CoinsBank Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker in this CoinsBank Review.
Like most other digital currency exchanges, CoinsBank has one type of account with no margin trading option. Some requirements for minimum deposit apply, depending on the funding currency (fiat and crypto) and method, as well as for minimum trade size. Many other crypto-exchanges have not set such requirements, however CoinsBank offers some nice extra services such as a wallet and debit cards directly connected to clients’ accounts.
There is two-factor authentication with CoinsBank – the higher the verification level you have, the higher maximum transaction limits on your account. You can be trade anonymously with CoinsBank to a limited extent, that is if you limit your use to the no-name card service. By the time of writing this review, however, this service is temporarily unavailable.
The Company. Security of Funds
CoinsBank was initially named BIT-X, but in April 2016 has undergone a complete redesign and emerged again renamed as CoinsBank. It is all-in-one gateway to blockchain services, as it offers a crypto-exchange, a wallet, and cards, as well as blockchain cruises. We will not comment on the latter, however, although CoinsBank promotes itself as “a Blochain bank of the future”, it is no bank for sure. Banks worldwide are subjected to governmental licensing and supervision and must comply with strict regulatory requirements for minimum capital, financial reporting, etc.
CoinsBank, on the other hand, is “licensed” in Belize as a service provider for trading in securities (XBIT LTD), which is by no means a proper regulation. It appears to be headquartered in Scotland, UK, but the company operating its website, CB Exchange LP, is only registered there and not overseen by the Financial Conduct Authority (FCA) or another agency. Indeed, the FCA currently does not oversee UK crypto-exchanges, although some of them are licensed in the UK as payment services.
So, the fact that CoinsBank is not regulated is generally not a big issue, as this is the case with most crypto-exchanges worldwide. Nonetheless, if you would rather invest with a company that is properly licensed, you may also trade in cryptocurrencies with forex brokerages.
A fact worth noting is that to this date, CoinsBank has not been hacked. As regards user reviews on the exchange, they are a mixed bag.
Trading instruments (cryptocurrencies)
With CoinsBank users can trade Bitcoin (BTC) and Litecoin (LTC) against “traditional” (fiat) currencies, such as USD, EUR, GBP, CHF, AUD, JPY, and RUB. The LTC/BTC pair is also available for trade, however, currently it is the last traded on the exchange, according to CoinMarketCap.
Such cryptocurrency portfolio seems quite limited, given the fact that most exchanges offer more alcoins – for example Kraken, one of the biggest venuwe, currently supports around 15 digital currencies, and Liqui – more than 190. At CoinsBank you can’t even buy or sell Ethereum, one of the most popular cryptocurrencies.
Minimum trade size and initial deposit
As we have mentioned, CoinsBank requires a minumum initial investment of 0.0001 BTC/0.001 LTC or a certain amount of fiat, which depends on the funding method. For deposits via bank wire, the ionitial investment required is 500 EUR, CHF, AUD USD, GBP or 50000 JPY. For deposits via e-payment systems, the required initial amount is significantly lower: 20 EUR, USD via Perfect Money and Epay, 10 EUR, USD or 1000 RUB via Qiwi.
As regards the minimum trade size set by CoinsBank, it is 0.001 of the user’s base currency.
Like the majority of cryptocurrency providers, this one does not support leveraged trading either. If you need to geer-up your trading, other crypto-exchanges, like Kraken provide leverage. Furthermore, there is a growing number of forex brokers that offer speculative margin trading in Bitcoin CFDs.
Unlike other cryptocurrency exchanges, CoinsBank charges a “flat” fee of 0.5% per trade, irrespective of the pair being traded, the volume, and whether the user is a market “taker” or “maker”. This seems a bit unfair to us, and what is worse, such fee is a bit too high, as the industry average is around 0.20% – 0.25%.
By comparison, UK exchange Bitlish charges only market takers with a fee from 0.2% per trade.
Like most digital currency exchanges, CoinsBank has a relatively simple to use online platform. It is it easy to manage orders and monitor real-time exchange data, however logging in requires your mobile phone number, password, and a confirmation code. Most exchanges provide a preview and tp log in, one must simply enter an email address.
One of the main advantages of CoinsBank is that it also provides mobile apps for both Android and iOS, which have decent ratings.
Methods of payment
CoinsBank supports Bitcoin and Litecoin transfers, bank wire (including SEPA), and several e-payment systems such as Qiwi, Perfect Money, Epay and OKPay. User-to-user transfers are also allowed (a fee of 0.01 per fiat currency transfer applies).
Deposits in LTC and BTC are free, while withdrawals are charged with 0.5% fee. Withdrawals via bank wire have a fee of 1%, and deposits are free. On the other hand, charges apply on all transfers via e-payment systems, deposits included.
Speaking of payment methods, we should also mention the convenient CoinsBank debit card, issued by Wave Crest. It has three-level daily ATM withdrawal limits according to different KYC verification levels and a separate fee structure. There are both plastic and virtual CoinsBank cards.
CoinsBank (formerly BIT-X) has some distinct advantages over a number of crypto-exchanges: it accepts a number of fiat currencies, supports various payment methods, SEPA included, and also offers CoinsBank debit cards. Also, it has developed mobile apps for those investors who prefer to trade on the go. However, must be kept in mind this exchange is registered offshore, which always makes matters seem shadier. Besides, the crypto-offering of CoinsBank is limited to BTC and LTC and the fees that apply to trades and deposits/withdrawals are a bit high.
CoinsBank Review Conclusion
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