There are a lot of different cryptocurrency exchanges that exist, many of them very similar and many very different. It can be difficult to find out what certain exchanges are good for. CoinGate for example, is good for some things but not so great for others. And in this review I’ll be going over what I mean by this.
In this CoinGate review I’ll be going over all the basics, such as what CoinGate is, the services it provides, is it safe?, the fees, other options and more.
What Is CoinGate?
CoinGate (located at coingate.com) is a cryptocurrency exchange that gives people the ability to buy Bitcoin easily with a bank transfer or with a credit/debit card. They also give people the ability to sell their Bitcoin back into USD or EUR which you can do if you think the market is headed for a downturn or if you just want to cash out.
Additionally they also provide merchant services so that you can accept cryptocurrencies for your business online. I always like seeing things like this because this is what has the potential to really going to help with user adoption.
Over all the exchange is nice in many ways but it is not great for everything. If you were wondering if its a scam or not you can rest assured it is not. They have been around since 2014 and have a pretty solid reputation.
What CoinGate Has To Offer
You are able to buy Bitcoin using a bank transfer, credit/debit card, or mobile transfer.
To buy with bank transfer what you do is send money from your bank account to CoinGate and then once it makes it to your account you can purchase Bitcoin whenever you want. However, if you are looking to do this I would definitely recommend using GDAX over this place because they charge much lower fees.
When buying with a credit/debit card its pretty straightforward but more complicated than buying normal online goods. You will have to go through a short verification process which requires you to verify your phone number, email address, and that you are the card owner. You will also be required to submit a selfie of you holding the card.
And as I said they also provide the ability to pay via mobile transfer but I’m not too familiar with this and am not going to get into it.
You are going to need a wallet
CoinGate is similar to Changelly in the way that they do not provide wallets. When you buy Bitcoin here it will not end up in your account. Instead you will enter in the wallet address that you want it sent to and it will be sent there. So you are going to need a wallet set up somewhere beforehand.
As you can see below you will enter the wallet address (Bitcoin Core address) right in there during the process…
If you are looking to sell Bitcoin back into fiat money then the service they offer is pretty nice. You are able to sell your Bitcoin at a fair market price and get money deposited to your bank account or even a PayPal account. The fact that they allow you to have the money sent to your PayPal account is something nice that you don’t see often.
I’m not going to go to much into detail here because most people reading this are probably looking to buy or sell bitcoin, however its worth mentioning that…
CoinGate also provides merchant services so that online merchants can accept various cryptocurrencies and receive USD, EUR, or BTC payment. So for example if you run an online store you could choose to accept NEO and CoinGate will automatically exchange it for USD which is what you end up with.
Additionally they make accepting bitcoin easy. Merchants are easily able to price their products in USD or EUR and CoinGate will adjust the bitcoin price accordingly as the market fluctuates.
How High Are The Fees
The fees vary depending on what you are doing.
If you are buying or selling bitcoin with a bank transfer then you will get charged a 3% fee.
And when it comes to buying Bitcoin with a credit/debit card CoinGate uses Simplex payment processor just like Changelly and many other places. Simplex charges a whopping 5% fee.
GDAX and Coinbase are 2 great alternatives that you can use here. As I said earlier, if you are looking to sell or buy bitcoin with a bank transfer I would use GDAX due to much lower fees. When it comes to buying bitcoin with a credit/debit card Coinbase allows you to do this and charges lower fees than CoinGate, however the verification process takes longer.
Is It Safe?
Is CoinGate safe? Well from the outside looking in CoinGate seems like as safe of an exchange as any other.
They allow you to enable 2-factor authentication with Google Authenticator for an extra layer of security to keep your account safe. This is pretty much the standard among other cryptocurrency exchanges and is good to see.
They also say that they hold the majority of their funds in cold storage, meaning off-line. This is important because this means that if they do get hacked most of their funds will be untouchable. However, this isn’t really even something you have to worry about because they do not provide wallets like many exchanges which means they don’t hold your crypto funds in their hands.
Its always nice to see referral program. CoinGate will pay you to refer others to join. However, not just for joining. The way it works is that you will get 1% of the fees that come from your referrals. So the more transactions that your referrals make and the bigger they are the more you will make.
The downside to referral programs like this is that they lead to a lot of misinformation on the internet from people just trying to refer others to earn some money.
CoinGate is a good exchange but whether or not it is worth using depends on what you are looking for. If you are looking to buy Bitcoin in a hurry with your credit/debit card then its not a bad choice. Coinbase charges lower fees for this but the verification process will take longer. But if you are going to be paying with a bank transfer or selling with a transfer to your bank, GDAX is a better option because of much lower fees.
Both Coinbase and GDAX also provide wallets connected to your account on the exchange so that you don’t need to set up wallets elsewhere.
When it comes to the merchant services I like what I see. I know there are other exchanges out there offering services like this but I’m not knowledgeable enough on them to give good advice.
Anyway… that’s it for the review. I hope you enjoyed it and as always, leave any comments or questions below and I’ll get back to you soon 🙂