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Exchange Review

NiceHash


Exchange Fees

BTC Withdrawal Fee 0.000005 Taker Fee 0.50% Maker Fee 0.50%

Deposit Methods

No Wire Transfer No Credit Card


NiceHash is a cryptocurrency exchange from Slovenia that has been active since 2019.

The main claim to fame from this platform seems to be its focus on mining. There are far more reasons explicitly stated on NiceHash's website on why someone should choose NiceHash as a place for mining than there is for choosing it as a trading platform. The following are the primary advantages stated on the website: 

NiceHash Mining

When we first prepared the NiceHash review (on 11 February 2021), the platform's 24-hour trading volume according to Coinmarketcap was USD 1.1 million.  On the date of last updating this review (2 December 2021), the trading volume was close to USD 2.4 million. This is still a low figure compared to the majority of all known crypto exchanges out there. 

NiceHash has a referral program in place for its users. As main advantages with its referral program, they essentially just describe what a referral program is. Namely that you can refer once and earn forever, that you receive direct payments (here in Bitcoin), that you can use graphic material from the platform and that you earn a percentage of the platform's revenue as your share. That percentage, however, is only 5%, which is ridiculously low in comparison with market averages. So to summarize on this point, it's great that they have a referral program, but the referral program itself is not much to cheer about.

NiceHash Referral Program

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 concerning 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 NiceHash:

NiceHash Trading View

It is up to you – and only you – to decide if the above trading view is suitable for 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.

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.

NiceHash charges what we call flat fees, meaning that both the takers and the makers pay the same fee. In this case, that fee is 0.50%. These flat fees are substantially above the global industry averages for centralized exchanges. In the largest and most recent empirical study performed on industry average crypto trading fees, we found that the industry average spot trading taker fee was 0.217% and the corresponding spot trading maker fee was 0.164%. Here, as you recall, they are both set at 0.50%. Consequently, NiceHash's trading fees are way above average.

NiceHash charges a dynamic withdrawal fee amounting to approx. 0.000005 BTC when withdrawing BTC. This fee is substantially below the industry average and constitutes a strong competitive advantage against the majority of other exchanges in the market.

The current industry average BTC-withdrawal fee according to this report, being the only empirical study on the subject, was 0.00053 BTC per BTC-withdrawal.

In order to trade here, you must have cryptocurrency to begin with. The only asset class you can deposit to NiceHash is cryptocurrency. However, if you really like NiceHash but you don’t have any crypto yet, you can easily start an account with an exchange that has “fiat on-ramps” (an exchange where you can deposit regular cash), buy crypto there, and then transfer it from such exchange to this exchange. Use our Exchange Filters to easily see which platforms that allow wire transfer or credit card deposits.

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.

NiceHash does not allow US-investors on its exchange. So if you’re from the US and would like to engage in crypto trading, you will have to look elsewhere. Luckily for you, if you go to the Exchange List and use our Exchange Filters, you can sort the exchanges based on whether or not they accept US-investors.