- Is CoinDCX Safe?
- What all features does CoinDCX offers?
- What are the pros and cons of CoinDCX Exchange?
Today, we have brought to you yet another review of growing Indian crypto exchange called CoinDCX. CoinDCX is a Singapore-based company that has a user base predominantly in India (in India, the CoinDCX office is located in Mumbai, Maharashtra). Despite the skepticism of Indian Authorities towards cryptocurrencies, CoinDCX has survived and is growing at a good pace. Though its trading volume is far away from its competitor (i.e. WazirX, read our full review on WazirX here), the exchange can be considered for the features and security it provides to its users.
In this article, we will discuss everything about CoinDCX, from its features and benefits to its limitations. But first thing first, let us understand the foundation and history of the exchange.
CoinDCX was launched on April 7th, 2018 with an aim to provide a user-friendly experience where users can access a wide range of financial products and services backed by industry-leading security processes and insurance protection. CoinDCX is an ISO-certified company that provides decent liquidity with a fast onboarding process in the industry. Further, the exchange partners of CoinDCX are Binance (which is the world’s largest crypto exchange), Huobi, and Okex.
The exchange has just finished its 3rd round of funding in December 2020 with total funds raised worth USD 19.4 Million from companies such as Coinbase Ventures(the investment arm of San Francisco, US-based cryptocurrency trading platform Coinbase), Polychain Capital, Bain Ventures, Bitmex, Mehta Ventures, and Alex Pack, etc.
Now, let us know about the men behind the veil working for CoinDCX.
Founders of CoinDCX Exchange
Sumit Gupta (CEO) – Twitter
Sumit Gupta is the Chief Executive Officer (CEO) and co-founder at CoinDCX. After finishing his graduation and post-graduation from IIT Bombay in India, he joined Sony in Tokyo. He invented India’s first location-based online marketplace (ListUp) which became a multimillion-dollar startup within a year. Sumit is a known name in the Indian Crypto Community.
Neeraj Khandelwal (CTO) – Twitter
Neeraj Khandelwal is the Chief Technology Officer (CTO) and co-founder at CoinDCX. He is an engineer by profession who leads the technical development of all the CoinDCX products. He graduated from IIT Bombay, India in Electrical Engineering in 2012. Under his technical leadership, DCX is exponentially growing across the globe with a variety of crypto instruments available to trade for users.
The CoinDCX team is a good blend of people from the software industry and traditional financial markets. Thus, this team has a good potential to take this exchange to new heights.
Now as we already know about the management team, let us talk about what does this exchange offers in terms of its features.
Features of CoinDCX Exchange
There a number of features that CoinDCX offers. I have tried to consolidate them as follows:
Types of trades offered by CoinDCX
The exchange offers Spot Trading, Margin Trading, and Futures Trading to its users. A margin trade can be levered up to 6X on CoinDCX. However, leverage for a futures contract is allowed up to 20X.
Instant Deposit and Withdrawals (deposit and withdrawal of fiat currency)
The “Insta” feature on CoinDCX allows a user to buy cryptocurrencies with Indian National Rupee (INR). Please note that CoinDCX does not support any fiat currency other than the INR. The minimum buy or sell limit per transaction is INR 1 and the maximum buy or sell limit per transaction is INR 1,00,000.
The lending of cryptocurrencies
“Lend” is a lending platform where users can earn interest through cryptocurrencies that they hold in their CoinDCX account. The user will receive his or her interest in the same cryptocurrency as his or her principal amount. If you lend BTC, the interest you receive will be in BTC.
All the locked cryptocurrencies are stored in geographically distributed cold wallets which are ensured DDoS protection, regular stress testing measures, and multi-signature authentications to ensure cutting-edge security.
There are a number of cryptocurrencies that can be lent through the exchange. For the complete list of such tokens, click here.
A CoinDCX user can stake their cryptocurrencies on the exchange and earn staking rewards on the same. Currently staking feature is available on 7 coins.
Sub Accounts – Manage multiple accounts from one
CoinDCX has sub-accounts that allow you the option to split up your positions. You can create new sub-accounts, switch which sub-account you’re using, and transfer funds between sub-accounts. Therefore, you can create separate accounts for your trading and investing activities.
User Interface and Mobile Application
The trading view of the exchange is very interactive and user-friendly. The view will help you to trade comfortably without any hassles.
The exchange has a mobile application for android and iOS devices to keep the user updated on the go. The app is fully functional and if you enjoy trading on mobile, the app will keep you engaged. There are more than 100K downloads on the app store with an average rating of 4.6.
What are the Transaction Fee and Transaction limit for CoinDCX?
The limit for withdrawal in Fiat currency (INR) is as follows:
|Particulars||KYC user||Non-KYC user|
|Minimum Value||INR 500 per transaction||INR 500 per transaction|
|Maximum Value||INR 500,000 per day||INR 10,000 per day|
The limit for withdrawal in Cryptocurrency is as follows:
|Particulars||KYC user||Non-KYC user|
|Deposit||No Limit||The Maximum (deposit + withdraw) limit is 4 BTC per day|
|Withdrawal||No Limit||The Maximum (deposit + withdraw) limit is 4 BTC per day|
The withdrawal fee is variable depending on the amount and type of cryptocurrencies being withdrawn. For more information on the withdrawal fee, click here.
The trading fee is also variable and is dependant on the club level assigned to you by the exchange. For more information on the trading fee, click here.
How secure is CoinDCX?
CoinDCX is a fairly secure exchange and the core team follows the following principles:
The exchange has uses geographically distributed cold wallets, DDoS protection, regular stress testing measures, and multi-signature authentications to ensure better security.
The Cold wallets mentioned above are completely offline and their multi-signature feature prevents a single point of failure and improves the resilience against the loss of funds on the loss of private keys.
Further, all the funds are insured by BitGO, including users’ cryptocurrencies held on MultiSignature cold wallets thus insuring them to an extent.
CoinDCX KYC Requirements
A user can trade on CoinDCX without submitting his/her KYC documents. However, there are limits to Deposits and Withdrawals as mentioned above.
KYC procedure of the CoinDCX exchange is fully automated in partnership with Onfido (a global leader in artificial intelligence for identity verification and authentication).
Social Media Presence
CoinDCX has a decent social media presence along with global coverage by traditional (Mint, Times of India, CNBC, Medianama, Inc42, Financial Express, Economic Times, Nasdaq, etc.) as well as crypto media houses (Cointelegraph, Coindesk, Coinpost, Blockchain News, etc.).
- Twitter – 22,600 followers
- Facebook – 2,896 followers
- Youtube – 4,460 subscribers
- Telegram – 11,383 members
- Instagram – 16,200 followers
So, evidently this exchange has no less than any bigger exchange when it comes to the features. Now, let us summarise the pros and cons of using CoinDCX.
Benefits of CoinDCX Exchange
The benefits of the exchange can be pointed as follows:
- The exchange has a user-friendly interface and a fully functional mobile application
- CoinDCX has substantial Community and Social media presence
- The exchange has renowned investors base which gives the exchange an ample amount of credibility and user confidence
- The exchange provide sufficient amount of liquidity to the users for the purpose of Margin Trading and Futures Trading
Limitations of CoinDCX Exchange
There are some areas which CoinDCX should try to improve upon, such as:
- The exchange only supports one fiat currency i.e. Indian National Rupee (INR)
- Trade volume is fairly low in comparison with the top exchanges in the crypto market
- The legal framework of Cryptocurrency trading in India is not clear. However, the situation is expected to improve in India as authorities are looking towards possible benefits that can be derived from blockchain technology. Though CoinDCX is registered outside India, its major user base is in India. Therefore the Indian jurisdictional risk may pose a risk of business continuity to CoinDCX Exchange.
Conclusion – CoinDCX Review
As per my understanding, CoinDCX is fairly loaded with all the major features. However the adoption of exchange is yet awaited from the user side. Further, the exchange can work on the various limitations I have mentioned above.
Nonetheless, as crypto adoption is increasing in India and the authorities may clarify the legal framework of the cryptocurrencies (hopefully in favour of the industry) shortly, CoinDCX has a substantial scope of growth in the coming years. The core team is already visible in the media and may be successful in grabbing the attention of the country’s masses which will help the exchange immensely.
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- Founders of CoinDCX Exchange
- Features of CoinDCX Exchange
- Types of trades offered by CoinDCX
- Instant Deposit and Withdrawals (deposit and withdrawal of fiat currency)
- The lending of cryptocurrencies
- Coin Staking
- Sub Accounts – Manage multiple accounts from one
- User Interface and Mobile Application
- What are the Transaction Fee and Transaction limit for CoinDCX?
- How secure is CoinDCX?
- CoinDCX KYC Requirements
- Social Media Presence
- Benefits of CoinDCX Exchange
- Limitations of CoinDCX Exchange
- Conclusion – CoinDCX Review