One of the greatest considerations cryptocurrency traders have to make is deciding on an exchange to use for trading. While it might seem simple, there are a lot of factors that come into play. Regulations, history, and market standing of the exchange contribute to the decision of investors.
One of the biggest concerns is the fees of buying and withdrawing Cryptocurrencies from an exchange. Also, many exchanges today are providing additional products such as Lending and Staking, which might add to investor’s appetite. In a nutshell, the latest development implies that an individual should go for an exchange that not only provides excellent service but also take security into account.
Making a wrong decision can make you suffer from huge losses such as what happened with Cryptopia, and often the victims of such cases earn no reimbursements. Although the option to hold your coin in exchange exists, it is not always secure.
Among all this, Bithumb stands as a reputable and fast Cryptocurrency exchange with over $100 million trading volume each week. Let’s delve into its transaction fees, product characteristics, and trading pairs offered. The review provides an understanding of how secure the exchange is to help investors determine whether or not to use the exchange.
What is Bithumb
Bithumb is one of the most popular crypto exchanges with its main office in Seoul, South Korea. Based in a country with a vast number of cryptocurrency users, it accounts for a substantial proportion of regular purchases in Bitcoin and Altcoin.
Bithumb was established in 2013 and is an old player in the game, offering users a variety of ways to have a stake in Cryptocurrencies. Bithumb has another unique feature, which is that it provides two types of accounts that are Corporate and Personal.
To login to the platform, Bithumb requires an email address and a password. However, it also has additional security features, which include username, phone number, 2FA, and a security key for logging in.
Although the exchange is reputable, the main concern for many investors is that it allows fiat deposit in only the local currency of South Korea. Furthermore, no Bitcoin-Ethereum pairing is currently available. In the future, this might change, but it should be noted as a problematic situation for many investors.
Bithumb has a KYC process, which you must go through before conducting any exchange or deposit to the exchange. The process requires submitting a digital copy of your government-issued IDs and additional records.
Bithumb offers investors the opportunity to purchase Dash, Ethereum, Litecoin, Bitcoin Classic, Ethereum Classic, Bitcoin Cash Ripple, Monero, Zcash, Cardano, and Bitcoin Gold.
Pros of Bithumb
Bithumb provides excellent customer service support in multiple languages and has fast servers to save user’s from stress during high trading activity. Its support services are among the top-notch, and they reply to queries within one working day. Bithumb’s excellent customer service is something to be noted for those individuals who usually need support while getting started.
Besides, Bithumb gives users access to most of the large Cryptocurrencies. With low trading fees, it is an ideal combination for people who are used to day trading. Furthermore, the best thing about Bithumb is its UI and simple to use platform. The exchange is also famous for its fiat to Crypto gateway and allows users to engage in trades more efficiently than other exchanges. It is also regulated and abides by the AML and KYC laws while ensuring the highest possible security of funds.
Cons of Bithumb
Before you start, you should know that Bithumb has some negative traits. Firstly, it’s popular only in South Korea, and you can not deposit any other fiat except South Korean Won. In other words, fiat currency transactions are only available for the users of South Korea, which makes it not a good option for international investors.
Secondly, the primary language on the exchange is not English, which becomes a source of serious concern for many traders. Although it supports a variety of languages, it is still difficult for users to get around the exchange. Another factor you should consider is trading pairs, which are limited to Cryptocurrency and fiat. As of now, the exchange doesn’t support Crypto to Crypto exchange on any of its listed currencies.
The trading fee at the exchange is 0.15% of the total amount you are buying or selling. Additionally, there are also withdrawal fees, which vary depending on the coin you are withdrawing.
Is Bithumb Recommend?
Bithumb seems to be a service targeted mainly for Koreans because, at the end of the day, the platform’s functionality and offerings are geared towards Korean clients. Also, the company’s image was tarnished after a hacking attack in 2017 due to which it suffered a significant hit. Although it has some of the best features, we still do not recommend it for traders residing outside South Korea.
Bithumb’s excellent customer care services, along with low service charges, make it an excellent option for most users. The platform is continuously improving its already friendly user interface along with the trading opportunities, but the traders looking for a wide variety of coins might not show much interest in the platform. Furthermore, some traders might find the platform highly oriented towards the South Korean market, which can be exasperating at times. In conclusion, Bithumb is a good exchange if you are in South Korea, but beyond that, you would probably need to consider other options. Besides, if trading seems risky, it is always a good idea to invest in lending platforms such as Crypto.com.