CEX.io Review and Comparison Guide
CEX.io is a cryptocurrency exchange that was founded in London in 2013. It offers trading in a variety of cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and others. The exchange also allows users to buy cryptocurrencies with fiat currencies like USD, EUR, GBP, and RUB.
One of the standout features of CEX.io is its user-friendly interface, which makes it easy for beginners to navigate the platform. Additionally, the exchange has a mobile app that is available for both Android and iOS devices.
CEX.io has a strong reputation for security, with 2-factor authentication and SSL encryption to protect users’ funds and data. The exchange also keeps the majority of its users’ funds in cold storage to protect against hacking attacks.
Another advantage of CEX.io is that it offers margin trading with up to 10x leverage for certain cryptocurrency pairs, allowing traders to amplify their profits (or losses). However, margin trading can be risky and should only be attempted by experienced traders.
On the downside, CEX.io charges relatively high fees compared to some other exchanges, with trading fees ranging from 0.1% to 0.25%. Additionally, the exchange has been criticized in the past for its customer support, although it has taken steps to improve in this area in recent years.
Overall, CEX.io is a solid choice for both beginners and experienced traders looking for a reliable, user-friendly cryptocurrency exchange. However, traders should be aware of the relatively high fees and the risks associated with margin trading before using the platform.
CEX.IO is one of the oldest Bitcoin exchanges around. The company supplies both a trading platform and brokerage services for Bitcoin, Ethereum and a range of other cryptocurrencies. In this post, I’ll review the company, its services and compare it to other exchanges around.
CEX.IO Review Summary
CEX.IO is one of the more popular options for buying and selling Bitcoin and several other cryptocurrencies. The site offers a brokerage service, as well as a trading platform that supports 105 cryptocurrencies and 225 trading pairs.
If you’re a beginner it’s recommended to use the brokerage option rather than the site’s trading platform.
1. CEX.IO Overview
CEX.IO started out in 2013 in London as a Bitcoin exchange and cloud mining provider. At some point its mining pool, known as Ghash.io, was so big it held 42% of the total network mining power.
In January 2015 the cloud mining operations were shut down and today CEX.IO operates solely as a cryptocurrency exchange.
Over time, CEX.IO has matured into a group of companies with licences in multiple jurisdictions. CEX.IO LTD has been registered as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. CEX IO EU Limited provides card processing services to customers from the European Economic Area (EEA).
In 2019, CEX.IO also expanded its services in the U.S. with MTL licences that can serve 48 states.
2. CEX.IO Services
CEX.IO allows you to buy cryptocurrency using your credit card, a wire transfer, a SEPA transfer (if you live in the EU) or an ACH transfer (for US residents). The site supplies two ways for purchasing crypto – a trading platform and a brokerage service.
CEX.IO Brokerage Service
CEX.IO’s brokerage service is a way for new users to buy cryptocurrencies through an easy (though somewhat more expensive) process. This means CEX.io will trade cryptocurrencies for you at a premium.
CEX.IO brokerage transactions are based on Fill-or-Kill orders (also known as FOK). FOK means are orders that are executed immediately and in full. This is different than placing your own order on the trading platform since different type of orders (i.e. market, limit, stop loss) will give you different type of results.
Bottom line – The brokerage service is a simplified way for beginners to get started with buying Bitcoin or any other crypto without needing to go through a complete course on trading.
The downside is that for this to work CEX.IO has to charge customers a premium so that they will always be able to fulfill their orders, hence the higher exchange rate.
The difference between the brokerage service exchange rate and a normal trading platform exchange rate can reach up to a 7% difference. CEX.IO has a very clear explanation on their site about how this service works, here’s a summary of it:
When you enter a trade, CEX.IO calculates the price and freezes it for 120 seconds. You input the amount of money you wish to spend and you see the amount of coins you can receive. After you press the Buy/Sell Button, the system checks to see that you have enough funds available.
If the situation on the market allows the execution of your order on conditions not worse than you agreed on, the order will be filled (The order can also be filled on more favourable conditions).
If there is a sudden spike in the exchange rate, preventing the execution of the order on the agreed conditions, you will be notified. After you confirm the trade, your order is matched to other orders on the exchange, and your balance is adjusted. Sometimes the amount can be even greater than agreed on, but is never smaller.
Pros Explained
- Regulated and licensed: CEX.IO is regulated and licensed to operate in all jurisdictions where it offers its services, giving investors peace of mind that they’re using a compliant platform.
- Supports a large number of cryptocurrencies: CEX.IO supports 100+ digital currencies and tokens, covering most leading crypto assets.
- Provides an opportunity to earn crypto: Users can stake cryptocurrencies held on the platform to earn crypto income.
- Offers crypto-collateralized loans: Users can take out crypto-collateralized loans in fiat currency, allowing dedicated crypto holders to retain funds in crypto if a temporary need for fiat currency arises.
Cons Explained
- The amount of products and services may overwhelm beginners: CEX.IO offers a wide range of features targeted at different market segments, making it less user-friendly for first-time crypto buyers.
- Lower liquidity than other leading global exchanges: Despite the exchange’s global reach, CEX.IO provides less liquidity than its international peers.
Introduction
CEX.IO is a regulated multi-functional cryptocurrency exchange that was established in 2013. This London-based crypto exchange supports over 100 digital currencies and tokens, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Uniswap (UNI), and more.
Available in 99% of countries and 48 U.S. states, CEX.IO has built a global crypto exchange ecosystem that serves over four million users.
Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Company Overview
CEX.IO was launched in 2013 as a Bitcoin cloud mining provider and hashing power marketplace—powered by an in-house mining pool called GHash.IO. The company’s goal was to enable individuals to earn Bitcoin mining rewards without having to deploy expensive mining hardware in their homes.
In late 2016, CEX.IO decided to stop cloud mining following the closure of GHash.IO due to a lack of profitability. Instead, the company shifted its focus to building a global cryptocurrency exchange ecosystem.
Today, CEX.IO is a regulated cryptocurrency exchange with over 4 million users. It offers products and services for three market segments, which it refers to as Everyone, Traders, and Businesses.
Features for ‘Everyone’ include simple fiat-to-crypto purchase options, a crypto wallet, exchange staking, and a crypto lending platform. ‘Traders’ can benefit from spot trading, margin trading, and the exchange’s mobile app for on-the-go trading. Finally, ‘Businesses’ can utilize CEX.IO PRIME, which provides institutional-grade crypto trading services.
CEX.IO also offers credit card processing services to customers in select European countries, and it has a commission-free margin trading platform, CEX.IO Broker.
Cryptocurrencies Available on CEX.IO
CEX.IO supports over 100 digital currencies and tokens and regularly adds new cryptocurrencies to its roster. Here’s a look at some of the most popular cryptocurrencies that you can currently trade on CEX.IO:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Cosmos (ATOM)
- Polkadot (DOT)
- Litecoin (LTC)
- Binance Coin (BNB)
- Tezos (XTZ)
- Tron (TRX)
- Uniswap (UNI)
- Zilliqa (ZIL)
Trading Experience
CEX.IO is targeting three types of users, which it refers to as Everyone, Traders, and Businesses.
Everyone
Everyone can use the exchange’s Instant Buy feature to buy Bitcoin and other cryptocurrencies using a range of payment methods. Additionally, CEX.IO provides soft staking to allow users to earn crypto and crypto-backed loans that enable users to borrow fiat currency by providing crypto as collateral.
Traders
Traders can make use of the exchange’s spot and margin trading platforms and the CEX.IO mobile app that allows for on-the-go trading.
Businesses
Businesses can sign up for CEX.IO PRIME, which allows institutional-size buyers to access liquidity. Additionally, companies can integrate crypto payments using CEX Direct, a payment gateway for cryptocurrency purchases operated by CEX.IO.
If your crypto exchange account is hacked or you send cryptocurrency to an incorrect wallet address, you will most likely not be able to recover your lost crypto.
Fees
CEX.IO provides detailed insight into its fee structure, deposit and withdrawal commissions, and account limits. Different fees apply for different payment options.
Maker-Taker Fee Structure
Trading fees are based on each user’s 30-day trading volumes, recalculated daily at 00:00 (GMT). New and low-volume users will pay a 0.25% taker fee and a 0.15% maker fee.
| 30-Day Trading Volume, USD | Taker | Maker |
|---|---|---|
| ≤ 10,000 | 0.25% | 0.15% |
| ≤ 100,000 | 0.23% | 0.13% |
| ≤ 500,000 | 0.19% | 0.09% |
| ≤ 1,000,000 | 0.17% | 0.07% |
| ≤ 2,500,000 | 0.15% | 0.05% |
| ≤ 5,000,000 | 0.13% | 0.03% |
| ≤ 10,000,000 | 0.11% | 0.01% |
| ≤ 20,000,000 | 0.10% | 0.00% |
| ≤ 50,000,000 | 0.08% | 0.00% |
| ≤ 100,000,000 | 0.07% | 0.00% |
| ≤ 200,000,000 | 0.06% | 0.00% |
| ≤ 500,000,000 | 0.05% | 0.00% |
| ≤ 1,000,000,000 | 0.04% | 0.00% |
| ≤ 2,000,000,000 | 0.03% | 0.00% |
| ≤ 5,000,000,000 | 0.02% | 0.00% |
| > 5,000,000,000 | 0.01% | 0.00% |
Deposit and Withdrawal Fees
In addition to trading fees, minimum deposit requirements apply for cryptocurrency deposits, and cryptocurrency withdrawal fees vary from asset to asset. CEX.IO offers several payment options, including the following. In addition to those listed below, users can also ACH, domestic wire transfer, Faster Payments, Skrill, Epay, and Advcash.
| Payment Method | Daily Deposit Limit (Min to Max) | Daily Withdrawal Limit (Min to Max) | Deposit Commissions | Withdrawal Commissions |
|---|---|---|---|---|
| Visa | $20 to Unlimited | $20 to $50,000 | 2.99% or 1.49% (for GBP deposits made by UK-issued cards) | Service charge: up to 3% + $1.20 Commission: up to $3.80 |
| Mastercard | $20 to Unlimited | $20 to $2,500 | 2.99% or 1.49% (for GBP deposits made by UK-issued cards) | Service charge: up to 1.8% + $1.20 Commission: up to 1.2% + $3.80 |
| SWIFT | $300 to Unlimited ($5,000 min daily deposit/withdrawal for US residents) | $300 to Unlimited ($5,000 min daily deposit/withdrawal for US residents) | No fee | 0.3% + $25 |
| ACH | Not available | $20 to $100,000 ($5,000 min daily deposit/withdrawal for US residents) | Not available | 0% |
| Domestic Wire Transfer | $20 to $100,000 ($5,000 min daily deposit/withdrawal for US residents) | Unavailable | 0% | Not available |
Security
CEX.IO puts a strong focus on regulatory compliance and security.
Compliance and Licensing
The exchange is regulated and licensed in all countries where it operates. In the United States, CEX.IO is registered with FinCEN as Money Services Businesses (MSB) and has obtained money transmitter licenses (MTLs) in over 30 states. In Canada, the exchange is also registered as a Money Services Business (MSB) with FINTRAC.
CEX.IO is also regulated by the Gibraltar Financial Services Commission (GFSC) as a DLT Provider to serve the European market. In the United Kingdom, CEX.IO has been granted temporary registration as a crypto asset business by the UK Financial Conduct Authority (FCA), which allows the exchange to carry out crypto asset activities, while the FCA reviews the company’s application.
Security Features
To ensure the security of its users’ funds, CEX.IO holds the majority of user funds in cold wallets and only a small portion of funds in hot wallets. Cold wallets are not connected to the internet while hot wallets are, making the former more secure. The proportion of how much crypto is held in cold vs. hot wallets is determined by the amount needed to cover day-to-day trading activities on the platform.
It’s important to note that most funds held in CEX.IO hot wallets are company funds, while user funds are kept primarily in cold wallets. What that means is that if the exchange is hacked, the company’s funds could be stolen, but user funds should remain mostly unaffected. Newly deposited client funds are moved to cold wallets in a daily wallet reconciliation procedure.
While leading cryptocurrency exchanges typically provide a high level of security, you could still end up losing your funds if you fall for a phishing scam or inadvertently download crypto-stealing malware. Make sure you follow basic online safety practices and install anti-virus software on your devices to keep your crypto safe.
Opening a CEX.IO Account
Signing up for an account at CEX.IO is reasonably straightforward and very similar to signing up for a traditional online brokerage account.
To sign up for a personal account, you’ll need to provide your name, email address, password, and country of residence. Once you’ve shared this information, you will need to confirm your email address by typing in the confirmation code you receive via email.
:max_bytes(150000):strip_icc():format(webp)/1ok-86439cf52cc149c988f206e6ae7ed94a.png)
CEX.IO
At this point, you can start exploring the CEX.IO platform. To complete your registration and start trading, however, you’ll need to undergo an identity verification process that involves uploading government-issued ID documentation and sharing your address. Once completed, your deposit and withdrawal limits will increase.
:max_bytes(150000):strip_icc():format(webp)/2ok-6efd2c3e44444ebc9ac2e3247338bd26.png)
CEX.IO
Additional verification stages allow users to increase their deposit and withdrawal limits.
To sign up for a business account, more information and documentation are required.
Customer Service
CEX.IO provides customer support through an online support center, live chat, phone and email.
Customer Satisfaction
Given the lack of quality customer services at several leading exchanges, CEX.IO has made sure to provide good customer support to its userbase. On Trustpilot, for example, CEX.IO has a 4.7 out of 5 star rating, which is exceptionally high for a cryptocurrency exchange.
When CEX.IO halted its mining services due to a lack of profitability, many customers weren’t pleased. However, since the company has shelved its mining operations, customers seem largely satisfied with the exchange’s products and services.
Account Management
CEX.IO provides a web-based platform and a mobile app that allows users to utilize the full plethora of available features.
From advanced order matching algorithms and analytical tools for experienced traders to simple Instant Buy/Sell features for first-time investors, CEX.IO’s crypto trading ecosystem can be easily accessed online and on mobile.
How CEX.IO Compares to Other Cryptocurrency Companies
While some crypto exchanges target specific regions, CEX.IO’s global approach and availability in 99% of countries makes it stand out among its competitors. However, CEX.IO doesn’t have the userbase or liquidity of top exchanges like Binance or Coinbase.
In terms of fees, the number of supported assets, and additional services such as lending and staking, CEX.IO is on par with competitors, thus providing a viable platform for anyone looking to buy, sell, borrow, and earn crypto.