CoinExchange Review

Review of Coinexchange Crypto broker | bestbitcoinexchange.io

April 03, 2018 by BestBitcoinExchange

Overview

Coinexchangei.io is an online altcoin exchange. If you’re looking to trade altcoins, Coinexchange.io has many of the smaller coins that other trading platforms avoid. Users on the platform agree there is potential at this exchange, but for the time being they appear to be riddled with issues, mostly surrounding customer support and transactions that get left hanging.

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It’s unclear who the management team is, when the exchange was started or where it’s based. These are all red flags. Some suggest that it may be domiciled in Romania or Australia, but it’s difficult to say as they don’t appear to be licensed or registered anywhere.

The exchange is strictly cryptocurrencies, so users can’t make any deposits or transact in fiat money. This adds to the anonymity factor and unfortunately makes the site less secure. You must first convert your local currency into bitcoin or an altcoin and then you can transact on the Coinexchange.io site. The exchange supports hundreds of cryptocurrency trading pairs.

Coinexchange.io competes with trading platforms like of Bittrex for the vast number of cryptocurrencies they support. But if Coinexchange.io wants to compete more effectively, it’s going to need to up its customer service game.

There are no known hacks, and the company has improved its security standards (two-factor authentication and more discussed below) in the wake of allowing a scam coin on the platform. But again, it’s more of an anonymous trading platform than most, with no emphasis on identity verification, know-your-customer or anti-money laundering processes.

They are lax in the type of coins they allow on the platform, which leads to problems for users. And there appear to be bugs in the system that interfere with some withdrawals, leaving customers wanting both for better customer support and their funds.

Some say the exchange “has built a reputation as a playground for market manipulators,” pointing to their open-door policy for new coins to join the platform, which could pave the way for pump-and-dump schemes to operate there.  

Coinexchange.io’s Twitter account was suspended on the same day as Kraken – they’re not sure why.

The stated goals of the company are rather cookie-cutter with no real details to back them up, include the following:

·       “Security”

·       “Excellent customer support”

·       “Website usability”

·       “Long-term support for added currencies”

·       “Currency related asset markets”

·       “Constant development and innovation”

They’re further along on some of those goals more than others and probably need to work on their customer support and standards for new altcoins more than anything.

Coinexchange.io Pros

·       Multiple altcoins

·       Spot trading

·       Competitive trading fees

·       No deposit fees

·       Instant withdrawals for some coins

·       Decent trading interface that is relatively simple to navigate once you get used to it

·       Charting capabilities

 

Coinexchange.io Cons

·       Low trading volume

·       Does not accept fiat money

·       Lacking some features on the trading platform to keep trader engaged, such as balances for specific digital wallets. Also there’s no leverage/margin trading on this platform.

·       Users complain Coinexchange.io supports “scam coins” 

·       Most people say the withdrawal fees are competitive, but others complain they are too high.

·       There’s no mobile app for Android nor for iOS.

·       Users complain of non-responsive support as recently as March 2018. Unresponsive support seems to be a pervasive issue at Coinexchange.io, which is concerning considering they seem to allow some questionable coins on their platform, which is only going to lead to more queries from frustrated users.

·       The trading dashboard can take a while to load. For one user, it takes 10 minutes.

·       Twitter account is suspended as of April 2018

 

Security

It’s unclear where Coinexchange.io is based and who the management team is. This is a red flag, as most exchanges have their founders out front fielding interviews and being the face of the exchange. Not Coinexchange.io. 

Coinexchange.io requires Google Authenticator 2FA, which provides an added layer of security for users and is a common requirement across cryptocurrency exchanges. This standard has been in effect since April 1, 2018. Additionally, they recently added another security measure requiring any new IP address to receive an email confirmation.

As of April 2018, Coinexchange.io is banned from Twitter, though it’s unclear why, and they also posted the following message on their website –

“Due to our domain getting blacklisted in SPAMHAUS we have added a temporary alternate domain (www.coinexchange2.com).”

There doesn’t appear to be an identity-verification process such as know-your customer and anti-money laundering protocols. This should be concerning to investors. Even though going through the steps of KYC can be time consuming, it’s there to protect you and the exchange from fraudulent activity.

While they take some steps to safeguard a user’s account, they also have an open-door policy for the altcoins they allow on their trading platform. This has led to accusations that Coinexchange.io supports scam coins, such as Monero Gold (XMRG), which seems to have turned out to be a fraudulent.

While Coinexchange.io said they too were a victim in the Monero Gold scam, the incident did lead them to review their security policy and “increase our efforts in all areas of security and customer protection,” as per the exchange’s blog post.

Meanwhile, there aren’t any public security breaches to speak of. But users complain of funds mysteriously disappearing from their Coinexchange.io accounts. For instance, one follower on Facebook posted the following message –

Coinexchange - facebook message

It’s not an isolated event. A Reddit user in Q1 2018 posted that funds “disappeared” from their account. They say that Coinexchange.io suggested this user’s email was hacked, but the user had 2FA activated on their email account. It’s unclear what happened to this investor’s funds, but the user say’s there’s evidence that someone was trading their account.

Fees & Minimums

Coinexchange.io charges market trading fees of 0.15% for buy and sell transactions across the board for all trading pairs. Their website lists numerous trading pairs, the first 10 of which are illustrated below –

Coinexchange - trading fees

As for withdrawals, Coinexchange.io says it’s not looking to profit from withdrawals. However, there are network transfer fees attached to cryptocurrencies, a result of which is what they describe as a “small fee” to cover that charge. You can view the withdrawal fee table here. Also use that link to view every individual altcoin that Coinexchange.io supports.

There are zero deposit fees. According to the website: “for certain coins there are minimum deposit amounts which need to be met for the funds to be credited into your account.” They don’t list all of them, but we know there’s a minimum deposit of 0.1 ETH. You must deposit at least that amount for the transaction to clear.

According to a post on Steemit, Coinexchange.io added a minimum deposit for BTC as well –

"Due to the high miners fees on the bitcoin network, we will be introducing a minimum deposit fee on the 17th of January. Any deposit of less than 0.05 BTC will incur a fee of 0.0008 BTC. Deposits of equal to or less than 0.0008 will not be credited into a user’s account. CoinExchange.io has been spending close to or in excess of 3 BTC per day to dust clean smaller transactions out of our wallet. This is not sustainable.”

It's possible that the newly added minimums are the reason for some investor confusion with “small deposits” that aren’t making their way to user accounts, based on what posters are saying on Reddit.

There’s a 10% recovery fee if you send your funds to the incorrect digital wallet. For instance, if you send ether to the BQX wallet by mistake.

There are no withdrawal minimums, but the exchange says it could change this policy at some point.

Sign Up

Considering that there’s no ID verification process, you should be able to register on the site within a few short minutes. You just need Google Authenticator for the 2FA and then you can begin making deposits.

·       Go to Coinexchange.io and click on Register. You will be taken to this page.

·       Enter your email address

·       Choose a username

·       Choose a 12-character password that’s a combination of letters, numerals and symbols

·       Reenter your password

·       Click “Register” and it will trigger an email to be sent to your account. Activate your account from a link in the email.

·       Log in and start trading.

 

Coins Supported

In addition to supporting bitcoin, Coinexchange.io supports hundreds of altcoins.

To qualify for the Coinexchange.io platform, a coin must meet the following criteria -

·       “Have a high community demand”

·       Show “innovation in cryptocurrency technology”

·       Make a “contribution to science, humanity and the environment”

 

If you’re wondering why Coinexchange.io supports so many coins, it’s because they “believe in letting the free market sort out which coins should thrive and survive, as a result we have a policy of giving a chance to new coins.” They take paid listings, which isn’t outside the realm of possibility. Even Ripple reportedly is trying to pay its way onto major US cryptocurrency exchanges.

 

Coinexchange.io says: “We encourage buyers to do their own research on any new coins that are listed.”

Trading Interface

The Coinexchange.io trading interface has been described as “quirky” but not too bad.

Considering that it supports hundreds of different altcoins, Coinexchange.io separates its hundreds of coins into categories across five active markets: BTC, DOGE, ETH, ETC and LTC.

You must select form a drop-down menu for trading actions. Just select the altcoin you want to buy or sell and select the appropriate option from the drop-down menu.

Live market orders are listed. It’s simple to cancel a market order if you change your mind. Just click cancel; the prompt will ask if you’re sure and just say yes. You won’t be charged the 0.15% trading fee if you cancel the order.

API/Mobile

There is a Coinexchange.io API, details for which can be accessed here.

Coinexchange.io doesn’t have a mobile app for Android or for iOS. If you find one, it’s not supported by the exchange and they recommend you don’t download it.

Reviews

There are many negative reviews about Coinexchange.io on the forums, many of which surround withdrawals that weren’t completed, funds that can’t be located and a slow-to-respond support staff that leave investors worried. Eventually, many of the issues seem to work themselves out. But users must be patient to get a response.  

Let’s take a positive review. This user experienced a “quick withdrawal,” saying they requested Bitcoin Cash and received in in their digital wallet within “three minutes.”

Another discovered a way to make the quirky Coinexchange.io platform work for them, saying to Forbes:

“This exchange supports some really extremely small coins, and this is where I play coin with little or practically no value to practice at negligible risk.”

Meanwhile, the themes in the negative reviews are largely unresponsive support, no confirmation emails for transactions, accounts that are “stuck,” etc. As for the unresponsive support, there appears to be two ways to contact the exchange – by email (address listed below) or by creating a ticket upon logging into the exchange.

Coinexchange - sign up

Some users go so far as to accuse Coinexchange.io of being thieves after not being able to withdraw funds from certain wallets. But again, this could trace back to the fact that some of the coins aren’t traded anymore. So, there is confusion stemming from the fact that Coinexchange.io has such an open-door policy for new coins and users who left holding the bag for bad coins blaming the exchange.

Verdict

Overall, while Coinexchange.io supports hundreds of altcoins, they appear to be on the shady side. Some traders have a seamless experience and find the platform fine for trading some altcoins quickly and for trading cryptocurrency pairs. But what good is an exchange if you must be concerned about whether transactions will be completed or wait around for weeks or longer to learn why not? 

If the exchange supported KYC and AML and was forthcoming about its headquarters and management staff, it would warrant a higher rating. But with these features lacking, it’s closer to a gamble to put your funds here. If you are going to trade on Coinexchange.io, you should seriously consider keeping your funds in an outside wallet, just as is recommended for any cryptocurrency exchange.

Contact support at [email protected].  

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