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Stronghold exchange Review - is it scam or safe?

Stronghold Review - is stronghold.co scam or good cryptocurrency exchange?

RATING: 2 / 1 REVIEWS Stronghold exchange
Stronghold exchange is not regulated. We cannot guarantee your money is safe.

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Trading Accounts & Conditions

 

 

Account type Leverage Min. trade size Taker fee Withdrawal fee*
Standard Not yet 0.001BTC/0.005ETH 0.25% 1.49%

 

*Depending on the wallet and the coin.

 

Stronghold is a US-based distributed exchange built on the Stellar network. It enables users to send and receive Bitcoin, Ethereum, Stellar Lumens and MOBI.

 

In addition, Stronghold also offers two-sided OTC transactions supporting most digital assets and tokens. The exchange also plans to offer margin trading in the future.

 

Allegedly, Stronghold stores the vast majority of the digital assets in secure offline storage. It also uses Two-factor authentication for security porposes.

 

 

Stronghold Advantages

 

Good for XLM trades

Stronghold’s wallets are built on the Stellar network, so no users don’t have to deal with pesky memo ID’s and swapping BTC or ETH for XLM is easy and relatively low-cost.

 

Competitive fees

Stronghold does not charge market makers, nor requires any fees on deposits. Market takers, on the other hand, have to pay 0.25% per trade on the platform, which is in line with what most exchanges charge.

 

Withdrawals also are not charged with high fees.There are no withdrawal fees to non-Stellar wallets like Coinbase, Kraken, Bittrex, Binance, Poloniex, etc. However, to other Stellar wallets like StellarTerm and Lobstr, there is a 1.49% withdrawal fee on all Stronghold issued assets except for lumens (XLM).

 

OTC trading also offered

As we mentioned in the beginning, Stronghold provides its clients with yet another option to trade in cryptocurrencies: Over-The-Counter (OTC) trading. The minimum transaction size is $25,000 and the comoany charges a 2% fee on Bitcoin trades and up to 7% on other digital assets and tokens.

 


Stronghold Disadvantages

 

Limited number of pairs offered

Currently, there are only five trading pairs available at Stronghold: ETH/BTC, XLM/BTC, MOBI/BTC, XLM/ETH, and MOBI/ETH. Although some crypto platforms offer only fiat to Bitcoin trades (and vice versa), such product portfolio seems quite limited. If you look for more diversity, you can chack out the offering of exchanges like Binance, Huobi or Gate.io.

 

Dependent on the Stellar network

If there is serious backlog on the Stellar network, the this will also affect trading at Stronghold.

 

Not mush information about the company

This exchange has not shared much information about the company that owns it. In its Terms and Conditions we found that that it is operated by Action Factory, Inc., which seems to be located in San Francisco, California, US.

 

Fiat not accepted

This exchange does not accepts cash payments, so unless you already have some Bitcoin, Ethere or the other coins supported by Stronghold, you cannot trade on this exchange.

 

Trading platform too basic

Stronghold provides a simple platform that has some basic charting, an order book and a recent history window and basically that’s it. There are no advanced charting tools, nor a chat box or market depth window. Here is a preview:

 

 

Stronghold's platform. Click on the image to zoom-in.

 

No leveraged trading yet

Although Stronghold plans to add margin trading option in the future, it is not available yet. As we mostly review forex brokerages, we are used to them offering some leverage, and most of them provide pretty high ratios. If you need some leverage, you can check out exchanges like Kraken or bitFlyer. Forex brokers are also an option, as many of them offer margin trading in CFDs on Bitcoin, Ethereum and other altcoins.

 

 

>>Forex brokers offering leveraged Bitcoin trading<<

 

Conclusion

 

An exchange built on the on the Stellar network, Stronghold has in fact very few advantages: first, it is good for buying Stellar lumens (XLM); and second, its fees are competitive. In addition, at Stronghold you can also trade in cryptocurrencies over-the-counter.

 

Its disadvantages, on the other hand, seem too many. First, Stronghold offers only five trading pairs and does not accept fiat currencies. Second, its platform lacks any advanced features, and margin trading is not available, but only planned. Besides, as Stronghold is built on the Stellar network it is dependent on it.

 

And last but not least, the exchange has not provided much information about the company that operates it, and is not regulated. Indeed this is the case with most crypto-exchanges and that involves certain risks. If you would rather trade in cryptocurrencies with a properly licensed firm, you can check out the link below.

 

 

>> Reliable forex brokers offering crypto trading<<

 

 

Here are the strong and weak sides about his exchange:

 

Pros

Cons

Good for XLM trades

Limited number of pairs offered

Competitive fees

Dependent on the Stellar network

OTC trading also offered

Fiat not supported

 

No leveraged trading

 

Not much information about the company

 

 

Latest news about Stronghold exchange
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Traders` reviews for Stronghold exchange

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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It's a scam

I signed up for Stronghold after being directed to them as an on-ramp for converting USD to XLM. While my deposit was pending, they inexplicably disabled retail trading on the platform, rendering my USD (now Stronghold USD) useless and immovable. The only option I was left with was to withdraw my deposit and eat the fees. Yet have they taken down all of the misleading information from their site that still promises retail trading? Nope.

Mike 08/05/2019
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