We go through margin trading in this Bithumb review as to provide you with yet another platform analysis. We wish to investigate the online marketplace in terms of Bithumb’s various features. The main goal is to uncover just how secure and profitable its margin trading is. Thus, we go over its verification demands, fee policy, security tools, customer support, and, ultimately, margin trading functions.
We also provide benchmarking analysis throughout the article with similar platforms, them being Bitfinex, GDAX, CEX.IO and several others. We construct pros& cons section as to benchmark them against similar companies.
About the Platform
Bithumb is a cryptocurrency trading platform owned by a company called BTC Korea.Com Co. Ltd. The marketplace was found in 2013, with an aim to become the top trading center for crypto tokens in the world. Its headquarters and customer support are located in Seoul, South Korea with management being Korean as well.
It is one of the largest exchanges and trade marketplaces in the world, holding over $84 million worth of trade on daily basis. It supports 15 cryptocurrencies, including bitcoins, with other tokens being Ethereum, Litecoin, Dash, Zcash, Ripple ad several others. You can check out detailed daily trade in the picture below.
The platform provides support for international customers through the accepted fiat currency is KRW only. You can find more information about the deposit properties in the following sections. At this point, Bithumb does not offer mobile apps for iOS and Android users. You can access the page through your phone but you do not have a downloadable app.
Registration and Verification
Registration at Bithumb is somewhat more complex than at its counterparts, Bitfinex, GDAX, CEX.IO, and BitMex. You have to provide personal details at this very first stage. These include including your phone number, email, first & last name, date of birth, and country. Once your phone is verified, you need to go through the full verification process, which lists scanned ID as a necessary document.
Thus, it follows the suit of other trading platforms like CEX.IO and Bitfinex. It does not provide privacy for its clients while verification process itself might take up to a week to finalize.
Payment Methods and Fees
To start off, the only available fiat currency is Korean Won (KRW). Other currencies, such as USD, EUR, or GBP would be automatically swapped with the domestic money. Thus, conversion rates apply, adding to your costs while trading at Bithumb. As for the payment method, the only channel accepted for deposits are bank transfers.
Fee structure employs maker & take policy, with costs ranging from 0.01% to 0.15% depending on achieved monthly volume. Deposits come with no fees while withdrawals are fixed at 1.000 KRW.
Compared to CEX.IO and Bitfinex, you do not have many options when funding is concerned. Bitfinex does offer only bank transfers but it also provides several fiats as well. CEX.IO provides credit cards, something that Bithumb does not have. At least, Bithumb does have fiat money in its structure, unlike BitMex who works with cryptos only.
When registering an account at Bithumb, you need to set up a PIN code and password. You also have two-factor authentication (2FA) and email notification systems. On the other hand, the platform does not keep all coins in cold storage, as the hacking incident in 2017 serving as a proof. The amount of assets stolen account for nearly 1.2 billion KRW, serving as a warning sign of low security.
Thus, we would not recommend you to keep a large amount of crypto and fiat assets within the platform’s wallet services. Keep only the amount you wish to trade with while rest should be withdrawn safely to your external wallets.
As for the customer support, you can use FAQ page though it does not provide an extensive list of questions and answers. You also have a direct contact number in South Korea should you encounter issues that require immediate attention. You also have a “1:1” tool, which is basically a ticket system. The entire platform is built for both Korean and International traders, meaning that you can use English as a communication language.
Trading Platform and Functions
There are three main trade categories for you to use. These are:
- general trade
- easy trade
- reserved trade
General trade acts as what exchange would, judging from available options. You can check out the purchase page on general trade in the picture below.
The percentage you see down the purchase form is not leverage but only a percentage of assets that are available in your balance. What is more, other sections, easy trade, and reserved trade have very similar purchase forms as well. One can even say that nothing would distinguish between them except for reserved trade.
In it, you can set stop price at which you wish to reach when selling your coins or purchasing them. This allows you to either earn more money or to limit your losses if market trends go against you. And that is it when it comes to trading at this site. Bitfinex, BitMex, and others offer leveraging services and have numerous functions like Stop Till Canceled and others. Due to the lack of functions, although it is a trade, Bithumb does not offer margin trading for its customers. You can use their charts, as shown below, but functions are lacking.
Pros and Cons
- really good for starters and crypto beginners
- large liquidity rate
- several cryptocurrencies available
- no privacy due verification requirements
- only bank transfers expressed in KRW accepted as deposit/withdrawal method
- very simple trade functions offered, with no leveraging
Looking back at results from this Bithumb review, we can safely say that a platform is a great place for starters. You can invest a little bit of your assets and trade to learn. The fact that only KRW are actually allowed, says that you will incur cost above what trading fees stand for.
Additionally, for experienced traders, Bithumb has very little to offer. There are no functions nor leveraging tools available.