Cryptocurrency exchanges are very crucial in advancing the blockchain niche because they provide the gateway for people to buy, sell, and trade digital assets. With competition in the niche edging higher as the number of the exchanges rise, the markets are becoming extra creative by introducing additional features to drive better user experience.
Cryptopia has been outstanding because of its unique design that makes trading easy and fun. Even as more reviews continue giving Cryptopia a high mark, concerns of the exchange becoming a sort of bait-n-switch have been raised on platforms such as Reddit. This brings us to the big question: Is the Cryptopia exchange safe?
This Cryptopia review digs into the Cryptopia exchange to establish how it works to help you make the big decision of joining or selecting a different exchange, such as Binance.
What is Cryptopia?
Cryptopia is a cryptocurrency exchange started by Adam Clark and Rob Dawson, and it is based in Christchurch, New Zealand. The exchange was designed to help not just make cryptocurrency trading easy, but to also lever the use of cryptocurrencies in direct purchase of goods and services.
Cryptopia exchange was started in 2014 with a unique strategy of bringing smaller coins to the market. This approach has seen the exchange become one of the top platforms to list new tokens even before they find a way into other exchanges and rocket in price.
The design of the Cryptopia trading platform has helped to bring more people onboard: from crypto traders to those who want to sell their items for tokens. For those in South Eastern Asia and indeed the entire globe, Cryptopia is a platform worth their consideration.
Cryptopia: A 4.5 Rated Cryptocurrency Exchange
Cryptopia has lived to its core mission of making trading and access to cryptocurrencies easy and direct. The layout, ease of use, and diverse features, such as the Rewards and Promotions are uniquely thought of and articulately implemented.
The high rating of 4.5 also stems from its focus on security. Even as many exchanges, such as Coincheck and YouBit among others, hold reports of successful hacking on their shoulders, no such attack has been reported at Cryptopia.
The Cryptopia community is especially enthralled by the fact that their coins can be used to make direct purchases in the marketplace the same way it happens in top e-commerce stores. This implies that users enjoy great convenience of ordering preferred products and services listed on the platform.
How does Cryptopia Exchange Work?
a. The Cryptopia User Accounts
Cryptopia, like most other crypto markets, is a centralized platform, which implies that users have to deposit their digital assets to start trading. Even those who want to buy are still required to register user accounts.
At this point, it is very important to appreciate that unlike cryptocurrency networks such as Bitcoin or Ethereum among others that are at the moment not regulated, exchanges such as Cryptopia operate under the local laws. This is why users are required to open accounts and verify them using government recognized information.
There are three main account types that users can go for and start trading at Cryptopia exchange based on verification requirements and the amount that the user can withdraw on a 24 hours cycle.
- Level One Verified Account: Here, you are required to only register with an email address. The account has a daily withdrawal limit of $5000.
- Level Two Verified Accounts: At this level, the user is required to provide their full name, gender, date of birth, country, city, zip code, postal address, and a picture of him/herself holding their ID. The limit for daily withdrawal is $50,000.
- Level Three Verified Account: This Cryptopia exchange trading account requires all the verification details from level two plus a photo of a paper with the user’s Cryptopia username handwritten on it. You can raise the daily withdrawal fee to $500,000. Here is a video demonstrating how to create a cryptopia trading account.
b. The Main Trading Features of the Cryptopia Exchange
The development team at Cryptopia Exchange has remained consistent in adding new features such as promotions and APIs that can help to improve the user experience. Here are some of these features.
- The marketplace: The marketplace is an e-commerce platform on Cryptopia where products and services are listed and payment affected using listed cryptocurrencies.
- Arbitrage: This is an info section that allows users to see the price of listed coins in different exchanges.
- Paytopia: Cryptopia’s own services and products, such as promotional tools, are used on the exchange. They attract a monthly subscription n Dotcoin.
One of the methods used by exchanges to remain more competitive is lowering the operational charges. In some cases, exchanges such as Binance are coming up with unique methods of pulling down transaction fees.
At Cryptopia, the transaction fee for using the platform is 0.2%. Besides, withdrawing coins from the Cryptopia exchange also attracts a fee depending on the type of coin being withdrawn.
Though management indicates that the transaction charges is within the market range, it is indeed relatively higher compared to most players both in the Far East and globally, too. For example, KuCoin charges 0.1% while Binance charges 0.1% and further allows users to pull down the cost to 0.05% if they pay with its native coin.
Is Cryptopia Safe?
For many cryptocurrency enthusiasts, what determines whether a person joins an exchange or not is its security. When Cryptopia collects user information during registration, it is only used for that purpose: verifying the trading account. Some of the methods used to keep the exchange secure include:
- The exchange uses HTTPS security certificate
- The exchange implements a 2-factor authentication for all NZ dollar payments in the Paytopia section
- The exchange asks all users to activate 2-factor authentication on their trading accounts
- A very intuitive user interface.
- A wide range of products and services.
- Unique features such as marketplace and arbitrage.
- A very long list of tradable assets.
- Users are allowed to use fiat currencies.
- The exchange is prompt to list the latest tokens that hits the market before others get a wind of it.
- The exchange does not provide leverage.
- It does not use cold storage to secure users assets.
- The transaction charges, though within range, are still higher compared to other competitors in the niche.
- The only fiat currency supported by the exchange is NZ dollars.
Cryptopia has most of the features of a great exchange that both experienced and new traders would want. Even newbies learning how to trade on Cryptopia still find it a very impressive platform.
Despite the thrill, this Cryptopia review has established that a significant number of traders do not have good words for it. From delayed payments to non-payments, the negative reports about Cryptopia have dampened the otherwise good reputation of the exchange.
If you are planning to join Cryptopia, we would recommend that you do so with caution. Consider starting with a small portion of your funds before increasing to higher amounts or even spreading to other platforms.