US investors permitted
A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Covesting.io consists of four parts: general information, fees, deposit methods and security.
Covesting.io is a cryptocurrency exchange registered in Gibraltar. In our Cryptocurrency Exchange List, there are only two exchanges registered there: this one, and GBX Digital Asset Exchange. For reasons that we will describe more thoroughly in this review, we prefer this one – Covesting.io.
According to information provided to us here at Cryptowisser, Covesting.io has already received a license to operate a cryptocurrency exchange from Estonian authorities. Also, they have received an additional license from the relevant authorities in Gibraltar. This shows that they are focused on being compliant with regulations and operating a transparent and secure exchange.
Covesting.io offers trading in all of the bigger cryptocurrencies (and some smaller ones as well).
Liquidity Aggregation means that Covesting.io will offer the opportunity for its traders to benefit from the order books also from a select group of other cryptocurrency exchanges. This will create an unusually deep order book for a new exchange. It will also expand the range of digital assets possible to trade at the exchange and ensure fair pricing.
Copy-trading is a quite unique function that will be available at Covesting.io. Through the copy-trading function, unexperienced traders can simply “copy” the trading strategies and trading movements of more experienced traders. Or anyone, really. By doing so, the new traders can piggy-back on the successes of more savvy cryptocurrency traders. The experienced cryptocurrency traders that let other traders follow their investment strategy can earn additional income by letting other traders do just that. What a feature!
Unfortunately for US-investors, they can’t trade at Covesting.io. The reason for that being the legal uncertainty surrounding cryptocurrency companies in the US.
Covesting.io are however exploring what to do in order to offer the services also to US-investors. One such way they have announced that they are exploring is to obtain a Bitlicense from the state of New York. In the meantime, US-investors can find another exchange to trade at by using our Exchange Finder.
Covesting.io Trading fees
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 are so named because their orders make the liquidity in a market. Takers are the ones who remove this liquidity by matching makers’ orders with their own.
At Covesting.io, takers pay 0.25% and makers pay 0.15%. Makers are thus provided a discount for being makers. These fees are both in line with industry average (possibly with the maker fees actually being on the low end of industry average).
Finally, it should be noted that many exchanges have trading fees that are reduced as volumes are increased, meaning that you are incentivized to trade in higher volumes. The fees listed in this review and in the comparison table are excluding any such volume discounts.
Covesting.io Withdrawal fees
Many exchanges have competitive trading fees but then hit you on the way out with their withdrawal fees. Not Covesting.io though!
Covesting.io only charges the network fee when you withdraw cryptocurrency. This fee is below the industry average and thus constitutes a strong competitive advantage against the majority of other top crypto exchanges in the market. The global industry average withdrawal fee for cryptocurrency exchanges is 0.0008 BTC when you withdraw BTC.
At this very moment, Covesting.io does not accept deposits of fiat currency. However, they will shortly (mid-November 2018). They have partnered with reputable banks in various countries to make this process as simple as possible. As soon as they have received the license from the authorities in Gibraltar, fiat currency deposits will apparently be enabled.
If you need to create an account and deposit fiat currency today, that will not be possible here. For that, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Finder!
One might ask why security is even a feature that we at Cryptowisser have looked for at the different top crypto exchanges. Two reasons:
- Exchanges store a massive amount of valuable personally identifiable information; and
- Exchanges handle a lot of cash or coin deposits and withdrawals.
Covesting.io also has an extremely good security score. We run all exchange-websites in Mozilla’s Observatory-test (https://observatory.mozilla.org/), and a lot of the exchanges receive F as scores. Covesting.io, however, received a B-score, which is very impressive.
Finally, there are only a few exchanges that – like the above exchange – receive Mozilla Observatory-scores of B or higher. The following list includes 10 such exchanges with very impressive security scores: