The financial industry has witnessed a significant amount of evolution since the last decade. The inception of Bitcoin (the world’s first cryptocurrency) has changed a lot of things. Individuals now do business and carry out various transactions using Bitcoin and various altcoins. And this has brought so much ease in doing business such that payments of transactions are smooth and quick with little transaction fees.
Asides from business, the advent of Bitcoin has In fact created a new niche in the financial market; the cryptocurrency market was established as a result of new investors and traders looking to trade Bitcoin and various altcoins with the hope of making vast returns. However, traders didn’t just wake up and decide to trade cryptocurrencies but for the vast potential gains and opportunities, the cryptocurrency market holds.
It is not uncommon to see various websites and agencies warn investors about the risks of investing in the cryptocurrency market. This is so because the cryptocurrency market, as much as it holds so many opportunities is also filled with lots of investment risks mainly because of its volatility and decentralized nature. This is why we are also recommending that careful research must be done especially by new investors before deciding to invest in the cryptocurrency market.
How can investors then go about investing in the cryptocurrency market?
If you’re quite familiar with the financial market, you would know by now that any trading activities carried out in the financial market cant be without the involvement of an exchange platform. This also applies to the cryptocurrency market.
Cryptocurrency exchange platforms were developed to assist various traders (both expert professionals and newbies) achieve their goals and make huge returns in the cryptocurrency market. Crypto exchange platforms give access to various traders and investors into the cryptocurrency market. Without these exchange platforms, investors won’t be able to do much in the cryptocurrency market.
This is why it is crucial for every investor who wants to invest in the cryptocurrency market to choose an exchange platform that will cater to all their trading needs. However, there seems to be a little challenge; the cryptocurrency world has become crowded with so many exchange platforms that it has become very difficult for investors to choose the right exchange platform for themselves.
The cryptocurrency sphere being over-saturated with numerous exchange platforms has allowed scams and fraudulent exchange platforms to disguise as a decent exchange platform to scam unsuspecting investors in the market. This is why investors need to be very careful and carry out their own homework to be able to differentiate decent exchange platforms from scams.
Here, we’ll be making several reviews of legitimate, credible, and decent exchange platforms investors can trust to make their trading partner on their financial journey. This is the CoinFLEX review. This review will give a factual insight into the operations, services, and benefits of the CoinFLEX exchange platform. Let’s dive right in
|Security||Two-factor authentication, Cold and Hot wallets, Know your customer, and Anti-Money Laundery policies.|
|Trading platform||Web-based platform|
|Trading assets||Bitcoin Cash (BCH), Bitcoin (BTC), USD Coin (USDC), Polkadot (DOT), and Ethereum (ETH).|
Coin Futures and Lending Exchange is also known as CoinFLEX is a stable coin features and Bitcoin trading platform that was established in February 2019 with its headquarters located in Seychelles. The CoinFLEX exchange platform is a brainchild of Sudhu and Mark which budded off from Coinfloor.
CoinFLEX is recognized as the first cryptocurrency futures exchange that is physically delivered. This is because the exchange platform is the first to launch repo markets and crypto spreads that enables individuals to make huge returns and investors to take delivery.
CoinFLEX being heavily supported by Polychain Capital it is pitched to become a huge force in the cryptocurrency industry despite being a relatively new exchange platform. Presently, CoinFLEX records a daily average volume of $43 million which is an incredible number putting into consideration how new the exchange platform is.
It’s worth mentioning that the majority of the volume recorded on the CoinFLEX exchange platform is credited to its XBT/USDT futures contract. However, its current DOT/USDT futures contract is also doing well and raking up the considerable daily volume.
The CoinFLEX exchange platform is suitable for both professional and institutional traders in that it enables roughly 200 orders each second for extremely high-performing trading which is a great competitive advantage against so many competitors. Let’s look at the fundamental features and services the CoinFLEX exchange platform has in store for its clients.
Security is a major concern in the cryptocurrency market as scams and fraudulent activities continue to run rampant. As a result, traders and investors now look to sign up with an exchange platform that can guarantee the safety of their investments and sensitive information in the cryptocurrency market. In this regard, the CoinFLEX exchange platform offers a decent security protocol.
Considering CoinFLEX budded off from Coinfloor, the security protocols put in place can be fully trusted as the Coinfloor security protocol has not had a breach in the last six years. And since the chief technology officer along with the founder of CoinFLEX is both from Coinfloor, they both have vast knowledge and experience in keeping the overall exchange platform safe and secure.
The CoinFLEX exchange platform gives topmost priority to its security. They keep about 99% of the cryptocurrencies received in cold storage, while the rest of the coins needed for daily exchanges are kept safe in hot wallets. No device failure, vault location, or a single person, can jeopardize the integrity of these wallets.
The Two-factor authentication (2FA) is also integrated into the security system to enable clients login into their account at CoinFLEX. This is to avoid unauthorized access by a third party into clients’ trading accounts. Clients can make use of YubiKey a USD stick OTP generator or Authy app to access their trading account. CoinFLEX does not consider SMS authentication as a safe option hence it is not available on the platform.
CoinFLEX is also in compliance with the Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to deter various fraudulent acts such as terrorist funding, identity theft, and money laundering. Although compared to other exchange platforms, CoinFLEX is more lenient with its KYC and AML policies and this is because it does not deal with actual US dollars.
CoinFLEX makes available several great offerings to its clients so they can better take advantage of the cryptocurrency market. Clients of the CoinFLEX exchange platform get to enjoy the leverage of up to 1:250 which applies to all its futures contracts.
The exchange platform enables its clients to choose a margin they prefer to use simply by changing their initial margin whenever necessary. Presently, CoinFLEX offers a minimum lot size of 0.0001 base currency units regardless of the trading fees.
Furthermore, a total of 10 distinct feature contracts are offered by CoinFLEX, some of which are of relatively short expiration dates while others are perpetual. Some of the listed cryptocurrencies on the exchange platform include Bitcoin Cash (BCH), Bitcoin (BTC), USD Coin (USDC), Polkadot (DOT), and Ethereum (ETH).
It is important to know that all futures contracts listed on the CoinFLEX trading platform are physically settled; shorts will earn USDT at expiry while longs will earn the digital asset they support. In doing this, CoinFLEX offers its clients an easy way to get access to various cryptocurrencies they speculate will increase in value.
To provide the best for its clients, CoinFLEX is always analyzing the cryptocurrency market and looking for attributes and features to best serve its clients. Therefore more feature options are continuously being added to the trading platform based on market demands.
The CoinFLEX exchange platform is recognized as a derivative exchange in the sense that it is primarily focused on derivatives trading. Derivatives are instruments whose prices are established on the price of another instrument (usually bonds, commodities, stocks, and so on).
Asides from derivatives trading, CoinFLEX also provides leveraged trading to its customers. The exchange platform provides both futures with expiry dates and perpetual (futures without expiry dates). CoinFLEX offers a maximum leverage level of 1:250 for spreads trading. This implies that clients can leverage a trade 250 times the initial amount.
It is important to note that investors must be very careful with leverage trading. This is because as much as leverage trading can yield huge returns it can also lead to huge losses when trading goes wrong.
Commission and fees
Every cryptocurrency exchange platform charges commission and fees on trading activities carried out in the market. However, these commissions vary from one exchange platform to the next which is why investors look to sign up with exchanges that offer low commissions and fees.
With the CoinFLEX exchange platform, each investor places an order, a trading fee is charged. Generally, the trading fee is a specific percentage of the price of the order executed. Most exchange platforms categorize trading fees into makers and takers. Makers are individuals that include orders to the order book, increasing the liquidity of the exchange while takers are individuals who take an order from the order book.
CoinFLEX charges a taker fee of 0.10% on each trade executed on the spot market. Considering the fees charged by newer exchange platforms springing up in the crypto market this fee is above the industry’s average. However, about the study conducted in determining the overall taker’s fee average of the crypto market which is roughly 0.213%, CoinFLEX charges way below the industry’s average.
CoinFLEX charges a makers fee of 0.05% on the spot market which is a 50% discount on trading fees in comparison to the taker’s fee. For contracts trading, a takers fee of 0.06% and a makers fee of -0.02% is charged on every trade executed. These fees are further discounted when clients decide to hold FLEX-tokens which are the exchange’s digital coin.
In the cryptocurrency market, withdrawal fees are either in percentage, fixed or a combination of both depending on the exchange platform. A small amount of cryptocurrency is paid for each withdrawal such that if an investor withdraws BTC, a small amount of BTC is paid for the withdrawal.
Empirical studies carried out in the cryptocurrency market suggest that an average BTC-withdrawal fee on every withdrawal made is about 0.0006BTC.
As for CoinFLEX, the exchange platform does not charge any withdrawal fee on crypto withdrawals, and that’s not all as they also cover all related network fees about these withdrawals.
This is an incredible gesture from the CoinFLEX exchange platforms as other exchanges that don’t charge withdrawal fees still need their clients to pay for other network charges.
Similar to a lot of modern crypto exchange platforms, CoinFLEX developed its digital coin simply known as FLEX or Flex coin. However, a bit different from most exchange platforms is that CoinFLEX gives out the Flex coin for free. The flex coin is usually given out as additional incentives to investors and traders depending on their taker trade volume coupled with the overall daily taker trading volume on the exchange platform.
With Flexcoin being a utility coin, investors get to use the digital coin to pay off their trading fees each day thereby reducing overall cost. 100 Flex coin will see training fees of investors get reduced by 50% each day which is the maximum reduction currently available.
Furthermore, Flex coin can be exchanged on the trading platform for profit just kike every other digital coin in the cryptocurrency market. Presently CoinFLEX only lists a FLEX/USDT overbook although it suggests that Flex coin can be exchanged on other exchange platforms in times to come.
The CoinFLEX exchange platform is a margin trading exchange and as such, the platform must make use of a liquidation policy to make sure its books stay balanced. CoinFLEX achieves this by employing auto-liquidation which enables the exchange to automatically exchange futures contracts so that customers stay within a safe margin ratio.
However, in the situation where clients fall out of the safe margin ratio, they will be subjected to a margin call to reduce their leverage to push their margin back to the safe zone. To determine what margin ratio is safe or dangerous for customers CoinFLEX makes use of the “Ramp Up schedule” to avoid automatic liquidation.
Deposit and Withdrawal
To start trading in the cryptocurrency market, investors are required to deposit an initial capital investment. Without this, trading cannot commence. And just the way exchange platforms prioritize deposit of funds is the same as how investors concern themselves with withdrawals because they want to be assured that they can get their amassed profits easily without any undue process.
As a result of this, crypto exchange platforms are expected to provide various withdrawal and deposit options that are very simple to use. Generally, exchange platforms offer different types of payment method options to their clients, but in the case of the CoinFLEX exchange platform, it offers just one; deposit and withdrawal using cryptocurrencies.
For intending investors looking to trade with CoinFLEX, they must then have cryptocurrencies at hand so they can make the necessary deposits to commence trading. To do this investors need to first buy cryptocurrencies from another exchange platform using fiat currency and then transfer the cryptocurrencies to their CoinFLEX trading account.
To be sincere, this payment option is quite long and doesn’t give room for much flexibility when it comes to deposits and withdrawal of funds.
A fundamental feature that so many cryptocurrency exchange platforms fall short of providing is decent customer service. However, CoinFLEX has taken it upon itself to provide good and adequate customer support for its clients so they can call for help whenever needed.
The CoinFLEX exchange platform provides a FAQ section on its website which answers in detail commonly asked questions and also makes available simple guides and instructions which provide the first line of support to clients and intending investors.
Furthermore, CoinFLEX puts in place two different customer support options; the first being the email and the second is the internal support system. Apart from these, the exchange platform also offers immediate basic support through its Telegram community which can be reached either through LinkedIn or Twitter.
CoinFLEX being a relatively new trading platform has not received any complaints about its customer support. However, banking on the reactions observed in the CoinFLEX Twitter feed and Telegram community, the exchange platform is praised for offering immediate customer support, with most issues being handled by the executive team.
The CoinFLEX exchange platform offers one of the best trading features and services in the crypto market in terms of futures on illiquid assets (IFO) and physically delivered bitcoin futures.
The exchange platform places a great priority on its security measures such as cold storage of crypto assets in vaults and the mandatory Two-Factor Authentication to ensure its client’s investments are well secured.
CoinFLEX makes use of well-experienced staff working behind the scene to ensure the smooth running of the overall system to give its clients the best trading experience possible. The CoinFLEX exchange platform is one that every investor should sign up with.