What is the CEX.io exchange?
CEX.io is an online cryptocurrency exchange, which basically makes the CEX.io exchange a place where you can go to buy and sell virtual money – whether it is coins or tokens. It was also a cloud mining service up until 2016, meaning that rented out processing power as a means of dealing with decentralised transactions – but then moved its focus entirely to currency exchange. This coincided with the CEX.io exchange starting to offer Ethereum as well as Bitcoin.
How CEX.io works?
CEX.io is a useful site for beginners for two reasons 1) it accepts fiat currency, also known as the legal tender we pay with day in, day out. 2) There is a simple buy and sell format to the site that does not require too much technical knowledge. The site simply tells you how much currency you will get for a set amount of dollars.
The first step to using CEX.io is to register. Clicking on register in the top corner takes you through a set of obvious steps. It is possible to use the site unverified – using the basic account – but this limits deposits to $300 a day and £1000 a month.
This means, practically, you will need to verify your account on the CEX.io exchange. This is standard for sites that accept fiat currency in any great amount. This means you will not be able to trade anonymously and will require you to go through some fairly arduous steps to prove your identity. Such security and verification may feel burdensome at the time but is a further sign of the trustworthy status of the site. You will be expected to give your full name, address, picture ID, proof of address documentation and a selfie with your credit card.
Once your account is verified, which generally happens quickly, you will be able to fund your account with your chosen method of money transfer. Be aware that credit card is by far the fastest method of transfer – if your credit card company is on board with transfer of funds in this way. Once the funds are on the site then buying your Bitcoin or Ethereum is as easy as clicking one button.
There are restrictions on fiat currency payment methods in different countries- and it is worth researching how you can get money to the site based on your location – in the US this means your state may have restrictions too.
There is the option to use Fill-or-Kill orders. This means the site freezes the price for 20 seconds whilst the order is being fulfilled. If the order is not filled, then the deal is killed. There is a larger fee for this sort of deal but means you are guaranteed the price you think you are buying at. If you want to avoid the 7% fee, then you can go to the standard exchange site and deal on a peer-to-peer basis.
This is a site for buying Bitcoin and Ethereum. There is limited option to exchange for other coins and tokens and you will need to exchange your cryptocurrency to another platform to enjoy a wider choice.
Key information about CEX.io
Before we get to the CEX.io review, it is important to give key information about the site. The CEX.io is a London based company that offers an easy method to buy and sell Bitcoin and Ethereum. It accepts deposits using credit card, bank transfer and cryptocurrency. This means that CEX.io is one of the few exchange sites to accept fiat currency deposits.
There are key questions that should always be addressed when considering a cryptocurrency site – or any business on the internet really. The first is safety. As CEX.io has enjoyed repeat customers over several years, the suggestion is that this is a safe and reputable site. It operates out of the UK and is regulated as a company by the laws governing a Private Limited Company in this country. It is registered with FinCEN and is compliant with the Payment Card Industry Security Standards Council. In short, the site does all it can to prove its legitimacy – therefore trading is safe within the CEX.io exchange.
As with most cryptocurrency exchanges, CEX.io uses cold storage to keep a large proportion of funds out of the reach of hackers. Cold storage means that data is stored offline and, although not immediately available for use, cannot be accessed by external actors either. The level of liquidity in the site is still more than enough to cope with daily trading – but beware significantly large withdrawals may be met with some delay. The site also comes with 2FA – either with Google authenticator or SMS/ Call requests, so you can act to secure your own digital wallet.
Your CEX.io Review
- this is a beginner friendly site that allows you to get started easily – trading in small amounts in a matter of hours. The click to buy option – that essentially freezes the price – may be expensive but is the easiest means of trading in cryptocurrency on the internet.
- the site accepts fiat currency from credit cards and bank transfers. There are some restrictions in some countries and some states, but this is generally one of the most convenient means of accessing the Bitcoin and Ethereum marketplace.
- the customer support is excellent – even verification is prompt in comparison to other sites – taking on average 48 hours.
- The reputation of the site is excellent – forums have few negative comments and generally this is seen as a safe and reputable exchange.
- the fees are really high. This is by far one of the most expensive cryptocurrency exchanges, particularly if you choose the easy buy and sell methods. You can save money by using the standard exchange platform. However, deposit fees – which are free with other sites – are roughly 3.5% when using credit cards. There is also a similar fee for withdrawal – and even with bank transfer you will pay $50 to take your money away from the exchange!
This is a safe place to begin your cryptocurrency journey. Beware though – you will pay for the beginner-friendly nature of the site – and you are more than likely to move elsewhere once you have become confident.