CoinZoom Review 2023: Is It Legit & Safe To Use?
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CoinZoom is a well-known and one of the best crypto trading websites for buying, selling, earning, and spending digital currencies. In this CoinZoom review, we compare it to other platforms by assessing its features, supported coins, trading fees, security, and customer support.
Our CoinZoom Review - Quick Verdict
CoinZoom is a regulated exchange in the United States and a good fit for crypto traders of all experience levels. There is an option to easily buy crypto with cash in-store at over 30,000 retailers, in addition to a dedicated trading terminal with advanced charting and risk management orders. There is also a margin trading platform for international users with up to 5X leverage. However, the trading fees of 0.36% (maker) and 0.44% (taker) are expensive but can be reduced by holding ZOOM tokens.
- Licensed and regulated cryptocurrency exchange in all 50 States in the USA
- Instantly buy crypto in-stores with a cash deposit via CoinZoom Cash
- Crypto margin trading platform with up to 5X leverage on Bitcoin and Ethereum
- Stable and intuitive trading platform to buy and sell digital currencies
- CoinZoom Exchange is not as sophisticated and modern as the bigger exchanges
- Trading fees are very expensive in the market
CoinZoom At A Glance
|Cryptocurrencies||Bitcoin, Bitcoin Cash, Ethereum, Litecoin, USDT, TUSD, USDC, PAX & 30 more|
|Margin Trading||Yes (up to 5X leverage)|
|Payment Type||Bank transfer, ACH, credit & debit cards & wire transfer|
|Trading Fee||From 0.20% (makers) and 0.26% (takers)|
|Deposit Fee||2.99% for credit card|
|Mobile App||Yes (Android and iOS)|
What Is CoinZoom?
CoinZoom is a cryptocurrency trading platform with a strong focus on B2B and B2C brokerage. Founded in 2018, the company launched an online exchange in March 2020 to enable its customers to buy and sell digital assets and to be at the forefront of improving the wide-scale adoption of cryptocurrencies. CoinZoom's primary service offering includes institutional-grade trading, the CoinZoom Visa card, and its peer-to-peer remittance service known as 'ZoomMe'.
CoinZoom is spearheaded by CEO Todd Crosland, the founder and former CEO of Interbank FX, LLC. CoinZoom is supported by a team that has a broad range of experience in traditional finance, global exchange, trading operations and operating global financial services companies.
Some of the most notable features of CoinZoom are:
- Licensed and regulated US cryptocurrency trading platform
- Beginner-friendly and simple to use
- Wide variety of deposit methods including credit card, wire transfer & ACH
- CoinZoom VISA debit card to spend at thousands of online and in-store merchants
- AI trading algorithms to alert traders on common technical chart patterns
- TradingView charting and advanced trading indictors and tools
CoinZoom Alternatives and Comparisons
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|600+||0% to 0.1%|
|Up to $100 welcome bonus||Visit Binance||Binance Review|
|222||0.16% (maker) and 0.26% (taker)|
|None available at this time||Visit Kraken||Kraken Review|
|None available at this time||Visit eToro|
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."
Is CoinZoom Safe?
CoinZoom appears to be a safe and secure exchange that features multiple security measures such as Two Factor Authentication (2FA) and multi-signature wallets to ensure customer funds and personal information are kept safe.
CoinZoom has partnered with BitGo Trust Company, as the qualified institutional custodian and digital wallet security provider. Fiat currencies deposited to the exchange are stored in a custodial bank account. This means the cash balance is not held by the company, and CoinZoom or its creditors cannot claim the funds held in the custodial accounts.
Review of the Top Features on CoinZoom
Institutional-Grade Trading Platform
CoinZoom offers institutional-grade trading to both institutional and regular users who can benefit from multiple trading tools, including algorithmic trading, top crypto charting software and live order flow information. Providing services to both consumers and institutional customers lets CoinZoom explore new opportunities and services across different markets.
CoinZoom AI Trade Alerts
CoinZoom provides an intuitive and easy-to-navigate user interface with over 100 charting tools to plot trading strategies and perform technical analysis. A unique feature of CoinZoom is a pattern recognition algorithm to trigger alerts based on popular technical chart patterns.
Convert Cash To Crypto Fast
CoinZoom provides an option for its users to convert cash into crypto. Users can purchase Bitcoin, USDT, Ethereum, and other assets on this exchange to fund their trading wallets. Coinzoom also supports multiple fiat currencies such as USD, EUR, CAD, GBP, AUD, and CNY. To purchase crypto with fiat, there are multiple payment methods like bank transfers, credit/debit cards, ACH transfers, and wire transfers. Available options will differ from region to region.
CoinZoom Global Debit Card
Individuals that want to spend fiat and crypto can acquire CoinZoom global debit cards which are powered by the VISA network. The popular crypto debit card can be used to spend crypto at over 53 million merchants in-store or online merchants. There are several types of debit cards on offer with increasing the daily limit, rewards, referral limits, and trading fee discounts.
The peer-to-peer fiat and cryptocurrency remittance system by CoinZoom lets customers send USD or crypto internationally with 0% fees. It operates in a similar fashion to Venmo, but is focused on digital assets' use and adoption. The crypto payment system holds financial licenses across the USA, and Australia and will soon obtain an E-Money license in the EU region.
Verification & Limits
All CoinZoom accounts must be verified to trade crypto or deposit fiat currency to be compliant with International KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. The ID verification procedure for CoinZoom usually takes less than 24 hours to complete once all the necessary information has been provided. A submission may be rejected, but that is common among all fiat-to-crypto exchanges and trading platforms.
Users can quickly and easily transfer fiat currency or crypto to CoinZoom once the account is verified. The funds are safely stored in a CoinZoom wallet which can be used to trade digital assets. The available options to fund a trading account are:
- Transfer cryptocurrency from an external wallet
- Buy crypto with fiat currency using a debit card
- Perform a bank transfer (ACH) or international wire transfer
For large investments, using a wire transfer is the best way to buy cryptocurrencies which can take between 1 to 3 days to process depending on the bank. Users that are looking to make a smaller and instant purchase and prefer convivence can use a debit card however is limited to $500 per 24 hours.
The best and cheapest deposit method is transferring digital assets from a hardware wallet. CoinZoom account holders can deposit funds by scanning a QR code or copying the unique wallet address. Transferring digital assets will require multiple network confirmations. Depending on which asset is transferred, the average speed to transfer crypto can range from a few minutes to an hour or longer.
CoinZoom users can speculate on the fluctuating value of more than 23 cryptocurrency assets on the exchange which is paired against USD, BTC and Tether. The user interface is simple to use and closely resembles the appearance of the advanced trading platform, Kraken.
In our opinion, the user interface appears a little dated compared to other spot exchanges that we have reviewed, however, CoinZoom does offer dozens of charting tools and indicators to overlay on the charts to quickly perform technical analysis. Traders that are familiar with using TradingView charts and features will not find it on CoinZoom.
Traders can experiment with market positions using multiple order types such as limit, market, and stop-limit. All of these basic order types will help newcomers take their first steps in the crypto trading world. Overall, the design of CoinZoom's trading exchange is more suited to beginners who are looking to swap crypto for crypto or speculate against USD/USDT trading pairs.
Volume & Liquidity
CoinZoom is currently ranked #130 in the world in terms of its traffic, liquidity, trading volumes, and confidence in the legitimacy of trading volumes reported. The 24-hour volume for Bitcoin at the time of writing is approximately 8 million against the Dollar. Furthermore, based on the data reported from Coinmarketcap, the trading volumes and liquidity across the altcoin pairs is very low. For example, the coin Uniswap had a 24-hour volume of just $15,000.
This means traders are likely to incur slippage costs as they will not be able to execute at the desired price using a limit order. Due to the lack of liquidity in the order book, CoinZoom may not be suitable for institutional-grade investors and high-net-worth retail traders. These individuals should use the larger crypto exchanges in the USA such as Coinbase, Kraken and Gemini when trading altcoin pairs to reduce unexpected transaction costs.
What Is ZOOM Token?
The ZOOM token is the native currency of CoinZoom's ecosystem. It exists on the Ethereum blockchain network and adheres to the ERC-20 token protocol standard. ZOOM provides multiple benefits to holders of the token in return for supporting the growth of the company which include:
- Trading fee discount of up to 50%
- Cryptocurrency staking bonuses
- ZoomMe Global Access
- Eligibility for future airdrops
- VIP-level enhancements for the CoinZoom Visa Card
- A bonus of up to 5% on all CoinZoom Visa Card purchases
CoinZoom's trading fee is based on a maker-and-taker fee structure of 0.20% for makers and 0.26% for takers. The fees are competitive, however, is not the cheapest crypto exchange in the US. By comparison, Kraken charges a trading fee that starts from 0.2% and reduces with trading volume.
CoinZoom does not offer fee discounts for generating higher trading volume, however, users can reduce the trading fees depending on the number of ZOOM tokens held within the wallet. Token holders can obtain a trading fee reduction of up to 50%, which reduces the fees down to 0.10% and 0.13% for limit and market orders respectively. This is very competitive and comparable to larger exchanges such as Binance and Bittrex (read our full Bittrex review).
CoinZoom cryptocurrency exchange has zero deposit fees for crypto assets, ACH, and wire transfers. Users that fund an account with a debit or credit card are subject to a 2.99% fee based on the transaction amount.
Depending on which digital asset one transfers out of CoinZoom, different fees will apply, yet they are all competitive with other platforms. Withdrawing cash via ACH transfers is free, whereas wire transfers are subject to a flat fee of $25.
CoinZoom Mobile App
The mobile application provided by CoinZoom is intuitive and responsible, giving users access to trade the crypto market. The app is available for both iOS and Android devices and includes most features found on the desktop version of the site. The CoinZoom app has been downloaded 1,500 times on the Google Playstore, which is a small sample size to draw a conclusion. Based on the current user reviews, the CoinZoom app has been rated 3.7/5 stars.
Protecting customer funds requires introducing various security features and safeguards. CoinZoom prioritizes the security aspect of running a cryptocurrency exchange through its strict controls governing the infrastructure. All accounts can be protected by Two-Factor Authentication (2FA) to provide clients with peace of mind.
Similar to other top crypto exchanges, CoinZoom keeps up to 98% of customer funds in cold storage and multi-signature wallets. Multiple trusted staff members are required to sign off on transactions before they can be withdrawn from an account. This process ensures stored funds remain accessible by the rightful owner but cannot fall into the wrong hands. Combined with the BitGo infrastructure, there is insurance for up to $100 million for custodial assets.
Frequently Asked Questions
CoinZoom is a regulated exchange that has obtained a U.S. Registered Money Services Business with FinCen in all 50 states and territories. MSB Registration Number: 31000160686786. CoinZoom and its wholly-owned subsidiaries have specific licenses such as CoinZoom Australia PTY LTD, making it a licensed and AUSTRAC regulated Australian crypto exchange.
Since the launch of CoinZoom's exchange service in March 2020, the platform has never been hacked or compromised according to our research. For this reason, CoinZoom can be considered a safe environment to buy, sell, and trade the supported digital assets. All users are advised to store funds safely in a hardware wallet to maintain the highest level of protection when not trading.
Cryptocurrency traders across all US states - except New York - can access the CoinZoom platform and its services. The company is registered as a cryptocurrency exchange in the US and holds Money Services Business licenses in all 50 states and territories. CoinZoom is registered as a Money Transmitter in 48 states, excluding New York and Hawaii.
The CoinZoom exchange does not provide a way for traders to use a practice mode to trade cryptocurrencies. Users will need to fund their accounts through the supported payment methods to place orders and start trading.
To conclude our CoinZoom review, the platform has all of the necessary tools to become one of the best USA trading exchanges. Its wide range of services provides numerous reasons for people to get involved with cryptocurrencies. Setting up an account is a quick process, and there are many options to purchase cryptocurrencies with fiat currency.