LakeBTC Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team
LakeBTC Review – is it scam or safe?
LakeBTC provides a cryptocurrency exchange, but more importantly, allows clients to deposit fiat currencies by a lot of methods. While you can actively trade on the platform, this company is more suitable for beginners, as the trading platform is not impressive. In essence this is a competitor to CoinCorner, Bitpanda and Coinbase.
LakeBTC was founded in 2013, with Bitcoin being its main focus. Nowadays the company behind this exchange is known as Lake Banking Technology Company, which is also involved in other projects. The official website does not provide information on the base of operations, but multiple sources link the exchange to China. That being said the company appears to be behind the competition in some regards, with the main focus being accepting multiple payment methods.
We feel the need to point-out the obvious – since LakeBTC is based in China, there is a possibility the company will be affected by future regulation. Beijing authorities have taken measures regarding exchanges and ICOs in the past and while some of them were later eased, the threat is still very serious.
Once you log in to LakeBTC, you have to add different sub-accounts (wallets for your cryptocurrencies as well as accounts for your fiat money). If you decide to deposit “traditional money”, you will only have the option to withdraw them from the same method you have initially transferred them. Obviously this is an anti-money laundering procedure.
Despite operating for a (relatively) long period of time LakeBTC has not been hacked yet. While in the world of traditional financial services, we focus a lot more heavily on the importance of financial regulation, the crypto-verse is currently not overseen in most jurisdictions. Companies have to earn the trust of their clients by standing the test of time. That being said, you always carry some counterparty risk (the risk of not being paid), when dealing with crypto-exchanges.
The recent user reviews on LakeBTC have a common theme – incredibly slow withdraw times, sometimes exceeding 30 days. This only applies to cashing-out via fiat currencies, while crypto-transfers are still instant.
Trading instruments (cryptocurrencies)
LakeBTC currently only supports three of the major cryptocurrencies – BTC, ETH and LTC. Additionally a lot of fiat currencies are available. While their number exceeds 20, the trading volumes in some pairs will be light.
Margin trading is one of the features not available at LakeBTC. As mentioned above, this is a company primarily oriented towards beginners in the cryptocurrency space. Allowing inexperienced traders to “gear-up” in such a volatile and dynamic market as cryptocurrencies is not a good idea. If you still want to trade with leverage, OKEX or Kraken are potential alternatives.
The trading fees at LakeBTC are relatively competitive for the current environment. The rate for those providing liquidity (“market makers”) is 0.12%, while market “takers” pay a maximum of 0.20%. The latter is decreased with trading volume, but the levels are fairly high for most traders. The offers given at other exchanges vary, with 0.25% being among the higher levels.
On the other hand, the forex brokers who offer Bitcoin or Ethereum trading do this via CFDs. This facilitates price speculation, without actual ownership of the coins involved. The costs of trading with such products are usually included in the spread. If you want to learn more about the differences between the two services visit our detailed explanation page.
LakeTrader is the actual trading platform provided by LakeBTC. The fact it is a web-based tool will not surprise those of you who are familiar with these cryptocurrency space. The charting package is provided by TradingView, which is always nice. Here is a preview of the platform:
While the charts are very functional, the rest of the platform felt somewhat slow. The order-book (on the right side) is arranged vertically. This may be frustrating for experienced traders, but more importantly the entire bid/ask rows seem to refresh in a single animation. Despite providing a neat visual effect, this becomes annoying after the a couple of minutes.
Overall, the platform offered by LakeBTC is nothing special – it gets the job done, but barely. Exchanges like Bitstamp and Bittrex provide much better solutions, in out opinion.
Methods of payment
LakeBTC’s main strength is the variety of payment methods supported by the company. They include: Bank Transfers, PayPal, Skrill, Neteller, OK Pay, Perfect Money, Payza, Leupay, CHATS, LakePay and even solutions such as Western Union and MoneyGram. After seeing all of these options, the lack of Credit/Debit Card support is rather strange.
LakeBTC Review – is it scam or safe? Conclusion
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