The Bithumb Exchange – An Easy to Follow Guide for New Users
Bithumb is one of the top cryptocurrency exchanges globally in terms of Bitcoin trading volume at this time. The platform was one of the earliest to achieve global recognition. Since its introduction to the market, the exchange has earned a reputation as an advanced, veteran cryptocurrency exchange. Today the platform offers products for both new and experienced traders.
Features of the Bithumb Exchange
Bithumb is available as a PC application and a mobile app. The exchange includes an easy to use interface that places all vital trading functionalities within one click. This interface contains multi-lingual support and offers translations in six different languages. However, the platform’s design is directed towards Korean investors primarily.
Bithumb enjoys some of the highest liquidity in the industry. Trading volume achieved by Bithumb always ranks within the top Korean exchanges. This liquidity provides investors with a seamless trading experience and the ability to trade large amounts of cryptocurrency quickly.
As one of the most established exchanges in the region, Bithumb offers a wide selection of altcoin trading pairs. Currently, the platform offers over 121+ trading pairs. The network also includes 75+ active markets and offers trading access to stablecoin-to-crypto, crypto-to-crypto, and fiat-to-crypto trading.
Bithumb supports a unique dual API setup. The first system leverages the Bitsum REST API client. This API allows external developers who wish to develop services and apps to integrate Bithumb services directly. The second API, the Prime REST API, is exclusively for institutional investors who register for the Prime service exchange. This service provides better rates and payouts for whale investors.
How Does the Bithumb Exchange Work?
As a regulated digital assets exchange, Bithumb requires all users to submit to KYC/AML regulations. Regulated exchanges provide users with more consumer protection mechanisms compared to their unregulated counterparts. As such, regulated exchanges enjoy participation from traditional investment firms who require these protections to join in the market.
Bithumb introduces three different trading modes. Specifically, users may choose between easy trade, general trade, and reserved trade. Each selection provides more advanced features. It’s recommended that new users begin with the easy trade setup. It makes trading simple and requires no prior technical understanding to navigate.
Bithumb can provide fiat-to-crypto trading services due to its regulated nature. Primarily, the platform accepts KRW, South Korea’s local currency. You can make deposits using a direct bank transfer. Notably, Bithumb doesn’t support credit card purchases yet.
Two Account Options
There are also two account options available to users. The general membership is the most popular. It only requires a standard email and phone number to start the registration process. The second option is a corporate membership. This account needs a valid business address.
Bithumb is known for its low fee structure. The platform offers a flat trading fee of 0.15% across the exchange. Impressively, this fee is much lower than the global industry average of 0.25%. Consequently, the platform continues to gain new users partly due to its low costs.
Bithumb introduces a proprietary utility token called Bithumb Cash. Bithumb Cash serves multiple purposes in the ecosystem. You can use Bithumb Cash to transfer funds between users securely. Specifically, Bithumb Cash is the amount of the total assets held by Bithumb members converted into KRW.
Bithumb Cash users also enjoy a high level of usability and interoperability. Anyone can conveniently make payments using Bithumb Cash from PC and mobile. The network has links to shops, hotels, and service providers who accept the token currently.
The currency is flexible, as well. You can send it via address, QR code, or via SMS. Even a remittance QR function is built into the network that sends funds between family members in a snap.
Bithumb Lending is a new feature to the platform. This yield farming protocol allows anyone to lend out their crypto to other users and earn interest. The protocol utilizes liquidity pools that mix users’ funds. Lenders stake their crypto to these pools.
Interestingly, borrowers must put up KRW as collateral to use this feature. There is a 0.02% daily usage fee charged to borrowers. Also, the maximum amount available is 300MM KRW. You can choose a lending period between 3 – 50 days.
Bithumb Prime is a feature exclusively designed for institutions. These investors enjoy a faster API integration at optimized speed and a preferred fee rate. Best of all, Bithumb provides a dedicated account management service to all Prime members. To be eligible for Prime services, you must be an Algorithm trading firm, hedge fund, or licensed Financial institution.
History of the Bithumb Exchange
Bithumb entered the market in 2013. The platform has a headquarters in Seoul, South Korea. As a pioneer in the market, Bithumb experienced its fair share of setbacks. In June 2017, it was reported that Bithumb was hacked. Sadly, the hackers managed to steal information from the personal computer of one of Bithumb’s employees.
In January 2018, government officials raided Bithumb’s offices based on false claims of tax evasion. Ultimately, the platform was found not guilty. However, they did need to pay about $28 million in backed taxes. Another $32 million was lost during a June 2018 hack. Despite these setbacks, Bithumb bounced back and fulfilled its responsibilities to its users.
In 2019, Bithumb announced the launch of Bithumb Global. This platform allows worldwide trading of cryptocurrency and fiat currency, leverage trading, and futures trading. This platform also includes margin trading and DeFi lending features.
How to Use the Bithumb Exchange
Once you have downloaded, installed, and registered for Bithumb, you are ready to begin trading. On the top bar beside the Bithumb Cash tab, you will see a tab labeled Exchange. Next, you need to select the currency trading pair you desire. Clicking on the trading pair takes you to the trading page. From here, you choose the amount you want to trade. The process completes in seconds.