Exchange Review: Coinsetter

Coinsetter
  • Editor Rating
  • Rated 3 stars
  • 60%

  • Coinsetter
  • Reviewed by:
  • Published on:
  • Last modified: December 7, 2017
  • Trades
    Editor: 60%
  • Funding
    Editor: 30%
  • Compliance
    Editor: 51%
  • Platform
    Editor: 70%
  • Help & Support
    Editor: 64%

New York City-based Bitcoin exchange Coinsetter opened its doors to the public in 2012. It is an exchange that is very focussed on liquidity. It was acquired by (and merged with) Kraken at the start of 2016.

Trades

Coinsetter claims to be the most liquid exchange as a result of its advanced CSX technology. This technology is said to “consolidate liquidity from other global bitcoin exchanges”. This claim is certainly supported by the quoted (liquidity-related) bid-ask spreads. On the only tradable currency pair (BTC/USD) the bid-ask spread is less than 5 basis points (0.05 percent) on average. Even so, Coinsetter is not the cheapest exchange as it still charges a trade fee of 25 basis points (0.25 percent).

Customers can execute their trade orders via market or limit orders. There is also an option to receive a notification on price movements, but the exchange did not enable advanced or conditional orders types. Notifications do not offer much compensation for this, because even the fastest response will be slower than an active conditional order. Hence users do not get maximum control over their position. Traders will also have to miss out on the option to trade on margin or short sell. As of the start of 2015 the exchange did add these trading options, but only for a select group of its business customers.

Funding

Funding options at Coinsetter are very limited. The only way to transfer US dollars to Coinsetter is via a wire transfer. This is the case for both U.S. and international customers. As a result, both deposits and withdrawals may take up to three days to be processed. Furthermore, this method is also rather expensive. A wire transfer will normally cost anywhere between $15 and $65. On top of the bank costs, Coinsetter also charges a withdrawal fee with a minimum of $30.

Compliance

Coinsetter opened to the public in November 2012. It is based in New York and registered as a Money Services Businesses (MSB) with the Financial Crimes Enforcement Network (FinCEN) under registration number 31000032653261 since late-2013. As New York still has to finalize its BitLicense proposal, it cannot be considered a fully regulated company just yet. Given that it has not participated in a recent public Proof of Reserves audit either, Coinsetter still has a lot to prove.

Platform

With a responsive website and a strong design Coinsetter delivers a platform that is both easy to access and easy to use. Of course, this is partially also the benefit of offering limited functionalities and currencies to trade in.

Coinsetter Trade Screen

Help & Support

The Coinsetter website offers a lot of information, but it might not be that easy to find what you need. Information is scattered all over the platform. For example, information on deposit or withdrawal processing times can be found under the help center, while information on withdrawal fees is displayed on the withdrawal page. At the same time, trade fees are not listed on the trade screen or in the help center but have their own page instead. The good news is that if the previous becomes too confusing then the exchange can be contacted by phone. For less urgent support request there is always the option to send an email.

Pros

• Very good liquidity
• Contact support by phone

Cons

• Limited funding options

Leave a Reply