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Cryptonit Review - is it scam or safe?

Cryptonit Review - is cryptonit.net scam or cryptocurrency exchange?

RATING: 3 / 1 REVIEWS ForexBrokerz Cryptonit

RECOMMENDED BITCOIN BROKERS


Trading accounts and conditions

 

Account type Leverage Fees
Standard 1:1

0%

 

Cryptonit is a UK-based cryptocurrency exchange that offers trading in Bitcoin and Ether against each other and against USD or EUR. Apparently, Cryptonit is mostly targeting the European market, but accepts clients worldwide. There are a few exceptions: Republic of Belarus, Iran, Iraq, Syria, North Korea, Yemen, Ethiopia, Uganda, Bosnia and Herzegovina.

 

Previously Cryptonit has been offering other cryptocurrencies, like Namecoin, Litecoin and Dogecoin, for example, but not anymore.

 

Cryptonit has been running since 2012 and says it “acts in close collaboration with FCA”, but is not required to be regulated by the financial watchdog. Furthermore, the company is registered at HM Revenue & Customs as a Money Service Business with a status “BUREAU DE CHANGE”, as per the Money Laundering Regulations (MLR) requirements.

 

Cryptonit Advantages

 

- Many payment options. The biggest advantage of Cryptonit are the numerous fiat payment options, and PayPal in particular (for verified accounts). There are not so many cryptocurrency exchanges that support PayPal payments, for a number of reasons, but mostly in order to prevent fraud. Additionally, Cryptonit accepts deposits and withdrawals with Visa and MasterCard cards, international wire transfers, SEPA bank transfers (EU) and cryptocurrency transfers. For withdrawal in fiat currencies, clients can also use Webmoney, Paxum, Qiwi, MoneyGram, Western Union, Payeer, Perfect Money, OKPay.

 

>> See crypto exchanges accepting credit cards <<

 

- No trading fees. Cryptonit says it charges no trading fees. Obviously the exchange has calculated its profits in the spreads, which is a common practice among the forex brokers, for example.

 

- Simple Platform. Similarly to most spot exchanges, Cryptonit’s platform is simple and intuitive. It allows the placing of limit and market orders and offers a price and depth of market chart, an order book and a list of last trades.


 

- Vouchers. Cryptonit offers redeemable vouchers, which can be created and redeemed by the exchange users.

 

- Favorable Customer reviews. It seems that even being relatively small, Cryptonit provides a good service and the predominant number of customer reviews are positive.

 

 

Cryptonit Disadvantages

 

-  High Transfer fees. We have mentioned the numerous fiat payment methods provided by Cryptonit as an advantage, but the deposit and withdrawal fees are a different story. Particularly the withdrawal fees for some methods, like Western Union and MoneyGram strike us as quite hefty: the minimum fee is EUR/USD 195. There are also withdrawal fees for cryptocurrencies. They are fairly small, however, and are most likely used to cover the network fees.

 

- Withdrawal Limits for fiat. Cryptonit has set limits for minimum and maximum withdrawals in fiat currencies, depending on the payment method. They are not too restrictive, but are limits, nevertheless.

 

- No Leverage. Like most cryptocurrency exchanges, Cryptonit does not offer leveraged trading. This is a type of trading provided by only a handful of major exchanges like Kraken, bitFlyer and Zaif, for instance, but there are a lot of regulated forex brokers who offer cryptocurrency CFDs for trading on margin.

 

 >> See our list of regulated bitcoin forex brokers <<

 

- No Anonymity. Anonymous trading in cryptocurrencies and fiat currencies is something of a rarity, at least with the compliant exchanges and Cryptonit is no different. It has client verification requirements that include an ID copy, an ID selfie, proof of residence or a brief video chat with Cryptonit staff, while holding the ID. We came across information that

 

- Registration closed. At the time of writing of this review (Jan 4, 2018), registration for new clients is closed and, according to Cryptonit’s site, will be open on January 10. Most likely the reason is a backlog of new clients that need to be onboarded, but is frustrating, nevertheless.

 

- Questionable Security. We could not find any official information about security and storage, but have come across claims that Cryptonit is using hot storage only. If this is indeed the case, then clients face the risk of their funds being hacked and stolen.

 

 

Conclusion

 

Cryptonit is a UK cryptocurrency exchange that is compliant with the current UK requirements and regulations for this type of service, which suggests dealing with it is safe. It is a relatively small exchange, which could be a blessing, considering the mass influx of new traders rushing to cash in on the bitcoin hysteria.

 

This causes backlogs and slow service for the larger exchanges, but it seems that Cryptonit is not spared and for the time being is not accepting new clients.

 

Overall, we like a lot the fact that Cryptonit provides a lot of fiat payment options, even though some are quite expensive in fact.

   

 

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Traders` reviews for Cryptonit

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