The Coinone Exchange – An Easy to Follow Guide for New Users
Coinone is an entry-level cryptocurrency exchange designed to support the Korean market. The exchange allows users to buy, sell and store Bitcoin, Ether, and other top coins with ease. The platform’s focus on simplicity and regionalization has helped it to become one of the top three cryptocurrency exchanges in Korea based on market capitalization.
Benefits of The Coinone Exchange
Coinone exchange is an established player with a strong team supporting development. As such, the exchange continues to attract new users. Here are some of the top benefits one can gain from utilizing Coinone.
At the top of the list is security. Coinone is known for its top-notch security protocols. To that extent, the exchange remains a pioneer in the market. Notably, it was the first Asian exchange to support the use of Multisig wallets. Multisig wallets are more secure than traditional options because they require two private keys to initiate transactions. The platform also leverages two-factor authentication (2FA) and cold storage to keep your funds secure.
Flat Trading Fee
Another huge bonus gained by Coinone users is no fees on deposits and a flat trading fee. Impressively, Coinone’s trading fee is more than half that of the international average. The global industry average is 0.25%. Coinone users enjoy a discounted fee of 0.10%,
Fiat on Ramp
As a major player in the Korean market, Coinone also functions as a valuable fiat onramp for users. Notably, the platform only accepts KRW via Korean bank transfers at this time. Also, you can’t use credit cards to purchase crypto on this exchange.
How Does The Coinone Exchange Work
Everything about Coinone is geared to meet the demands of the local community. This Korean-focused exchange features a robust website that is practical and easy to use for locals. Additionally, the exchange only supports KRW trading pairs. In this way, Korean crypto investors receive a personalized experience.
Coinone provides a helpful interface. This portal presents users with all relevant trading details at a simple glance. There is also a pro version that displays more data and tracking tools for experienced investors to use. The pro version supports more complex trading strategies, such as margin trading.
The swap feature allows users to trade cryptocurrency directly. This feature was a strong addition to the network because up until that point. Only KRW trading pairs were available. Currently, the system supports KRW to DAI swaps. Keenly, developers to integrate more direct swap options in the coming weeks.
Coinone has a responsive customer service team that is ready to help you with any of your concerns. This support team is available between 10 AM – 7 PM via email and phone. A few things to know is that you will need to speak Korean. Also, you need to provide proof of ID and a photograph to file any complaints.
History of The Coinone Exchange
The history of Coinone begins with the exchange’s founder and CEO, Myunghun Cha. The exchange was founded in 2014 as a Bitcoin-only exchange. During its launch time, the platform received heavy coverage due to its claim that a famous “white-hacker conceived it.” Specifically, Coinone Inc is the firm behind the project.
User Hack and Trial
Coinone has an impressive security record. The exchange has never experienced any major hacks since its introduction into the market. However, there have been individual accounts that have been scammed out of their crypto. In one unusual case in late 2018, a major trader lost over 44 million won due to a SIM-swap attack.
A sim swap attack is a strategy in which hackers communicate with your phone provider and convince them to transfer your sim over to a new one. Once they accomplish this task, the hackers then have access to your 2-factor authorization codes. They use this information to transfer funds from your account before you even know what happened.
In most instances, a sim hack cannot be blamed in any part on the exchange but rather telecommunication companies. However, in this rare incident, Coinone had to share in some of the losses. A judge ordered the firm in Seoul to pay 25 million won to the affected customer in 2019.
The landmark decision came after it was revealed that the exchange failed to stop the hacker from withdrawing these funds, even though it was far beyond the daily limit of 20 million KWN imposed by the exchange. The courts deemed that the hack wasn’t the exchange’s fault, but they did have to repay all of the funds stolen that exceeded the company’s daily withdrawal limit. This marked the first time in history that the exchange was held partially liable for a sim swap hack.
Coinone took their approach a step further after opening a physical complex. The exchange complex has a Bitcoin ATM, a display board with market information, and offers face-to-face cryptocurrency consultation service. Users can walk in and get all of their crypto-related questions answered by a real person in a friendly manner. This strategy helped the firm cement its position as a platform dedicated to educating investors on all of the benefits of cryptocurrencies.
How to Use The Coinone Exchange
As a registered Korean exchange, only Koreans living in the U.S. with valid Korean documents can use Coinone in the United States. You will need to register and complete full AML and KYC protocols before trading on the platform. This process will require you to provide e-mail verification, phone verification, identity verification, bank verification, and OTP verification.
Coinone – A regional Crypto Asset
Coinone serves its purpose. Korean traders enjoy the fact that this platform is directed towards their specific needs. Consequently, the Coinone exchange is set to remain a major competitor in the market for years to come. For now, Korean investors can enjoy lower fees and a tailored experience when they utilize this platform for their crypto trading needs.