What is CoinDCX?
CoinDCX is a cryptocurrency exchange registered in Singapore. It has been active since April 2018.
CoinDCX Video Review
Tired of reading? No problem, check out our video review of CoinDCX here:
Many Different Supported Cryptocurrencies
CoinDCX's main USP (Unique Selling Point) is that they offer trading in many different cryptos (over 200 different ones). Not only Bitcoin and Ethereum, but many of the more exotic altcoins are supported here as well. There are of course "two sides of the same coin" here. On a positive note, a large number of supported cryptos means that even the most exotic altcoin trader can stay at this platform and will not have to look elsewhere to cater for all his/her specific trading needs. On the flip side, however, this might also mean that there could be more scam coins available for trading here. Exchanges with a smaller number of supported cryptos generally only support the bigger crypto projects, which have all been subject to numerous due diligence processes and that are – in most cases – properly vetted. A newly launched altcoin has not been subject to the same scrutiny.
CoinDCX 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. If you are one of those traders, you’ll be happy to learn that CoinDCX’s trading platform is also mobile compatible. You can download it for Android phones right now (support for iPhones will likely follow soon):
CoinDCX also offers leveraged trading to its users. The maximum leverage level is 20x (i.e. twenty times the relevant amount). There are many exchanges out there where you can have 100x or even more as your leverage level.
A word of caution might be useful for someone contemplating leveraged trading. Leveraged trading can lead to massive returns but – on the contrary – also to equally massive losses.
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 if you simply held Bitcoin. Now, 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, there is potential for huge upside but also for huge downside…
CoinDCX 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 CoinDCX:
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.
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.
It is unclear whether CoinDCX permits US investors or not. We have read their Terms and Conditions and have not found an explicit prohibition of US investors. We urge any US investors to form their own opinion on the permissibility of their trading at CoinDCX though.
CoinDCX 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. Many exchanges divide between takers and makers. Takers are the one who “take” an existing order from the order book.
CoinDCX charges both takers and makers 0.10%. According to the largest and most recent empirical study on crypto exchange trading fees, the average spot trading taker fee is currently 0.221% and the average spot trading maker fee is currently 0.178%. So CoinDCX's fees are substantially below the averages both for taker trading fees and maker trading fees.
CoinDCX Withdrawal fees
CoinDCX charges a withdrawal fee of 0.0005 BTC per BTC-withdrawal. This fee is quite in line with the industry average. The current global industry average is approximately 0.0006 BTC per BTC-withdrawal so CoinDCX's withdrawal fees are roughly 20% below average.
In addition to depositing cryptocurrency to the platform, CoinDCX also lets you deposit fiat currency. However, only through wire transfer (not credit or debit card). Seeing as fiat currency deposits are possible at this trading platform, CoinDCX qualifies as an “entry-level exchange”, making it an exchange where new crypto investors can start their journey into the exciting crypto world.