KorBit explained by professional Forex trading experts the “ForexSQ” FX trading team.
KorBit was the first Korean cryptocurrency exchange to offer BTC/KRW trading. They are an entry-level service (i.e. accept fiat currencies) but also offer a decent trading platform. The company is still one of the top-rated exchanges in the country, which drives relatively high trading volumes.
Competitive fees – The trading fees at KorBit are divided into the “maker” and “taker” category. Market makers are the traders who place a new entry in the order book, while takers are those who enter at the best available price. The fees at KorBit start from 0.08% and 0.20%, respectively. They can go even lower if you trade with bigger volumes.
Cold storage – KorBit claims a majority of the coins they keep are kept in cold storage. This is a measure, applied by a lot of companies and drastically increases the security of wallets.
Several altcoins featured – There are some alternative coins available at KorBit, but this is by no means the main benefit of the exchange (as is the case with Poloniex or Bittrex). The full list currently includes: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Calassic, Ripple, Litecoin, Dash, Zcash, Monero, Augur and Steem. They are all traded against KWR.
KRW bank transfers accepted – Bank transfers from Korean banks are accepted at KorBit. More importantly, the company does not charge fees on any incoming transactions (although the banks involved in the process will).
Credit cards are a much more preferable option for some users, although the commissions involved in the process can be pretty harsh. As an example Bitsatmp charges 8% on such transactions.
Positive user feedback – While the non-Korean reviews of this exchange are relatively few in number, they are all positive. The company seems to operating legitimately, and with the competitive fee structure, most customers should be happy.
Nice trading platform – The web-based platform delivered by KorBit looks solid. Charting is provided by TradingView, which is always nice. Additionally the order book and tape (trading history), which are located below the chart also seem well-designed. Her is how they look:
BTC/KRW chart. While the default template is simplistic it can easily be changed via the TradingView package.
The easy to read order book and tape.
Focus on Korea – The issue, which a lot of locally focused exchanges have is also present at KorBit. They accept only Korean bank transfers and likely require such an account for the verification of your main trading account. The presentation in English, while not terrible is also not ideal.
Trading against KWR – All of the trading activity at KorBit is done against the Korean Won (KWR). This may seem nice for local clients, but limits their ability for currency diversification and the option of quickly converting one coin into another.
Withdrawal fees – KorBit applies fees on withdrawals. They may not seem significant, but especially the ones imposed on blockchain transfers are annoying. Here is the list which also states all deposits are free of charge:
No leverage provided – Margin trading isn’t supported by KorBit, which isn’t that big of a flaw. Cryptocurrencies are so volatile, that most traders don’t have the need to further increase the risks they are exposed to. For those of you who are willing to take even more aggressive steps, we must will recommend trading with as forex broker.
That being said, we must also underline the fact this style of trading is not suitable for long term investing. Trading with such brokers is done via the so called CFDs and is very different from going through a crypto-exchange. Read all of the important points here.