Multiple cryptocurrency exchanges have popped up within the last 10 years as the demand for digital currencies continues to grow. You will thus be spoiled for choice while looking for the ideal exchange to meet your particular needs. In this review, we will explore a crypto exchange called CEX.io, what it has to offer, its features, and how it compares to other reputable exchanges competing in the same space.
Introduction
CEX.io has been around since 2013, making it one of the pioneer crypto exchanges. The London-based exchange had its humble beginnings as a platform that offered Bitcoin exchange services, as well as cloud mining through a mining pool called Ghash.io. The latter grew to become the biggest mining pool at some point, managing to control as much as 42% of the total Bitcoin mining capacity at the time. However, it terminated its mining operations in 2015, shifting its attention completely towards exchange services.
CEX.io operates as a registered exchange through FINCEC which oversees the enforcement of anti-money laundering (AML) policies and KYC (Know Your Customer). You will thus be required to provide identity verification if you wish to use CEX.io to trade cryptocurrencies.
What Kind Of Services Will You Access Through CEX.io?
The CEX.io exchange provides a safe way to access the cryptocurrency market. Users can buy Bitcoin and altcoins using different safe and secure methods such as wire transfer, ACH transfer in the U.S, SEPA transfer in the EU and it also allows users to buy crypto through credit cards. CEX.io’s services extend to brokerage services that match crypto buyers and sellers in a hassle-free manner. However, this ease of use comes at a premium compared to some of its rivals.
CEX.io leverages kill-or-fill orders in its brokerage transactions and this makes it possible to rapidly execute orders in full. It deviates from the traditional approach where traders place different types of orders on an exchange, resulting in different results. Most of the rival exchanges offer a variety of order types such as limit orders, market orders, and stop-loss orders. The advantage of the brokerage approach is that it also makes it easier for novice traders to buy and sell cryptocurrencies.
One disadvantage with the kill-or-fill order approach is the premium exchange rates which means users pay more than what they would pay for the same transaction through a trading platform. The difference in transaction fees can be as high as 7%.
When a trader initiates a trade on CEX.io, the exchange evaluates the price, freezes it for roughly 2 minutes, giving the user enough time to enter the amount they wish to trade. Once the trader clicks on the buy or sell tab, the exchange confirms that there are enough funds in the user’s account and if all conditions are met, the order is executed. The exchange notifies the user whenever there is a price spike in the underlying asset so that they can make the necessary adjustments before proceeding with the transaction.
An Alternative Option Through the Trading Platform
CEX.io offers another alternative for exposure to the cryptocurrency market through its trading platform. This option is better suited for experienced traders that have a deeper understanding of the market. One of the advantages of this approach is that fees are significantly lower. The maximum fee you can expect when executing a trade through the CEX.io trading platform is 0.25%.
The CEX.io trading platform is quite advanced, with features such as cross-platform trading, advanced reporting, different order types, and healthy liquidity levels. These characteristics make it ideal for experienced traders looking for a robust trading platform.
Can You Execute Margin Trades On CEX.io?
There is heavy demand for margin trading on many exchanges including CEX.io where it was available directly on the trading platform before 2019. The exchange has since then developed a section called CEX.io broker, which specifically deals with margin trading. This section offers CFDs and features such as advanced trading tools, instruments for technical analysis, and order types. Margin trading allows traders to leverage their positions so they can maximize their potential gains. However, they carry a high level of risk which can translate to huge losses.
We would not recommend this option unless you are an experienced trader. It is also one of the reasons why CEX.io supports margin trading on a few cryptocurrencies. The supported ones include Bitcoin, Litecoin, and Ethereum.
List Of Cryptocurrencies That You Can Purchase Through the CEX.io Brokerage Service
- Bitcoin
- Bitcoin Cash
- Bitcoin Gold
- Ethereum
- Litecoin
- Ripple
- Dash
- MetaHash
- BitTorrent
- Tron
- Stellar
- Gas
- NEO
- Ontology
- Tezos
- MATIC
- Basic Attention Token
- MATIC
CEX.io allows users to purchase the above cryptocurrencies with USD and some can be purchased with other fiat currencies such as the USD, GBP, RUB, and EUR. These fiat currencies can also be used for withdrawals.
Cryptocurrencies Available For Trading On the CEX.io Trading Platform
- Bitcoin
- Bitcoin Cash
- Ethereum
- Ripple
The above cryptocurrencies can also be exchanged among themselves. For example, you can trade the BTC/XRP or BTC/ETH currency pairs.
CEX.io Payment Methods
- Skrill (only supports GBP and EUR)
- ACH domestic bank transfers
- Wire transfers (supports SEPA)
- Debit/credit cards
What You Need To Know About Fees On the CEX.io Crypto Exchange
- Skrill (only supports GBP and EUR)
- ACH domestic bank transfers
- Wire transfers (supports SEPA)
- Debit/credit cards
What You Need To Know About Fees On the CEX.io Crypto Exchange
CEX.io has a tainted image as far as fees are concerned. This is because fees on this exchange can get quite high, especially on the brokerage segment whose fees can go as high as 7%. To put it into perspective, if you buy crypto worth $1000, the amount of crypto you will receive will be worth roughly $920 and the difference will be the fee amount charged.
The CEX.io trading platform is more forgiving in terms of fees than the brokerage platform. The fee for a crypto transaction within the exchange will range between 0.16% and 0.25% of the value of the transaction. These fees are based on a maker-taker model which means the maker (the person who creates the order) pays a lower fee than the taker (the person that fulfills the order).
Users should be mindful of other transaction costs, especially deposit and withdrawal funds and these will vary depending on the method used. The fee rate for depositing using a debit or credit card can go as high as 2.99% while the withdrawal fee may peak at 3%. However, additional charges especially service fees issued by the card companies may also apply.
The fee rate for margin trading accounts is 0.5%.
Transaction Limits
CEX.io has limitations on the amount of cryptocurrency that one can purchase at any given time, as part of its security measures to protect users from hacks that aim to steal funds from user wallets. These transaction limits are determined by these four categories of account verification:
- Address
- Identity
- Corporate
- Enhanced
The cap for accounts with verified identity is $1,000 BTC per day and is limited to credit cards to fund those purchases. Accounts with verified addresses can purchase $10,000 worth of BTC per day and withdrawals are limited to $50,000 per day. Corporate and verified accounts do not have limitations on the amount of BTC that can be purchased.
Some personal information and a government-issued ID are necessary for a user’s account to be verified.
Which Countries Does the CEX.io Exchange Support?
The CEX.io exchange has a strong presence across the globe but there are some countries where it is not available. This information is important depending on the type of deposit and withdrawal method available in the user’s country. For example, some users would opt to deposit funds through a wire transfer or credit cards.
- Countries That Do Not Support Wire Transfers
Central African Republic, Congo, Burundi, Afghanistan, DRC Congo, Kenya, Herzegovina, Bosnia, Ethiopia, Eritrea, Cuba, Ecuador, Iraq, Iran, Haiti, Cote d’Ivoire, Guinea, Nigeria, Libya, Liberia, Guinea Bissau, North Sudan, South Sudan, Somalia, Iceland, Kuwait, Oman, North Korea, Saudi Arabia, Pakistan, Qatar, Palestine, Yemen, Syria, Vanuatu, Vietnam, Uganda, and Zimbabwe.
- Countries That Do Not Support Credit Cards
Algeria, Afghanistan, Bosnia, Bolivia, Bahrain, Burundi, Bangladesh, Cuba, Cambodia, Central African Republic, DRC, Ethiopia, Ecuador, Iceland, Iran, Iraq, Kuwait, Libya, Lebanon, Laos, Morocco, Nigeria, Nepal, North Korea, Pakistan, Oman, Palestine, South Sudan, South Sudan, Somalia, Syria, Uganda, Yemen, Vanuatu, Vietnam, and Zimbabwe.
CEX.io User Reviews And Customer Support
No exchange is perfect and there are bound to be complaints here and there. This applies to CEX.io which according to TrustPilot reviews, has had its fair share of complaints, especially about its high exchange rates and hidden fees. There have also been some complaints about the exchange’s customer support, and the ID verification process. A sizable percentage of the issues were those where users failed to understand the fine print. CEX.io has an average score on TrustPilot.
CEX.io has been putting in some effort towards improving its customer support. Its customer service representatives attempt to answer as many negative comments as possible to help users overcome any challenges they have experienced on the exchange. The rating has also seen a significant increase in the last few years.
How Does CEX.io Stack Up Against Other Exchanges?
CEX.io vs Binance
Binance’s exchange rate is lower than that of CEX.io by 3%. However, Binance crypto purchases via credit cards are possible courtesy of a partnership with Simplex. The exchange rates charged by Binance and CEX.io are almost similar if the Simplex fees are included. To learn more about the Binance exchange, click here.
CEX.io VS Coinbase
Buying crypto using a credit card on CEX.io attracts a 2.99% interest fee while a similar transaction on Coinbase attracts a 3.99% fee. However, transactions within the exchange are much higher on CEX.io than on Coinbase. The fee for a Bitcoin purchase on Coinbase is 4% less than a similar transaction on CEX.io. Access our detailed review of Coinbase right here.
CEX.io vs Coinmama
Credit card-related transactions on Coinmamana attract a 5.9% fee, undercutting the fee on CEX.io by 7%. However, Coinmama’s credit card clearing fee is quite high at 5%, and this levels out the cost of transactions on the two exchanges when the final prices are included.
CEX.io VS Bitstamp
Bitstamp has a brokerage service and trading platform just like CEX.io but there are significant differences between the two, especially in terms of fees. Brokerage fees on CEX.io are higher than those of Bitstamp’s brokerage service by roughly 2.5%.
FAQs
Will I need to provide ID verification?
Yes. Your ID information is required as part of KYC. CEX.io requires users to verify their ID information y providing a picture of their government-issued national ID/passport/driver’s license.
Does CEX.io have a wallet?
Funds on CEX.io are held in exchange wallets, as is the case with many other exchanges. However, this is a custodial wallet, which means the exchange will maintain ownership of the private keys. This is not the safest option, and it would be advisable to move your cryptocurrencies to a self-custody wallet.
How can I purchase cryptocurrencies on CEX.io?
The process of buying Bitcoin or altcoins on CEX.io is straightforward.
- The first step should be creating an account.
- Verify your ID
- Select the “Buy” tab on the exchange.
- Specify the amount you wish to purchase
- Provide the payment information for your preferred payment option.
- Finalize the purchase.
- Transfer the purchased cryptocurrencies to your wallet for extra precaution.
Is CEX.io a legitimate exchange?
CEX.io has so far been around for almost a decade, making it one of the oldest exchanges. It has managed to build quite a strong reputation during that time, but despite this, it has had its fair share of challenges and some users have complained about some aspects of the exchange. However, this does not translate to the experience of every user and as such, it does not reflect on the overall state of the exchange.
On the plus side, the lengthy existence has allowed CEX.io to polish up on some areas. For example, it has increased its efforts towards offering a favorable user experience by making its interface more intuitive and favorable for novice users.
Final Words – Is the CEX.io Exchange the Right Choice for You?
CEX.io is a legitimate crypto exchange that has a lot to offer to those who are considering it as their preferred avenue for accessing the crypto market. However, we would recommend that users get acquainted with the fee structure, as well as the verification requirements to avoid being caught off-guard. Despite this, the exchange offers a seamless user experience for both new and advanced investors in the crypto space so to sign up with the CEX.io crypto exchange, click here and get started today.
