About CoinExchange

Presenting as a very simple site, Coinexchange is nonetheless detailed in its online offer and traders have patronized the site by the thousands to swap altcoins. That said, absent company details and user complaints have long plagued the company’s credibility.

Particularly in the case of a currency exchange, a fixed address, portfolio of team members and proof of all licensing should be readily available to users, yet Coinexchange’s founder(s) and location remain a mystery to this day. Alongside a hefty slice of user complaints centered on funds simply being “lost,” particularly newcomers to the cryptocurrency space are advised to exercise extreme caution when employing the platform.

Coinexchange doesn’t take fiat payments via credit card, wire transfer or any other legacy banking methodology. Instead, the company positions itself as built for users who already hold digital coins in a wallet. For new entrants seeking to buy Bitcoin or others with USD and other fiat currencies, Coinexchange won’t be a good starting point.

Apparently completely unregulated, two-step authentication is a small comfort as a security protocol, although trading is completely anonymous. Adopting a high-volume-low-margin approach as a business model, Coinexchange has sophisticated AI running in the background to tally current pair prices, while keeping the UI simple, uncluttered and straightforward.

Along with API trading, the company also offers a “Bug Bounty.” Far more typical of the gaming arena and unusual for a digital exchange, users who report bugs, glitches or loopholes on the platform are paid a fixer’s fee by Coinexchange. Partly clever cost-saving and partly good housekeeping, the offer does entice feedback from the technically-minded.

Why The CoinExchange Mystery?

Any halfway intelligent company would have built a detailed site by now, listing all relevant corporation details and place(s) of residence in response to the persistent complaints over lost funds and a lack of company identity and transparency.

Remarkably, even the company’s Facebook page looks more like the supporting component of a scam than anything else. Company details are notably absent here too. At the very least, the modern cryptocurrency investor usually wants to know about an exchange’s country of origin and team members. Quite bizarrely for the fintech realm, none of these details are available with Coinexchange.

A further and serious red flag for any prospective user is that existing user comments point to persistent suspicions of the exchange having alternative, hidden agendas as a market maker. These allegations state that the company has amassed many disgruntled users on the back of “messy” transactions that either delay funds or see them evaporate entirely. Particularly against this backdrop, and with the stated aim of becoming “a pillar in the online cryptocurrency marketplace,” any currency exchange that isn’t copious on team and other details either lacks the savvy or has something to hide.

The company is ostensibly unregulated – they say nothing of any such matters even on their detailed Support page of FAQs – and this unfortunately already means that they represent old-era (read: negative press) crypto cowboyism. While Coinexchange has built an impressive trading floor and supports some coins that are largely unavailable elsewhere, their secrecy has likely kept bigger hitters off the exchange to date.

CoinExchange In A Nutshell

Coinexchange works strictly with cryptocurrencies, which means users should leave their fiat currencies behind when entering the site to trade. There is mixed debate on whether the ease of use that sees anyone able to log on and trade on Coinexchange combined with the absence of KYC or AML legislation that accompanies fiat currencies is a good or bad thing. Users seem divided on whether anonymity or security should prevail on the exchange, although the developers seem sure of their stance.

Once a user has converted their fiat into digital currency, they can log in and transact on Coinexchange. There they will find hundreds of altcoin trading pairs open for trade. The site is less informative than others and no sense of “live” trading is generated for users. Although detailed, the base offer is a rather blunt DIY trading platform that allows users to swap out digital currencies. There is no leverage available in trades, and the platform is simply a conversion table for users trading coins.

Coinexchange finds competition in outfits like Bittrex and others, and if one can forget for a moment about the glaring omissions in the company identity, compares favorably with others in terms of the diversity of altcoins on offer.

Client service is another dark horse and social media forums host more than the average amount of complaints against the company. Support appears slow and terminally so at times, with an alarming number of “minor” amounts lost in trades and user deposits, never to be seen again.

CoinExchange Problems

A casual glance at Coinexchange’s offered altcoins will tell any experienced crypto enthusiast that the company is not applying tremendously conservative filters before adding coin offers. Again a good reason for newbies to steer clear, pump-and-dump coins slip through the net and endemic system bugs don’t help matters either. Current bugs include the worst possible results – delayed transactions and lost funds.

As further fuel to propel Coinexchange into obscurity, their Twitter page was also suspended (on the same day as Kraken had their page suspended) although the company remains in the dark as to the reasons why. This incident can be easily filed along with other regulatory teething problems, one hopes.

With an ambitious list of stated development and improvement goals on the website, even this copy presents as minimal marketing fluff required to fill space and present legitimately.

Accusations of being a market manipulator or enabling such manipulation remain string after a closer look at a few statistics.

  • Spot trading is a valuable facility for many, and here the company is most enabling. That said, with competitive fees of around 0.15 percent on buying and selling and no deposit fees or other admin costs, facing the possibility of losing all funds in a botched transaction renders these benefits null and void.
  • In comparison to other established digital exchanges, Coinexchange lacks many charting and other intel sources, although some are available onsite. The overall feel, however, is that of interlopers, whereas other exchanges typically overload users with protocol details and trading intel support.
  • Faced with a dazzling array of coins and a theoretically quick and easy method of trade, the exchange still displays comparatively low trading volumes. Other missing small features like individual wallet balance displays and the absence of any iOS or Android app also niggle.

CoinExchange Conclusion

Sleek and fast in many ways, yet evasive, slipshod and potentially untrustworthy because of it, the barrage of claims by users of outright theft of funds remains a worrying aspect of the company’s history. It remains unclear whether the substandard customer support is being upgraded and enthused with genuine care, but some cases would remain troubling.

In the current era where Bitcoin and others seek legitimacy and mainstreaming in order to grow and one day rule the world, crypto outfits like Coinexchange [coinexchange.io] do little to further credibility. Rather, they tarnish the industry’s standing, warning off traditional investors and the crypto-using public, slowing adoption.

All told, there are no publicized security breaches that have plagued the exchange, just the unacceptably vague company origins and persistent complaints of missing funds by users. While many can be attributed to phishing corruption or other user errors, some remain remarkably troubling and still unresolved. Indeed, even a casual reading of chat rooms shows that support is woefully inadequate on critical issues.

Although a detailed site in terms of coins offered and real-time prices, it unfortunately cannot be recommended to anyone, especially in the face of growing and more competent competition.

Written by MyBitcoin Team Staff

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