Cryptopia Exchange

Cryptopia Overview

Cryptopia is a New Zealand based cryptocurrency exchange that is based in Christchurch. The exchange operates as a legitimate New Zealand company with registration number of 5392901.

In terms of New Zealand based regulations, Cryptopia is not registered as a “financial service”. The company is listed as a “software development service” which most likely ties into the lack of general global regulation for digital assets.

It was started in 2014 by two founders called Rob Dawson and Adam Clark. They initially started the exchange as a hobby but decided to quit their jobs last year and run the exchange full time.

As the price of Bitcoin has exploded over the past year, Cryptopia has undergone an immense expansion. For example, last year they only had the two founders operating the exchange. Now, the team has expanded to over 50 as they try to cope with demand in the market.

They are a peer to peer exchange where users are trading on directly among themselves on the platform. They are also pretty unique as they include a marketplace where Bitcoin can be spent on just about anything.

Cryptopia Asset Support

Probably one of the best selling points of the Cryptopia Exchange is it’s extremely broad asset support. In fact, the number of assets supported is so broad that it is unlikely that any one trader would need even half of them.

For example, on Cryptopia, you can buy PutinCoin (which as of today had a daily trading volume of 0.6 bitcoin) MagnetCoin (with a volume of 0.28 bitcoin today) and even something called King 93 (with a volume of 0.04 bitcoin).

Not only is the asset choice incredibly wide, but the site also allows for direct exchanges between various popular currencies such as Litecoin and Ethereum. This is important because it means that traders do not need to convert everything into Bitcoin first before they can convert into another cryptocurrency. This can potentially save on fees, as each time a currency is traded, a fee is charged.

In terms of the volume on the exchanges at Cryptopia, you have total 24 hour volume at about $16m currently. Below you can see a breakdown of the largest volume over the past day. What you will probably notice is that some of the more obscure altcoins have larger volume than established coins.

Cryptopia Exchange Volume
Source: coinmarketcap.com

When it comes to Altcoin volume, Cryptopia had roughly 50% of all the daily volume for Ormeus coin. This shows that it would be the right exchange to go to if you had any particular interest in trading this coin.

Is Cryptopia Safe?

One of the most important considerations for any cryptocurrency trader these days is the security of their funds on an exchange. Given that they do not control their own coins, they are at the whim of the exchange’s security procedures.

Cryptopia has quite a strong record in that regard.

Since the exchange began operating in 2014, there does not appear to be any hacks that have taken place. This is in sharp contrast to a number of other wellknown exchanges such as Poloniex, Bitstamp and of course, Mt. Gox.

We did, however, struggle to find any other information on the internal security procedures at the exchange as they pertain to the wallet security and server infrastructure. This is something that most other exchanges were happy to report.

One can only hope that they are following all of the best practices when it comes to wallet cold storage and multi signature protocols. The site, is however, SSL protected which means that all of your traffic with the exchange is encrypted.

Cryptopia SSL Certificate
Cryptopia SSL Certificate

It is quite important that you make sure that you are visiting the correct site that has the SSL padlock in the browser address bar. Hackers often use phishing to send you to illegitimate sites.

User Security

On the user side, Cryptopia appears to have all the standard 2 factor authentication procedures. This is not set as default so it is advised that that you enable this feature the moment that you create an account. This is because numerous users have reported unknown login attempts on their Cryptopia accounts.

Irrespective of the security procedures on an exchange, you should never make a habit of leaving large amounts of coins on an exchange. From the Bitgrail hack to the Mt. Gox one, people have learned the hard way of leaving funds on an exchange.

Cryptopia Fees

Cryptopia charges a fee of 0.20% of the total value of each trade. Comparing this to other exchanges, Binance charges 0.1% and Polonium charges between 0% and 0.25%. This implies that Cryptopia fees are mid range, and not particularly high or low.

When it comes to funding and withdrawal, Cryptopia has a fee for a withdrawal of your coins. These vary according to the coin and are a flat rate. For example, they are 0.01 BTC for the withdrawal of 1BTC or equivalent.

You can view the withdrawal fee for the coin in question in your dashboard by clicking on the “settings”. Cryptopia claims that these are based on the fees for the blockchain of the particular coin.

 

Funding / Withdrawl

Cryptopia is based in New Zealand and the bank that they use is also based in the country. This means that they only have fiat funding options for people who live in New Zealand and are funding in NZD.

However, if you would like to trade on Cryptopia and you are not based in New Zealand you can still use cryptocurrency funding. You would have to use another Fiat gateway in your country that will allow you to buy Bitcoin or Ethereum with your currencies.

As a new account, you have a Level 1 verification level. This allows you to withdraw up to $5,000 NZD per day without any form of identification. If you want a higher level of verification then you can request for a Level 2 verification.

This requires you to provide documentation such as an ID card as well as your residential address. If you have been verified to level 2 then you are entitled to withdraw up to $500,000 NZD. There is a third tier of verification that is available for high net worth individuals and business accounts.

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