CoinSwitch Review 2020: Pros, Cons, Fees, Features, and Safety

CoinSwitch is one of the most unique exchanges in the cryptocurrency space as it permits users to convert bitcoin as well as and hundreds of altcoins. It has integrated several prominent exchanges from across the globe such as HUOBI, Binance, KuCoin, Cryptopia, HitBTC, IDEX to offer best exchange rates to clients.

This crypto exchange covers more than 300 cryptocurrencies along with over 45000 pairs to exchange.

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This platform permits users to anonymously convert their crypto coins across several exchanges with the best possible rates.  Its interface is user-friendly and intuitive – with a wide number of the offering of crypto pairs.

With the increasing volume of cryptocurrency trading, the numbers of digital asset exchanges have also been increasing at a tremendous rate. These exchanges offer innovative functions, lower fees, and niches to give them a competitive edge over others. With so many available choices around the web, it’s hard for both new and advanced investors to decide where they’ll move. In this guide, we presented all the features and functions of CoinSwitch.co along with its regulatory compliance and fee structure.

What is CoinSwitch?

CoinSwitch is a cryptocurrency exchange that permits users to convert one coin into another according to the market rates. It gives traders an authority to choose exchange rates from several prominent exchanges. The traders are allowed to anonymously trade more than 350 crypto coins on this platform.

How Does CoinSwitch Work?

The majority of crypto exchanges only let users buy or sell coins. But, they don’t let you replace one coin for another. For instance, if you’ve BTC in any of your Bitcoin wallets but you desire to trade it for ETH. The majority of platforms do not allow you to trade in this way. CoinSwitch, however, supports more than 300 coins that traders can trade for other crypto coins – without the involvement of cash.

This procedure saves a lot of time and money of traders who want to convert one coin to another. Let’s say you want to convert BTC to XRP. You’ll pay a hefty fee when you sell BTC, (in addition to capital gains tax), and when you buy Bitcoin with PayPal, you should also have to pay a fee for that too. Fortunately, CoinSwitch lets you to directly trade one coin for others with possible best rates.

Which Countries Does CoinSwitch Support?

CoinSwitch permits customers across the globe to trade on their platform. Established and based in India, the management offers its services to clients all around the world. This is not a regulated platform, which allows the management to accept clients from all over the world. In order to find out your eligibility criteria to use the platform, you can directly contact CoinSwitch support team. Below is the list of countries that are accepted on CoinSwitch:

What Cryptocurrencies Does CoinSwitch Support?

You can easily check the list of all the coins or pairs that CoinSwitch offers to clients. According to its website, the user can trade more than 300 cryptocurrencies without having an account. It has created a search box on top of the list of cryptocurrencies, which permits the user to easily search the coin of his choice within seconds. Below is the list of few popular crypto coins that CoinSwitch supports on their platform:

CoinSwitch Platform Dashboard

You don’t need to create an account on CoinSwitch to exchange your coin. This means that the exchange offers complete anonymity to its users. They don’t request personal information and other documents for account creation and exchange of coins.

Let’s take a brief look at the CoinSwitch platform to see how easily the user can exchange cryptos. The exchange has developed a simple and user-friendly website. You can easily access all the information from the front page of the website. Indeed, their websites first page works as a trading platform.

When a user visits the website, they see a crypto exchange conversion box at the top of the page. Below is the converter with an example of Bitcoin (BTC) to Ethereum (ETH) exchange.

Once you select the pair of the coin you want to exchange, you have to click ‘View All Offers’ button. Once you click View All Offers button, the website will direct you to a new page as shown in the image below.

The second step: You need to select the exchange to get the best rates from the list of nine exchanges. It’s up to you to choose the best exchange for conversion of your Bitcoin (BTC) to Ether (ETH).

After selecting the exchange rate, the website will direct you to a new page – where you need to provide your Ether (ETH) wallet address. It is suggested to double check your information before hitting the ‘Next’ button.

Once you hit the next button, the website will show a new box which shows the Bitcoin (BTC) address of the exchange. Now you have to send BTC from your BTC wallet to that address. The exchange will immediately convert your BTC into the Ether (ETH) and sends it into your wallet.

After the completion of four simple steps, your transaction completes and you can check your wallet to view status.

Which Payment Methods Does CoinSwitch Accept?

The biggest disadvantage of using CoinSwitch is payment methods. They do not accept fiat currency from popular methods such as PayPal and wire transfer.  The user can also buy crypto coins directly from the website with the help of Visa and Master credit card. However, they do not allow users to hold their funds in the account and use them to buy crypto coins on market fluctuations. They only permit users to instantly buy coins and use them to exchange with other available coins.

Is CoinSwitch Regulated?

While many view CoinSwitch’s ability to deliver anonymity as a benefit, it comes with the sacrifice of regulation. Because it deals solely with cryptocurrencies, most countries have not yet come up with laws and requirements for this type of exchange. However, the strong customer ratings and reviews of CoinSwitch can help to alleviate some concerns of users. It is also important to note that very few exchanges like CoinSwitch are regulated, so this is not unusual.

CoinSwitch Fees

Although the CoinSwitch management claims that they have been working on all the user-friendly strategies and seeks to save the user money, they are actually charging hidden fees. The fees charges vary based on the crypto exchange the user select for the transaction.

The charges range from 0% to 0.98% based on the exchange the user picks for a transaction. It’s important to understand that the conversion rate the user sees includes the fees. In addition, they also charge management and other services fee separately. Below is the table that exhibits the fee of those different exchanges charges.

What is the Minimum and Maximum Deposit at CoinSwitch?

Unlike other exchanges that set limits on minimum and maximum amounts, CoinSwitch does not impose any restriction regarding the amount. The trader can use this platform as long as the amount covers all the network fees. This clearly shows that the amount you are going to send and the amount you are going to get must cover network fees. The transaction could fail if the funds are insufficient to cover fees. You will see a message if the transaction fails due to insufficient funds.

Is CoinSwitch Safe?

Although you can instantly buy crypto coins from this platform and convert them into other coins, the company does not accept or hold fiat currency for trading purpose, which is one of the biggest disadvantaged for investors who like to take advantage of price fluctuations.

It is not regulated by any government authority. It is an unregulated platform that is not bound to comply with trading standards set by regulators. Indeed, it is an Indian based platform – where the government has banned any kind of cryptocurrency exchanges. This is due to the threat of money laundering through crypto coins.

Considering the ban on crypto trading from the Indian government, the trading on this platform is illegal. They don’t have any established bank accounts and offices in India. The management is virtually operating this platform, thanks to digitalization. Therefore, the platform is not following the rules set by Indian authorities.

In addition, the governments all over the world have made it compulsory for crypto exchanges to keep a record of users for tax purposes and to avoid money laundering and terror financing. However, CoinSwitch is not bound to keep and share personal information with government bodies. This allows the platform to offer a high level of anonymity, a feature that mostly helps in illegal activities

In fact, they don’t ask users to create a trading account before commencing trades. The traders can easily start trading on this platform by selecting a trading pair and entering the correct information related to the wallet address. Obviously, the platform records all the transactions on the blockchain for tracking purpose.

It is quite easy to say that CoinSwitch is not safe for investors. This is due to the lack of regulations from government bodies and compliance with trading policies. They also do not openly outline their security measures. Unregulated platforms are always unsafe for traders. However, they do not hold traders deposit, which reduces the threat of money stealing. They only need traders wallet address to convert and transfer the coins to wallets.

Trader’s reviews are the only way to gauge the security of this platform. Unfortunately, the majority of reviews are negative.

Is CoinSwitch Customer Support Reliable?

CoinSwitch offers only one method for users to communicate with the management team. The user can only contact the support team through email – with the expectation to receive a response within 12 hours.  In addition, they haven’t created several video tutorials for users that help in solving various issues related to account setup and trading. It would be great if they set up a ticketing system or phone support. On the positive, their frequently asked questions segment covers all the main questions regarding the platforms.

What are Pros and Cons of CoinSwitch?

Conclusion

CoinSwitch is a cryptocurrency exchange aggregator, which gathers price data from the listed 9 crypto exchanges and helps in converting one coin into another along with transferring that converted coin to the user’s wallet.  Its anonymity feature and user-friendly platforms make it the best place for crypto investors who seek anonymous transactions. However, anonymous transactions are illegal all over the world, which raises several questions over its legality. In addition, this platform exposes investors to several types of risks due to its regulatory status.

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