Bithumb Review – Is Bithumb Safe? Features and Fees Explained

Bithumb is a prominent cryptocurrency exchange based in South Korea. Over the years, the site has emerged to become one of the top platforms in terms of trading volume in the Asia region.

If you are considering whether or not this exchange is the right platform to buy and sell cryptocurrencies, then our Bithumb review is a must-read. We start with an overview of what the online exchange offers, before delving into its core features, fees, and security.

Recommended Broker – eToro

What is Bithumb?

Based in Seoul, South Korea, Bithumb is a cryptocurrency exchange that was established in 2014. The platform caters primarily to the Korean market but also offers its services to other regions of the world.  The site is known for providing access to high liquidity as well as support for Auto Trading.

The exchange is estimated to have over eight million registered users and is particularly known for the fact it does not facilitate trades via anonymous accounts. All traders will have to complete a strict verification process to be able to use all of its features and subsequently withdraw funds. The trading platform is geared more towards professionals, by providing access to advanced technical indicators and tools.

In terms of the cryptocurrencies supported, Bithumb has about 180 digital assets listed on the platform. However, you will find that its markets are based only on Korean won and Bitcoin. In other words, you will be able to trade tokens either against KRW or BTC. To offer security for your transactions, Bithumb has acquired the Information Security Management System (ISMS) certification and claims to provide 24/7 monitoring of your assets.

For global users, Bithumb has established a different version called Bit Global. This platform will give you access to more markets as well as trading pairs. You will also have the option to fund your account in different fiat currencies other than the Korean won.

Bithumb Pros and Cons

After carefully evaluating the features offered by this exchange, our Bithumb review sums up the following pros and cons in using this platform.

Pros

Cons

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Bithumb – Supported Markets

Our Bithumb review found that the trading pairs you will find on the platform can be broadly classified into two: KRW- based and BTC-based markets. The platform currently supports 180 cryptocurrencies, and you will be able to trade them either against Korean won or Bitcoin.

• In other words, if you are completely new to the crypto world, you will first have to use Korean won to buy some Bitcoin and then use it to get your hands on other digital assets.
• While some might argue that Bithumb is limited when it comes to supported cryptocurrencies, this is primarily because the platform has a stringent policy in deciding which assets are to be listed.

According to the exchange,  it aims to find only the most promising projects to provide the right investment opportunities to its users.

Bithumb – Bit Global

Before we proceed any further, it is crucial to stress the point that Bithumb currently serves only South Korean residents. While the exchange is designed with this particular market in mind, a separate one has been set up for advanced users across the world. Bithumb Global was developed for this purpose, which was later rebranded to be known as Bit Global.

It currently features over 250 digital assets and 300 pairs. Another advantage of using Bit Global is that you will be able to fund your account using fiat currencies such as USD, CNY, JPY, RUB, EUR, and GBP – along with KRW. The trading commissions are also charged as a flat 0.10%, regardless of whether you are a maker or a taker.

In addition, you will also be able to benefit from a superior interface as well as margin trading when using Bithumb Global. However, the markets specifically available to you will depend on your location. Similarly, the fiat currencies supported, the deposit and withdrawal methods, and even the fees can vary based on where you are accessing the site.

The global version was established only in 2019, but it still carries the trust and security offered by the traditional Bithumb exchange.

Bithumb Trading Platform

Our Bithumb review found that the exchange’s platform offers you everything you will need as a beginner. There are also quite a few advanced features such as a variety of technical indicators and charting tools that make this exchange fit for traders. Once you decide which pair you want to trade, you can use a market or limit order to open your positions.

Bithumb also gives you access to stop-limit orders, thus providing you with more control over your trades. You can also access the charts of your desired trading pair separately, which will enable you a better view of indicators and other tools in order to make key decisions.

Bithumb Auto Trading

Bithumb has partnered with Crom Innovation to provide Auto Trading services for its users. While the feature is integrated into the platform, it is crucial to note that the exchange does not claim any responsibility for any losses that occur when using this tool. You can set up your automated trades by clicking on the ‘Auto Trading’ button that you will find on the right-hand side of the interface.

Alternatively, you can access this feature directly from the tab on the homepage. In the next step, you can start by selecting your desired trading pair. You can decide how much amount you want to trade and the number of orders you wish to place. The platform also allows you to define the range between where you want the positions to be executed.

It is also possible to set up stop-loss limits in order to close your positions at a specific level. As you can see, Bithumb will calculate the estimated profits based on your instructions even before you set up the trade. However, note that this is a figure generated based on the past performance of the digital asset, and does not guarantee any future earnings.

There is also the option to make use of artificial intelligence – which will recommend you the best setting based on the 7-day market performance. In this case, you only need to specify your trading amount, and other aspects such as the high and low prices, and the number of orders will be automatically filled.

Bithumb Staking

Bithumb Staking is a service that supports staking for a selected number of cryptocurrencies that are based on PoS (Proof of Stake) or DPoS (Delegated Proof of Stake) algorithms. By using this feature, you will be able to collect rewards passively. The returns will be calculated on a daily basis and will be added to your wallet every Wednesday, as per the current norm.

The platform supports staking for the following digital assets at the time of writing this Bithumb review:

• Orbs: 4-6%
• V.systems: 8-12%
• True: 4-6%
• IOST: 7-10%
• Luna: 6.5-9.5%
• Tachyon Protocol: 7.5-10.5%
• Icon: 6-11%

As you can see, the list is very limited and does not include some of the more prominent PoS based cryptocurrencies. Ethereum staking was indeed supported by this platform but is currently unavailable.  If you agree to the terms and services of this feature, you will be able to earn interest on the digital assets you already hold in your Bithumb wallet.

Bithumb Cash

Bithumb Cash is an innovative product supported by this exchange that will convert digital assets held in your account to their KRW equivalent. You can then use it to make payments online or offline.

The platform has partnered with a number of stores to facilitate this method as an acceptable mode of payment. It also allows you to make transfers to other users via Bithumb Cash transfers, which does not incur any additional charges.

There are two important things to note when using this service. First, when making a payment, the Korean won you hold in your account will be deducted first. It is only thereon that any digital asset you own will be converted to KRW. Second, in order to gain access to Bithumb Cash, you will need to be a user with a Level 2 or higher membership.

Bithumb Prime

For institutional traders, Bithumb has also set up a separate entity called Bithumb Prime. However, our Bithumb review found that signing up on this platform requires you to submit a separate email application. The team will then conduct an internal review to determine whether you are eligible for these services.

Being a Bithumb Prime user gives you access to tailored account management services, lower fees, and Prime API that allows you to trade at optimized speed and stability.

Bithumb Mobile

If you would like to trade cryptocurrencies on the go, Bithumb facilitates this via its mobile app. The app comes with most of the features of the main platform built into it. You will be able to place orders, control your positions, and make deposits if you have completed Level 2 verification.

Bithumb Partnerships

If you visit the Bithumb website, you will also notice that there is an entire section dedicated to a partner store. Our Bithumb review found that these services include lending, bot trading, and savings accounts for digital assets.

Although indeed interesting, it is crucial to note that these are not provided by Bithumb directly. Instead, the platform has partnered with third-party services and advertised these products on its own website.

As such, if you decide to try them out, it is imperative that you do independent research and arrive at your own conclusions before investing any money or digital asset.

Bithumb Payments

Bithumb currently supports fiat payments only in Korean won. You can either make a bank deposit or pay via your debit/credit card to transfer money to the platform.

The alternative you have is to make cryptocurrency deposits. You can start by transferring funds to your Bithumb account as soon as you sign up as a Level 1 user. However, you will not be able to make any withdrawals until you have completed a further identity verification process.

Bithumb Minimum Deposits

When making cryptocurrency deposits, you will also need to meet the minimum requirements for the following digital assets:

• Bitcoin: 0.005 units
• Dash: 0.04 units
• Litecoin: 0.3 units
• Bitcoin Cash: 0.03 units
• Zcash: 0.02 units
• Bitcoin Gold: 0.15 units
• Polkadot: 1.9999999999 units
• Bitcoin Cash ABC (eCash): 0.03 units

Bithumb Fees

Bithumb is popular as a trading platform insofar that it offers some of the lowest transaction fees in the market. The transaction commission can go as low as 0.04% based on a maker-taker model. The highest cost you will face on this exchange only comes to 0.25%. With that said, more competitive commissions can be found elsewhere.

For instance, eToro – a regulated online broker that is used by over 20 million investors, allows you to trade on a spread-only basis. This means that instead of paying a percentage-based commission, you simply need to cover the difference between the bid and ask price of the respective digital currency,

On the other hand, our Bithumb review found that the platform allows you to reduce the aforementioned charges by using vouchers. This will you allow you to benefit from a transaction fee discount. These can be purchased based on your 30-day trading volume.

With this, you can bring the commissions between 0.01%-0.07%, which is perhaps amongst the most competitive you will come across in the online cryptocurrency area. That said, remember that a coupon you buy is valid only for 60 days from the date of issue.

Bithumb Deposit and Withdrawal Fees

As mentioned, the only fiat currency supported on Bithumb is the Korean won. You will be able to make KRW deposits for free, while withdrawals will cost you 1,000 won.

With that said, transaction charges for cryptocurrencies are processed differently. For the majority of digital assets, you will not have to pay for any deposit expenses. However, there are a few exceptions such as Bitcoin, Bitcoin Cash, Litecoin, and Bitcoin Gold that carry a small fee.

When it comes to withdrawal fees, how much you pay will depend on the digital asset you are cashing out.

Is Bithumb Safe?

While Bithumb emphasizes its top-notch security features, the platform has been the victim of several hacks in previous years. However, recently, the exchange has since ramped up its safety measures.

• One such example is the mandatory verification required for all registered users.
• In addition, Bithumb provides security features such as 2-factor authentication and SSL encryption to protect your account.
• The exchange also claims to monitor its servers 24/7.

All that aside, it comes down to the fact that Bithumb is, ultimately, an unregulated exchange. This means that if you choose this platform for your cryptocurrency needs, you are likely to receive little to no protection. Your funds and assets will always be exposed to security threats, which will only add more risk.

Bithumb User Verification

Bithumb makes it a requirement for all users to go through verification in order to gain access to the different features of the platform. Our Bithumb review found that the level you belong to will determine how much you can withdraw from the exchange.

For instance, if you are on Level 1, you will not be able to deposit any fiat currency. You can deposit cryptocurrencies, but you will not be able to withdraw any assets to your private wallets.

There are four different levels:

• Level 1: You only need to provide your email address and complete mobile verification.
• Level 2: You will be required to submit your national ID card (if in South Korea), or passport (if you are a foreigner).
• Level 3: Fill out a pledge form on the platform.
• Level 4: All the above documentation along with proof of address. For this, you can upload a copy of your utility bill or bank account statement.

Recently, this South Korean exchange also made it mandatory for all users to verify their identity using a phone number. This means that if you do not have a Korean number, you will not be able to sign up on the platform. In other words, if you are based outside South Korea, you will have to use the Bithumb Global platform for your trades.

Bithumb Customer Support

A crucial part of doing this Bithumb review was to find out how this exchange responds to the queries and concerns of its registered and potential users. Not so surprisingly, the responses we got were swift and considerate.

• You can receive 24/7 customer support on this platform, by sending an email.
• You can also connect to the team via one of their social media pages, or refer to the user guide or help center to find answers to your questions.
• In addition to this, there is also the option of a 1:1 inquiry that you can do directly from your account.

If you are based outside of South Korea and are using Bithumb Global, then you will also have the option to contact the team using the live chat feature around the clock.

eToro vs Bithumb – Comparison

Our Bithumb review has provided you with an objective analysis of what this platform offers, along with its core benefits and drawbacks. From our study of this exchange, we found that there are a few areas where this platform needs to improve, especially when compared to competitors in the market.

If you are looking for a top-rated cryptocurrency exchange, then we suggest that you read the following comparison between Bithumb and eToro.

Safety and Regulation

Bithumb might be one of the few cryptocurrency exchanges that complies with the standards of identity verification in South Korea. However, outside this country, this is virtually useless. Even Bit Global does not offer you much in terms of regulatory protection.

At the other end of the scale is eToro, which is perhaps one of the safest online brokers that you will come across. This brokerage site offers you a safe environment to invest in and trade different assets, including cryptocurrencies.

Most importantly, eToro holds licenses from four different financial authorities that can attest to this level of security – provided by the SEC, FCA, ASIC, and CySEC.

Available Markets

Bithumb is also limited when it comes to supported markets. The platform lists over 150 cryptocurrencies but you can trade them only against KRW or BTC. If you need to access other pairs, you will need to sign up on Bithumb Global.

In comparison, eToro not only offers its services in countries across the world, but you will also be able to trade your chosen cryptocurrency against other digital tokens and fiat currencies such as USD and EUR.

In addition to this, eToro also gives allows you to invest in alternative assets such as stocks, commodities, indices, and forex. In other words, if you are looking to build a diversified portfolio, eToro would be the better alternative.

User-Friendliness

Although Bithumb is somewhat user-friendly, the interface is not as easy to use when compared to that of eToro. In fact, the social trading platform allows even absolute beginners to buy and sell cryptocurrencies. The order box is simple and is not overcrowded with charts and other tools.

• However, that does not mean that eToro does not pack enough tools for advanced traders.
• The platform gives you access to multiple trading orders – including limits, markets, stop-losses, and take-profits, which can be more advantageous when opening and closing positions.

You can also create a watchlist of assets that you want to follow to receive real-time updates.

Fees

This might be one area where you will find that Bithumb is on par with eToro, particularly when it comes to commissions. The cryptocurrency exchange charges you a fee starting from 0.04%, which can be further reduced by buying coupons.

On eToro – you will be trading cryptocurrencies on a spread-only basis. However, this broker is also cheaper when it comes to deposit and withdrawal fees

Passive Investment Tools

Bithumb offers you an Auto Trading feature that allows you to set up your trades in advance. Although this might be passive, you will still need to have thorough knowledge about orders and strategies to make the most of it. On the other hand, eToro offers you a different kind of passive investment solution, where you do not have to execute any trades yourself.

Instead, you will be investing in an experienced trader that uses the eToro platform and mirroring their strategies in your portfolio. In simpler terms, every time your chosen trader buys or sells a cryptocurrency, the same will be carried out in your account, in proportion to the amount of capital you invested.

Another passive investment tool offered by eToro is the CryptoPortoflio. This is where you can assign the entire control of your portfolio to the eToro management team. They will select a basket of cryptocurrencies based on market performance and risk, and then balance your portfolio regularly.

Both of these passive investment options can turn out to be extremely useful, especially for beginners among you. Ultimately, we have come to the conclusion that eToro is a much better option than Bithumb when it comes to choosing a top-rated cryptocurrency exchange.

eToro – Best Broker to Trade Crypto

Bithumb Review – Conclusion

Bithumb has one of the highest trading volumes clocked by any cryptocurrency exchange in South Korea and is ranked as one of the top platforms in the world in this regard. Its fees are also relatively competitive, especially when accounting for its coupon discounts.

However, the exchange accepts only Korean residents as users, and even then – tradable pairs are only offered in Won or Bitcoin. As such, if you want to use the services of this exchange, you will need to look up Bit Global instead.

And most importantly, neither Bithumb nor Bit Global is regulated by any reputable authorities. In other words, your investments and funds would be safer with a licensed cryptocurrency broker such as eToro, a platform that allows you to trade assets on a spread-only basis.

eToro – Best Broker to Trade Crypto

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