CEX.io allows you to buy Bitcoins using your credit card, a wire transfer or a SEPA transfer (if you live in the EU). CEX.IO allows for the buying of bitcoins for low fees via credit card. Customers can also purchase for free with bank transfers. However CEX.io transactions work a bit different than other Bitcoin exchanges, they are based on Fill-or-Kill orders (also known as FOK).
If you’re looking into using bitcoin to send money to someone, you will need a cryptocurrency platform.
CEX.IO might be on your list of candidates — it’s a London-based exchange founded in 2013 that lets you buy, sell and trade cryptocurrencies. In a sea of competitors, CEX.IO’s claim to fame is that it allows withdrawals to credit cards.
When you enter a trade, CEX.io calculates the price and freezes it for 120 seconds. You input the amount of money you wish to spend and you see the amount of Bitcoins you can receive. After you press the Buy/Sell Button, the system checks to see that you have enough funds available.
If the situation on the market allows the execution of your order on conditions not worse than you agreed on, the order will be filled (The order can also be filled on more favorable conditions). If there is a sudden spike in the exchange rate — preventing the execution of the order on the agreed conditions — you will be notified. After you confirm the trade, your order is matched to other orders on the exchange, and your balance is adjusted — sometimes the amount can be even greater than agreed on, but is never smaller.
Limits & Liquidity
CEX.IO offers four different account levels based on verification provided. Each account type has different buying limits.
Basic: Basic accounts can buy up to $400 worth of bitcoins per day, and up to $2,000 per month. Basic accounts are not able to purchase via bank transfer.
Verified: Verified accounts can purchase up to $10,000 worth of bitcoins per day, or up to $100,000 per month via both credit card and bank transfer.
Individual Business & Corporate: Individual Business and Corporate accounts can purchase an unlimited amount of bitcoins.
How are CEX.IO’s exchange rates?
Exchange rates on CEX.IO are based on the platform’s market activity. Traders on CEX.IO buy and sell bitcoin at the same time that exchange rates fluctuate.
Though the exchange rate can change, you’ll typically find that it’s within 0.5% to 2% of the mid-market rate — or the rate banks and transfer services use when the trade among themselves.
Overall, CEX.IO’s exchange rate is reasonable compared with other bitcoin exchanges. It’s more important to look at CEX.IO’s fees for buying and selling bitcoin — which are quite high.
How much will I pay to buy or sell on CEX.IO?
You first need to deposit fiat currency — government-issued money like US dollars or euros — onto CEX.IO. Here’s what you’ll pay to buy bitcoin.
|Credit card||3.5% + $0.25|
|Bank transfer||No commission|
|Crypto Capital (for bitcoin)||No commission|
Next, you’ll need to purchase bitcoin. Buying bitcoin comes with a 7% transaction fee, and you may lose a bit of value on your fiat currency from the exchange rate.
When you sell bitcoin, the person who buys it is charged a 7% transaction fee. They could also lose a bit of value on their bitcoin from the exchange rate.
Withdrawing bitcoin as fiat currency
After you’ve sold your bitcoin, you’ll need to withdraw your money to US dollars or other fiat currency.
Here’s what you’ll pay per withdrawal option:
|Mastercard||1.2% + $3.80|
Can I use CEX.IO to transfer money to another person?
Yes, but bitcoin-based money transfers involve a series of steps that include:
- Using fiat currency to buy bitcoin.
- Sending bitcoin to your recipient’s bitcoin address.
- Your recipient selling the bitcoin for fiat currency.
- Your recipient withdrawing the fiat currency to their bank account or credit card.
CEX.IO supports all countries, unless noted below.
The following countries are restricted for credit card purchases: Iceland, Vietnam, Afghanistan, Algeria, Bahrain, Iraq, Kuwait, Lebanon, Libya, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, and Yemen.
The following countries are restricted from buying with bank transfer: Afghanistan, Democratic Republic of the Congo, Côte d’Ivoire, Eritrea, Ethiopia, Guinea-Bissau, Haiti, Iran, Iraq, Kenya, Liberia, Libya, Guinea, São Tomé and Príncipe, Somalia, Sudan, Syria, Tanzania, Tunisia, Turkey, Vietnam, Yemen, Zimbabwe.
US States NOT Supported
CEX.io does NOT support the following US states:
Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Guam, Idaho, Iowa, Kansas, Louisiana, Maryland, Michigan, Mississippi, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Tennessee, Texas, U.S. Virgin Islands, Vermont, Virginia, Washington.
Conclusion – Is CEX.io a Good choice?
Until today I have used CEX.io several times and haven’t had any issues. I think it’s a solid exchange. In the past year or so the exchange has leap frogged froward and has become on of the leading Bitcoin brokers around. The user interface is very intuitive and even complete newbies will manage to buy Bitcoins with it. As long as you are aware of the fees and the verification process needed to buy more substantial amounts of Bitcoin you’re good to go.