CoinHako Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team.
CoinHako Review – is it scam or safe?
CoinHako is a popular cryptocurrency exchange, which only serves clients in Singapore and Malaysia. They operate mostly as an entry-level service, accepting bank transfers from the two countries.
The company, security of funds
CoinHako is based in Singapore and while it currently doesn’t fall under any regulatory zeal, we expect them to follow the local legislative process as it unveils. Currently ICOs are in the spotlight, as the country has been a heaven for such endeavors.
CoinHako’s main service is providing wallets to clients who deposit fiat currencies. That being said, a certain portion of their website claims they do not offer guaranteed price execution.
On one hand they do provide a wallet, like Coinbase or Bitstamp, but typically only the companies who don’t, such as BTCDirect do not guarantee the price at which your order will be filled. While it is technically possible for both conditions to exist simultaneously, it would be a massive waste.
Sadly, as we are not based in Malaysia or Singapore, we can’t test this company’s actual service.
We must mention, the FAQ section of their website offers nice education for beginners in the crypto-space. This may save people hours of research and potentially a lot of funds.
There haven’t been any reports of a large-scale attack against this crypto-exchange, but there are some users who claim their accounts were broken into and drained in the past.
The user opinions on CoinHako are very mixed. They are some of the most polarizing we have seen, when reviewing a crypto-exchange. While some users are relatively happy, there are all types of claims against them – from slow customer support to much more serious issues. A few users claim the funds they send to the company never arrived, which if true is quite unsettling.
While we should dismiss some of the comments as trolls, there is still room for worries, especially when it comes to crucial security elements. That being said, once we registered an account in order to test this service, we were immediately required to provide a two-factor-authentication (2FA) device.
Trading instruments (cryptocurrencies)
While the choice of coins available at CoinHako is not that impressive to a crypto-enthusiast, they are perfect for a beginner. The full list includes: Bitcoin, Ethereum and Litecoin. Trading is done against SGD and MYR.
Existing clients, who held Bitcoin before the most notable fork have Bitcoin Cash in their wallets. However trading this coin is not supported by CoinHako – one can simply transfer his newly acquired asset to another exchange.
When it comes to Bitcoin transfers there is a selling and sending limit of 0.001BTC and 0.005ETH. There is no minimum on the amount of coins you can receive. These levels are likely to be adapted it the price of Bitcoin moves even higher.
While these restrictions may annoy some clients, they are most likely in place to prevent the company’s system from being over-flooded by small orders.
CoinHako does not provide leveraged trading. This isn’t that big of a downside, as most exchanges do not. With the volatility in the world of cryptocurrencies, most people will not need leverage.
In case you are interested in the price movements of Bitcoin alone and want to trade with leverage, some forex brokers provide that. However this is done via the so called Contracts For Difference (CFDs). When trading such an asset you don’t actually own the underlying asset (cryptocurrency in this case), but only speculate on its price. We would definitely advise you to read our guide before making the decision to enter the world of CFD trading.
The actual trading fee taken by CoinHako is 0.90% of the volume of each transaction. There are two ways of looking at this. From an active trader’s perspective, this is a very high level. Many exchanges charge levels around 0.20%.
On the other hand, given the fact this company provides trading against two relatively exotic currencies, such fees seem justified. The truth probably lies in the middle, as this is a solid entry level service.
CoinHako offers placing orders in their entry form. This is not that impressive, but perfectly suitable for beginners. That being said, charting is provided by TradingView, which is a solid option.
As mentioned before, we couldn’t register an account with CoinHako (for obvious reasons) in order to tests their functionality completely.
Methods of payment
Fiat currency transfers to and from CoinHako (in SGD and MYR) are done via bank transfers. Deposits aren’t charged any fees, but keep in mind the banks involved in the process will most likely do so.
When withdrawing funds, one will have to pay:
S$2 or S$5 for transfers to Singaporean bank accounts via Xfers, respectively;
RM6 for transfers to Malaysian bank accounts
These fees are relatively small and more importantly not percentage based, making them ideal for bigger transfers.
Obviously, verified users can also make blockchain transfers.
With that in mind, the addition of credit cards, as a payment option would obviously benefit this service a lot.
CoinHako Review – is it scam or safe? Conclusion
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