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One of the first Bitcoin exchanges that is still in business today is called CEX.IO. In 2013, it began operations in London, and since then, it has provided services to three million clients. During its formative years, CEX.IO’s primary offering was a cloud mining pool under the name Ghash.io.
This pool was responsible for 42 percent of the total hash power on the Bitcoin network at one time. In 2015, Ghash.io was taken down because its management wanted to concentrate on growing their exchange company. CEX.IO enables trading with dozens of additional digital currencies in addition to Bitcoin. Check out our CEX.io review for all the details about this platform.
You may make direct purchases of bitcoin using your Visa or MasterCard, or you can fill your account with monies sent from your bank via ACH, SEPA, or SWIFT. The level of security offered by CEX.IO is well regarded. The marketplace asserts that its customers’ monies have never, ever been compromised in any way.
CEX.IO is now authorized to do business in a number of countries after obtaining the necessary permits. This indicates that in order to have access to the full set of functions offered by CEX.IO, you will be required to verify your identity in order to comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) legislation.
In general, CEX.IO provides many of the services that customers look for in a cryptocurrency exchange. Let’s get into greater detail about the process of authentication, the trading platform, the fees and restrictions, and other topics. Let’s get into our CEX.io review.
CEX.IO allows users to deposit and withdraw funds using a wide variety of various payment options. Using a credit card or debit card to purchase Bitcoin is a simple process. You may also deposit U.S. dollars, Euros, or British pounds by sending the money using a wire transfer service such as SWIFT.
Customers based in the United Kingdom may utilize the Faster Payments system to make deposits and withdrawals in GBP. Users in Europe can make payments using SEPA, whereas users in the United States may make transactions using ACH. I
t is necessary to verify your address before you may make a deposit via a bank transfer. The steps involved in CEX.IO’s verification procedure are outlined in the following guide. CEX.IO does not impose any fees on bank transfers, including ACH and SEPA transactions for deposits and withdrawals. However, your bank may charge you a fee in the event that you convert between other currencies.
According to Messari.io’s list of cryptocurrency exchanges based on real spot volume, CEX.IO is ranked seventeenth. On the same day that Coinbase reported a volume of $4.5 billion, CEX.IO reported a volume of $25 million across all 37 of its tradeable pairings.
The Bitcoin to US Dollar (BTC/USD) and Ethereum to US Dollar (ETH/USD) trading pairings each had volume of $7 million, making them the most liquid pairs on the exchange and accounting for more than half of the exchange’s overall activity.
Although $25 million may not seem to be a huge amount, it should only be of concern to market participants whose holdings are large enough to meaningfully influence the market. If this is your situation, go and trade on another exchange. Aside from that, CEX.IO ought to provide sufficient liquidity for your requirements.
CEX.IO’s margin platform allows for trading with up to 100 times the normal amount of leverage. Contracts for Difference may be traded on this platform (CFDs). This is a phrase used in the financial industry to indicate that you are not in fact trading the underlying asset.
You do this by trading the price difference between where you enter and where you depart the market. Be advised that trading on margin significantly increases the amount of risk you take on. With 100 times the normal amount of leverage, it just takes a one percent move in the other direction for your whole position to be closed out.
Because of its increased complexity, the trading interface may take some getting used to on your part. On CEX.IO Broker, you also have the ability to trade foreign currency pairings. The available leverage might range anywhere from two times to one hundred times.
CEX.IO is more than just a standard Bitcoin exchange; in addition, it provides customers with a variety of financial goods, such as crypto staking and loans. When you keep a digital asset that may be staked in your CEX.IO wallet, you have the opportunity to earn daily interest on that asset. The precise rewards vary based on the digital currency that is held by the investor.
You are able to maintain your exposure to the underlying asset by taking out crypto-backed loans, while also reaping the benefits of having some additional income to spend. Because loans are not considered part of an individual’s taxable income, this tactic may also be advantageous from a tax perspective.
Because you are not selling your cryptocurrency but rather using it as collateral, you will not generate any taxable capital gains because you are not selling your cryptocurrency. It is in your best interest to consult with a local tax expert who is familiar with your unique circumstances and can provide guidance in this regard.
When market volatility is high, one of the risks associated with crypto-backed loans becomes more obvious. You will be subject to a margin call and maybe liquidation if the price of your collateral falls by an excessive amount.
CEX.io strives to operate as a platform with relatively minimal fees, and there are no fees for deposits of USD, EUR, or GBP made via bank transfer, regardless of whether the transfers are made by ACH, SEPA, or Faster Payments.
Withdrawals that are conducted by ACH, SEPA, or Faster Payments do not incur any fees; however, withdrawals that are processed through bank transfers do incur a service fee of 0.3 percent in addition to a normal charge of $25/€25/£25 depending on the currency that is utilized.
Deposits made with a Visa or Mastercard in US Dollars, Euros, or Pounds Sterling will incur a cost of 2.99 percent, and withdrawals of US Dollars made to a Visa card will incur a service charge of up to 3 percent plus $1.20 in addition to a commission of up to $3.80.
Withdrawals made using a Visa card in euros are subject to a service charge of up to 3 percent plus €1.50 as well as a commission of up to €3.50, whereas withdrawals made using a Visa card in sterling are subject to a service charge of up to 3 percent plus £2.10 as well as a commission of up to £2.90.
Withdrawals of US dollars made using a MasterCard are subject to a service fee of up to 1.8 percent plus $1.20, as well as a commission of up to 1.2 percent plus $3.80. Withdrawals made using a MasterCard in euros are subject to a service charge of up to 1.8 percent plus €1.50 and a commission of up to 1.2 percent plus €3.50.
Withdrawals made using a MasterCard in sterling, on the other hand, are subject to a service charge of up to 1.8 percent plus £2.10 and a commission of up to 1.2 percent plus £2.90. Withdrawals made using a Visa or MasterCard and paid for in Russian Rubles are subject to the same standard cost, which is 3 percent plus 50 RUB.
At the moment, the exchange allows for the buying, selling, and trading of over 15 different cryptocurrencies, in addition to supporting the usage of numerous different fiat currencies. However, some CEX providers are the only ones that make specific cryptocurrencies, as well as acquiring and trading pairs, accessible to its customers.
The following are the several currencies that may be used throughout the platform:
The United States Dollar, the Euro, the British Pound, and the Russian Ruble may all be used to acquire any of the listed digital currencies.
In order to open an account with CEX.io, you will first need to register by providing an email address and establishing a password.
The exchange offers a variety of account tiers, and certain services require additional account verification as well as the submission of personal information such as your address, telephone number, and the appropriate supporting documentation.
On CEX.io, users may choose between four distinct account levels, each of which comes with its own set of purchase restrictions determined by the degree of verification it has received. The following is a rundown of the four levels of account verification: Enhanced Corporate Identity, Address, and Contact Information
The Identity tier enables customers to easily acquire Bitcoin using a credit card and by offering fundamental verification together with supporting ID.
The maximum amount that may be deposited or withdrawn from an account in a day is 1000 USD/EUR (or 800 GBP), and the maximum amount that can be deposited or withdrawn in a month is 3000 USD/EUR (or 2000 GBP). Additionally, this tier is unable to employ bank wire transactions using SWIFT or ACH.
The Address verification tier enables users to make unlimited total deposits using bank wire transfers; however, these deposits are restricted to a maximum of 200,000 USD/EUR/GBP per day and 500,000 USD/EUR/GBP per month.
The maximum amount that may be deposited with a credit card in a single day is 3,000 USD/EUR (2,000 GBP), and the maximum amount that can be withdrawn is 30,000 USD/EUR (20,000 GBP), although the restrictions for withdrawals are 200,000 USD/EUR/GBP per day and 500,000 USD/EUR/GBP per month.
The Enhanced verification tier requires a selfie and a bank statement. While there are no limits on the amount that can be deposited via bank wire, the amount that can be deposited via credit card is capped at 10,000 USD/EUR (8,000 GBP) daily and 100,000 USD/EUR (80,000 GBP) monthly.
Withdrawals made via SEPA, ACH, and Faster Payments are not subject to any limitations; however, withdrawals conducted through SWIFT are subject to daily limits of 200,000 USD/EUR/GBP and monthly limits of 1,000,000 USD/EUR/GBP.
Corporate accounts require company-related documents in addition to selfies. They include the same features as the Enhanced verification account tier. Corporate accounts can be upgraded to the Enhanced verification account tier by taking a selfie.
You are able to make deposits into your account using a variety of different methods, as well as a number of different fiat currencies, including the United States Dollar (USD), the Euro (EUR), the British Pound Sterling (GBP), and the Russian Ruble (RUB).
It is possible to make deposits through a bank transfer, as well as credit and debit cards, and the payments for deposits are completed immediately. However, the maximum number of daily successful transactions that may be completed with a single validated payment card is limited to three in each of the countries that offer card payments.
All deposits made using payment cards that use a currency other than USD, EUR, GBP, or RUB will have their local currency changed into the currency that was chosen as the deposit currency automatically. Your card’s issuing financial institution will determine the appropriate exchange rate and deduct any costs that are connected with the transaction.
Sending cryptocurrencies to this exchange follows the same procedure as sending them to any other exchange, and you may quickly deposit cryptocurrencies like as Bitcoin, Ethereum, Litecoin, and XRP into your exchange account.
The CEX staff strongly suggests that you have the following papers ready before beginning the verification process:
It is necessary for you to give the following:
After you have provided the information, you will be required to take pictures of your IDs and upload them. You will also need to take a selfie of yourself holding your ID along with a handwritten note that contains some words.
In this section, you are required to give the following information
The two most important requirements are that the document must be written in Latin characters, and that the document must contain your name, along with your residential address, all on the same page. The credentials of the institution, such as its logo, must also be included.
Once again, you will be required to either photograph or scan the papers that serve as proof of address in order to submit them. You may also speed up the procedure by using your smartphone to scan the QR code that is shown on your screen, as well as by taking a picture with your mobile device.
As a result of CEX’s humble beginnings in 2013 as a straightforward site from where users could get Bitcoin, the exchange continues to make it simple for users to acquire Bitcoin and preserves an immediate buy function.
Anyone may come to this section and choose the cryptocurrency they want to acquire as well as the fiat money they want to use to finalize the transaction. After you have entered the required quantities, the information for your credit card, and the verification data, you will then be able to obtain your coins.
The website, in general, has a good design, and the trading interface is straightforward and simple to use; the whole platform is geared at making itself user-friendly. It should come as no surprise that the exchange has a Support system that makes it possible for anybody to submit requests.
Additionally, the staff may be reached through e-mail or phone, in addition to being present across a variety of social media platforms. The trading platform that CEX.io provides, which includes all of the typical functions, is available for use by users with a greater level of expertise.
These include market orders and limit orders, rich charts and technical indicators, as well as robust reporting and cross-platform trading (through mobile app and/or API). Although this service is still available, it is now provided through a distinct margin trading service called CEX.io Broker rather than on the CEX.io trading platform itself, which means that only the most experienced traders may take use of it.
This brand-new service is geared exclusively at traders who use margin and is equipped with cutting-edge trading tools as well as an extensive selection of technical analysis equipment. The service also supports margin trading via contracts for difference, in addition to expanded trading possibilities and risk through the use of leverage of up to 10x.
A hacking attempt was made against CEX in 2013, when the exchange was just getting established, and the company has since earned a high reputation for its security measures. Soon after that, a fix was developed to address the vulnerability, and ever since then, there have been no reported security breaches using the exchange.
The group of people that work on CEX implement a wide variety of security procedures, such as defenses against DDoS assaults, complete data encryption, offline cold storage, and two-factor authentication (2FA).
To be able to make a withdrawal from their account, users are required to have two-factor authentication (2FA) activated, and the mobile app provides the option to set up a withdrawal pin code (WPC) to validate mobile withdrawals.
The digital assets that are held by the exchange are dispersed among hot wallets and cold wallets. Additionally, there are hot wallets and cold wallets equipped with unique private keys for each individual digital currency. In addition, just a tiny proportion of all the digital assets that are being circulated are maintained in “hot wallets,” which is another measure that helps to protect cash from being misused by dishonest parties.
To further strengthen the protection afforded to the money kept by the exchange, the team employs a number of additional measures, including physical segregation, encryption, and stringent access restrictions, such as round-the-clock monitoring, alarm systems, and safe deposit boxes.
Because the fiat monies belonging to consumers are kept in separate custodial accounts from the accounts belonging to the firm, only customers have a right to make a claim on these funds. These custodial accounts are maintained by the exchange’s banking partners.
In addition, only authorized persons are able to begin transactions with the customers’ fiat currency that is kept in the bank accounts, and the exchange conducts a comprehensive background check on each employee before hiring them. The Federal Deposit Insurance Corporation (FDIC) provides insurance protection for customers whose primary residence is in the United States or Canada, up to a limit of $250,000 per customer.
The team abides by the most recent banking and financial standards and requires KYC/AML verification for all users. In addition, the exchange makes use of a “Expert System” that keeps a close eye on all transactions involving digital assets for any signs of suspicious behavior.
The submission of a personal identification document, a scanned proof of address document, a photograph of you holding your identification document or credit card, and compliance with PCI DSS Level 1 criteria are necessary for account verification at CEX.
This is actually one of the highest level of compliance, and it assures that any merchant that performs over six million Visa transactions annually saves, transmits and more to the highest standards.
As a consequence of this, CEX is a very transparent operator; it upholds strong security standards; and it is registered with the Information Commissioner’s Office (ICO) in the United Kingdom, as well as with FINCEN in Canada and the United States.
Not convinced CEX.io is right for you? You might consider using another crypto exchange, such as:
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Trading on CEX.io is risk-free and entirely protected at all times. The majority of customers’ cash are kept in cold storage, which is inaccessible to hackers and is protected by industry-standard security methods such as two-factor authentication (2FA) and biometric login choices. The exchange also provides industry-standard security features such as these.
It is a registered Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), it is a registered MSB with the Financial Crimes Enforcement Network (FinCEN) in the United States, and it also has money transmitter licenses (MTLs) in more than 30 different states. All of these credentials indicate that CEX.io is a legitimate company.
There are no known legal issues with CEX.io’s operations in Canada. After all, it’s a Money Services Business (MSB) that’s been officially registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Yes, CEX.io is a reliable exchange for a number of reasons, including the following: In addition to being registered as a crypto asset firm by the Financial Conduct Authority (FCA) in the United Kingdom, the Gibraltar Financial Services Commission (GFSC) oversees CEX.io’s operations. The GFSC is also CEX.io’s primary regulator.
Yes, CEX.io does do instant verification on certain user accounts; but, if your account has to go through the manual verification procedure for any reason, the following papers will be required from you in order to complete the process: documents, statistics, or information derived from credible and impartial sources (e.g., national ID, international passport, bank statement, utility bill).
The answer to this question is yes; since CEX.io is a Money Services Business that is registered with FINTRAC, we are obligated to report to the Canada Revenue Agency (CRA). In light of the aforementioned, the CRA only requires CEX.io to record transactions that are more than $10,000. The CRA does not require you to record any transactions that are less than that amount.