CoinEx Exchange Review: Is it Trustworthy? A Detailed Assessment

Tags: cex, coinex, exchange

This article provides a comprehensive review of CoinEx, a cryptocurrency exchange. We will examine its history, trading fees, features, advantages, disadvantages, security, and the account opening process. We will also determine whether CoinEx is a reliable exchange and identify potential risks.

1. WHAT IS COINEX?

CoinEx is a professional global cryptocurrency exchange based in Hong Kong, serving users in over 200 countries and regions. It’s not just an exchange; it’s part of a broader ecosystem encompassing services like mining pools, digital wallets, and its own blockchain.

CoinEx’s core team comprises individuals from leading technology, internet, and finance companies, including cryptocurrency pioneers. This background provides CoinEx with a strong technological foundation, professional management experience, and a long-term strategic vision.

The exchange boasts a proprietary matching engine designed for high transaction speed and system stability. While claiming a throughput of up to 10,000 transactions per second (TPS), this figure remains unverified.

2. ESTABLISHMENT AND DEVELOPMENT

2.1. Establishment

Launched in December 2017, CoinEx is part of ViaBTC, a cryptocurrency-focused technology company established in May 2016. CoinEx’s initial goal was to create a secure, efficient, and user-friendly cryptocurrency exchange for global users. Its Hong Kong base reflects a strategy focused on the Asian market while aiming for global reach.

2.2. Development

Following its launch, CoinEx rapidly expanded its supported cryptocurrency list. It consistently updated its technology, improved the user interface, and added new features to meet growing user demands. A significant milestone was the launch of the CET token in January 2018.

Another notable event was the launch of the “trade-driven mining” program in August 2020, which briefly propelled CoinEx to the number one position in 24-hour trading volume. However, this ranking may have been due to volume manipulation, and CoinEx’s subsequent ranking dropped significantly.

2.3. Current Statistics

• Number of countries/regions: Over 200
• Number of cryptocurrencies: Over 700
• Number of trading pairs: Over 1100
• 24-hour trading volume: Fluctuates between hundreds of millions and billions of USD.
• Number of users: Over 4 million
• Liquidity: Scored 492 (compared to Binance’s 882). Liquidity is generally considered good for popular trading pairs.
• Weekly website visits: Approximately 500,000

3. COINEX TRADING FEES

CoinEx trading fees are not fixed; they vary based on VIP level and market-making level. VIP level is determined by the amount of CET (CoinEx Token) held, while the market-making level depends on the trading volume over the past 30 days.

VIP Level	CET Required	Spot Trading Fee	Daily Margin Fee	Maker/Taker Fee
VIP 0	≥ 0 CET	0.2%	0.1%	0.03%/0.05%
VIP 1	≥ 1,000 CET	0.18%	0.09%	0.028%/0.048%
VIP 2	≥ 10,000 CET	0.16%	0.08%	0.026%/0.046%
VIP 3	≥ 100,000 CET	0.14%	0.07%	0.024%/0.044%
VIP 4	≥ 500,000 CET	0.12%	0.06%	0.022%/0.042%
VIP 5	≥ 1,000,000 CET	0.1%	0.05%	0.02%/0.04%

A further 20% fee reduction is available when using CET to pay fees. High trading volumes (over $10 million) also receive fee discounts.

Deposit fees are typically free, but withdrawal fees depend on the cryptocurrency.

4. COINEX SERVICES AND FEATURES

CoinEx offers a range of services and features, including:

• Spot trading: Direct buying and selling of cryptocurrencies.
• Margin trading: Trading with borrowed funds to amplify profits (and risks).
• Futures trading: Trading futures contracts.
• CET Token: CoinEx’s native utility token, crucial for ecosystem activities. Uses include fee reductions, VIP benefits, promotions, and community governance voting. CoinEx regularly burns CET to reduce supply and increase value.

• Mobile app: User-friendly mobile app for trading on the go.
• ViaBTC Pool: ViaBTC’s Bitcoin mining pool, offering Bitcoin mining services.
• CoinEx Smart Chain (CSC): A public blockchain developed by CoinEx, aiming to create a robust decentralized ecosystem supporting dApps and smart contracts.

• OneSwap: A decentralized exchange (DEX) built on CoinEx Smart Chain.

• ViaWallet: A multi-chain wallet supporting various cryptocurrencies.

• CoinEx Wallet: A decentralized cryptocurrency wallet supporting over 55 coins, offering easy access, swapping, NFT management, and a DApp browser.

5. ADVANTAGES OF COINEX

5.1. Diverse Cryptocurrency Selection: CoinEx supports a vast array of cryptocurrencies, providing users with extensive investment choices. This broad selection allows for portfolio diversification and access to potentially lucrative altcoins. The sheer number of options caters to both seasoned investors seeking specific projects and newcomers exploring the market. This depth of offerings is a significant advantage over exchanges with more limited selections.

5.2. Competitive Trading Fees: CoinEx’s trading fees are generally lower than those of several competing exchanges, particularly for users achieving higher VIP levels or acting as market makers. This cost-effectiveness is especially beneficial for high-volume traders, significantly reducing their overall expenses. The tiered fee structure incentivizes active participation and loyalty to the platform.

5.3. Robust Security (Despite Recent Incident): While the September 2023 hack is a serious consideration, CoinEx has historically invested substantially in cybersecurity measures. These include the utilization of cold storage for the majority of its assets, mandatory two-factor authentication (2FA) for enhanced account security, rigorous IP address monitoring to detect suspicious activity, and a proactive bug bounty program to incentivize security researchers to identify and report vulnerabilities before they can be exploited. The 76/100 security rating (BBB rating from Certified) reflects a commitment to security, even if the hack demonstrates that no system is entirely impenetrable. The platform’s response to the hack – including compensation for affected users – indicates a willingness to address security lapses.

5.4. User-Friendly Interface (with caveats): CoinEx boasts an intuitive and easy-to-navigate interface, accessible on both web and mobile platforms. The design prioritizes clarity and efficiency, making it relatively simple for users to execute trades and manage their accounts. While generally user-friendly, the sheer number of features can present a learning curve for absolute beginners.

5.5. Comprehensive Ecosystem of Features: Beyond standard spot trading, CoinEx offers a broad suite of advanced trading functionalities such as margin trading for leveraged positions, futures contracts for speculating on price movements, staking options for passive income generation, and access to an Automated Market Maker (AMM). This integrated ecosystem, combined with the links to ViaBTC Pool, CoinEx Smart Chain, OneSwap, and ViaWallet, provides users with a complete and interconnected experience.

5.6. Optional KYC (Know Your Customer) Verification: CoinEx doesn’t mandate KYC verification for account creation, respecting user privacy concerns. However, completing KYC significantly increases withdrawal limits, allowing for larger transactions. This flexibility caters to users with varying levels of comfort sharing personal information.

6. DISADVANTAGES OF COINEX

6.1. Customer Support Responsiveness: A recurring criticism of CoinEx revolves around the slow response times of its customer support team. Users reporting issues often face extended delays in receiving assistance, potentially creating frustration and hindering timely resolution of problems. The lack of phone support further exacerbates this issue, limiting communication channels for users requiring immediate help.

6.2. Steep Learning Curve for Beginners: While the interface is generally user-friendly, the abundance of features and options can be overwhelming for novice cryptocurrency traders. Navigating the platform and understanding the various trading tools may require significant time and effort for beginners. Improved onboarding and educational resources would mitigate this issue.

6.3. Regulatory Uncertainty and Transparency: The regulatory landscape surrounding CoinEx and its operations remains somewhat unclear in certain jurisdictions. A lack of complete transparency regarding its compliance with various international regulations can raise concerns for risk-averse users. Greater clarity on this front would enhance user confidence. The company should proactively address these concerns to build trust and demonstrate its commitment to ethical and legal operations.

7. HAS COINEX BEEN HACKED BEFORE?

On September 12, 2023, CoinEx suffered a hack resulting in an estimated loss of $70 million in various cryptocurrencies (BTC, ETH, XRP, SOL, etc.). The cause was identified as a leaked private key from a hot wallet. CoinEx responded by temporarily suspending deposits and withdrawals, transferring assets to cold storage, cooperating with other exchanges to freeze related wallets, and committing to 100% compensation for affected users.

8. IS COINEX A SCAM OR LEGITIMATE?

Based on the available evidence, CoinEx is not definitively classified as a scam. While the September 2023 hack is a significant negative event, the exchange’s immediate response, its commitment to reimbursing affected users, and its continued operation suggest that it’s not intentionally fraudulent. The sheer number of users and relatively high trading volume further indicate that it’s not a fly-by-night operation.

However, the hack highlights critical vulnerabilities in its security protocols. While the platform’s swift response and commitment to restitution demonstrate a level of responsibility, it doesn’t eliminate inherent risks associated with cryptocurrency exchanges. Users must understand and accept the risks involved before engaging with CoinEx or any other exchange. The lack of complete transparency on regulatory compliance adds another layer of risk assessment for users to consider. Therefore, while not currently identified as a scam, potential users should proceed with caution and due diligence.

9. COINEX ACCOUNT OPENING GUIDE

Opening a CoinEx account is straightforward. Follow these steps:

Step 1: Visit the CoinEx Website:

• Go to the official CoinEx website: https://www.coinex.com/ Make sure you’re on the legitimate site to avoid phishing scams. Look for secure connections (HTTPS) indicated by a padlock icon in your browser’s address bar.

Step 2: Initiate Account Registration:

• Locate the “Sign Up” or “Register” button. This is usually prominently displayed on the homepage, often in the top right corner. Click it to begin the registration process.

Step 3: Provide Required Information:

• You’ll need to provide accurate information to create your account. This typically includes:
  • Email Address: A valid email address is essential for verification and communication.
  • Password: Choose a strong, unique password that’s difficult to guess. Use a mix of uppercase and lowercase letters, numbers, and symbols.
  • Phone Number (Optional): While often optional, providing a phone number can add an extra layer of security and may be required for certain features or account recovery.
  • Referral Code (Optional): If you have a referral code from an existing CoinEx user, enter it here to potentially receive benefits.

Step 4: Email/SMS Verification:

• After submitting your information, CoinEx will send a verification code to your registered email address or phone number. Enter this code in the designated field to confirm your contact information.

Step 5: Enable Two-Factor Authentication (2FA):

• This crucial step significantly enhances your account security. CoinEx will guide you through setting up 2FA using an authenticator app like Google Authenticator or Authy. Scan the provided QR code with your chosen app to link it to your CoinEx account. This adds an extra layer of protection, requiring both your password and a time-sensitive code from your authenticator app to log in.

Step 6: KYC Verification (Optional but Recommended):

• While not mandatory for basic account functionality, completing KYC (Know Your Customer) verification is strongly recommended. This involves providing identification documents to verify your identity. KYC significantly increases your withdrawal limits, allowing for larger transactions. The process usually involves uploading a photo ID (such as a passport or driver’s license) and potentially a proof of address document.

Step 7: Account Creation Complete:

• Once you’ve completed all the steps, your CoinEx account will be created. You’ll be able to log in using your email address and password (and your 2FA code). You can then start exploring the platform and begin trading.

Important Security Reminders:

• Beware of Phishing: Only access CoinEx through the official website link to avoid phishing attempts designed to steal your login credentials.
• Strong Passwords: Use strong, unique passwords for all your online accounts, including CoinEx.
• Keep Your 2FA Secure: Protect your authenticator app and its recovery codes. Losing access to 2FA can severely compromise your account.

This detailed guide should simplify the process of creating a CoinEx account. Remember to prioritize security at every step.

10. REVIEW AND CONCLUSION

CoinEx offers a diverse range of cryptocurrencies, low trading fees, and a feature-rich ecosystem. However, the recent hack highlights security vulnerabilities. Customer support and transparency need improvement. Users should carefully assess risks before using any exchange, including CoinEx. The choice of exchange depends on individual experience, needs, and risk tolerance.