Wazirx vs Coindcx l Which is a Better Crypto Exchange for You?
In this new age of emerging fintech technologies, investors are drawing towards cryptocurrency at an unprecedented pace. They are exploring ways to learn and start investing in crypto but remain stuck due to the availability of multiple options. So, to bail you out of this dilemma of choosing the perfect crypto exchange for you, we will have a look at Wazirx vs Coindcx in this writeup. This comparison will be an eye-opener for you to decide which crypto exchange is best for you.
What is a Crypto Exchange?
A crypto exchange is a web or mobile app-based online platform enabling users to buy and sell digital currencies such as Bitcoin, Ether, Tether, Binance Coin, etc. You can trade one cryptocurrency for another on an exchange. The crypto exchange provides an online wallet to the users where they can deposit fiat currency, like INR or USD to start buying and selling cryptocurrencies. They can also convert the cryptocurrency into INR or USD to withdraw the funds to your bank account. Some exchanges also allow users to buy goods and services using cryptocurrencies. Binance, CoinEgg, Kraken, and Gemini, are among popular crypto exchanges.
Introduction: Wazirx vs Coindcx
According to coinranking.com, WazirX is among the world’s top 50 cryptocurrency exchanges. One of India’s largest cryptocurrency exchanges, WazirX was founded by Nischal Shetty and Siddharth Menon in 2017. In 2019, WazirX was acquired by Binance, the world’s largest cryptocurrency exchange by trade volume. With over 10 million active users, the India-based crypto exchange offers trading in more than 250 cryptocurrencies. Its 24 hours trading volume is $190 million which is the highest among India-based crypto exchanges. Known for a lower withdrawal fee and higher liquidity, WazirX supports INR deposits via UPI and bank transfers.
Founded by IIT Bombay alumni Neeraj Khandelwal and Sumit Gupta in 2018, CoinDCX has evolved into one of India’s largest and most valuable cryptocurrency exchange platforms. With a valuation of around $2.15 billion, CoinDCX earned the status of India’s first crypto unicorn. Backed by a user base of more than 130 million, CoinDCX offers buying, selling, and trading in more than 200 cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Anchor Protocol (ANC), Shiba INU (SHIB), and Polygon (MATIC). Witnessing a whooping growth in recent years, WazirX has received funding of $90 million in August 2021 and $136 million in the funding round of series D from Steadview Partners and Pantera Capital. Its other investors comprise Facebook co-founder Eduardo Saverin’s B Capital, Coinbase Ventures, DraperDragon, and Polychain Capital.
There have been 28 cyber attacks in crypto exchanges in 2020. Binance lost 7,000 Bitcoins worth $40 million in a cyber attack in 2019, whereas over $200 million was stolen away by hackers from Singapore-based crypto exchange KuCoin. These incidents have made security an important factor that matters most to investors while choosing a crypto exchange.
2FA Security: Both WazirX and CoinDCX provide an OTP-based two-factor authentication security layer on their online trading mobile apps or desktop platforms for investors to protect their funds. It asks you to enter a code received as a text message in addition to a username and password to verify your identity each time you log in. CoinDCX goes one step ahead by providing password-based withdrawal to ensure a safe withdrawal.
Cold Storage: Another common security feature provided by both exchanges is cold storage, where funds are stored in offline cold hardware wallets, rather than hot storage which is connected to the internet. WazirX and CoinDCX store 95% of all funds in multi-signature cold wallets.
Insurance: CoinDCX gets extra points against WazirX in security features by insuring the users’ funds with a $100 million USD insurance policy from BitGo. BitGo supports over 250 coins and crypto tokens. WazirX does not offer such insurance for users making it vulnerable in case of any scam.Trading: Wazirx vs Coindcx
Whether it is WazirX or CoinDCX, you are required to create an account and complete KYC verification formalities to start trading. Since both are India-based crypto exchanges, they have launched different features specially designed to match the needs of Indian users. Let us have a look at WazirX vs CoinDCX in terms of trading features to analyze which has a greater impact on users.
WazirX’s Trading Features
Smart Token Fund (SFT): With an aim to help the new investors and traders to start investing in crypto, WazirX has launched a community-driven initiative, Smart Token Fund (STF). Under this scheme, users can authorize professional traders to manage their portfolios. The platform offers all the information about professional traders related to their holdings and previous performance. A user can track the performance of their portfolio managed by an STF trader. A percentage of profit is being kept by an SFT as a fee for managing your portfolio.
Auto-Matching P2P Engine: WazirX’s next-generation P2P system (P2P 2.0) offers fast and cheap fiat to crypto conversion which has eased the deposit and withdrawal of fiat currency including INR. Being the first to introduce an auto-matching P2P engine in India, it solves currency conversion and cryptocurrency adoption problems for Indian users.CoinDCX’s Trading Features: How to Trade on CoinDCX
The trading features that CoinDCX offers are as below:
Insta: It allows users to buy cryptocurrency in INR
Spot: It provides users access to over 500 markers
Margin: It provides 5x leverage in over 200 cryptocurrencies
Crypto Investment Plan: CoinDCX’s Crypto Investment Plan (CIP) works as a systematic investment plan (SIP) in mutual funds, enabling users to invest a small amount in a fixed interval (weekly or monthly). It also minimizes the losses due to market volatility by buying a certain amount of crypto at different price points per week/month, instead of making a one-time bulk deal at a fixed price.
Crypto Yield Program ‘Earn’: CoinDCX has launched a feature ‘Earn’ which allows users to put their crypto holdings to work and earn a passive income as interest. This scheme comes with no lock-in period and withdrawal restrictions. CoinDCX’s crypto yield program offers interest of up to 13% on 16 cryptocurrencies.A crypto exchange generally charges a fixed percent of your transaction as a fee, which can’t be overlooked for it may have a significant impact on your investment in the long run.
Transaction: CoinDCX is the winner in transaction fees as it takes just 0.1% for both maker and taker fees per transaction, while WazirX has a fee of 20% for both takers and makers.
Deposit: WazirX charges Rs. 5.90 per transaction for transfer through IMPS, NEFT, and RTGS) and Rs. 4 for UPI transfer. On the other hand, CoinDCX does not charge for depositing funds. The minimum deposit limit on WazirX is Rs 100 and on CoinDCX it is Rs 750, whereas the maximum limit per transaction in a day is 4.99 lakh on WazirX.
Withdrawal: Although there is not much variation in withdrawal charges of both exchanges, with 0.0005 BTC per transaction for Bitcoin withdrawal, CoinDCX still has an advantage over WazirX’s 0.0006 BTC.So, this was all about the Wazirx vs Coindcx comparison. Hope this information would prove much helpful in enhancing your understanding of a crypto exchange and selecting one that suits your requirements. With features like Smart Token Fund (SFT) and Auto-Matching P2P Engine, WazirX has an edge over trading features, whereas CoinDCX has the upper hand in rest of the factors such as security and trading charges. As you are all set to take a step towards crypto investment, we recommend you to be abreast of
how to trade on CoinDCX.
