UPDATE 4 March 2020: Sparkdex has closed down. This was announced on 4 March 2020 through the following message at the associated company Bitspark’s site bitspark.io:
From looking at the above message, at least it seems that all Sparkdex’s users will get its money back, so that’s always something.
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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 Sparkdex consists of four parts: general info, fees, deposit methods and security.
Sparkdex is the decentralized exchange (DEX) of Bitspark. The platform is based in Hong Kong, like many other exchanges.
The cryptos supported are Bitcoin, Bitshares, Ethereum, ZEPH Token and stablecoins connected to fiat currencies such as AUD, CNY, EUR, GBP, HKD, SGD, PHP and USD.
US-investors may not trade here today. Accordingly, if you’re a US-investor and you’re in love with Sparkdex, you’ll have to wait. In the meantime, use our Exchange Finder to find out which exchanges that support US-investors.
Another interesting feature that Bitspark operates, alongside the DEX, is what they call “Cash Points”. A Cash Point offers Bitspark customers the option of depositing or withdrawing cash from a physical location or via a person. So by using a Cash Point, you can deposit say HKD 100 and then in exchange receive crypto from Bitspark to your Bitspark account.
This platform is not only available from your desktop, you can also access it via your mobile phone as an app. While most trading in the crypto sphere today is carried out via desktop (around 70% or so), there are naturally people out there that want to do it from their smart phone as well. If you’re one of those people, then this platform can still be for you.
With this mobile app, users can buy or sell crypto with cash. They can also exchange to other cryptos directly on the app or through the Sparkdex-platform if they want to.
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 transact 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 and if you lose your password, it is probably lost forever.
Sparkdex 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 crypto 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 see that it feels right to you. This is the trading view at Sparkdex:
Sparkdex Trading fees
Trading fees are naturally very important. 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. At this exchange, they don’t divide between takers and makers. Each party to a deal pay the same fee: 0.20% of the order value.
0.20% is in line with the current industry average. Industry average has for a long time been 0.25%, but we are currently seeing a shift towards lower fees. Many exchanges now charge e.g. 0.10% or 0.15% instead. Maybe Sparkdex will follow that example as well, but for now the fees are sitting at 0.20% per trade.
Sparkdex Withdrawal fees
Sparkdex also charges competitive withdrawal fees. When withdrawing BTC, you only need to pay a fixed fee of 0.0002 BTC. This is far below the global industry average (arguably around 0.0008 BTC) and another competitive edge for this trading platform.
This exchange does not accept any other deposit method than cryptos, so new crypto investors are restricted from trading here. If you are a new crypto investor and you wish to start trading at this exchange, you can first buy crypto with cash using the Bitspark app, and then deposit the funds into your Sparkdex account. Alternatively, you can purchase cryptos from another exchange first and then – as a second step – deposit them here. Don’t worry though, you can find a so called “entry-level exchange” simply by using our Exchange Finder tool.
The servers of DEXs 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 your 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 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 give it a 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 in the crypto industry, with the centralized exchanges still dominating the field (mostly due to the better liquidity). In any event, if you’re looking for a DEX, you could also check out the following quite popular ones: