Cryptomate Review 2020
Cryptomate is a peer to peer cryptocurrency trading platform serving the UK. Cryptomate accepts only bank transfer deposits in the British Pounds Sterling denomination. There are not many other services which accept Pounds as payment for crypto, so Cryptomate immediately has a use case that will apply to a small (globally speaking) but enthusiastic user population. Cryptomate doesn’t store any cryptocurrencies; instead they merely facilitate the trades. Read our full Cryptomate review to learn everything you need to know.
Cryptomate Quick Facts
- Score: 4 Stars
- Coins Offered: Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, EOS, Stellar Lumens, Monero, Dogecoin, Ethereum Classic, Dash, Britcoin, NEM, OmiseGo, Crown, ARK, Cardano, VeChain, TRON, Verge, Electroneum, Waves, ICON, Status, Lisk, ZCash
- Minimum Deposit: none specified
- Regulation: Unregulated
- Payment Methods: UK Bank Transfer, Pounds Sterling Only
- Wallet Included?: No
- Main Benefits: P2P Trading, Privacy
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How We Reviewed Cryptomate
Cryptomate is an exchange with a very specific purpose. It simply brings a variety of popular cryptocurrencies to customers who spend GBP. This is a fairly niche group, but we’ll be analyzing Cryptomate on what it does, not what it does not do. We’ll consider function, ease of use, customer service, hackability, and various other important traits.
While Cryptomate won’t be a solution for everybody, you can definitely find a cryptocurrency exchange that will suit your needs and tastes. Check out our complete cryptocurrency exchange list.
Cryptomate launched in mid 2015, exclusively for UK customers. The company is significant because it 1) accepts Pounds Sterling only, and 2) it facilitates cryptocurrency trades peer to peer, meaning that no cryptocurrency is stored within the platform, and much less user data is contained on the platform than with traditional exchanges. Since its inception, Cryptomate has earned a devoted base who can’t find its unique combination of features anywhere else. The company continuously adds new coins to its arsenal, meaning that for some, no other exchange is necessary (even though Cryptomate is not an exchange proper).
Regulation & Safety
Cryptomate exists in a grey area in British financial regulation. It’s not a true exchange. It doesn’t store cryptocurrencies or user cash. It’s merely an intermediary, a place where buyers and sellers can go to meet, setting the terms of the sale between themselves.
In many ways, this means that Cryptomate is safer than larger, more traditional exchanges. Exchanges like Binance have to store a tremendous amount of money and digital currency to keep trades fast and maintain liquidity. Cryptomate has no such considerations, resulting a crypto buying platform that has very few aspects that can be hacked. Some people are worried that an unregulated platform like this will cheat its users, but we have found no reason to think that Cryptomate is anything buy honest and trustworthy.
Cryptomate Trading Platform
The Cryptomate trading platform is dead simple. The user merely has to connect their bank account, choose the coin they wish to purchase, and click through to place the order. The platform connects the user with a number of potential sellers, all of whom have open orders that may or not be within the user’s desired price range. The user chooses the trader with whom she would like to deal, and the terms of the deal are ironed out between the two parties. The user inputs her digital wallet address (Cryptomate doesn’t have a wallet), to which the coins will be sent once the transaction is complete.
Trades are only conducted during British banking hours (because the site depends upon bank transfers and can’t have things going wrong with no banking reps to solve issues on their end of things). Most trades and delivered within 15 minutes.
Cryptomate does a great job of adding cryptocurrencies requested by their user base. In their early days, only a handful of choices were available. Today, the number has risen to more than twenty five.
- Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, EOS, Stellar Lumens, Monero, Dogecoin, Ethereum Classic, Dash, Britcoin, NEM, OmiseGo, Crown, ARK, Cardano, VeChain, TRON, Verge, Electroneum, Waves, ICON, Status, Lisk, ZCash
Users are encouraged to request coins they want to see traded upon the Cryptomate platform. As coins are regularly added, it can be assumed that Cryptomate is responsive to user requests of this type.
Cryptomate Fees & Limits
Cryptomate is not open about the fees they charge, saying merely that fees are built into each transaction. It’s likely that fees change daily, and they will definitely be different currency to currency, so it makes sense why the company might be evasive about this point. In practice, users claim to spend about 7% on most purchases, with some reports of higher and lower than this reverse engineered rate.
Unverified users are limited to 100 Pounds of purchase per day, and verified users can buy up to 1,000 Pounds worth of crypto per day.
Cryptomate Payment Methods
Cryptomate keeps things simple. They accept only bank transfers from UK banks in the British Pounds currency. No USD, no Euro, just GBP. Some users appreciate the simplicity. There are other P2P crypto trading sites which offer (in some cases) hundreds of payment options. This mountain of possibility gets a little daunting for some users, and increases the odds of inefficiency and fraud. By keeping things simple, Cryptomate operates a platform that is set up for success. This ensures that Cryptomate users get the best experience possible, and it shows.
Cryptomate Customer Support
Cryptomate customer service doesn’t stimulate much discussion on the internet. Because our own experience is limited, we can only assume that Cryptomate’s customer service is responsive and helpful. That’s what happened to us anyway. Because platform users tend to be most vocal when something is wrong, the near silence about Cryptomate customer service on the internet leads us to believe that it’s very effective.
Cryptomate’s Unique Features
If you’ve been reading along, these unique traits will come as no surprise to you. Cryptomate is a Peer to Peer cryptocurrency service, pairing up individual buyers and sellers. Cryptomate holds no assets. Think of them as a giant bulletin board, or a digital version of Craigslist where assets can be traded user to user without either having to leave their house or travel to a traditional exchange. Also somewhat unique is the speed with which Cryptomate adds new currencies. Few other P2P options offer this many trades (27 currencies at the time of this writing).
Finally, Cryptomate accepts only Great British Pounds Sterling, via bank deposit, as payment for all of these digital currencies. Most other exchanges accept at least one or two other payment options. While this singularity of payment options won’t increase Cryptomate’s potential client base, it will make service to people who use the Pound all the more likely to be reliable.
How Cryptomate Compares to eToro
Cryptomate and eToro are two very different cryptocurrency investment options, both appealing to a very different customer base. Because Cryptomate’s purview is so specific, we want to point out a solid resource for people who can’t use Cryptomate.
First things first, Cryptomate accepts Pounds Sterling alone, while eToro accepts only United States Dollars. Right away, these companies are reaching out to much different potential user groups.
Next, Cryptomate is not formally regulated, but eToro is. eToro is based in the UK, and is subject to its various financial and trading regulatory bodies (as they pertain to the trade of CFDs). In addition, eToro is regulated in all nations within which it is available, not just the UK.
This brings us neatly into the next point. While Cryptomate is only available (practically speaking) to users within the United Kingdom, eToro is available in more than 60 nations all around the world, including the United States.
Perhaps the most glaring divergence between those two companies is their fundamental business model. On the one hand we have Cryptomate, which facilitates the exchange of real digital assets from peer to peer, while providing no liquidity or storage options itself. On the other hand we have eToro, which sells CFDs, not digital assets. A CFD is a contract that locks a certain amount of funds associated with a certain amount of cryptocurrency. The price is just the same as if you were to buy the coins. But with CFDs, there are no coins to keep up with. The contract ensures that you can get the same profits from your contract as you would buying and selling the same amount of coins for profit. For those who want to invest in crypto, not spend or transact, eToro is the most convenient option on the planet, especially for new users.
eToro has a solid offering of 12 different cryptocurrencies, including coins like NEO which are not offered through Cryptomate. Cryptomate, however, has more than double the coins supported on their platform than eToro, with more added each day.
As you can see, these platforms offer value to wildly different user populations. If you want to buy coins with a certain amount of privacy, for spending, saving, or whatever else (and you use British Pounds), Cryptomate is right for you. If you want to invest in the simplest way possible in a well curated set of cryptocurrencies, while using the US Dollar, eToro is probably the better choice. It’s also the one more likely to be available where you live.
Tutorial: How to Register and Trade With Cryptomate
Signup requires only a working email and password.
Once you’ve submitted your email address, you’ll receive an email with a verification link from Cryptomate. Click on this, and you’ll be taken into the platform. You’ll only be able to buy 100 Pounds worth of coins without verifying your account one further step. Provide government ID and proof of residence and you’ll open your account to up to 1000 Pounds of daily trading.
Deposits & Withdrawals:
Deposits and withdrawals are not exactly what you’re performing in a Cryptomate trading scenario. Instead, you’re transferring funds directly to the seller. “Deposit” implies that Cryptomate stores your money, which it does not. Withdrawals imply the same. The only way you’ll receive money through the Cryptomate system is if you become a seller. Coins purchased through the Cryptomate system are transferred directly from the seller to your external wallet. Cryptomate never “touches” these coins, so to speak.
How to Buy/Trade:
Use Cryptomate’s simple interface to choose which coin you want to buy, at which point Cryptomate will make various open sell orders available to you. Choose the seller you like best, communicate about the details of the sale, pay, and wait for your coins to arrive.
How to Store Your New Cryptocurrency:
Because Cryptomate doesn’t store any coins at all, you’re going to have to figure out a wallet solution before you initiate your purchase. For those not in the know, a digital wallet is piece of software that “stores” your cryptocurrency. It doesn’t literally store the coins, which are pieces of data that live forever upon their respective blockchains. Instead, the wallets store the “keys” associated with those coins. Your public key is your address – the code you send to people, and to which they can send coins. The private key is something you should never share with anyone. This is the code associated with ownership of your coins. Your digital wallet keeps it safe.
Most coins have a wallet that is made for that coin alone. But there are other wallets that store multiple currencies, sometimes hundreds. You’ve got to do a little research to find the best wallet for you. You can also choose hardware wallets like the Ledger Nano S, which may be the most secure wallet solution on the market. For a long list of excellent candidates, check out our wallets page.
Cryptomate Advantages and Disadvantages
✓ Lots of coins to choose from
✓ More privacy than with centralized exchanges
✓ Accepts pounds sterling
✓ High fees that are not formally listed – you don’t know exactly what you’re paying in commission
✓ Doesn’t accept payments other than GBP
✓ Only available in the UK
✓ Not Regulated
Conclusion: Is Cryptomate Safe?
Cryptomate is a high quality peer to peer digital asset exchange. They specialize in Bitcoin, and are constantly adding high quality new coin markets, so that users can invest in the best cryptocurrencies in the market. Cryptomate is not formally regulated, because they don’t store your cash or cryptocurrencies. They are merely an intermediary which connects buyers and sellers.
As such, Cryptomate is inherently more secure than traditional exchanges. Exchanges are entrusted with storing your keys, personal ID, passwords, cash, and cryptocurrencies. There are many potential points of failure. With Cryptomate, there are very few points of failure, and as such it is a strong exchange option. With only one accepted form of payment, there is little chance of fraud.
Cryptomate is only available to a select few within the global crypto community. And while this might seem like a detrimental trait, in fact this means that Cryptomate is able to specialize, creating a safe and seamless experience for the users who are able to take advantage of the platform. Cryptomate isn’t perfect, and it won’t offer the features that some traders need. But if you want to spend Pounds, aren’t afraid to pay a little more for P2P, and can handle the limited amount of web savvy necessary to complete the transaction, Cryptomate could be the best exchange option for you.
Cryptomate has been around for a few years now, and in this time has proved its resiliency and trustworthiness. We expect it to continue operations well into the future, even as its immediate competition gets ever more competitive.