This article reviews one of the popular platforms in the market, CEX.io in terms of trade attractiveness, fee structure, available deposit methods and security features.
We also compare the platform’s functions and tools with other well-known exchanges like Coinbase, Bitfinex, Kraken, and others. The comparison analysis provides a clearer view of pros and cons of the CEX.io platform as well as identifying what is industry average.
General Information about Exchange
Found in the year 2013, CEX.io is an online cryptocurrency exchange where traders can swap fiat money with digital coins. The company resides in the United Kingdom and follows AML/KYC (Anti-Money Laundering and Know Your Customer Policy). The said policies request all users to verify their identity with ID and proof of address scans.
It is one of the largest exchanges in the world with services available globally. Apart from the web browsers, you also have the option to download the free app on your Android or iOS phones. Many of the exchanges are yet to add the mobile platforms, an example being Kraken, who has iOS app only.
CEX.io accepts a variety of fiat currencies as means of trade and deposit. The accepted currencies are USD, EUR, GBP, and RUB.
Account Registration and Verification
Registration of an account at CEX.io is straightforward and does not require any sort of payments.
All you have to do is to provide your email and password. The email verification is also mandatory as with many other platforms.
Trading at CEX.io is possible only through full verification of your identity. You need to provide scanned ID in order to gain deposit rights on the platform.
This exchange does not offer a private way to get bitcoins like Bitfinex and Kraken does since it follows AML/KYC guidelines.
Cryptocurrencies
The exchange allows trades and pairings with BTC, ETH, BCH, DASH, and Zcash. Compared to Coinbase, CEX.io offers a larger choice of trade options while Kraken overpowers CEX.io with 5 fiat and 14 cryptocurrencies.
Overall, there are 22 trading pairs at CEX.io, which is quite a number. Bitfinex and BitMex offer a similar volume of coin pairs while Kraken again has the upper hand due to a bigger number of accepted coins.
Bitcoins, Bitcoin Cash, Ethereum, Dash and Zcash can be deposited and withdrawn in the platform.
Deposit Methods
CEX.io accepts three payment/deposit methods no matter where you live. These methods are credit or debit cards, bank transfers, and CryptoCapital. Credit/debit cards and CryptoCapital serve the speed needs while bank transfers are the cheapest option on the platform.
For credit or debit card deposits, you pay 3.5% + $0.25 while bank transfers and CryptoCapital are free. The fees are slightly smaller than Coinbase’s 3.99% while other exchanges like Bitfinex and Kraken do not even have credit cards as purchase method. Rest of the expenses are in line with most of the industry. Read more about deposit with credit card in our blog post, Buy cryptocurrencies with a credit card.
Exchange Rate and Fees
Apart from the deposit/withdrawal fees, you also have to pay maker or take position costs. The taker positions, depending on the monthly volume achieved, can range from 0.1% to 0.2%. Maker fees, on the other hand, are completely free.
Margin trading also carries rollover and open fees, with opening costs standing at 0.2% and rollover fees at 0.01%.
CEX.io implements 7% spread on the average coin price in the industry, with the price frozen for 120 seconds.
Liquidity
The platform is available globally, meaning that the rate is quite steady. At the same time, CEX.io has a policy of keeping some of the funds in bank accounts as well as coins in cold storage, as to provide safety and liquidity for its customers.
Trade Functions
We deem that CEX.io’s trade is quite interesting as it offers services for both beginners and experts in the coin markets. The simple exchange offers instant access to cryptos, where you use the immediate market value of the asset.
Those who wish more functions and opportunities can check out margin trading at the platform. The functions at your disposal are Limit and Margin Trade. Limits offer security by putting limitations on the maximum and minimum value of coins prior to closure.
Margin trading, on the other hand, offers tools like leveraging and stop loss price. The functions lack in numbers, especially if compared with Bitfinex and BitMex who have over 20 of them.
History
Entrepreneurs who had an original plan of offering cloud-mining services established the company in 2013. In the same year, the company registered itself as LTD and purchased GHash.io. With the addition of EUR transactions in 2014, the firm grew its customer base towards 200.000 users.
The cloud mining operations were suspended in 2015 while adding margin trading. In the following years, 2015 to 2017, exchange added a credit card and other fiat currencies.
Security
When it comes to personal security, you have two-factor authentication (2FA) only. Not really a way to protect yourself, especially since other exchanges, such as Bitstamp, offer encryption of emails, password management, and other tools.
Pros
- geared towards both beginners and more experienced clients
- both mobile platforms (Android & iOS) available for download
- global availability
- the company has cold storage and fund stashing policy
- numerous trading pairs
- credit/debit card purchases available
Cons
- verification is a must for trade to happen
- some of the trading pairs lack liquidity
- only 2FA available as a personal security measure
- the large spread between buying and selling BTC price
Conclusion
CEX.io is a reliable platform to work with, providing good liquidity rate as well as low fees. Both beginners and experts would find something to use here while several choices of payment methods is always a plus.
