With the recent turmoil in the digital asset space, fears about storing funds in centralized exchanges are once again dominating the crypto landscape.
Centralized crypto exchanges (CEXs) are facing heightened scrutiny as many holders and traders are calling for greater transparency around how user funds are being handled.
Going forward, one factor will become central when determining the safety of a crypto exchange: Are exchanges utilizing user funds for financial and/or commercial purposes like traditional banks do with their fractional reserve system?
Established in 2013, CEX.IO is a regulated global cryptocurrency exchange that never touches its user funds, nor does it trade against its users.
Having passed the test of time by surviving multiple bear markets, CEX.IO holds a Money Services Business status with FinCEN in 48 U.S. states.
CEX.IO empowers users to buy, sell, earn, and borrow crypto and fiat currencies through an intuitive, industry leading suite of products and services.
In this article, we will explore the CEX.IO platform and discuss whether CEX.IO is legit.
There are currently over 140 different cryptocurrencies listed on the CEX.IO Exchange, including major assets like Bitcoin, Ethereum, and Tether, to recently popular ones like Dogecoin, Polygon, and Chiliz.
The total number of trading pairs on CEX.IO add up to over 270 and counting.
View of the CEX.IO Exchange on a web browser.
View of the Exchange on the CEX.IO Exchange App.
CEX.IO offers some of the lowest trading fees in the market when users generate a limit order (maker order) volume of over $100,000 per month.
While their standard fees are 0.15% for maker orders and 0.25% for taker orders, fees drop in tiers as monthly trading volumes increase. In fact, they drop to as low as 0% for maker orders and 0.1% for taker orders if individuals or institutions generate a volume of $10 million per month.
CEX.IO’s trading fees are usually superior to its major competitors, like Coinbase, Binance, Crypto.com, and Gemini. The table below is a comparison of trading fees sorted by increasing monthly trade volumes for both maker and taker orders:
For a complete and detailed breakdown of the fee schedule at CEX.IO, including deposit and withdrawal fees, please visit this link – https://cex.io/fee-schedule
Further views of the CEX.IO Exchange.
View of Trade Pro on the CEX.IO Exchange App.
CEX.IO offers a plethora of funding options available with an exchange account.
The fastest way to deposit funds is to link a Visa or Mastercard credit or debit card to a CEX.IO account.
In addition to cards, CEX.IO users located in Europe can deposit fiat funds with SEPA transfers. Customers around the world can make bank transfers using methods that include ACH transfers for U.S. banks, Faster Payments transfers for U.K. banks, and SWIFT transfers for anywhere else around the world.
Funding methods on CEX.IO are not limited to traditional intermediaries, as the site and its products are fully integrated with Google Pay, Apple Pay, and PayPal, and online wallet applications like Skrill and Epay.
There are no deposit limits for card payments, SEPA, ACH, and SWIFT transfers, while the daily funding limit is $100,000 for domestic wire transfers and £250,000 for Faster Payments transfers.
Digital funding platforms also have a daily deposit limit of $1,000 for PayPal, GooglePay, and ApplePay transfers.
Button: Take me to the CEX.IO Exchange
Button: Download CEX.IO Exchange App
CEX.IO offers a fast and efficient method for purchasing cryptocurrencies through its Instant Buy function available on both web browsers and through the CEX.IO Exchange App.
Instant Buy allows users to instantly buy crypto from several predefined amounts when they add a credit or debit card as a payment method.
View of the Instant Buy page on the CEX.IO website.
View of the Instant Buy function on the CEX.IO Exchange App.
Button: Instant Buy crypto at CEX.IO
The CEX.IO Exchange App is a custodial software wallet that can store over 140 cryptocurrency assets. It maintains the custody of user funds by keeping private keys in highly protected storage.
With the CEX.IO Exchange App, users can track their CEX.IO accounts, buy and sell assets with a few clicks, and make transfers in and out of their accounts.
For more information on the CEX.IO Exchange App, click the link below.
Button: Download CEX.IO Exchange App
CEX.IO provides staking services that dispense flexible staking rewards for eligible cryptocurrencies.
Users can deposit stakeable crypto into their CEX.IO account, or purchase assets through the Exchange to immediately begin earning rewards.
Flexible staking is available on CEX.IO for 14 different cryptos with annual reward rates typically ranging between 2.6% and 18%.
CEX.IO offers some of the highest staking rewards for Kava (KAVA), Zilliqa (ZIL), and Polkadot (DOT) at 18%, 11%, and 10% estimated annual yield (EAY), respectively.
For a full list of stakeable cryptocurrencies and their estimated reward rates, check out the CEX.IO Staking page.
To provide maximum protection for its users, CEX.IO never deploys customer funds for internal cash flow management nor trades funds against its users.
In addition, CEX.IO stores 98% of customer funds in offline cold wallets.
On CEX.IO, 100% of customer funds in major cryptocurrencies like Bitcoin, Ethereum, BNB Coin, and Tether are stored in cold wallets. For recently listed altcoins, the ratio of funds stored in cold wallets is close to 100%.
To add an extra layer of safety, no automation is used for transfers between wallets. In turn, manual processes have long been established at the core of CEX.IO’s cold wallet operations.
Security measures for cold wallets involve the manual processes below:
- Multiple signatures: CEX.IO’s “Multiple Controls” principle is implemented as a multi-signature process for cold wallets. An authorized person can initiate a transaction, but confirmations from multiple authorized people are required to finalize a transaction.
- Address whitelisting: Funds from cold wallets can only be transferred to whitelisted CEX.IO hot wallet addresses, and only after the reconciliation of all balances. With this feature, hackers cannot withdraw funds in cold wallets to an unauthorized wallet.
Since a hot wallet is always connected to the internet, it is inherently riskier to use than a cold wallet. Because of this, only a tiny portion of the assets held by CEX.IO are kept in hot storage.
Funds held in hot wallets are usually the company’s own funds used to facilitate active transactions on the exchange. After a transaction is finalized, the settled amount is automatically debited or credited to the user’s individual account, which is kept in cold storage.
On the other hand, client deposits from other platforms are moved to cold wallets daily, so that only funds that belong to CEX.IO remain in hot wallets at the end of every day.
Below are the security standards for CEX.IO’s hot wallets:
- Finance and compliance controls: Per CEX.IO’s “Multiple Controls” principle, every transaction that involves a hot wallet undergoes a separate check from both the Compliance and Finance departments.
- Security for data storage and handling: For its hot wallets, CEX.IO enforces top security standards adopted by credit and debit card providers – PCI DSS Level 1– and regular audits ensure compliance elements associated with this standard.
User fiat funds are stored in separate bank savings accounts held by CEX.IO. This means that only CEX.IO customers can have a claim on those funds.
CEX.IO is a regulated financial entity that holds Money Services Business status with FinCEN in 48 U.S. states.
Since it is a regulated exchange, CEX.IO holds a mandatory KYC/AML process for every user it serves.
Additionally, CEX.IO has built a proprietary set of rules, called the “Expert System”, which continuously monitors all digital asset transactions for irregular activities. Whenever odd behaviors are identified on the CEX.IO Exchange, alerts go out to the Compliance and Finance teams to review suspicious activity.
CEX.IO’s commitment to compliance and safety is recognized by the industry’s leading authorities.
Below are some of the awards and recognitions that CEX.IO has received to date:
- “Most Trusted Crypto Exchange and Most Secured Trading Platform” by International Business Magazine.
- “Top 10 Safest Cryptocurrency Exchanges” by CryptoCompare.
- “AA” grade by Kaiko Exchange Ranking Score.
- “Top 20 Best Global Crypto Exchanges” by Forbes.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.