CEX.io commenced operation around 2013 in London, and at the time of its inception served as a Bitcoin exchange and also provided cloud mining services, its mining pool (Ghash.io) was pretty successful at some point, holding about 42% of the entire network’s mining power.
However, in the first quarter of 2015, CEX terminated its mining operations and focused solely on its Bitcoin exchange sector. This is probably because bitcoin mining became more expensive and less profitable. Today, it is registered with FinCEN and operates as a legal entity applying the Know Your Customer (KYC) and Anti-Money Laundering Policy (AML)
In order to provide a secure and reliable digital currency exchange service, its users are required to provide a means of identification before being allowed to use the platform. Unlike a majority of other exchanges, CEX allows for the purchase of digital currencies with Fiat money, this can be done through Bank wire transfer, credit card or SEPA transfer (available to users who reside in EU nations).
Furthermore, CEX works based on a Fill or kill order system (FOK). The advantage of this kind of system is that, unlike the ask/bid where you will have to input an asking price and wait for another user who is willing to sell at your price, the FOK system automatically executes your order at whatever price you agree to pay or sell. However, its users are charged premiums in the form of higher exchange rates for the sustainability of this feature.
This article aims at providing you with all you need to know as it regards CEX, here you will find out how it works, the countries it supports, its trade fees including limits, what the public is saying about CEX, an evaluation of its customer support department, and our final conclusion and recommendations.
How It Works
CEX.io explains this in details on their official website; however, here is a summary of how their service works:
Buying Cryptocurrencies with CEX.io is relatively easy and straightforward when a user logs into the platform and initiates a trade; the price is calculated and frozen for about 2 minutes. Here, users input the number of funds they are willing to spend while the system reveals the amount of Bitcoin they can receive for the value of their money. And before any user’s order is accepted, the system checks the user’s account balance to verify that the funds are available.
Furthermore, it is important to note that while CEX.io fulfils orders at the price requested by its users, it will be unwise to think you can get 1BTC for $10. Your orders can only be filled if your price does not fall short of the current Bitcoin exchange rates, but this shouldn’t be your problem as the platform will do well to notify you of any problems encountered during the course of filling your orders. After confirming the trade, the platform matches your order with others in the exchange and credits your account; you can get more than you bargained for but never less.
Fees Charged By CEX.io
CEX.io charges a 7% fee for the direct purchase of Cryptocurrencies using Fiat currencies. For instance, if you pay N36,000 Naira ($100) you will get Cryptocurrencies valued at N33,480 Naira ($93) the balance of N2,520 Naira ($7) covers the service fee.
The 7% fees are charged only when you buy Cryptocurrencies directly with your credit/debit card, however, you can choose to either fund your CEX.io account through bank transfer (the platform charges nothing for deposits via this option) or through a credit/debit card (it charges 3.5% + N90 Naira ($0.25) commission) after which you can proceed to buy the cryptos at an average of 0.2% transaction fee. Taking the second option is time-consuming but incurs lesser fees.
CEX.io offers four account limits; namely Basic, Verified, verified plus and corporate. Users with Basic accounts are allowed to buy a maximum of $500 worth of BTC per day and $2000 Monthly. Verified accounts can buy $10,000 worth of BTC daily and $100,000 monthly while users with the verified plus and corporate accounts can buy at any value of their choice without limits.
For a user to own a verified account, he/she must supply a government issued means of identification most preferable an ID card as well as the disclosure of certain personal information’s.
Countries Supported By CEX.io
Users from all countries in the world are supported, however, the platform places certain temporal credit card purchase restrictions to users based on their countries of residence, the restricted countries include: Afghanistan, Bosnia and Herzegovina, Burundi, Democratic Republic of the Congo, Côte d’Ivoire, Cuba, Eritrea, Ethiopia, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Kenya, North Korea, Laos, Lebanon, Liberia, Libya, Nigeria, São Tomé and Príncipe, Somalia, South Sudan, Sudan, Syria, Tanzania, Tunisia, Algeria, Uganda, Vietnam, Vanuatu, Yemen, Zimbabwe, Morocco, Cambodia, Pakistan, Nepal, Ecuador and Bolivia. These countries, for now, can only buy Cryptos with fiat through bank transfer, alternatively, they can deposit a cryptocurrency and exchange it for another cryptocurrency.
Users from the following countries cannot withdraw directly to their bank accounts: Afghanistan, Argentina, Bosnia and Herzegovina, Bangladesh, Bolivia, Burundi, Colombia, Democratic Republic of the Congo, Central African Republic, Cuba, Algeria, Ecuador, Ethiopia, Guatemala, Iceland, Indonesia, Iran, Iraq, Cambodia, North Korea, Laos, Lebanon, Libya, Morocco, Nepal, Pakistan, Somalia, South Sudan, Sudan, Syria, Uganda, Venezuela, Vietnam, Vanuatu, Yemen, Zimbabwe and India.
Public Opinion And Customer Support
CEX.io currently has a lot of negative reviews (as at the time this article was written), it is rated 3.9/10 by Trustpilot, and has a pretty negative review on Reddit. Its users have expressed dissatisfaction on the platform but after a thorough look at the multitude of negative reviews and comments on CEX.io, I noticed that a majority of them talk about hidden charges, a difficult identity verification process and poor customer service.
The issues concerning hidden charges (high exchange rates) and difficulty in account verification can be attributed to the user’s inability to locate and understand details. CEX.io has in the past couple of month tried to explain how much it users are expected to pay for their coins. This can be seen in the image below:
On the customer service issue, some users have reported having their queries attended to within seconds by the support team, some users such as this:
CEX.io has taken time to give appropriate replies to the bad reviews it received on Reddit, this goes to show that the company is concerned with its reputation and is willing to preserve it. Most users on Reddit have voiced their satisfaction with the platform, stating that they have experienced no hitches or difficulties using it to date.
Summarily, through my experience using the platform and those of others at the end I can gladly say that CEX.io is a pretty decent platform, though it has it shortcomings. The major problem with the platform is the 7% fee it charges on the direct purchase of BTC with Fiat currencies.
The platform has a simple interface with simplified features to support the first time trader; anyone can buy Cryptocurrencies successfully with CEX.io. All you need do to stay on the safe side is triple check the fees and understand the verification process required to buy a higher amount of Cryptocurrencies.