Mercatox is a decentralized, peer-to-peer (P2P) cryptocurrency exchange that offers a single trading account with trading fee of 0.25% and two-step authorization process, which is quite common in the crypto-space. It also allows margin trading and offers lending services.
An e-Wallet with a wide range of payment instruments is also available with Mercatox for personal and commercial use.
The company, security of funds
Launched in 2016, Mercatox is a modern P2P service for accessing e-currency and cryptocurrency exchange markets via its trading platform. Basically, such exchanges match buyers and sellers of cryptocurrencies. The service is running on blockchain technology, supported by the community, which significantly deters hacks. Besides, clients` personal information is not accessible by the service provider (it is only shared with your direct trading counter-parties).
The firm operating the site and the brand is headquartered in London, UK, but given the nature of its service, it is not licensed by the Financial Conduct authority, nor by any other regulator. However, the UK financial watchdog has not taken a definitive approach towards crypto-exchanges.
While this is currently the most common situation with cryptocurrency exchanges worldwide, investors should be aware that there are also many blockchain-themed fraud schemes out there, exploiting the recent hype around Bitcoin.
Yet another option to trade in cryptocurrencies is to do that with forex brokerages. There are certain specifics you should take into account, however most of them are regulated and provide leveraged trading.
When we checked the user reviews on Mercatox, as we always do for our reviews, we found they are a mixed bag, but it appears that most of them are negative. Many investors complain of non-responsive customer support and slow withdrawal process.
To date, the company has not been hacked in a major way, despite allegedly being targeted in October 2017. Because of the attempted attack, Mercatox website and platform were down for a day or so, but the coins were safe.
Trading instruments (cryptocurrencies)
At the moment of writing this review, there are more than 80 digital coins available for trading on the Mercatox platform, including the company`s own token, Merca. Nonetheless, the trading volume on most of them is not impressive, to say the least. Currently, the most traded pair appears to be ETH/BTC.
You can also trade fiat currencies (USD, EUR and RUB) against the digital coins using some electronic payment systems.
Minimum initial deposit
Unlike most cryptocurrency exchanges, Mercatox has set minimum initial investment requirements. A minimum deposit level is applied for blockchain transfers, as well as for those in fiat currencies via e-wallets. Deposits in Bitcoin for example must be no less than 0.0001 BTC.
According to the information on its website, Mercatox supports trading on leverage, however no further details are disclosed. Some major crypto-exchanges like Kraken also allow margin trading, however mot such venues don’t.
If you want to gear up your trading, you can also trade in digital coins with forex brokerages, as all of them provide leveraged trading.
Both buyers and sellers at Mercatox are charged with a 0.25% fee per trade, which is in line with the current offers by other exchanges. Some venues charge differently market makers and market takers, and it is not uncommon to set a trading fee only to market makers.
As most crypto-exchanges, Mercatox offers a web-based interface. Its platform is available in English, Russian and Chinese and is equipped with most of the features that similar venues offer: a functional functional order book, trading history window, as well as a chat room. Trading pairs are grouped into two categories: Crypto markets (inter-cryptocurrency trading) and e-Currency markets (trading digital coins against fiat currencies). Nonetheless, Mercatox’s platform is quite slow, the charting is very basic and it seems that liquidity is rather low. Besides, no mobile trading app is not available.
According to the information on the website, transactions on P2P exchange are done through the service secure transactions via Mercatox or smart contracts Ethereum, bypassing the platform wallets.
Methods of payment
Deposit and withdrawal methods on the Mercatox Exchange include wide range of cryptocurrencies and electronic payment methods such as PerfectMoney, OkPay, Yandex Money, Payeer and QIWI. Supported fiat currencies are USD, EUR and RUB.
Unfortunately, it does not accept credit card payments, nor bank wire transfers.
As we have pointed out, Mercatox has set minimum deposit requirements for most currencies, which makes this exchange not that beginner friendly. Besides, withdrawals are also charged. For example, Bitcoin withdrawals are charged from 0.0003 to 0.002, deepening on the volume.
Mercatox is a UK-based cryptocurrency P2P exchange where you can trade in wide range of digital coins with reasonable trading fees. However, minimum deposit amounts are set and withdrawal fees also apply. While you can buy Bitcoin and a number of altcoins with fiat currencies, the deposit methods are limited to several e-payment systems, no credit cards and bank wire payments supported. Also, it seems that trading volumes on most pairs are quite low.
Mercatox Review Conclusion
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