CryptoMate Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team.
CryptoMate Review – is it scam or safe?
Cryptomate.co.uk is a company, which provides a gateway into the world of cryptocurrencies for UK enthusiasts. While CoinCorner is one of the other major entry-level services, supporting the British Pound, there are quite a few differences between the two.
The company, security of funds
Cryptomate is registered in the UK, but does not fall under any specific financial regulation, unlike Crypto Facilities. That being said the latter offers derivatives trading, while Cryptomate is more of service, than a trading facility.
The company is basically a peer-to-peer network, connecting buyers and sellers of cryptocurrencies, although not everybody can sell at the website. In order to become a “vendor” one must contact the website and probably meet some volume requirements. The most unique feature at Cryptomate is that only UK bank transfers are accepted as a payment method.
This “exchange” is one of the few which doesn’t offer a wallet, although they provide useful links for beginners, who can read-up on the topic. When making an order at Cryptomate, you have to provide your own external address, to which the coins will be sent.
Unlike a lot of other companies in the space, Cryptomate has to follow the working hours of UK banks. This is simply due to the fact, each transfer comes has is connected with the Faster Payments Service (FPS). For those of you who are not familiar with it, this is a system connecting British banks, allowing them to make cheaper and faster payments between one another (much like the SEPA system in the EU).
Cryptomate claims around a transaction processing time of aroun 15 minutes. While this is absurd from a trading perspective, it is actually quite fast, when compared to similar services, like CoinTree in Australia.
There haven’t been any reports on hacks at Cryptomate. The fact the company only connects buyers with vendors and does not store any cryptocurrencies has something to do with this – there are very few things which can be hacked.
When it comes to the user reviews, Cryptomate is generally praised. The few complaints we managed to find were in regard to the lack of transparency on the execution. This is a common theme with such services, as the volatility in the crypto-space is very high.
Trading instruments (cryptocurrencies)
Despite the service being very different from a traditional exchange, the vendors at Cryptomate do offer a lot of variety. At the time of writing of this review 12 coins are available for purchase, namely: Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Ethereum Classic, Dash, Ark, Dogecoin, Monero, Zcash and Britcoin.
Maximum daily transaction(s)
Cryptomate has set a daily limit of £100 for unverified clients. After submitting your details, this level will be increased to £1,000. These levels are set as an anti money laundering (AML) measure.
It should be quite obvious by now, that margin trading is now available at Cryptomate. However one can always transfer her cryptocurrency to a different exchange, like OKEX if speculative trading is the main goal.
That being said, some forex brokers also offer ceyptocurrency CFDs. As an example, the industry-leading UK broker and spread betting provider IG currently has Bitcoin and Ethereum trading. The margin requirements for the two are 7.5%, meaning an effective leverage ratio of 1:13.
Cryptomate does not disclose the exact fees, which it charges. User reports claim around 7%. Our manual calculations, which may be a bit faulty revealed a similar, if not slightly worse situation. While these fees are not unheard of, given what the company offers, there are slightly cheaper alternatives. However most of them do not support the Pound as a direct payment currency, with CoinCorner being the major exception.
The forex brokers, offering cryptocurrency trading usually do not charge a deposit fee. When you start trading your costs will be included in the spread. However, when trading CFDs you do not get ownership of the actual coins. As we mentioned previously, this is suitable for short-term speculative trading, but for a full comparison be sure to check out our detailed explanation.
You have to give them a few details and most importantly, the wallet to which you would like your newly acquired coins to be sent. The information provided on the left side will be useful for newbies in the space.
Methods of payment
As we mentioned in the beginning, in order to present the service, only UK bank transfers are accepted at Cryptomate. While this guarantees fast executions, due to the FPS, it obviously prevents non-British clients to use the service. Adding an option like Skrill, would open the company to a world-wide client-base.
CryptoMate Review – is it scam or safe? Conclusion
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