One of the biggest considerations that a cryptocurrency buyer and trader needs to make is what exchange they want to use to buy their coin.
While it may seem like a simple decision on its face, in reality the choice of cryptocurrency exchange used actually has a huge impact on many things.
This can include what cryptocurrencies you can buy and trade as well as whether or not you can hold the coin there or need a wallet.
Of course, this doesn’t take into account one of the biggest concerns of all: How much does it cost to buy and sell crypto coin on the exchange.
The last consideration has an impact on how much money you make from your investment and this tends to be the largest deciding factor for many traders.
Yet there are other things to keep in mind, as well. The old adage “penny wise but pound foolish” comes to mind here.
In its simplest form, the phrase means that one should not be overly concerned with cost when there are other things to keep in mind such as quality of service and, more importantly, the security of the exchange.
That’s why it is so hard for many cryptocurrency traders and buyers to find a service that is right for them. You could have your coin stolen and there is often little reimbursement for victims of this theft. Naturally, you can hold your coin in a wallet but some people prefer to hold their coin in an exchange, like a bank. For those users security is of the top concern.
In this article we’re going to review Bithumb, a cryptocurrency exchange. We will look over its transaction fees, coin offerings, and general user features. We will also give you some idea of what we think the exchange’s security is like. Hopefully the information in this article can help you make a decision as to whether or not you would like to use Bithumb as an exchange.
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What is Bithumb
Headquartered in Seoul, South Korea, Bithumb is among the most active cryptocurrency exchanges in the whole world. Based in a country that already has a huge installed based of cryptocurrency users, Bithumb accounts for a huge portion of daily transactions in most major cryptocurrencies. Due to its size, Bithumb offers users a ton of different options when it comes to cryptocurrencies they can purchase. Founded in 2013, Bithumb is an old player in the game and, thus, offers users a variety of different ways to connect with the exchange.
Owned and managed by BTC Korea.com Co. Ltd, Bithumb offers web portal as well as iOS and Android access.
Because it is such an active exchange, Bithumb places a premium on security and will make new users jump through a few more hoops to sign up for an account than some other exchanges will. Another unique feature of Bithumb is that it allows for two account levels: Personal and Corporate.
Bithumb requires an email address as well as a unique password to log in to the site. From there, users will need to provide Bithumb with their legal name, nationality, phone number, and a security key.
One of the biggest drawbacks for new users is that Bithumb only allows fiat currency exchanges in South Korea’s won. Also, there is currently no Bitcoin-Ethereum pairing available on the service. This could change in the future, but it is worth noting.
To increase the levels of currency you can exchange, Bithumb has a scaled verification process that users have to go through before they can do that. This could include scanning a driver’s license or additional legal document and sending it to Bithumb. Other options include a utility bill and even a selfie with a passport.
The exchange offers users the opportunity to purchase https://bitcoin.org/en/, Ethereum, Dash, Litecoin, Ethereum Classic, Bitcoin Classic, Ripple, Bitcoin Cash, Monero, Zcash, Qtum, Bitcoin Gold, Cardano, and Status. Bitcoin
Bithumb Fees Structure
In terms of the fees associated with Bithumb, most are in line with their competition. Withdrawal is the equivalent of $USD .92 and other transaction fees are similar. Again, everything is in South Korean won so that is something to remember. Bithumb advertises this as 0.15% trading fees and, for the most part, this is an accurate description.
The main question arises: How do I fund my Bithumb account without holding South Korean won?
How to Fund Bithumb Account
Users have the option of funding their account with other cryptocurrency they already hold. This isn’t the most convenient option but it is one for people who are looking for a new exchange and have some experience trading. Again, Bithumb is an amazing service but it is tailored to South Korean residents.
But once you get over the initial hurdle of funding your account (if you’re not a resident of the Republic of Korea), then Bithumb offers a lot of robust options for traders and newcomers alike.
The service is easy to use and understand and the apps are similarly well made.
Do We Recommend Bithumb?
With all of these positives, why isn’t it easier to recommend Bithumb?
Well, the primary reason is that it is, more or less, a service for Koreans. This doesn’t mean it doesn’t offer robust support for the rest of us, but, at the end of the day, the exchange’s features and options are geared towards that customer base.
Bithumb does maintain a huge FAQ and the customer support is pretty unmatched. Yet users with a long memory might recall that Bithumb, possibly due to its size, is often the target of hacking attacks. The company even admitted to as much in 2017 after suffering a major hit to its platform.
Bithumb: The Pros
Among its positives, Bithumb has amazing customer service support in multiple languages and it is available every hour of every day. That’s not only a rarity in the cryptocurrency world but a true rarity among exchanges. Then again, given its volume of transactions, it is really not surprising that Bithumb has this kind of support available to its customers.
We can see this appealing to people who are new to cryptocurrency trading and aren’t familiar with everything they are doing. For those users that need a helping hand every once in a while, Bithumb’s amazing customer service is something to keep in mind.
On top of that, Bithumb offers users access to most of the major tokens out there and charges some of the lowest fees in the game. For people who do a lot of trading, this is an ideal combination. Not only does Bithumb cut as little into your money as possible but also they give you the most opportunities for investment out there for a major exchange. You won’t find this many coins on offer with Coinbase and Bithumb’s selection is impressive and their fees competitive.
The exchange also allows users to engage in more exotic exchanges than your standard, more simplified exchange. Yet it maintains a user interface that is easy to understand and use. Due to its massive popularity, Bithumb is constantly improving its UI and exchange options. As long as its growth proceeds forward, it is expected that Bithumb’s suite of features will only continue to grow as well.
Bithumb: The Cons
In terms of negatives, however, Bithumb is not short on the list. First, it is targeted towards South Korean users first and everyone else second. Because of this, the only fiat currency transactions available are in South Korean won.
Another issue that creeps up occasionally is language translation errors. Bithumb supports a range of different languages, but translation issues do creep up from time to time. This isn’t a huge deal but, when dealing with financial transactions, it is often best to have the clearest, best translation possible for your users.
For seasoned cryptocurrency traders, Bithumb’s offering of coins might seem more limited than many would like. Really it is an impressive offering for a major exchange but, again, might be more limited for other people. This is something to keep in mind if you’re looking for a new service as well. Bithumb seems primarily targeted at the mid-level cryptocurrency trader. Someone who knows what they are doing but isn’t too hardcore about new coin offerings and more exotic options.
All of this recalls the issue Bithumb had not too long ago with security. This is an issue for new traders and veterans alike. Because it is so easy to lose everything, many users are encouraged to hold their cryptocurrencies in a cold wallet. This is understandable and advisable but simply not doable in all cases. Some users are not sophisticated enough to understand the process while many others worry about losing their investment due to their technical incompetence. An issue that many exchanges keep in the front of their minds, security and the ease of use for the end user are two major, dueling issues that Bithumb does an okay job of addressing.
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