CEX.io Has Gone From Renowned Exchange To Below Par Exchange – Why?

CEX.io has, since its inception, established itself as one of the highly-rated exchanges and crypto issuers in the cryptocurrency world today. Interestingly, the platform has been qualified as “a vehicle” that conveys Bitcoins between traders and countries through its quality service delivery in many quarters. It has partnered with many other online financial services in many places to create more user-friendly incursions in the digital space they occupy.

However, over the years, CEX.io has gone from reputable to below par exchange. This article seeks to find the reason for this ignoble decline of CEX.io from a neutral point of view. Hence, this is an unbiased write-up and instead, it is the result of several hours of research and analysis.

Allegations of Fraud

CEX.io has garnered quite a few positive and negative headlines and coverage. Besides its merit as one of the marketplaces with multiple payment options and other flexible favorable margins, CEX.io has been termed by many as a fraud and a dubious platform purported to swindle credulous users of their money.

And in the wake of this, the crypto exchange was unable to truthfully debunk the claims and this, in turn, led to a downward trend of customers signing up on the platform which in turn led to the fall of CEX.io.

To keep up with business you need clients and once there is a downward trend of customers in no time you will run out of business and probably fold up after a while. Those allegations of fraud contributed to the decline of CEX.io and cannot be debated.

Again, critics have suggested in time past that digital currency has increased the potential for fraud and money laundering among government and private officers. In truth, the fact that fraud and money laundering can easily be linked to the digitization of money can only be wished away but the facts are sometimes particularly glaring that denying the evidence is perhaps difficult to do.

However, it is believed in many quarters that either CEX.io wasn’t secure enough to stop manipulation from traders or it aided swindlers to maneuver their security to swindle innocent customers of their hard-earned cryptocurrency.

Expensive

Another major reasonCEX.iowent from renowned to below par exchange is its expensive transaction charge which equals about 10 percent of your deposit and has been considered exorbitant by most users of the platform and this, without doubt, contributed to the decline of this once illustrious crypto exchange firm.

Crypto traders want a solution that impacts them positively in financial terms. By this, we mean that crypto traders desire a platform where they can carry out transactions without incurring an exorbitant transaction fee. At CEX.io, the fees are exorbitant, and this led to criticism from numerous observers and served as a perception of an uncaring attitude on the part of CEX.io.

It is largely regarded as one of the most expensive crypto exchanging platforms around the world and its ex-clients as a result turned to cheaper options available to them.

Extensive Verification Process

Crypto traders are interested in a one-time registration/verification process; however, that is not the case with CEX.io as its registration process can be a herculean task at best and the verification process takes a staggering number of minutes to complete.

Extensive verification is a turnoff for most crypto traders as they don’t want to spend the time that should be used in trading trying to register or verify an account. This is another reason CEX.io went from renowned to a below-par exchange.

Security

One important factor that cryptocurrency dealers ensure is in place in any platform that they choose to trade on the security of the platform. CEX.io isn’t totally insecure; however, the anonymous hacking that was aimed at this platform in 2013 is another suggestive reason why many clients backed out of the platform en masse.

Crypto traders don’t want to wake up one morning only to discover that all their cryptocurrencies have disappeared into the thin air as the result of a hack on their trading platform. This is another likely reason many persons chose to quit the platform and then seek platforms without a trace of a hack and platforms that can offer a higher rate of security to customers’ crypto deposits thanCEX.io.

Limitations

Crypto traders consider limitations as a turnoff and CEX.io imposes limits on the four classes of accounts that you can operate on this platform and the classes match up with your level of verification. Furthermore, the lowest class of account is the identification verification and with this account, you can only purchase$1000worth of Bitcoin a day and can only make purchases with a credit card.

That may be considered as one limitation too many and is one reason many users chose to abandon the platform.

Crypto trading has evolved over the years and more people are embracing the concept of digitized money. And statistics show that more people will get themselves involved with the passage of time and this will lead to the increased trading of crypto.

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