of supported cryptocurrencies is relatively small when compared to other exchanges, like Binance.
- High transaction fees.
CEX.IO is a highly secure, reliable, and intuitive exchange for both new and experienced traders. But even with the high security and a committed development team, a lot of people still find it not ideal because of the high cost of operations.
If you are looking forward to joining a cryptocurrency exchange, this is one great option we cannot hesitate to recommend. However, you need to do it with caution because the high cost of operations could easily eat into your trading profits.
Before joining and starting to trade at CEX.IO, consider comparing it to other top exchanges such as Binance and Bittrex. Besides, you should not over trust an exchange; move your coins to a secure wallet when not trading them.