Exchange Review: BTC Trade [Closing]

BTC Trade [Closing]
  • Editor Rating
  • Rated 2 stars
  • 40%

  • BTC Trade [Closing]
  • Reviewed by:
  • Published on:
  • Last modified: December 7, 2017
  • Trades
    Editor: 37%
  • Funding
    Editor: 32%
  • Compliance
    Editor: 28%
  • Platform
    Editor: 44%
  • Help & Support
    Editor: 35%

BTC Trade was founded in Canada in 2013, and is being operated from China. The international part of the exchange went live in June 2014. This review focusses on the international side.

Trades

BTC Trade enables users to trade in Bitcoin, Litecoin and Dogecoin, but the first thing that is noticed at the trade screen is the massive costs associated with this. The exchange charges only 10 basis points on USD trades, but the bid-ask spreads can be 30 percent or more. At these levels, BTC Trade can hardly be considered as a serious trading platform. Looking at the trading history it is surprising to see that some people, albeit not many, are still willing to trade despite the costs.

The exchange is trying to lure in new users, as it has recently enabled leveraged trading. Users can now borrow money or coins to create a position that is larger than their assets would normally allow. If a user could, for example, buy 100,000 Dogecoin (worth $21) before, then he could now decide to borrow money to get a position of 200,000 Dogecoin ($42). Since the user’s invested amount does not change, his trading results will now double. A 10 percent increase in the Price of Dogecoin increased the value of his position to $46.2, a return of $4.2 or 20 percent on the original investment. Some traders might find this a nice addition, but it should be kept in mind that cryptocurrencies are already the most volatile asset class. It is therefore doubtful whether this is the best way to lure new users.

Funding

If BTC Trade wants to increase the liquidity at its platform it should put some effort in upgrading the funding options. Many exchanges are limited to slow and costly wire transfers, but BTC Trade takes it to the next level by providing Chinese instructions on its international (USD) funding page (incorrectly titled “RMB” funding). You need a translator to find out that the minimum deposit is $1,001. It is very sloppy, and below all standards.

BTC Trade Funding

Compliance

According to BTC Trade’s website the exchange was founded in Vancouver, Canada in April 2013. The international version of the exchange was not launched until June 2014. It was, however, not possible to find a business registration for this review. Hence the official registration could not be confirmed. It would also be expected that the exchange would be registered with the Canadian Financial regulator FinTRAC, like other Canadian exchanges such as Vault of Satoshi, but again no registration could be found. The exchange did not participate in a public Proof of Reserves audit either. Along with the sloppy set up of the international website, it raises some concerns with the compliance and security quality of the platform.

Platform

Limited functionalities keep BTC Trade easy to use. Navigating can, however, sometimes be a little annoying due to Chinese or poorly translated headers. Even worse are the random Chinese (or poorly translated) descriptions or error messages, even though the international website has been up and running for half a year. Despite the translations, users should at least be able to enable two-factor authentication. Fortunately little language is required for the trading screen. Lastly, the main website has not been optimized for mobile platforms.

Help & Support

The help and support again displays the total lack of any English proficiency. If you happen to understand Chinese then the available support will be excellent, but otherwise you can only send an email and hope to receive an answer back. There are some guides, but these are mainly limited to screenshots with some pointers in them. It would thus seem that a textual description was too demanding.

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