CEX.IO Review: Pros, Cons, And Alternatives

CEX.IO, which was established in 2013, is a regulated crypto exchange that enables trading on high volume coins for over 4 million users.

As the world heads towards a decentralized Web 3.0 world, blockchain technology, especially cryptocurrency, has taken hold. With the meteoric rise of digital currency, many of us need peace of mind to buy and sell cryptocurrency on a trusted platform.

If you’re looking to buy your first crypto, CEX.IO makes it easy. Here’s what you need to know about it.

What Is CEX.IO?

Founded in 2013, CEX.IO is one of the oldest crypto exchanges in the United States. The company holds itself to some of the highest governance standards in the business, and is fully regulated in 48 states (along with most countries outside of the United States).

What Does It Offer?

CEX.IO is an online crypto exchange that makes buying and selling crypto as easy as online shopping.

Buy Cryptocurrency From a Debit or Credit Card

CEX.IO wants to serve as a bridge to the world of decentralized finance. It makes good on that vision by making it easy for account holders to buy cryptocurrency using a debit or credit card. You don’t need to buy stablecoins and then start trading. With CEX.IO, you can place orders for crypto using your card.

Simple Trading Interface

CEX.IO has a streamlined user interface that makes trading crypto relatively easy. Users can access a few basic charts, and they can place trades from the site. The straightforward visuals and the intuitive trading interface make it easy for anyone to place trades on the platform.

Options to Earn Through Staking or Interest

Crypto investors who opt to store their assets in a CEX.IO wallet have the option to earn interest or to stake their coins. Interest rates vary by coin, but currently range from 1 to 20% annual yield. Staking can yield up to 50% annually.

One important note on yields. When it comes to crypto, the interest is paid in additional crypto, not in fiat currencies. Volatility could decrease the value of your asset, even if you have more coins.

Relatively Low Fees

CEX.IO isn’t the crypto exchange, but its fees are far lower than other “customer friendly” platforms like Coinbase. The low fees allow crypto investors to buy regularly in small increments without worrying about fees eroding their asset base.

Option to Invest on Margin

CEX.IO offers investors the option to take out margin loans for periods ranging from 7 days to one year. To be eligible to borrow, you must meet certain asset ownership requirements in your account. 

The loans from CEX.IO have interest rates ranging from 8% upwards. Loans from CEX.IO can be used for anything, including investing in more crypto. This is a high risk option, and is typically not recommended.

Are There Any Fees?

Like most crypto exchanges, CEX.IO charges maker and taker fees on all trades. The fee schedule is as follows:

*Fees change beyond $10,000,000 over 30 days, but this is unlikely to apply to most readers.

The CEX.IO Maker and Taker fees are much lower than comparable fees at Coinbase which is another user-friendly crypto exchange.

How Does CEX.IO Compare?

CEX.IO is an incredible (and incredibly underrated) crypto exchange for beginners. It focuses only on the largest coins, so it has decent deal flow combined with low rates. Historically, Coinbase has been the top choice for beginning investors, but CEX.IO is absolutely competitive with Coinbase.

How Do I Open An Account?

To open an account through CEX.IO, you will need to register an email address through the website. The company requires users to set up a second form of authentication (typically text messages), which you’ll need to do before proceeding further.

Once your account is set up, you’ll provide basic information about yourself, link a debit card, and complete a “Know your customer” verification process. The verification process requires access to a passport of State ID and takes just a few minutes.

When the process is complete, you can start to buy and sell on the platform.

Is It Safe And Secure?

CEX.IO boasts about its security record. The company has never lost any user assets despite being a crypto brokerage since 2013. CEX.IO uses a variety of best practices to keep personal information and cryptocurrency safe. For example, it strictly enforces multi-factor authentication on the site. It additionally encrypts personal and financial information, and stores most crypto assets hosted in its wallets in “cold storage” where hackers couldn’t get the keys.

Despite the robust track record and multiple layers of security, CEX.IO could be hacked in the future. In this potential scenario, investors could lose their crypto assets. Despite CEX.IO’s history, we still recommend storing all crypto assets in a hardware wallet.

How Do I Contact CEX.IO?

CEX.IO Corp. (The US based version of CEX.IO) is headquartered at in Illinois. Here is the address and customer service number. 

• 900 E Diehl Rd STE 110, Naperville, IL 60563
• People with inquiries can call 1-888-814-1188

The company also has detailed FAQ on all its product pages.

Why Should You Trust Us?

We have been writing and researching cryptocurrency since 2016. We have been reviewing and testing all of the major cryptocurrency exchanges since 2017. Our team understands the crypto and NFT space, but also understands the intersection with TradFI (traditional finance). Our goal is to help bridge the gap between those in the cryptocurrency space, with those curious about it in the traditional finance space.

Furthermore, we have a compliance team that checks the accuracy of rates and service offerings regularly. 

Is It Worth It?

Overall, CEX.IO seems to be a great place to start your crypto investing journey. It’s large enough to have robust security and to offer a robust user experience. But it’s small enough that it’s not a huge target for hackers seeking assets.

CEX.IO is an excellent platform for the crypto curious who want to wade into the world of Blockchain. It’s designed to be user friendly. Serious algorithmic traders won’t find much value on CEX.IO, but beginners should absolutely consider it.

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