CEX.io is one of the longest-serving Bitcoin exchanges online. Established in 2013, CEX then operated as both a cloud mining provider and a trading exchange. The cloud mining operations were closed in 2015 as it sought to focus on providing the best possible exchange service for Bitcoin and other cryptocurrency traders.
Reddit Investors Frustrated
Nevertheless, its reputation has taken something of a hit in recent months. Irate investors have taken to Reddit to vent their frustration at a string of aspects about the site’s operations. The majority of complaints posted on Reddit are due to the hidden fees and high exchange rates, the remarkably confusing and lengthy identity verification process and the exchange’s overall customer support team.
First of all, CEX.io charges a 7% transaction fee for all Bitcoin purchases on its exchange. This is taken out of the fiat currency investors use to make the transaction. Furthermore, the site has recently stopped allowing withdrawals from accounts in US dollars, much to the anger of many Reddit users. If you deposit or withdraw in US dollars, you’re better off steering clear of this exchange and considering an alternative platform. The leading social trading and investment network, the eToro broker is soon to be expanding its cryptocurrency CFDs into USA, allowing you to interact with like-minded Bitcoin investors, digest tips and trends from experienced traders and buy and sell Bitcoin all from within your eToro account.
What’s Really Going on
But is it all that bad? Does CEX really care little about the service it’s providing its crypto investors? Although the site has a very poor recent set of reviews on its TrustPilot page – due largely to the hidden fees we’ve already discussed – they have done a good job at responding to most of its complainants. This suggests the brand does care about its standing in the cryptocurrency industry and is keen to address its issues.
There are a reported 400,000 active traders on the CEX.io exchange each month, so can the platform really be letting Bitcoin investors down? There is an impressive trading volume, which gives users ample opportunity to buy and sell their Bitcoin. The trading interface is also one of the most impressive available, while its API can also be connected to a range of other trading software. A variety of trading pairs are offered, including BTC/USD and BTC/EUR, with up to 1:3 leverage on offer.
It’s also important to note that the much-talked-about 7% fee for purchasing Bitcoin relates to direct trading with the service itself. If you opt to buy or sell Bitcoin using its peer-to-peer platform, you only pay a maximum of 0.2% if you purchase less than BTC 5.
Perhaps some users may be a little too quick to jump on the bandwagon, but if the negative reviews have put you off somewhat and you want to seek a different Bitcoin exchange, we can help. Our website lists and reviews the top 40 places to buy and store Bitcoin, so do look around if you want some help deciding.