What is Biconomy?
Biconomy is a cryptocurrency exchange registered in Canada and it has been up and running since 1 October 2019.
As main advantages with the platform, Biconomy promotes that it is simple, secure and reliable. These three advantages should be important to any prospective users of a new crypto exchange platform. As an example of how it is secure, Biconomy mentions that they store 98% of their users assets in cold storage. This is definitely an acceptable level of cold vs. hot storage.
On the date of first writing this review (19 February 2021), Biconomy had a 24 hour trading volume amounting to USD 520.34 million, according to information from Coinmarketcap. However, on the date of last updating this review (2 December 2021), the trading volume had increased to USD 833.2 million. On the same day, Binance had a trading volume of USD 30 billion...
Why do so many exchanges not allow US citizens to open accounts with them? The answer has only three letters. S, E and C (the Securities Exchange Commission). The reason the SEC is so scary is because the US does not allow foreign companies to solicit US investors, unless those foreign companies are also registered in the US (with the SEC). If foreign companies solicit US investors anyway, the SEC can sue them. There are many examples of when the SEC has sued crypto exchanges, one of which being when they sued EtherDelta for operating an unregistered exchange. Another example was when they sued Bitfinex and claimed that the stablecoin Tether (USDT) was misleading investors. It is very likely that more cases will follow.
As far as we have been able to ascertain, Biconomy does in fact accept US-investors. We do urge any US investors to form their own opinion on the permissibility of their trading at Biconomy though.
Biconomy Mobile Support
Most crypto traders feel that desktop give the best conditions for their trading. The computer has a bigger screen, and on bigger screens, more of the crucial information that most traders base their trading decisions on can be viewed at the same time. The trading chart will also be easier to display. However, not all crypto investors require desktops for their trading. Some prefer to do their crypto trading via their mobile phone. Fortunately for them, Biconomy is available as mobile applications for both Android and iPhone users.
Let’s say that you hold a very large amount of a certain cryptocurrency. You want to sell that amount. Should you do that in the ordinary orderbook at a regular trading platform like everyone else? Maybe not. One of many reasons for executing large trades outside of the normal market place is that large trades may affect the market price of the relevant crypto. Another reason, which is connected to the foregoing, is that the order book might be too thin to execute the relevant trade. A solution to these problems is what we call OTC-trading (Over The Counter).
Biconomy offers OTC-services to its users, which might be helpful to all of its users with a bigger crypto portfolio.
Biconomy Trading View
Every trading platform has a trading view. The trading view is the part of the exchange’s website where you can see the price chart of a certain cryptocurrency and what its current price is. There are normally also buy and sell boxes, where you can place orders with respect to the relevant crypto, and, at most platforms, you will also be able to see the order history (i.e., previous transactions involving the relevant crypto). Everything in the same view on your desktop. There are of course also variations to what we have now described. This is the trading view at Biconomy:
It is up to you – and only you – to decide if the above trading view is suitable to you. Finally, there are usually many different ways in which you can change the settings to tailor the trading view after your very own preferences.
Biconomy Trading fees
Every time you place an order, the exchange charges you a trading fee. The trading fee is normally a percentage of the value of the trade order. Normally, exchanges distinguishes between takers and makers. Takers are the one who “take” an existing order from the order book. Makers are the ones who add orders to the order book, thereby making liquidity at the platform.
At Biconomy, the standard trading fees are 0.20% for takers and the same (i.e., no discount) for makers. 0.20% is in line with, or even slightly below, the global industry averages for centralized exchanges. Industry averages have historically been around 0.20-0.25% but we now see new industry averages emerging around 0.10%-0.15%. According to the latest empirical study on the subject, the industry average taker fees were 0.217% and the industry average maker fees were 0.164% (for spot trading).
Consequently, Biconomy's fees are below both of these industry averages.
Biconomy Withdrawal fees
We have not been able to find any information on this exchange’s withdrawal fees. This is potentially a risk for you as an investor. Whenever an exchange does not inform of a fee, there is a higher risk that such fee is high. As soon as we receive information on the withdrawal fees at Biconomy, we will update this review and post them here.
Biconomy lets you deposit assets to the exchange in many different ways, through wire transfer, debit card, and also by just depositing existing cryptocurrency assets. Seeing as fiat currency deposits are possible at this trading platform, Biconomy qualifies as an “entry-level exchange”, meaning an exchange where new crypto investors can start their journey into the exciting crypto world.