Cryptocurrencies are the talk of the town. They’re on the news, on pretty much every website you visit, and even on the lips of those near you. Such frenzy might have forced you to contemplate diving into the crypto market yourself, but where do you begin? Cryptocurrencies do not trade like shares on stock markets, so opening another Demat account won’t help. Instead, you’ll need to contact crypto exchanges like WazirX and CoinDCX.
However, that choice isn’t straightforward. You’ll find thousands of conflicting reviews about each on the Internet, which complicates things for new investors. If you’re one of them, read on as we compare WazirX and CoinDCX, listing the good and not-so-good features about them.
Founded in 2018, WazirX is the largest cryptocurrency exchange in India. It has over 5 million registered users, who make thousands of daily transactions on the platform. Seeing its growth, Binance–the world’s largest crypto exchange–acquired WazirX in 2019. Besides Bitcoin, WazirX allows you to buy and sell digital currencies like Ethereum, Ripple, and Litecoin.
The company’s platform includes heavy security and allows for know-your-customer (KYC) verification, providing cryptocurrency investors with a secure way to find traders and manage their portfolios. Nischal Shetty, a Computer Science graduate and founder of companies like Twi5 and Crowdfire, is the founder of WazirX.
Founded in 2017 by Sumit Gupta, an IIT Mumbai graduate, CoinDCX is a crypto trading platform. It allows users to trade multiple cryptocurrencies legally. It is designed for all types of traders keeping their trading experience, risk tolerance, and trading frequency in mind.
Owned by Primestack Pte Limited, CoinDCX has partnered with DCX – a Singapore-based company that specializes in crypto-enabled financial services.
WazirX or CoinDCX: Which is more secure?
Security is a big concern when heading to the crypto market, and so it makes sense to evaluate your crypto exchanges’ security features. To open an account with CoinDCX, you need to undergo KYC and bank verification. For trading account security, you have 2FA (Two-Factor Authentication) for accessing the account.
WazirX follows the same procedure. Both platforms, meanwhile, store 95% of cryptos in cold wallets ( stored offline, not connected to the internet) and the rest 5% in hot wallets. This makes both of them secure. The one additional feature with CoinDCX is that it ensures all cryptos by BitGo (a digital asset insurance company).
WazirX or CoinDCX: Who charges more?
All crypto exchanges charge money for enabling transactions. Here is what WazirX and CoinDCX currently charge on their platform:
|Type of fees||WazirX||CoinDCX|
|Maker fees||0.2%||0.11% to 0.001% based on the 45-day cumulative trading volume.|
|Taker fees||0.2%||0.11% to 0.001% based on the 45-day cumulative trading volume.|
Clearly, it is hard to split the two. But, WazirX is a much better pricing pick as it allows you to earn WRX tokens. If you pay fees via WRX token, then you get a flat 50% discount on the fee. That means you need to pay 0.1%, which is low for beginner traders as compared to CoinDCX.