Exchange Review: BTCC [Closing]

BTCC [Closing]
  • Editor Rating
  • Rated 2.9 stars
  • 58%

  • BTCC [Closing]
  • Reviewed by:
  • Published on:
  • Last modified: September 16, 2017
  • Trading
    Editor: 74%
  • Funding
    Editor: 84%
  • Platform
    Editor: 66%
  • Help & Support
    Editor: 56%
  • Legitimacy
    Editor: 33%

Shanghai-based exchange BTCC was founded in June 2011, and was the first Bitcoin exchange in China. Today, it is the largest Bitcoin exchange by volume. This volume is believed to be generated by Chinese customers, as the exchange is limited from an international perspective. Nevertheless, BTCC does offer an international platform hence this review focusses on the international side of BTCC.

Trading

It is not that hard to see what makes BTCC so popular. The exchange might offer just two cryptocurrencies (Bitcoin and Litecoin) to trade in, but it has abolished trade execution fees. Hence even the BTC/LTC currency pair has a bid-ask spread of just roughly 13 basis points. For CNY/BTC trades this is even less at about 6 basis points. Bid-ask spreads at these lows are rarely encountered, but are simply the result of the liquidity attracted by the absence of trade fees.

With regard to the trading order options the exchange does not excel as much. Limit and market orders have been enabled, but advanced order types such as stop-limit orders are not available limiting user control. Furthermore, the exchange does offer margin trading/short selling.

BTCC Trading Summary

ItemDetails
# Cryptocurrencies2 (BTC / ETC)
# Fiat currencies2 (USD / CNY)
Trade fees (trade size $1,000)0.00%
BTC/USD half bid-ask + impact (trade size $1,000)0.06%
Minimum trade sizeNo
Margin tradingSupported
DerivativesNot supported
Market ordersSupported
Advanced ordersNot supported


Funding

The biggest limitation faced by international customers comes from the funding options, even though the exchange added new deposit methods for USD and HKD in July 2014. Despite this support, trades still have to be executed in CNY. This is because BTCC did not add full USD support but instead introduced BTCC Vouchers. Vouchers represent a certain CNY amount and can be bought with/sold for USD. This method has several disadvantages. Apart from not being the most user-friendly approach, there are additional cost due to the USD/CNY conversion next to the already high bank costs involved in the transfer. BTCC also charges a fee, and a single transfer may take up to several days to be processed. Altogether it leaves a lot of room for improvement to say the least.

BTCC Funding Summary

ItemDetails
Cheapest funding method available inChina
Cheapest funding methodWire (international cust.)
Deposit fees (local)Free of charge
Withdrawal fees (local)Free of charge
Instant deposits possible?No
Bitcoin Deposit feesFree of charge
Bitcoin Withdrawal feesFree of charge


Platform

BTCC provides a strong and accessible trading platform. The website is easy to navigate and simple to use, with the only drawback being that the trade screen can be a bit slow as a result of all the automatically updating numbers across the screen.

BTC China Trade Screen

 

The main website might not be responsive, but this is compensated by a downloadable trading app optimized for mobile platforms. The exchange app also offers improved performance.

Help & Support

The available guides on BTCC have mixed value to international customers. With regard to trading and funding options most guides have been translated and have also been supported with screenshots. This is a good thing, as it covers the most crucial information. There is also an extensive guide on Bitcoin, but unfortunately this one has not been translated. Likewise, the available support is excellent for Chinese users with options to call or chat with the support team, but international customers will have to send an email to request support.

Legitimacy

The company’s legitimacy has been evaluated with the help of a Fraud Risk Assessment. A summary is provided below, and the full assessment can be found by following this link.

ItemNumber
Red flags3
Warnings1


A weighting factor of 40% is applied to legitimacy in calculating the final rating. A weighting factor of 25% is applied to both trading and funding, while a weighting factor of only 15% is applied to both platform and support. If the legitimacy score is 0% then the total rating is automatically set to the lowest possible result.

Pros

• No trade fees & near zero bid-ask spreads

Cons

• Lacking proper funding and support options for international customers
• On shaky regulatory ground

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