CEX.io Review: Is CEX.io Exchange the New Coinbase?
CEX.io Review Part the 1st: What is CEX.io Exchange?
Anyone who has traded cryptocurrencies for any length of time knows about Coinbase. Coinbase, for a long time, was the only popular and accessible way for people to turn a fiat currency like the United States Dollar into Bitcoin. Today, Coinbase lets people buy Bitcoin, Bitcoin Cash, Litecoin, and Ethereum with theirUSD, with the rumor of still-more trading pairs being added later this year.
While Coinbase services a user base numbered in the millions, their evolution into crypto’s most famous trading destination has not been entirely smooth. Coinbase has had scaling issues and a number of not-unreasonable user complaints. Public accusations of insider trading a politically based market manipulations have soured others, though these allegations remain completely unproven.
Even so, it’s clear to anyone who trades cryptocurrencies that Coinbase should not be the only gatekeeping to crypto trading. Within the last year, a small handful of exchange alternatives have popped up, all of which have endured the regulatory nightmare incumbent upon any exchange which wishes to allow consumers to trade US Dollars for digital, virtual currencies. Like CEX.io.
In this CEX.io review, you’ll learn that CEX.io has had its share of growing pains, as have all crypto exchanges during the last year. Nonetheless, we find Cex.io to have a great deal of merit, a communicative and hardworking team, and the potential to relieve fiat onramp gridlock that plagues today’s cryptocurrency markets. Consider making an account with CEX exchange today.
If you’re looking for a guide to opening your first-ever CEX.io account, skip to the second part of this CEX.io review.
CEX.io Exchange: A Brief History
CEX.io was founded in London in 2013, a lifetime ago in crypto years. When it started out, CEX.io wasn’t an exchange but a cloud mining platform. Cloud mining allows users to commit to decentralized mining pools, thus deriving profit they would not be able to by running a rig out of the spare bedroom.
CEX.io got out of the mining business in January 2015, as Bitcoin’s price fell beneath $200 (imagine). For the next two years, the cryptocurrency world didn’t hear a great deal from CEX.io, until October 2017 when the company announced it was getting into the cryptocurrency-from-fiat game.
Why is a Fiat/Cryptocurrency Exchange Like CEX.io So Important?
For those of you who are new to crypto, there are categories of exchanges which all traders use to sell one coin to buy another. Large international exchanges like Binance support hundreds of different coin trading pairs. It’s always a race for a new coin to get listed on Binance or Bittrex of Poloniex, because this is where all the action is. Binance often processes hundreds of millions of dollars worth of trades each day. Think of these exchanges as the “Amazon.com” type of cryptocurrency exchange.
The thing is, the Amazon exchanges don’t take US Dollars…or EUR, GBP, or RUB. New users who approach these exchanges feel like outsiders looking in, holding their old-fashioned meatspace money with no way of breaking in the the new virtual economy. Fortunately for these folks, there’s another type of exchange which caters to their needs.
If Binance is the “Amazon” of crypto brokers at this point in history, Coinbase and CEX.io could be better compared to the DMV. For would-be Americans drivers, a trip to the Department of Motor Vehicles is necessary for licensing and registration. In crypto, CEX.io is a place where users can trade their Dollars for Bitcoin, Ethereum, Bitcoin Cash, Bitcoin Gold, Dash, Ripple, and ZCash.
All of these coins can then be taken and traded for other coins, on the Amazon-type exchanges we’ve already described. If, at some future time, an investor wishes to sell their cryptocurrencies for US Dollars or other fiat currencies (to buy a Lambo, perhaps), they must return to CEX.io or a competitor to complete this transaction.
Why Would Someone Use Cex.io Instead of Coinbase?
Don’t get us wrong; we like Coinbase. Coinbase has performed admirably for years, and continues to do so. But there are limits to how many users and transactions a network can handle, particularly when new users are numbered in the hundreds of thousands per frickin’ day. CEX.io represents a much needed alternative.
CEX.io is a good place to try if registrations for Coinbase or Gemini are delayed. It’s also a perfectly fine place to use as your first fiat/crypto exchange.
CEX.io supports not just US Dollars, but Euros, Pounds Sterling, and Rubles. Coinbase takes Euros, in a somewhat circuitous process, but CEX.io is an easy onramp for non-American fiat.
CEX.io’s support is hardworking an communicative. Even when there are problems (like a CEX.io review Reddit user complaint/rant/meltdown), CEX.io is on the job, gently responding with helpful info and actionable advice.
CEX.io supports currencies that Coinbase doesn’t. Where else can you trade fiat for Bitcoin Gold, Ripple, ZCash, or Dash?
CEX.io updates its features and social media pretty much everyday. You’ll never have to wonder what’s going on with CEX.io exchange. They’ll pretty much always come right out and tell you. Transparency can be a hot commodity in crypto, so we’re glad to see CEX.io exchange offering so much of it.
Why Do Exchanges Like CEX.io Have Problems Scaling
Without getting into the weeds of a very technical explanation, let’s simply say that exchanges like CEX.io are overwhelmed with demand. CEX.io is not immune to this issue. For people who don’t quite understand why a website would have problems like this, we’ll use the illustration of a small pipe letting water flow through a dam.
On the inside of the dam, millions of gallons of water are waiting to get through the pipe, but the pipe is only large enough to handle 20,000 gallons an hour. Crypto brokers like CEX.io exchange are kind of like this, with limitations related to servers and various internal technologies. To make more water flow, a larger pipe must be added.
CEX.io exchange, Coinbase, and Gemini are all overwhelmed with demand, as literally millions of people in the world are rushing to put their money through CEX.io Bitcoin channels. From time to time, these exchanges restrict new user accounts, because allowing them in would make user support impossible, if it didn’t cripple the system entirely.
Additional exchange options are a great way to handle aspects of this problem. Coinbase can only improve its scaling so quickly, so by creating a competitor exchange, we can divert some of those millions of gallons of water through another pipe or two. Infrastructure metaphors aside, read the next portion of this CEX.io exchange review to learn how to open your first CEX.io account.
CEX.io Review Part the 2nd: How to Open Your CEX.io Trading Account
By now, we’ve hopefully convinced you that CEX.io is a quality crypto exchange that could very well offer you quality service moving forward. If you’re ready to seal the proverbial deal, here’s how to create your account with CEX.io exchange.
CEX.io Bitcoin Trading
This Buy Sell page is where you’ll use CEX.io exchange to buy or sell Bitcoin for USD, Euro, etc. Notice that on this page you can choose to buy Bitcoin in pre-priced bundles, with nice round numbers measured in hundreds of dollars. If you want to spend a not-round number or dollars, like $1276.85 for instance, you can do that at the bottom of the screen. Note, that you must first fund your account with Bitcoin or fiat currency to complete trades like this. More on that in a sec.
How to Trade Bitcoins For Other Coins on CEX.io Exchange
No Cex.io review would be complete without simple instructions for trading Bitcoins for other currencies. Because CEX.io also supports ZCash, Dash, BTG, etc. it’s not simply an onramp for fiat currency but a small conventional crypto exchange in its own right. To start trading your Bitcoins (or whatever other coins you have deposited into a CEX.io wallet), visit the Trading page. Here you’ll find an interface that works much like the Buy Sell page, but involves no fiat currency in the bargain.
How to Deposit or Withdraw Fiat/Cryptocurrencies on Cex.io Exchange
If you’re looking in this CEX.io review for a guide on how to start an account with CEX.io exchange, you’ve found the right portion. First, you’ll have to open an account with CEX.io. Because of remarkable demand, new user registration is currently limited, but hopefully that will be ironed out by the time you try to make your account. Once you’ve input your personal and banking information, responded to verification emails, and added 2-Factor-Identification, you’ll be ready to fund your account with fiat currencies like the US Dollar.
Once your bank account is linked, you’ll be able to buy Bitcoin and the various altcoins supported by CEX.io with the push of a button. Not all CEX.io accounts are created equal, however. In order to add funds in large amounts, or withdraw all of your fiat currency at a single time, you’ll have to follow the individual instructions CEX.io sets out for you for the verifying of your account into more advanced levels. Simple trades, withdrawals, and deposits will be available from the get-go, however.
How to Fund Your CEX.io Exchange Account With a Credit Card
If you don’t want to link your bank account, or if you find that funding process to be too time-consuming, you’ll be glad to know that CEX.io allows users to make payments with credit cards. First, you’ll have to link your credit card by inputting all of the necessary information, photographing the card with your government issued ID, and responding to any further prompts that CEX.io gives you.
You’ll have to wait for their compliance team to vet your account after submitting this info, so you won’t be able to make purchases right away. However, once your credit card is linked, you’ll never have to add it again and you’ll always be ready to make instant purchases of Bitcoin or what have you.
How to Verify Your Identity on CEX.io to Withdraw Funds
If you want to sell your cryptocurrencies for fiat currency and transfer that fiat to your bank account, you’ll have to verify your identity. “But that’s such a pain!” you moan. Well, the regulations for trading fiat currency for digital currency are quite rigorous. CEX.io exchange can’t do it for you unless they’re absolutely sure that you are who you claim to be, in order to prevent fraud. This CEX.io review would be remiss if we didn’t mention it.
The verification process is a little involved, but you should nonetheless be able to finish in less than twenty minutes, especially if you have experience with cryptocurrency exchanges in the past. For a complete rundown on what to do in granular detail, check out CEX.io exchanges’s own verification guide.
Download the CEX.io Mobile App
This isn’t necessary to open an account, but you’ll probably like CEX.io exchange’s slick little app for iPhone and Android.
Enable 2-Factor Identification for CEX.io
This will make it almost impossible for some sketchy person to log into your account, even if they have your password.
Is there a CES.io Trading Bot? CEX.io had a partnership with a crypto trading bot company before they became a formal exchange, but this is no longer part of their business model.
What is the CEX.io Trading Fee? o.00-0.20, depending on what you’re trying to do.
What is the CEX Exchange Rate? CEX.io does make money from your trading and other money movements, but you’ll find that their exchange rate is competitive with other exchanges, if not cheaper.
Can I Use CEX Exchange UK? CEX Exchange UK is a perfectly good solution for our friends across the pond.
I Saw a CEX IO Review Reddit Had Posted. Why Are They So Angry? Cex.io has experienced some growing pains, which we’ve already discussed. Some users have had delays and other snafus, causing them to complain most vociferously on Reddit. These are a vocal minority, and fortunately, CEX.io is good about replying to their complaints and fixing the issues as fast as they possibly can.
Final Thoughts About CEX.io Exchange
Now that we’re at the end of this CEX.io review, we want to be perfectly clear that while we think CEX.io is a great exchange, they’ll have to solve some scaling problems, just like everybody else. If they’re successful in this regard, we think CEX.io might very well become the best way to trade fiat for Bitcoin and other cryptocurrencies. We have reasonable hope that this will turn out to be the case.