It is, of course, no secret to those involved in the industry and others who are enthusiastic about cryptocurrency that crypto exchanges up until now lack being regulated.
This, unfortunately, as much as gives a wider margin to them to work, it also on the other hand opens the way to scam and risky dealing, in the shade of absence of a clear, straightforward law labels to regulate that business and chase those who run such exchanges when they fail to meet the compliance labels. Hence, most traders feel insecure in their trading, having concerns about whether they are opening their accounts with the right exchange or not.
For the above-mentioned reasons, and since we are leading veterans in the cryptocurrency market, its exchanges and pertinent type of business, at AtoZMarkets, such exchanges are usually given a rigorous eye for study from the senior management to junior editors, before introducing interviews about them to our readers.
This comes from our high appreciation to the trust our readers put on us, which we exchange with our commitment to our honor in the market. In this review, we talk about Bithumb. We will analyze one of the top 5 cryptocurrency exchanges.
Since traders have parted in two teams for this cryptocurrency exchange between with and against, here we are trying to answer the main question - "Is Bithumb scam or reliable? Can I trust Bithumb?
As a reminder, at AtoZMarkets, Cryptocurrency exchange reviews are not sponsored and they are personal opinions by the authors. If you are a trader, or investor and you want to share your opinion, please refer to our comments section below this review. Meanwhile, if you are from Bithumb and you would like to add comments please contact AtoZMarkets editorial team, though, we don't promise changing our opinion.
The South Korean Seoul-based cryptocurrency exchange; Bithumb is one of the world’s largest. According to CoinMarketCap.com, the exchange is holding more than 75 percent of the country’s Bitcoin market volume and about 10 percent of the global trade.
Since it was established in 2013, the exchange is managed by a firm named BTC Korea.Com Co. Ltd. While the platform caters mostly to clients from Korea, Bithumb offers them the opportunity to trade 15 major digital coins that are paired with the South Korean Won (KRW).
Buthumb offers iOS and Android mobile trading apps in addition to services like remittances and gift vouchers. Back in March 2018, the exchange announced plans to set up kiosks in restaurants and cafes across South Korea, providing customers with the option to pay for their food orders with cryptos.
This is one of the most important things to find out before depositing your hard-earned money on to a third-party exchange. So, is Bithumb safe and secured?
In mid-2017, Bithumb reported that their servers were hacked. The personal information of more than 30,000 customers was accessed by the hackers. This resulted in a loss of approximately 100 billion Won, which was about $94 million at the time.
However, Bithumb team refunded customers that were affected up to a maximum of $900. While the exchange has not suffered any hacks since, it is worth researching the security features this platform has to offer before deciding whether or not to register.
Since regulation is slightly stronger in South Korea, crypto exchanges are saddled with the responsibility of ensuring that customer's funds are kept safe.
As you may have noticed from the sign up instructions mentioned above, you see that you are required to provide full and complete personal information to ensure that only one trading account can be opened for an individual, while restricting anonymous trading.
It is also worthy of note that Bithumb allows you to set up two-factor authentication. This means that every time you attempt to withdraw your funds, you'll be required to enter a code that is sent to your phone number. To further protect your personal information from hackers, the website uses SSL encryption technology coupled with its 24/7 monitoring of servers.
From the foregoing, Bithumb has put in place some really good security controls to ensure that your hard-earned money is kept safe. Although no exchange is ever 100 percent safe, Bithumb crypto exchange is one of the most secure.
You may still be wondering whether the exchange is reliable or a scam. But if you have carefully read the review from start to finish, you'll notice that the exchange complies with the Korean regulations in the sign-up process.
We also mentioned that the FSC is keeping an eye on Bithumb exchange and the currency that flows through the banks in order to safeguard inexperienced investors.
All-in-all, Bithumb is safe and reliable especially if you are from that region. If not, we suggest looking for a crypto exchange closer to you.
Liquidity is something that's very important for all exchanges and Bithumb being one of the world's biggest cryptocurrency exchanges suggest that it offers high liquidity due to its popularity.
Bithumb Trading Fees
As for the fees at Bithumb, the basic commission for trading is 0.15 percent for both maker and taker fee per transaction. Meanwhile, the exchange charges 0% or a maximum of 0.75% if you have one of their discounted fixed-amount coupons.
These coupons can be purchased from their website and it allows users to access lower commissions which is way cheaper when compared to most western exchange websites today.
Bithumb Deposit Fees
Before signing up with a crypto exchange, it is always very important to find out what payment methods they offer as they might not have the option you are looking for. The good news is that Bithumb provides the option to make a deposit via fiat currency. This option, however, is only available to South Korean residents using KRW!
Once you have deposited KRW into your account, the transaction will approximately take 30 - 45 minutes for the funds to be reflected in your Bithumb wallet.
If you are reading this Bithumb review and you live outside South Korea, don’t worry. Alternatively, you can also make a deposit using cryptocurrencies instead and yes, deposit fees in KRW or cryptocurrencies are free of charge.
While Bithumb is not specifically regulated, it is subject, like all other platforms operating from within the country, to some legal oversight from the South Korean Financial Services Commission (FSC). In addition, the exchange is subjected to on-site inspections by the representatives of Korean Fair Trade Commission (KFTC), the National Tax Service (Korean IRS) as well as the police.
User Interface (UI)
Bithumb trading platform has a user-friendly interface when compared to other cryptocurrencies exchanges. As the screenshot below shows, the platform is excellent in that there is no lag when switching between tabs, or when placing your orders.
While Bithumb offers up to 51 different cryptocurrencies, you can make a trade you simply choosing the cryptocurrency you are interested in and then enter the amount you want to buy or sell. On the right hand side of the screen is the order book, indicating what the current sell and buy levels are.
Bithumb Withdrawal Fees
While the deposit is free of charge, withdrawing your cryptocurrencies out of Bithumb is with a fee, depending on the type of coin you are looking to withdraw to your personal wallet. For example, Ethereum, Dash, Litecoin, Ethereum Classic and ripple, costs 0.01. For Bitcoin, it’s at 0.0005 per transaction.
One of the key features of Bithumb is their customer support service which makes it possible for their valued clients to get in touch with their 24-hour customer help team, available 7 days a week. To overcome the language barrier, Bithumb international customer support line provides multilingual assistance.
In addition, customers can make inquiries from the team via email or access live online support through their trading account. On their official website, the exchange maintains a small database of FAQs along with the satisfying answers.