Unlocking Upbit: A Comprehensive Review of the Crypto Exchange
1. Upbit: Unveiling the Company
Upbit, a South Korean cryptocurrency exchange founded in 2017 by Song Chi-Hyung, one of South Korea's wealthiest individuals, takes center stage in this exploration. With support from the American platform Bittrex during its launch, Upbit rapidly ascended to become a prominent player in the cryptocurrency exchange realm. Notably, within two months of its debut, it claimed a top spot in 24-hour trading volume.
Expanding its reach in late 2018, Upbit ventured into Southern Asia, starting operations in Singapore and later in Indonesia. Distinguishing itself, Upbit holds the distinction of being the first global crypto exchange to earn certifications from the Korea Internet and Security Agency for Information Security Management System (ISMS), emphasizing its commitment to security.
However, it's imperative to acknowledge that in 2018, three Upbit officials faced accusations of orchestrating fake orders. While the exchange refuted these claims, such incidents raise questions. For those seeking alternatives, trusted providers like Coinbase, Binance, Kraken, and Coinmama are worth considering.
Now, having laid the foundation, let's delve into the workings of the Upbit exchange and assess its key features.
2. Upbit: The Positive Aspects
2.1. Robust Security
Security stands as the cornerstone for any cryptocurrency exchange, and Upbit makes substantial efforts in this arena. Employing a security firewall system for 24/7 monitoring and protection, Upbit adds an extra layer through 2-step verification. Additionally, a fund password is mandatory for withdrawals, with level 4 verification required for SGD transactions. Previously relying on BitGo for wallet security, Upbit transitioned to more secure measures, including cold wallets, after a significant Ethereum hack in 2019.
While Upbit boasts robust security features, opting for a reliable cold wallet like Ledger Nano X or Trezor Model T is advisable for heightened asset protection.
2.2. Extensive Asset Support
Choosing a crypto exchange involves assessing the range of supported assets. Upbit shines in this regard, allowing deposits and withdrawals for over 200 cryptocurrencies, including BTC, ETH, LTC, EOS, and many more. This extensive selection provides flexibility for users with specific asset preferences.
2.3. Competitive Trading Fees
Trading fees are a pivotal consideration for users aiming to maximize profits. Upbit maintains a competitive fee structure, with both makers and takers subjected to a standard 0.25% fee. While withdrawal fees vary by cryptocurrency, Upbit's fee system aligns with industry standards.
2.4. High Liquidity
Although Upbit's current 24-hour trading volume places it at 63rd globally, the exchange's historical prominence contributes to maintaining high liquidity. Understanding the distinction between volume and liquidity is crucial, as trading volume indicates activity, while liquidity gauges the ease of selling an asset at its market price.
2.5. Beginner-Friendly Interface
Cryptocurrency trading can be daunting for beginners. Upbit addresses this by providing a user-friendly platform. Novice traders can access market data, real-time trends, and comprehensive charts, facilitating informed decision-making.
2.6. Responsive Customer Support
Responsive customer support is a vital aspect of any exchange, and Upbit excels in this regard. Users can reach out through phone, email, or KakaoTalk, a widely-used messaging app in South Korea. Positive reviews highlight the politeness and efficiency of Upbit's support team.
2.7. Accessibility via App
In an era of mobile convenience, Upbit caters to users with both desktop and mobile applications. Supporting Mac, Windows, iOS, and Android, the Upbit app boasts a clear interface, earning a commendable 4.3-star rating on the Google Play store. Users can engage with over 150 assets and 220 markets, with added security features like 2FA and multi-signature cold wallets.
3. Upbit: Points to Consider
3.1. Absence of Leverage Trading
One notable limitation of Upbit is the absence of leverage trading, also known as margin trading. While this might disappoint traders seeking amplified positions, it aligns with a risk-averse approach, especially beneficial for less experienced users.
3.2. Limited Fiat Support
Upbit supports only the South Korean Won, restricting users who prefer transactions in other fiat currencies like EUR or USD. While this doesn't hinder cryptocurrency trading, it adds an extra step for those accustomed to multi-fiat exchanges.
3.3. Mixed Reputation
Exploring customer reviews unveils a mixed sentiment toward Upbit. While positive feedback commends the platform's user-friendliness and support, negative reviews often cite issues with the verification process and occasional losses. Notably, Upbit's reputation took a hit in 2019 due to a significant hack that resulted in the loss of 342,000 ETH, valued at $50 million.
3.4. Limited Global Availability
Upbit's services are exclusively available to South Korean customers, with regulatory constraints preventing access for US residents. This limitation necessitates alternative considerations for users outside South Korea.
4. Navigating Upbit: Account Creation Guide
4.1. Creating an Upbit Account
Embarking on your Upbit journey involves a straightforward account creation process:
Step 1: Visit the Upbit homepage and click "Sign Up."
Step 2: Provide your email, create a password, confirm your age (18 or above), and complete the "I'm not a robot" verification.
Step 3: Access your email and click the verification link within 30 minutes.
This concise guide ensures a seamless account creation experience, setting the stage for exploring Upbit's offerings.
5. Conclusion
In conclusion, Upbit emerges as a dynamic cryptocurrency exchange with notable strengths and considerations. Robust security measures, extensive asset support, competitive fees, and a user-friendly interface position Upbit favorably. However, limitations like the absence of leverage trading, restricted fiat support, mixed reviews, and limited global availability merit careful consideration.
For those venturing into the cryptocurrency landscape, Upbit offers a compelling option, particularly catering to users in South Korea. As the crypto industry evolves, continued scrutiny and exploration of diverse exchanges will empower users to make informed choices aligned with their preferences and trading objectives.
