Are you contemplating buying and selling some crypto on Bithumb, but you would like to know if the exchange is right for you?
Also, you would like to know if the Bithumb is safe for you?
Worry no more, in this Bithumb review we are going to take a look at the history of the exchange, the number of cryptocurrencies supported, the fees charged, security and other essential factors that are important to know of before getting started on the platform.
Bithumb Exchange Overview
Bithumb is a cryptocurrency exchange that is based in Seoul, South Korea.
The platform was founded in 2013. It allows users to buy, sell, and store various cryptocurrencies.
In South Korea, Bithumb is one of the largest exchanges, and it boasts some of the biggest crypto trading volumes.
Globally, Bithumb is among the leading platforms when it comes to Bitcoin trading volume.
The exchange is operated by a company known as BTC Korea.Com Co. Ltd.
In October 2018, BK Global Consortium signed a deal that allowed them to purchase a majority share of BTC Holding Co., making the organization the largest investor in Bithumb.
Bithumb offers an easy to use platform that is ideal for beginners who might be in search of a user-friendly platform that lacks too many complications.
Despite being based in South Korea, one doesn’t have to be fluent in Korean to access the platform.
The exchange supports multiple languages with English, Chinese, Hindi, Spanish, and Japanese all on offer.
In addition to user accounts, the platform supports accounts for institutional investors.
This ensures that there is enough liquidity in the market to make trades at all times, and it also helps explain the platform’s high trading volume.
Some of the crypto assets offered on Bithumb include:
Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, EOS, BitcoinSV, Stellar Lumens, Tron, Cardano, ChainLink, Ethereum Classic, Qtum, Ox, Omisego, BitTorrent, Augur, Monero, Dash, NEM, Crypto.com Chain, Zcash.
As of the time of writing, the platform also has five new tokens; FAB Token, FNB Protocol, DVP, Function X, and Origo.
Fees, Deposits, Withdrawals, And Trading
Bithumb offers very competitive fees. As for deposit fees, they vary depending on the type of crypto coin you want to fund your account with.
Some of the popular cryptocurrencies are free, as we will see in the table below. However, there is a small fee that is charged for others.
The exchange also has a minimum deposit limit that you have to consider.
However, as we researched for this Bithumb review, we found that the figures were quite low. For example, the minimum deposit for Ethereum Classic is 0.1 ETC, while that of Litecoin is 0.1 LTC.
Withdrawal fees on Bithumb also depend on the type of crypto coin one is taking out.
For example, Bitcoin will cost 0.001 BTC, while Ethereum will cost 0.01 ETH.
But, it's vital to keep checking the official website of the exchange to ensure you are updated on price changes at all times.
When it comes to trading, fees are quite low compared to other exchanges and can be accessed using their coupons. The basic trading fee on the platform is 0.15% of the total amount one is buying or selling.
So, if you are buying ETH worth $1,000, then 0.15% of that amount is $1.50, not bad.
However, if you are to use a coupon that can be purchased on the platform, the fees are much lower since they are discounted. They range between 0.01% - 0.075%.
To make this review more compelling, here is a table of all the fees involved in the exchange;
|Currency||Deposit Fee||Small Deposit Fee||Withdrawal Fee|
|Korean Won (KRW)||Free||Free||KRW 1,000|
|Bitcoin (BTC)||Free||0.001 BTC for deposits less than 0.005 BTC||0.001 BTC|
|Litecoin (LTC)||Free||0.01 LTC for deposits less than 0.3 LTC||0.01 LTC|
|Bitcoin Cash (BCH)||Free||0.001 BCH on deposits less than 0.03 BCH||0.001 BCH|
|Ethereum (ETH)||Free||Free||0.01 ETH|
|Ethereum Classic (ETC)||Free||Free||0.01 ETC|
|Dash (DASH)||Free||0.01 Dash for deposits less than 0.04 DASH||0.01 DASH|
|Ripple (XRP)||Free||Free||1 XRP|
|Zcash (ZEC)||Free||0.001 ZEC for deposits less than 0.02 ZEC||0.001 ZEC|
|Bitcoin Gold (BTG)||Free||0.001 BTG for deposits less than 0.15 BTG||0.001 BTG|
|Qtum (QTUM)||Free||Free||0.05 QTUM|
|Monero (XMR)||Free||Free||0.05 XMR|
|EOS (EOS)||Free||Free||1.5 EOS|
Payment methods accepted
It’s vital to consider the payment methods supported on an exchange before signing up to see if they suit you. The good news is that Bithumb has facilities in place that can process fiat deposits and withdrawals.
However, the bad news is that this option is only available in South Korean Won (KRW).
However, if you are not based in Korea or have no access to KRW, you can still fund your account using cryptocurrencies.
If you are a newbie who is getting started with crypto trading, you can open an account with an exchange that allows fiat purchase of cryptocurrencies like Coinbase, and then you can proceed to transfer the coins over to Bithumb.
Even though Bithumb is mainly focused on the South Korean market, the exchange can be accessed from various countries around the world, including the United States.
You can contact the platform directly to get the full list of nations supported.
1) Visit the platform’s official website (bithumb.com) and sign up for an account
2) Enter the information asked for like email address, password, phone number, and more. Also, ensure you tick all the small boxes that indicate you agree to their terms and conditions, Captcha, and then click “Sign Up.”
3) Go to your email inbox and click on the link that has been sent there to confirm your account. This will redirect you to your Bithumb account, where you will need to enter your email address and password to “Sign In.”
4) Enter the security password that you set when signing up and then click “Confirm.”
5) Now that you have successfully logged in, we highly recommend that you protect your account from being easily breached by hackers.
6) Ensure you set up 2FA as this will offer an extra layer of security.
7) Proceed to verify your identity to be able to deposit funds into your account.
This can be done on the authentication tab on the left side of the homepage. After signing up, you get to level 1 automatically. To get to level 2, you have to verify your identity by submitting your government issued ID or passport.
As for level 3, you will need a written consent, and level 4 will require confirmation of your residence.
8) Deposit funds to your account by selecting the “Wallet” tab on the top bar and then choose the “Deposit” option.
9) Finally, you can start trading on your Bithumb account by clicking on the “Exchange” tab on the top bar and selecting the currency you wish to purchase.
Privacy And Security
There isn’t much privacy offered on the platform since the South Korean government requires identity verification for anyone trading cryptocurrencies.
This means individuals and companies wishing to participate in the activity have to submit various verification documents.
To make a withdrawal, one has to pass through Bithumb verification.
Withdrawals can only be done at level 2.
And migration from level 1 to level 2 authentication requires one to submit a copy of their passport and any other document that can be used to verify your address.
When it comes to security, the exchange has set the following measures to guarantee;
- 24/7 monitoring of servers
- 2-factor authentication (2FA)
- SSL encryption
- The exchange offers access to a wide range of the world’s top cryptocurrencies
- The platform offers competitive 0.15% commission on trades
- The exchange offers 24/7 customer support in multiple languages all year round
- The platform is built with ease of use in mind, and it’s amicable for beginners
- There are several order types available
- It has high liquidity
- Focuses mostly on South Korean users
- Limited range of crypto assets on offer compared to other exchanges
- Fiat deposits are only available to residents of South Korea
- The platform has been breached severally which raises some concerns among users
- There are translation issues that exist in the English version of their website
Bithumb understands the value of great customer support, and the exchange has set up a customer help team that works around the clock to answer the queries of their clients.
There is an international customer support line that provides multilingual assistance to foreign clients.
Also, it's possible to email your questions to the support team or access live online support through a chat by initiating one on your account.
In addition to the above methods, the platform maintains a small database that contains all the frequently asked questions (FAQs) along with their answers.
Things haven’t always been smooth sailing for Bithumb, and within the six years of existence, there have been several issues that have plagued the platform.
From data breaches to hacks and accusations of fake volume reporting below, we are going to look at a few of the problems that have plagued the platform over the years.
In June 2017, Bithumb reported that hackers had stolen user information from one of its employee’s personal computer even though they didn’t disclose if the act had led to any negative consequences to the platform.
Fast forward to January 2018, and the exchange was raided by the South Korean government for alleged tax evasion. The platform was not found guilty.
However, it still had to pay almost $28 million back in taxes.
Then in June of the same year, the exchange was breached, and cryptocurrency worth $32 million was stolen from the platform.
On March 29, 2019, the exchange announced that it had been hacked again this time around the finger was pointed at insiders.
Later it was revealed that almost $20 million worth of XRP and EOS tokens had been stolen.
Hacking incidents aside, late last summer, when the prices of cryptocurrencies were tanking, Bithumb was accused by CER, a crypto rating service of faking as much as 94% of its trading volume.
It’s an issue that has persisted on the exchange over time as even recent reports show that the exchange still does fake its volumes even though not by large margins as before.
Is Bithumb Safe?
Despite the concerns we have highlighted above, Bithumb has still managed to survive and thrive as one of the largest crypto exchanges in the world.
Many other top exchanges have experienced hacks signifying that no platform is truly immune to security breaches.
However, the vital thing is, Bithumb is always working on making its platform more secure and whenever a breach has occurred they have been quick to refund their users.
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