UPDATE 1 September 2020: This exchange has not had any trading volume for several months now. The platform is still open, but there is no trading taking place through it. Accordingly, we have decided to mark this exchange as dead in our database, and move it to our Exchange Graveyard.
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A crypto exchange guide must provide reviews of all of the exchanges out there, so that you can find the right one for you. This review of Blockonix consists of four parts: general info, fees, deposit methods and security.
Blockonix is a decentralized exchange (DEX) that launched in 2018. It has its offices in Malta. Malta is together with Estonia and Gibraltar one of the few countries in Europe that has clear license requirements for crypto exchanges. When Malta issued license requirements for crypto exchanges, a lot of exchanges from other parts of the world actually relocated to Malta. Changelly, ZBX, Coindeal, Bleutrade, Graviex, Coinall, HBTC, BBX and The Rock Trading are today all based in Malta.
As this is a DEX, it is also open to citizens or residents from the United States. Or rather, the citizenship or residency is of less importance for DEXs seeing as they never hold their users’ assets.
Something which is a bit worrying with this exchange is that when you try to access the support center, you come to the below message from Zendesk. This might be an indicator that the exchange is about to close down. We recommend all users that want to start an account with Blockonix to be very careful.
General information on DEXs
DEXs are becoming increasingly more popular, mostly due to the following factors:
- They do not require a third party to store your funds, instead, you are always directly in control of your coins and you conduct transactions directly with whoever wants to buy or sell your coins.
- They normally do not require you to give out personal info. This makes it possible to create an account and right away be able to start trading.
- Their servers spread out across the globe leading to a lower risk of server downtime.
- They are essentially immune to hacker attacks.
However, DEXs normally have an order book with lower liquidity than their centralized counterparts.
As mentioned above, the DEXs are definitely gaining market shares against their centralized counterparts. You have probably heard of at least one of the following exchanges that are all DEXs: Binance DEX, EtherDelta, Bibox, Bitshares Asset Exchange, Waves DEX, Bancor Network, OpenLedger DEX, IDEX, Token Store, Bisq, Counterparty DEX, Burst Asset Exchange, AirSwap.io, Fcoin Exchange, Barter DEX, Switcheo Network, DEx.top, Ethermium, Newdex and Orderbook.io.
Blockonix Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the trading view at Blockonix:
Blockonix Trading fees
The one thing we can’t stress enough is that you must always ascertain the trading fees at any exchange you are interested in. Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. Makers make the liquidity in a market and takers remove this liquidity by matching makers’ orders with their own.
The global industry average taker fee has for a long time been 0.25% of the value of the order. Today, we see a shift towards even lower industry averages. Many new exchanges now charge 0.15% or 0.10% instead.
At Blockonix, both takers and makers pay 0.10%.
Blockonix Withdrawal fees
Blockonix has a percentage based withdrawal fee, meaning that they charge you a percentage of the withdrawn amount when you withdraw. Their percentage charged is 0.10% (just like their trading fees). This is an unusual withdrawal fee model, but it is not unheard of. Most exchanges have a fixed withdrawal fee, regardless of the size of the withdrawn amount.
With the fee model that this exchange has, when you withdraw small amounts, it is beneficial to you. If you withdraw 0.01 BTC, the withdrawal fee becomes 0.00001 BTC (very low). However, if you withdraw 10 BTC, the withdrawal fee becomes 0.01 BTC (extremely high). Please consider whether this withdrawal fee suits your own trading or not.
Blockonix does not accept any deposits of fiat currency. You can only deposit cryptos here. This means that the new crypto investors (i.e., the investors without any previous crypto holdings) can’t trade here. In order to purchase your first crypto assets, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Finder!
The servers of DEXs normally spread out across the globe. This is different from centralized exchanges that normally have their servers more concentrated. This spread-out of servers leads to a lower risk of server downtime and also means that DEXs are virtually immune to attacks. This is because if you take out one of the servers, it has little to no impact on the full network of servers. However, if you manage to get into a server at a centralized exchange, you can do a lot more harm.
Also, if you make a trade at a DEX, the exchange itself never touches the assets. Accordingly, even if a hacker would somehow be able to hack the exchange (in spite of the above), the hacker can not access your assets. If you make a trade at a centralized exchange, however, you normally hold assets at that exchange. That is, until you withdraw them to your private wallet. A centralized exchange can therefore be hacked and your funds held at such exchange can be stolen.
As this exchange is a DEX, we feel that it is right to award it a security score of A+ (regardless of its score in the Mozilla Observatory-test).
Finally, as mentioned above, this is a DEX. DEXs are still a minority on the crypto exchange market, with the centralized exchanges still dominating the field (mostly due to their better liquidity). In any event, if you’re looking for a DEX, you could also check out the following quite popular ones: