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 CEX.io consists of four parts: general info, fees, deposit methods and security.
CEX.io is a British crypto exchange. A non-exhaustive list of exchanges from the UK (in addition to this one) includes Exmo, CoinEgg, Livecoin, DSX, LocalTrade, Bittylicious, CoinMate, Indacoin, MixCoins, Paybis, Vaultoro, Instant Bitex and eToro.
On the date of last updating this review (27 November 2019), CEX.io stated on its website that it had 3,299,795 active traders, and a 24 hour trading volume of 226.92 BTC (corresponding to approximately USD 1.64 million). These numbers don’t really add up. More than 3 million traders is a huge number, but USD 1.64 million is quite low in terms of 24 hour trading volume. This leads us to believe that a large part of the more than 3 million traders are not really “active” as the platform says on its website.
The exchange lists the following 9 factors as reasons to choose CEX.io as your tading platform.
Out of these, we are a bit hesitant to HIGH LIQUIDITY and COMPETITIVE COMISSIONS. Our thoughts on high liquidity are expressed above and as to the question of whether the trading fees are “competitive” or not, our conclusion is that they are – at best – in line with industry average. See more below under CEX.io Fees.
This exchange is open to US-investors from 24 states in America. We have however not been able to verify which states this exchange is open to. We have contacted the exchange in order to clarify this but we have still not received any response.
CEX.io offers leveraged trading on its trading platform. This means that you can receive a higher exposure towards a certain cryptocurrency’s price increase or decrease, without having the assets necessary. You do this by “leveraging” your trade, which in simple terms essentially means that you borrow from the exchange to bet more.
For instance, let’s say that you have 10,000 USD on your trading account and bet 100 USD on BTC going long (i.e., increasing in value). You do so with 100x leverage. If BTC then increases in value with 10%, if you had only bet 100 USD, you would have earned 10 USD. As you bet 100 USD with 100x leverage, you have instead earned an additional 1,000 USD (990 USD more than if you had not leveraged your deal). On the other hand, if BTC decreases in value with 10%, you have lost 1,000 USD (990 USD more than if you had not leveraged your deal). So, as you might imagine, the balance between risk and reward in leveraged deals is quite fine-tuned (there are no risk free profits).
CEX.io 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. They also show 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 CEX.io:
CEX.io 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.
CEX.io’s trading fees for takers are 0.25%. This fee is in line with industry average. The exchange also offers a discount to makers, who trade at a fee of 0.16%. This is especially beneficial for the investors not interested in picking up existing orders from the order book.
CEX.io also has a special deal on certain of its trading pairs. For instance, when adding USDT to the platform on 11 October 2019, they announced that the trading fees for all USDT pairs would be 0.10% taker fees and 0.00% maker fees, up to and including 31 December 2019. Great deal, indeed!
Finally, the trading fees are reduced as the trader increases trading volumes. They can go down to as low as 0.10% for takers and 0.00% makers (without any special campaign offers as for the USDT pair mentioned above). This is the full table of trading fee discounts:
CEX.io Withdrawal fees
CEX.io charges a withdrawal fee amounting to 0.0005 BTC when you withdraw BTC. This is around 40% lower than the industry average, as the industry average is 0.000812 BTC per BTC-withdrawal.
All in all, the fees charged by CEX.io are in line with, or even slightly below, the global industry averages.
At CEX.io, you can deposit through both wire transfer and credit cards. This can be helpful especially for newer crypto investors putting in their first funds in the crypto world. As a matter of fact, CEX.io was actually one of the first cryptocurrency exchanges in the world offering the choice to buy crypto via credit card. CEX.io also recently lowered its credit card deposit fees after negotiating with the card providers. As of 3 September 2018, the fees for purchasing crypto by credit card is 2.99% of the purchase amount. The previous fee was 3.50%.
There are a lot of people using the credit card deposit alternative. According to CEX.io, it is actually one of the most popular ways (with a record of USD 180 million in deposits one single month).
CEX.io’s security score is D, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/). This is below industry average when it comes to top crypto exchanges.
As mentioned above, this exchange supports credit card deposits. Either alone or through the use of any of its associated payment service providers. Other cryptocurrency exchanges that also have this option include: