Exchange Review: DGEX

DGEX
  • Editor Rating
  • Rated 1.5 stars
  • 30%

  • DGEX
  • Reviewed by:
  • Published on:
  • Last modified: August 31, 2015
  • Trades
    Editor: 35%
  • Funding
    Editor: 20%
  • Compliance
    Editor: 20%
  • Platform
    Editor: 54%
  • Help & Support
    Editor: 34%

Update August 31, 2015: DGEX has, sad but unsurprisingly, ceased all activities and is therefore no longer available.


DGEX is a cryptocurrency exchange that has been around since 2013, and is surprisingly still being used despite the overall lack of quality.

Trades

The activity on the exchange is mainly coming from semi-national cryptocurrency FIMKrypto (FIMK), a currency for Finland, for which DGEX seems to be the only exchange. It is hard to imagine why people would still be interested in (semi-)national cryptocurrencies after Auroracoin and others, especially given a bid-ask spread of 30 percent on FIMK. Also for NXT the spread is at 14 percent. The additional trade fees might be low, but with spreads this large that hardly matters. It means that for every FIMK bought, the price should rise 30 percent just to be able to easily sell it again at the price paid.

DGEX Bid-Ask

Funding and Compliance

DGEX offers trading in BTC, NXT and FIMK and does not include fiat markets. Without fiat markets, there are little regulatory demands for this exchange. It should be np surprise that the exchange recently got hacked in July, when 52 BTC and 1.2 million NXT were stolen. If the bar is set low, then there is a very high risk of compliance and related security quality being low too. Note that even though cryptocurrency transactions can be executed within very short periods and at low costs, DGEX still charges a two percent fee to process such a transaction within one business day. For BTC this is still one percent for two business days. A normal Bitcoin transaction is executed instantly and confirmed within 10 minutes, while only taking a 0.01 percent fee. A negative score would certainly be justified under this header.

Platform plus Help & Support

DGEX offers a remarkable account security. Instead of two-factor authentication (which is applied to wallets) the exchange uses IP-verification. If a user logs in from an unknown IP then this needs to be verified first. An obvious disadvantage of this is that you should be more careful around public computers. Also the initial password is sent via email which is not a good practice. It can later be changed to any value such as a three letter password, which is not great either. Even though the exchange does not offer a lot of features, it still managed to put an order book in an order screen pop-up making it a bit slow. Lastly, the exchange can only be contacted via email while the FAQ is practically empty, so also the help & support is quite disappointing.

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