What is CoinEx?
CoinEx is one of the newer cryptocurrency exchanges on the block, having been in operation since December 2017, but it’s already been making big news; first with its heavy emphasis on Bitcoin Cash, and more recently with its addition of Trade-driven mining (which has since ended).
Launched in Hong Kong and registered in the United Kingdom, CoinEx has been up and running since December 2017. An exchange review reveals that the company behind this exchange is ViaBTC, a Chinese mining pool that was shut down in late 2017, though this information is not explicitly stated by CoinEx. CoinEx raises suspicions due to its links to ViaBTC, as it is seen as a way for ViaBTC to continue operating after it was shut down due to Chinese regulations on cryptocurrency. CoinEx prides itself on the exchange’s high speed, low cost, user-friendly interface, and high security.
The CoinEx trading screen.
Moving to a new exchange can be beneficial in the form of new altcoins to trade and lower fees. There are also risks associated with trading on untested exchanges, so it’s good to take your time and learn all you can about a new exchange before jumping ship to take advantage of lower fees and different cons, and in the case of CoinEx Trade-driven mining.
The exchange had a bit of a roller coaster ride in 2018 as it saw its trading volume spike from $5 million in June to $1.5 billion in early July after announcing its controversial Trade-driven mining. That surge took it past Binance to the #1 spot in exchange volume, but only briefly. By late July it had dropped to #25 in exchange volume with $62.5 million in trade volume and as of August 2018 it has fallen even below its June numbers. It is currently the #126 exchange with just $830k in trade volume.
Because CoinEx is owned by ViaBTC some wonder if it’s truly a reputable exchange, or just another honeypot scheme. ViaBTC launched the site in less than two months after the infamous Chinese crackdown on cryptocurrency exchanges that wiped the slate clean in China. They had to close their China based exchange, but quickly pivoted to resume operations in the U.K. and Hong Kong. While some question the trustworthiness of CoinEx, it seems as if ViaBTC was just following good business practices in pivoting to a new exchange in a new jurisdiction.
CoinEx was built to be a suitable trading platform for both beginners and advanced users. Though it is still fairly new, the exchange has some distinct advantages:
KYC is NOT Required
If you read my blog, you know I'm not a fan of 'Know-Your-Customer (KYC)' laws and practices. Fortunately, CoinEx allows up to $10,000 USD to be withdrawn every day with the most basic account. This even applies to United States citizens such as myself (nice doxx Treepi 👍). You can see a snippet of the KYC verification levels and their limits to the left.
CoinEx accepts users from all around the globe! Their website offers multiple interface languages, as well as a mobile app for those who prefer to trade on the go. This renders CoinEx quite user-friendly, as the team behind it had aimed it to be. The website is designed in an appealing and simple manner, enough for the average user to be able to navigate it with ease.
In addition to standard trades, CoinEx now offers leveraged/margin, options, perpetual and futures trading . Charts are powered by TradingView, giving users the ability to use dozens of indicators to get an in-depth view of market conditions at any time.
CoinEx Lending is a product that increases the value of coins, and 70% of the interest income from borrowed coins of margin trading on CoinEx will be allocated to the users against the ratio of the holdings in the their lending accounts. After transferring idle assets to the lending accounts, the users will receive revenues yielded by their lending account that features daily compound interest and no limit on the minimum deposit.
Currently, only USDT is supported. In the future, adjustments will be made to the supported coins in CoinEx Lending based on the market environment and the risk level.
CoinEx was designed around a multi-process matching engine capable of processing thousands of transactions in a second. The weakness in many blockchains is a lack of speed, and CoinEx knew that one thing an exchange certainly needs is speed. CoinEx transactions are speedy, efficient and inexpensive.
Safety of Funds
CoinEx guarantees client funds 100% and claims to keep client and operational funds segregated. This means client funds are always fully available for withdrawal, and they cannot be used for any other purpose, such as funding company operations.
CoinEx is able to provide world-class client protections by implementing numerous security protocols (including advanced SSL protocols). The user’s safety is also enhanced by the usage of cold multisig wallets and enabling 2FA. While all exchanges tenaciously make an emphasis on security issues, it is important to remember that hacking attacks are still quite mundane, so extreme safety should be a top priority while choosing an exchange.
Remember: If you don't have the private keys, you don't have the coins! Always remove your funds from the exchange wallets ASAP! I cannot stress this enough!
The trading fees for makers and takers are 0.1%, which is below the global average. It is also possible to have your fees reduced 50% by opting to pay those fees with the CoinEx native token, CET. It is important to note that most competitive exchange platforms charge trading fees between 0.15% and 0.10%. This puts CoinEx up there with the most competitive exchange platforms.
There is a withdrawal fee of 0.0015 BTC, which is around the global industry average. I did not analyze the fees of other assets because they do vary. Bitcoin gives us the best measurement to compare against other exchanges.
Mobile Trading App
CoinEx provides mobile applications for both Android and iOS. The application is aesthetically pleasing, just like the website. It utilizes the same color scheme and layout. The navigation and overall feel of the application is very similar to that of Binance and KuCoin, which is not a bad thing at all. I use these mobile apps nearly every day.
The app allows you to make trades in all markets. This includes margin, futures, perpetual, etc. I have yet to notice any feature that it is missing compared to the standard website. So, good job CoinEx team!
CoinEx Coin and Currency Support
CoinEx shares one feature with many cryptocurrency exchanges, and that’s its lack of support for fiat currencies. Deposits, withdrawals and trades are only in cryptocurrencies.
With that said, CoinEx supports tons of altcoins, with the largest number of pairs coming from Bitcoin (BTC). Bitcoin Cash (BCH) is close behind, and Ethereum is a distant third, with about half as many pairs to trade. USDT also has trading pairs available, with the number being close to that of BTC and BCH respectively.
You can find most of the top crypto pairings on this exchange, like on most major exchanges. However, you will find some smaller offerings that you will not see on some of the bigger exchanges like Binance. These smaller altcoins are nice to have around as they could net you a nice payday. All of the big projects had to start somewhere.
In addition to the other coins offered CoinEx has also issued its own ERC-20 token called the CoinEx Token (CET). Holders of CET tokens can take advantage of certain privileges such as voting rights and discounts on trading fees (currently 50%). Currently the value of one CET is $0.0144 with a total supply of nearly 10 billion tokens.
How to Use CoinEx
Currently users from all across the globe are able to register for a CoinEx account and use the exchange service. For absolute beginners here’s a quick guide on how to register and use the exchange.
Step 1: Click on the “Sign-up” link in the upper right corner of the site. Fill out the simple registration form as seen below:
Enter my referral code: tkcnm
Step 2: Check your e-mail and click the link to verify your address.
Step 3: Once your registration is complete and your account is verified, you can log into your account and go to the “Exchange” section where you’re able to see all of the assets available to trade. Note the list on the left that shows all the trading pairs and can be sorted by BTC pairs, or BCH, ETH and USDT pairs!
Step 4: Start trading and make some money!
CoinEx was launched as a replacement of a Chinese exchange after the crackdown on cryptocurrencies in China. That doesn’t make the project any less ambitious as it seeks to develop a decentralized exchange and its own token ecosystem. The dividend is a good feature for now and can provide a small daily income. The extremely low fees are also a big advantage to trading with CoinEx. The interface is also very appealing. The exchange as a whole competes and beats most other major exchanges in nearly every category except one. Volume. But, I assume more volume and liquidity will come in time as it gains more popularity.
The lack of support for fiat currencies makes this an exchange primarily for the more experienced cryptocurrency users and investors.
Some say that the ViaBTC ownership is a bad thing, but in actuality I think it’s a positive since the owning entity has too much to lose to scam clients, and also has deep enough pockets to continue making improvements to the platform. Overall a good, if small, exchange, and one that could grow significantly in coming months and years.
If you are like me and are always open to finding new places to buy and sell crypto, give CoinEx a chance! I've been using it for a little less than a month at the time of writing. Though it isn't my primary exchange, it is competing with KuCoin for my #2 spot. Like KuCoin, CoinEx offers quite a few trading pairs and altcoins that you cannot find on many other major exchanges. This is a huge benefit. One in particular that I'm currently keen on is the BTC/HYDRO pairing. 😉 Keep an eye out for that one. You heard it here first.
Head on over to CoinEx and sign up. Give it a try! I have provided my affiliate link below for those of you who are kind and would like to let them know this article brought you there. 😊