Is the CEX.IO Cryptocurrency Exchange Safe?

CEX.IO Cryptocurrency Exchange
CEX.IO Cryptocurrency Exchange

Overview

CEX.IO started out as a mining provider but has evolved into a great cryptocurrency exchange. Located in London, CEX.IO began operations in 2013. It has several certificates related to security and data handling validating consumer confidence. Some related policies include “Know Your Customer”, Anti Money Laundering, Two Factor Authentication (with Google Authenticator).

CEX.IO Exchange

8.2

Cost

8.3/10

Functionality

8.1/10

Security

8.0/10

Usability

8.2/10

Pros

  • User-friendly and intuitive interface
  • Impressive services, deposit and withdrawal options, trading pairs and security
  • Quick and easy enrollment options
  • Supports margin trading of digital/fiat currency pairs
  • Terrific security
  • 24/7 customer support
  • Well established reputation
  • Easy buy/sell process

Cons

  • The credit card verification is cumbersome
  • Needs greater cryptocurrency support
  • Mobile app services and features are limited
  • High fees for Brokerage accounts

 

 

CEX.IO Cryptocurrency Exchange Review

With the birth of Bitcoin and other cryptocurrencies came cryptocurrency exchanges. Exchanges are platforms that facilitate the buying and selling of cryptocurrencies and fiat currencies. For example, you can exchange Bitcoin for Ethereum or buy/exchange Bitcoin for USD. Among the most notable cryptocurrency exchanges is CEX.IO.

The CEX.IO Cryptocurrency Exchange is one of the oldest Bitcoin exchanges serves as both a trading platform and brokerage services for Bitcoin, Ethereum and several other cryptocurrencies, and has grown to be one of the most popular exchanges.

The brokerage service is a great place for beginners to get started. It supports numerous coins including BTC, BCH, ETH and XRP.

CEX.IO Cryptocurrency Exchange

 

Benefits

CEX.io allows you to buy cryptocurrency with a credit card, wire transfer or SEPA transfer. Purchases can be made it two ways:

  • Within the trading platform
  • With the CEX.io’s brokerage service.

Brokerage Service

CEX.IO brokerage service helps new users to buy cryptocurrencies through a very easy and streamlined process. However, this helpful service comes with slightly higher fees than the trading platform.

Brokerage transactions are based on Fill-or-Kill orders (FOK). FOK orders are executed immediately and in full. Whereas the trading platform offers a different type of orders such as market, limit, stop loss. Each type of order will have a different type of result.

This service comes at a cost. Customers pay a premium so that CEX.IO will always be able to fulfill their orders; the exchange rate difference can be as high as 8%.

“When you enter a trade, CEX.io calculates the price and freezes it for 120 seconds.  You input the amount of money you wish to spend and you see the amount of coins you can receive. After you press the Buy/Sell Button, the system checks to see that you have enough funds available. If the situation on the market allows the execution of your order on conditions not worse than you agreed on, the order will be filled (The order can also be filled on more favourable conditions). If there is a sudden spike in the exchange rate, preventing the execution of the order on the agreed conditions, you will be notified. After you confirm the trade, your order is matched to other orders on the exchange, and your balance is adjusted. Sometimes the amount can be even greater than agreed on, but is never smaller.”

So why use the brokerage service? It’s a great way for inpatient or casual beginners to get started trading cryptocurrencies. To do well on a trading platform usual requires some education and/or experience. If you’re not ready to invest your time into a quality trading course the Brokerage Service will likely be your best option. But, you don’t need to use it. It’s just there if you need it.

Trading Platform

The CEX.IO Cryptocurrency Exchange trading platform is best suited to more advanced users. There are some benefits to using this platform. Namely, the fees are much lower. While brokerage fees can be as high as 8%, trading platform fees max out at just 0.2%! The trading platform supplies all the features you’d expect. It has decent liquidity, allows cross platform trading and provides advanced reporting.

Why use the trading platform? Best for those that know what you’re doing, greater flexibility and much lower fees.

Special Features

  • Competitive commissions for market-makers
  • Special conditions for high-volume trading.
  • Borrow funds and receive protection against a negative balance.

Countries Supported

CEX.io supports most countries and states in the US. There are a couple of exceptions.

Restrict credit card purchases

Afghanistan, Algeria, Bahrain, Iceland, Iraq, Kuwait, Lebanon, Libya, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Vietnam and Yemen

Restrict bank transfers

Afghanistan, Democratic Republic of the Congo, Côte d’Ivoire, Eritrea, Ethiopia, Guinea-Bissau, Haiti, Iran, Iraq, Kenya, Liberia, Libya, Guinea, São Tomé and Príncipe, Somalia, Sudan, Syria, Tanzania, Tunisia, Turkey, Vietnam, Yemen, Zimbabwe.

US states NOT supported

Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Guam, Idaho, Iowa, Kansas, Louisiana, Maryland, Michigan, Mississippi, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Tennessee, Texas, U.S. Virgin Islands, Vermont, Virginia, Washington

 

 

Buy & Sell

Buying and selling cryptocurrencies on CEX.IO is pretty straight forward. First, you’ll need to make a deposit to your CEX.IO account. Then, just go to their Buy and Sell page and select a bundle or enter the number of Bitcoins to purchase.

BuyingSellingLimits

Buy Bitcoin or any other cryptocurrency on CEX.IO depends on the type of account you have.

  1. Basic – Basic accounts can make credit card deposits only. Withdrawals are by credit cards as well.
  2. Verified – Verified accounts can make deposits and withdrawals by Credit Card, Bank Transfer, Crypto Capital or SEPA.
  3. Verified Plus – Verified Plus accounts can make deposits and withdrawals by Credit Card, Bank Transfer, Crypto Capital or SEPA.
  4. Corporate – Corporate accounts can make deposits and withdrawals by Credit Card, Bank Transfer, Crypto Capital or SEPA.

Bitcoin can be sold for Fiat currency or other cryptocurrencies. Bank account and credit card transfer available.

The account type also determines buying limits.

  1. Basic – Deposits & withdrawals are limited to $1,000 per day and $3,000 per month. Transaction amounts are limited to between $20 min to $1,000 max.
  2. Verified – No total limits applied. Credit Cards limited to $3,000 per day and $30,000 per month. Transaction amounts are limited to between $20 min to $2,000 max. If you use Crypto Capital. There is a $100 transaction minimum with no upper limit and no daily or monthly limit.
  3. Verified Plus – No total limits. Daily Credit Card limit of $10,000 per day and $50,000 per month. Crypto Capital limits are the same as the Verified account.
  4. Corporate – Limit is $10,000 to $50,000. Otherwise basically the same as Verified Plus.
Special Note
* CEX.IO accepts USD or EUR and in some cases GBP.

 

 

Fees & Currencies

Fees depend on whether you use the Brokerage or Trading platform, your payment method, and the fiat currency used.

Brokerage Platform

  • Up to 8%

Trading Platform

  • Up to 0.2%

Deposit Payment Method Fees

  • Visa and MasterCard – 3.5% + $ 0.25
  • Bank Transfer – no commissions
  • SEPA – no commissions

Withdrawal Payment Method Fees

  • Visa – $ 3.8
  • MasterCard – $ 3.8 + 1.2%
  • SEPA – 1%

 

Special Note
Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Bitcon Gold (BTG), Dash (DASH), Stellar (XLM), Zcash (ZEC)

 

Safety & Security

CEX.IO is a safe exchange registered in the UK and as a Money Services Business with the Financial Crimes Enforcement Network in the US.

CEX.IO Cryptocurrency Exchange provides high-level security including:

  • Full data encryption
  • Email and SMS two-factor authentication
  • Google Authenticator
  • Protection against DDoS attacks

The company works to prevent and remove scammers. As far as I’m aware, CEX.io has never been hacked and no thefts have occurred on their platforms.

Verification

Google supported 2-Factor Authentication

 

User Experience

Quick Guide

Create Account

  1. Create an account with your email address and password
  2. Agree to the terms and condition
  3. Optional: Register via Github, Facebook, VK, or Google.

This will get you a Basic Account. To upgrade you need to get Verified.

Verify Account

CEX.IO requires users to get Verified to upgrade your basic account.

  1. ID – Legal Identification Card
  2. Personal information – Gender, date of birth, phone number etc.
  3. Address – Permanent and the current residences.

Proof of the Above: Submit a scan of your ID card, a picture of you holding the ID and proof of residency.

Customer support

CEX.IO has great support. The website provides a lot of help docs, guides and more.

They have 24/7 Customer Support via email or Help Center support ticket.

Feedback

Trust, reviews and community trust is all over the place. Trustpilot rate CEX.IO with 5.4/10 stars. Reddit seems a mixed bag but most (as far as I can tell) don’t have any issues with it.

The majority of complaints I’ve seen are about the high exchange rate; often referred to as ‘hidden fees’. There are some about the identity verification process and the CEX.IO customer support.

Complaints about the Fees and Verification are most likely due to individuals don’t read through site docs and Terms. CEX.IO makes the fee structure clear upfront as long as you read through it. As for Verification complaints… I get it. But this is a centralized exchange committed to security, scam & theft prevention. They are other reasons too but the end result is a stellar reputation for user safety. It’s a give and takes.

 

 

Final Verdict

GREAT

CEX.IO offers several useful resources for beginners just getting their feet wet. And, they have great customer support for beginners to ask questions and get help.

Final Verdict: CEX.IO a solid exchange and GREAT for experienced and novice users alike. The exchange continues to make improvements and stands as one of the leading exchanges around.

The only real downside are the high fees applied to their brokerage service.

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CEX.IO Exchange 8.2 Cost 8.3/10 Functionality 8.1/10 Security 8.0/10 Usability 8.2/10 Pros User-friendly and intuitive interface Impressive services, deposit and withdrawal options, trading pairs and

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