14 April 2021
CEX.IO began in 2013 in London and at first operated both as a Bitcoin exchange and cloud mining service. At one point its mining pool, which is known as Ghash.io, was one of the largest on the Bitcoin network, holding almost 42% of total mining power of the Bitcoin network.
But in January 2015 the website closed its mining services which means that it now operates solely as a cryptocurrency exchange, they support several different digital assets to buy and sell such as Bitcoin, Bitcoin Cash, Ethereum, ZCash, Dash with credit or debit cards instantly. The CEX platform offers cross-platform trading on their website and mobile app - which you can download on Android and iOS.
CEX is one of the most popular cryptocurrency exchanges that is out there. The main reasons for been so popular are that its website provides users with a very easy to use interface, making it great place for beginners to start with cryptocurrency exchanges. It also provides a multi-level account system that is customizable and suitable for both Bitcoin beginners and institutional traders.
CEX.io also provides users with protection under a level two DSS certificate. This means it has proved itself as having a certain level of security to store, process, and transmit payment card data, which makes it safer to use.
How to Register on CEX
CEX is a private limited company in the UK and is registered with the ICO in the UK and with FINCEN in the US. It applies KYC (know your customer) and AML (anti-money laundering) policies, which will require a user to verify their details with CEX upon registration. This verification involves providing CEX with an email address, telephone number, setting up a password and then, verifying both the telephone number and the email address. CEX provides a two-factor authentication system, using either SMS, automated phone call or through the Google Authenticator app.
CEX accepts VISA, MasterCard or virtual credit cards. Once you are registered and have verified your identity with CEX, users can buy Bitcoin or Ethereum using a credit or debit card, a wire transfer or, if they are living in the EU a SEPA transfer can be used. It will be simple for you to add your credit card or debit card to your account.
Credit and debit card verification can take up to 48 hours but, once completed, you can purchase Bitcoin and Ethereum instantly through your CEX account. Card verification requires users to take a selfie with their credit card, with the photo including a clear image of the user’s face with the credit / debit card that will be used on CEX.
This photo should be of high quality, and the file size should be no more than 15MB. You will have to take a selfie again if the quality of the selfie isn’t good enough for the CEX compliance officer so make sure its good quality, it will save you time.
CEX does not disclose which external agencies they use to verify users’ identification. However, they do state that user ID’s and credit card details are stored for at least five years after accounts are deleted. Once credit cards details are submitted, CEX submit a small verification charge to the credit or debit card. In order to verify the card, users are required to enter the exact amount of this charge in USD. This charge is automatically refunded to users after verification is complete.
Users can also transfer funds by bank transfer. CEX currently accepts US dollars, Euros and Rubles. Fees for bank transfers in USD / EUR are a flat rate of $/€ 10.
CEX.IO explains clearly how its service works, read below the following summary of how to purchase cryptocurrency through the platform:
Once a trade is entered, CEX calculates the price of the trade and freezes that price for two minutes. Users then input how much (in fiat currency) Bitcoin or Ethereum they want to purchase at that price and are shown how much cryptocurrency they will receive. Once the user have pressed the Buy / Sell button, the CEX system will check the user’s account to ensure that they have the funds to complete the transaction.
Once this process has been completed, CEX will complete the transaction, provided that the order can be fulfilled on conditions not worse than those agreed on. Therefore, if the market has gone down, the trade will continue at the more favourable rate. However, if the exchange rate has spiked in the intervening period since the trade is entered, the transaction will not be executed and the user will be notified.
CEX charges 3.5% plus $0.25 / £0.20 fees for credit card deposits to user’s accounts. Credit card purchases should be processed instantly once the card is verified. A small almount of users have complained that these additional fees amount to ‘hidden charges’.
But CEX states their reason for this premium is to ensure that they will always be able to fulfil their orders, as they operate on a different to most other exchanges in that they will fulfil orders at the offered rate with no exceptions (otherwise known as Fill-or-Kill orders). Their is a advantage for this format and that is users will be guaranteed that they will receive whatever has been agreed immediately and in full.
Also, CEX charges a 7% service charge, which is included in the price of the cryptocurrency being offered on the exchange. But this service charge is only applicable when users are purchasing directly from CEX. If a user is availing of the trading services, different fees are applicable.
The basic fees for trades made on the CEX platform start at just 0.2%. However, higher fees are applicable if using credit or debit cards or making withdrawals to bank accounts.CEX’s exchange rates are within the mid-market rate, and is reasonable compared with other cryptocurrency exchanges
The minimum purchase amount for Bitcoin is 0.01 BTC, with the max set at 10 BTC. CEX offers users a range of different accounts, each of which provide different transaction limits. Upgrades can be a long process, but subsequent purchases with verified accounts are much quicker. The range of accounts available read below:
Basic: Users with basic accounts can purchase up to $500 of Bitcoin or Ethereum per day, up to a maximum of $2,000 per month. In order to obtain a basic account, a copy of an official government issued ID will be needed.
Verified: Verified account holders can purchase up to $10,000 of Bitcoin or Ethereum per day, up to a maximum of $100,000 per month. In order to become verified, users will need to supply an official government ID as well but also certain personal information such as proof of residency.
Verified Plus & Corporate: Holders of these accounts have no limitations on the amount of Bitcoin or Ethereum that they can buy or sell.
In terms of withdrawals on CEX, they are one of the few exchanges that allow users to withdraw their funds onto a credit or debit card. There is a withdrawal limit of €2,000 (or equivalent in other currencies) per day per card, up to a maximum of €50,000 per month. This limit is applicable to all VISA and MasterCard payment systems, not just on CEX.
CEX charges a flat rate of $3.80 / £2.90 for credit card withdrawals also an additional 1.2% for MasterCard withdrawals. For bank withdrawals, CEX is can be expensive - flat rate of $50 charged per bank transfer.
For verified customers, CEX offers the user an opportunity to withdraw using "Crypto Capital", which is a private banking fiat capital service based on the blockchain. Withdrawals using Crypto Capital charge only 1% and are the cheapest rates of withdrawal offered by CEX.
Is CEX Safe?
CEX states they use offline cold storage to store users’ funds. The platform offers a two-factor authentication to ensure account protection which ensures that accounts are secure. CEX has suffered at least one hacking incident in 2013 , when the exchange was starting out. The vulnerability was fixed at that time, and there have been no reported security incidents since that time.
CEX operates in most countries worldwide, other than those stated below:
The following countries are restricted for credit card purchases: Iceland, Vietnam, Afghanistan, Algeria, Bahrain, Iraq, Kuwait, Lebanon, Libya, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, and Yemen.
The following countries are restricted from buying with bank transfer: Afghanistan, Democratic Republic of the Congo, Côte d’Ivoire, Eritrea, Ethiopia, Guinea-Bissau, Haiti, Iran, Iraq, Kenya, Liberia, Libya, Guinea, São Tomé and Príncipe, Somalia, Sudan, Syria, Tanzania, Tunisia, Turkey, Vietnam, Yemen, Zimbabwe.
In the USA - CEX is registered in 24 US States, but is NOT supported in the following States: Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Guam, Idaho, Iowa, Kansas, Louisiana, Maryland, Michigan, Mississippi, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Tennessee, Texas, U.S. Virgin Islands, Vermont, Virginia, Washington.
CEX Customer Support
CEX is well-regarded for its customer support, which can not be said about all cryptocurrency exchanges. It offers customer support through email as well as an extensive FAQ section.
CEX has a mixed reputation within the cryptocurrency community because of perceived hidden fees in the service and the difficulties some users have with verifying their identity or customer support issues.
Although their the downsides to CEX. There are many good things, they are a reliable exchange for purchasing and selling Bitcoin and Ethereum. The exchange offers several different trading pairs with multiple fiat currencies. Its user-friendly interface is ideal for beginners starting out in cryptocurrency and It’s cross-platform application makes it easy to keep track of your account.