Cryptocurrencies are experiencing a new dimension of growth: the market cap is steadily rising even as more investors stream into the crypto market. This mass adoption has led to the worldwide expansion of decentralized finance (DeFi). Consequently, it has led to an explosion in the number of cryptocurrencies worldwide, currently numbering over 4,000.
At the hub of these cryptocurrencies are exchange platforms that have equally experienced an astronomical rise. Since the number of cryptocurrencies is on the high side, there should be enough exchanges to cover that growing number. With the varying features that these increasingly growing number of exchanges offer, it is fair to say that they are fulfilling that purpose.
However, this large number may in itself be a deterrent to the expanding number of crypto enthusiasts and traders. That is because it will become increasingly burdensome to choose the exchange in which to launch their crypto ambitions, especially when the top recognized ones do not offer the coin they are interested in.
Equally, there is also an issue with the location. Not every exchange platform is available to everyone in the world – there are restrictions placed on different exchanges in different countries that prevent the citizens of that country from using such. Thus, depending on your location, the large number of available exchanges may not even be as accessible as you think.
Although some may make a case for using decentralized exchanges in locations where centralized and regulated exchanges are prohibited, that might further drown the potential crypto trader in his initial insecurities over the integrity of a particular platform. That raises more difficulty for the crypto trader as regards selecting a suitable exchange.
And that automatically becomes a problem. Imagine having enough capital to trade with, yet still facing confusion over choosing the platform to invest one’s funds. Moreover, the number of individual reviews available on the net doesn’t help the case at all. While a few of them are honest, a lot of them aren’t. Despite their dishonesty, they can persuade the average beginner or even professional into changing their decision or views about a particular exchange.
Due to instances like these, most people tend to block their ears against the numerous crypto exchanges and end up conditioning their minds towards one which is recognized or perhaps registered in the region where they live. They tend, then, to lean towards the testimonies of their fellow countrymen over the performance of the crypto exchange they’ve decided to trade with.
Critically executed crypto reviews and crypto exchange reviews are thus necessary. Like the one we will be giving out here, it can more than halve whatever selection challenges a potential trader may have and chart for them a list of options that should influence their decision on which exchange to eventually go for.
Consequently, this latest addition to our crypto reviews will focus on Coinbit, a cryptocurrency exchange that will qualify as regional since it is most suitable for traders in some parts of Asia. This review shall be honest and encompassing, and by the end of it, you should be able to decide whether or not to trade with Coinbit.
|Location||Seoul, South Korea|
|Trading platform||Web-based, mobile app|
|Trading option||Cryptocurrencies, Fiat|
|Security||KT CLOUD security system, PETRA security control service|
|Customer support||Yes: mobile, email, Twitter, Instagram|
Coinbit may classify as a relatively new crypto exchange platform since it launched in July 2020. However, a more encouraging aspect of this crypto exchange is thus: it is a fully registered exchange operating from Seoul with a business registration number 120-87-79307.
Out of the very many cryptocurrencies and digital assets available in the world today, the exchange offers its services for only about 68 of these assets, including the more popular Bitcoin and Ethereum. The exchange is led by their innovative CEO, HyeonBaek Park, whose watch has led the platform’s status to rise significantly.
That is evident in their performance rating and average 24-hour trading volume as determined by coinmarketcap. Sometime in April 2019, almost a year after the exchange went live, they recorded an average 24-hour trading volume of $1.8 million and were ranked 135th. One year later, amid the covid-19 pandemic, the exchange recorded a massive improvement in its rating at 55th after racking up an impressive $313 million in its 24–hour trading volume. On April 9th, 2021, the exchange ranked even higher at 42nd after recording an astonishing 24-hour trading volume of $1.7 billion, more than 5 times its’ trading volume in the previous year.
The exchange is based in South Korea, and while its website generally features the Korean language, it is also available in English, Japanese and Vietnamese. Although open to several English-speaking countries, the exchange is prohibited in the United States, so if you reside in the U.S., you may want to seek other exchanges to carry out your crypto transactions. However, this doesn’t make it a lesser valued exchange as it is very popular among individuals living in the South Eastern region of Asia.
As one of the most essential features of any exchange offering is to not only hold up users’ assets but also to conduct trading of these assets, it is not too difficult to realize how central the security of a cryptocurrency exchange is. In a world as ours, the click of a button can compromise the integrity of a digital application – and especially one that constantly deals with financial assets.
In the past, we have witnessed numerous cyber attacks channeled against several blockchains and exchanges, some of which led to a massive loss of financial assets while a few others were thwarted. The occurrence of such malicious acts by individuals is on the rise, each seeking ‘profit’ to the detriment of honest participants. Sometimes, victims are usually skeptical about entrusting their assets to exchanges because some are, indeed, complicit, having malicious intentions hidden underneath their plain facade.
For a crypto exchange like Coinbit, where billions of dollars are traded every 24 hours, it is no surprise that they would be on the radar of hackers and fraudulent organizations. That is why the exchange must have a worthy security system. Coinbit has listed on their website that they are one of the most secure exchanges out there. While not much is known about the nature of their security infrastructure, the exchange maintains a stabilized trade environment through its use of a KT CLOUDS security system. It also secures the digital assets of its users through a PETRA security control service.
The exchange has not experienced any cyber attacks since its inception in 2018 – and this could serve as a good sign in assuring users over the system security and integrity. Meanwhile, this could also indicate that despite the exchange’s secretiveness about the skeletal overlay of its security infrastructure, essential activities are undertaken behind the scenes to ensure the protection and smooth running of the system.
The fact that the exchange is a registered business is also a positive note for investors, given that registered organizations would always strive to maintain the security of their assets.
At the heart of cryptocurrency exchanges are pairs with which trades can be conducted. These pairs may be in the form of crypto to crypto, crypto to stablecoins such as USDT, or crypto to fiat. Once an exchange offers trading pairs in the form of crypto to fiat, it means that that exchange can be regarded as an entry-level exchange.
Some exchanges offer a limited number of trading pairs, while the others have astonishing high numbers of pairs tradable on their platform. However, it is vital that good crypto exchanges should have trading pairs relevant to the needs of traders who need them.
Coinbit, in this instance, offers about 71 trading pairs. These pairs consist of crypto assets such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and the likes. There are also stablecoins such as USDT and PAX, and fiat which is the Korean Won (represented as KRW).
Coinbit trading pairs are interchangeable, meaning that after choosing a trading pair, you can swap between the one asset you have to settle for the cost of the other – for example, the BTC/KRW pair. In this type of pair, you may decide to provide the amount of BTC to get the corresponding value in KRW, or if you hold KRW, you may choose to offer up the required amount of KRW needed to acquire the corresponding value in BTC.
Conclusively, Coinbit’s trading pairs offer a rich list of cryptocurrencies and stable coins to choose from when carrying out exchange trading. In that regard, it can be classified as one of the better exchanges out there.
In conventional markets dealing with physical cash and commodities, there is often a place or platform where sellers and buyers can converge to display their goods and purchase the goods on display. Such is traditionally referred to as a market.
Markets are also common features for the trade of digital assets and commodities, although they no longer take the physical form of traders calling out or buyers haggling prices. Digital markets are set up digitally on platforms found on the web and mobile applications where one can begin and close a trade.
These platforms are usually three types: a web application, a mobile application, and a desktop application. While the former two are a mainstay among crypto exchanges, the latter is not often seen and is peculiar only to certain exchanges.
Similarly, Coinbit employs two platforms through which it carries out its exchanges: a web-based application and a mobile app. The user interface of both applications offers impressive trading experiences to their users. It consists of charts, order types, order history, limit, open orders, plus other features necessary for basic trading activities. Users will generally find it easier to navigate through it since it offers a simplistic look all through.
The mobile application, like many other exchanges, is the most marketed trading platform. It is available for download on Android and iOS devices and gives users more ease and flexibility when trading on the exchange. The web application, however, offers trading capabilities from any device anywhere in the world – so long as an active internet connection is present.
Fees are as vital as the security of any exchange. They guarantee whether users will or will not flock into an exchange. Even centralized financial institutions charge fees for several activities performed on their platforms. However, the edge brought about by decentralized finance and exchanges is that they generally charge fees that are usually lower than that of traditional financial institutions.
Most exchanges charge fees for deposits, withdrawals, and trading. However, Coinbit charges are placed on withdrawals and trading but not on deposits.
Coinbit accepts deposits in the form of supported digital assets and fiat. Regardless, the only acceptable means of fiat deposits are wire transfers. Credit card deposits are not supported. However, wire transfers may incur charges from the remitting bank – but general deposits are not charged by Coinbit.
The only acceptable fiat on the Coinbit exchange is the Korean Won (KRW), so wire transfers will have to be converted first into KRW.
Withdrawals are possible with Coinbit. One can withdraw assets into a suitable wallet. Withdrawal fees are, nonetheless, charged slightly higher than the conventional industry average. Bitcoin withdrawals are charged at the rate of 0.001 BTC, a bit higher than the 0.000812 BTC industry standard average.
KRW withdrawals are charged at a rate of 1,000 KRW. This fee may be reasonable, especially for users within the Asian Pacific.
When it concerns trading fees, Coinbit prides itself as one of the exchanges that charge the least. Contrary to the maker-taker tiered fee model used by several other exchanges, which rewards makers (liquidity adders) more than takers (liquidity removers), Coinbit employs a varied approach with its use of a flat fee rate.
The flat fee is fixed, and it doesn’t change with makers and takers. Trading fees are charged at a rate of 0.10%, a rate much lower than the industry standard average of 0.25%.
Customer Service Support
Customer service supports are becoming a mainstay for centralized exchanges. Despite the increasing popular traction gained by cryptocurrencies and other digital assets, the world of decentralized finances, exchanges, and blockchains might still be a little confusing. It is, therefore, necessary that customer service representatives are handy to guide users through their navigation of these platforms.
Additionally, financial transactions do not always go according to plan; sometimes, issues may arise from failed transactions, errors, and some form of difficulty or another. Whatever the case, there is a need for a good customer support center to cater to the interests of a largely impatient customer base.
That shouldn’t be a challenge with Coinbit; the exchange lists a mobile number on its website, which is available to receive complaints about 24 hours a day. The exchange also lists a customer support email service which is available 24/7. Social media platforms, including Twitter and Instagram, are additional outlets that one can use to reach out to their customer service.
Additionally, Coinbit makes provision for an extensive FAQ library on its website. This list of FAQs answers the primary questions that may arise from transaction difficulties and other related confusion. There is also a provision for a user guide for traders entering the crypto exchange market for the first time. The user guide covers every step with pictures which the beginner can use to navigate the platform.
Coinbit is an exciting exchange suitable for both beginners and experts. The exchange is fast and secure, and it offers a wide range of assets from which to trade. Notable among its features is its trading fees, which are one of the lowest in the market.
The exchange’s trading platform offers a unique and simplistic trading interface that an average trader can utilize to their advantage. Its acceptance of fiat deposits makes it an entry-level exchange suitable for individuals trying out cryptocurrencies for the first time. The number of assets covered by the exchange is equally vast, an advantage it has over other exchanges.
The range of customer service supports available on the exchange is equally impressive. Users can also easily navigate the platforms due to an extensive user guide, which is not always present in other exchanges.
The only negative point about this exchange is that it is not suitable for many English-speaking users, including those in the United States where it is prohibited. The fact that it only accepts fiat deposits in Korean Won may seem valuable for Asian users, but for users in the West, it is a disadvantage.