XCH4NGE is a new entry into the crypto exchange space. Based in London, and offering zero fees to buyers, this peer to peer exchange has massive potential. Here’s what we think.
How Does XCH4NGE Work?
XCH4NGE is a peer to peer exchange. Any crypto assets you buy or sell are from other users, with XCH4NGE acting as the intermediary. You may disagree with the centralized nature of this, but it provides many benefits. With traditional peer to peer exchanges such as LocalBitcoins, new traders without a reputation can struggle to complete trades. Fraud and scams can often occur, and there’s no process to verify accounts.
With XCH4NGE, users have to verify with a process like a credit check. Bank account details are also verified. This approach means:
- Traders are all verified
- Known malicious accounts cannot join
- New users are not unfairly penalised
While these are incredible benefits, there are some possible downsides. This centralized system introduces a single point of failure. As it’s an exchange, it could be vulnerable to hacking, as these reasons why exchanges are vulnerable to hacks illustrate. Furthermore, it’s not possible to remain 100% anonymous when trading through an exchange such as this. Whether that matters or not depends on your preferences.
XCH4NGE lets you trade crypto for money and back again. New users aren’t penalized for a lack of reputation, and in theory, scams will be far less commonplace, as XCH4NGE ensure any trader has to meet the verification requirements before gaining access to trade. That’s reason enough to use it, especially if you’re looking for an easy way to cash in your assets.
Security and Verification
As verification is such a large part of XCH4NGE, we couldn’t write about it without at least trying it out ourselves. We recently completed the whole verification process, along with both buy and sell transactions.
The verification process is like the process used by many other exchanges. You submit a photo of your government-issued identification, along with a second photo of you holding the same ID, and a piece of paper with the date and the word “XCH4NGE”. XCH4NGE use these photos to ensure you are who you say you are. Next up is bank account verification. This is another simple process and only requires you to enter your bank details.
After completing the easy to follow instructions, XCH4NGE will begin the verification process. For me, this was instant, but this speed may vary depending on the demand, the time, and your location.
I started the registration process but had to complete it later as I wasn’t able to take the photos at the time. A customer service representative from XCH4NGE reached out to me during that time to see if they could help with any issues, which is excellent service.
XCH4NGE securely store all your data with industry standard encryption. All funds live in multi-sig wallets, and you can deposit or withdraw at any time. Not only that but XCH4NGE only handle cryptocurrency, and never your funds. Transactions are peer to peer, with funds exchanged via bank transfer directly from one user to another. XCH4NGE’s tiny transaction fees (0.75% from the seller) come out of the crypto asset.
This direct bank transfer ensures your bank won’t block the transaction, as you’re sending money to another individual. Each transaction requires a unique identification code consisting of random letters and numbers. This helps both buyers and sellers to locate the funds in their bank account and means that there is no mention of crypto at all.
Is XCH4NGE Easy to Use?
After verification, we completed several test trades, and it couldn’t be simpler to use. XCH4NGE’s website is well designed and straightforward to use. The process consists of two distinct steps:
- Sellers list an asset
- Buyers start a discussion with sellers over that asset
If you’re buying crypto assets, you simply choose a cryptocurrency and then browse the listings. Any sellers offering that coin appear here, with their price and any limits. Select a seller to start the process, and you’re nearly done. Once accepted by the seller, you’ll have a small time limit to transfer the balance.
Once transferred, both you and the seller have to mark the money as sent/received, with another time limit. Finally, the seller sends the currency through XCH4NGE’s platform. At any point during this process, you can freely chat in private with the other party.
Selling coins is slightly more involved, but only because you need to set your price, quantity, and markup. This is the only area I found unclear to use. If you fail to complete a required figure, you get a generic error, rather than a nice pretty error with a specific message on what you need to do next.
Once you’ve completed the process for the first time, you’ll have no problems buying or selling, and if you get stuck, the support is always nearby. XCH4NGE is far easier to use than any other “traditional” exchange, as there are no order books, or other confusing features to familiarise yourself with.
Why Use XCH4NGE to Buy and Sell Crypto
XCH4NGE is a very promising new exchange. Sitting somewhere between Local Bitcoins and a traditional exchange, it’s off to a great start.
It’s worth remembering that XCH4NGE is still a young exchange. There are a limited number of buyers and sellers right now, and only the top five or so cryptocurrencies are available to trade, but this will all change soon. As more users begin to trade on the platform, the liquidity and variety will continue to grow. Starting in February, XCH4NGE are opening up to over 25 countries.
XCH4NGE’s excellent support, security, and on-boarding process are well worth considering. If it doesn’t suit your requirements right now, it may do so in the future, as it continues to grow at a rapid rate. XCH4NGE’s roadmap and product vision are full of awesome ideas to improve the platforms. Things such as increased security, even easier trading, and payment protection.
If you’re using XCH4NGE, or are looking to start using it, then let us know your thoughts in the comments below.