AltcoinTrader Review – is it scam or safe?

AltcoinTrader Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team.

AltcoinTrader Review – is it scam or safe?

Like most crypto-exchanges, South African AltcoinTrader offers a single account type with no minimum initial deposit requirement and no leveraged trading options. Another common practice in the crypto-space that AltcoinTrader utilizes is the two-step verification process. Customers who would like to raise their account limits and minimize processing time must go all the way, uploading ID card, proof of residence, etc.

AltcoinTrader is a South African cryptocurrency exchange that offers buying or selling digital coins for South African Rand. The company operating the brand and the website, Altcoin Trader (Pty) Ltd., is not a regulated crypto-exchange, which is not a big issue in this sector, as most countries have not figured out yet what rules to apply to these venues. South Africa is no exception to that.

If you insist to invest with a regulated entity, you may also trade in cryptocurrencies with forex brokerages, most of which are properly licensed and besides, offer margin trading.

Despite not being formally regulated, the AltcoinTrader says it has implemented an active Know Your Customer (KYC) policy, it complies with the Anti Money Laundering Act (AML) and applies certain measures to monitor suspicious transactions. Also, it maintains an active record-keeping policy on its customers` identification and transactions.

Most importantly, there is no information about AltcoinTrader being hacked and the latter claims that all FICA and cryptocyrrencies are stored in cold storage.

Trading Conditions

Trading instruments (cryptocurrencies)
AltcoinTrader really focuses on the South African market and targets local traders, as this cryptocurrency exchange offers trading digital coins against South African Rand only. It does not support the most commonly used fiat currencies, such as USD, EUR, GBP, nor inter-cryptocurrency trading. The full list of trading instruments includes BTC/ZAR, LTC/ZAR, ETH/ZAR, BCC/ZAR, XPR/ZAR, NMC/ZAR, DASH/ZAR, and ZEC/ZAR. Of course, most of the trading volume is concentrated in BTC/ZAR.

If you’s rather trade cryptocurrencies against the common EUR and USD, you may always do that with major exchanges like Kraken and Bitstamp, which also operate on the South African market.

Minimum initial deposit
As there is no information about a minimum initial investment amount on AltcoinTrader’s website, we assume that such is not required. In fact, this appears to be the situation with the majority of cryptocurrency exchanges.

As we have already mentioned above, AltcoinTrader does not support leveraged trading. Some see leverage as a golden opportunity to score large profits with small deposits, others, usually more experienced traders rather find it too risky.

Nonetheless, if you need some leverage, other crypto-exchanges, like Kraken provide such. Besides, there is a growing number of forex brokers that offer speculative margin trading in cryptocurrency CFDs.

Unlike other cryptocurrency providers, AltcoinTrader charges a “flat” fee of 0.8% per trade, irrespective of the pair being traded and the volume. This seems a bit unfair to us, and besides, it is above the industry average of 0.20% – 0.25%.

By comparison, ICE³X, another South African charges different fees, depending on the specific instrument and the monthly trading volume of the client.

Trading platform

AltcoinTrader offers a simple and easy to use web-based platform. It has a functional order book, trade history window and basic charting. Its design is not mobile-friendly and no mobile app is available either, so if you are on-the-go crypto trader, AltcoinTrader is probably not your cup of tea. Besides, we find the platform too basic and lacking some advanced features such as technical analysis indicators. Worse still, there are some indications that the platform does not maintain sufficient liquidity.
A nice option on AltcoinTrader platform is that you can cancel a trade order that has not yet been filled for free.

Methods of payment and fees

Basically, AltcoinTrader offers bank wire and blockchain transfers, as well as electronic funds transfer (ETF) as deposit and withdrawal methods.

If you deposit directly Bitcoin or another digital coin supported by AltcoinTrader, it is free of charge, however withdrawals are not. The withdrawal fees indicated on Altcoin Trader’s website at the time of writing of the current review are, as follows: 0.001 BTC, 0.02 LTC, 0.002 ETH, 0.002 ZEC, 1.0 XPR, 0.1 NMC.0.03 DASH.

If you chose to deposit or withdraw in ZAR (South African Rands), the only fiat currency supported by this exchange, transfers are charged with 0.5% fee (up to R 250).

Also, keep in mind that all deposits and withdrawals at AltcoinTrader are processed by a human team member, so they might take a little longer than an automated system.

AltcoinTrader Review – is it scam or safe? Conclusion

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