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Coinnest Review & Guide 2018
South Korea is home to some of the largest cryptocurrency exchanges in the world. Bithumb and Upbit, the two popular Korean exchanges, rank 5th and 6th respectively. There are several others Seoul based cryptocurrency trading platforms, most of which offer to trade with the Korean currency, Won.
The country’s exchanges face tough competition from nearly 500 other exchanges that offer services worldwide. The top ranking exchanges do not offer fiat trading, unfortunately, but instead, support the trading of cryptos to cryptos.
Korea-based exchanges almost always facilitate the trading of coins with Korean Won. This is of great benefit to traders as it eases the process of trading. With most crypto to crypto exchanges, traders must purchase popular coins like Bitcoins using cash in order to have access to less popular coins.
Below is a review of Coinnest, one of the fast-rising Korean exchanges that support trading with Korean Won entirely.
What is Coinnest?
Coinnest is a Seoul-based cryptocurrency exchange launched in 2017. The trading platform was primarily designed for South Korean traders but later included a Chinese language option to target Chinese traders with access to Korean Won.
As a Korean exchange, everything on the exchange is published in Korean. You can change the option to either English or Chinese at the far left bottom corner of your screen. When using popular browsers like Chrome, the exchange will detect your preferred language, but still, some details are published in Korean.
Registered in Seoul, Coinnest’s highest-ranking executive is Kim IK-hwan. The company provides its trading services using local bank transfers. The biggest benefit with Coinnest is its low fees and support for coins not supported by the more popular Korean exchanges.
In addition to their website, Coinnest’s services are accessible on their iOS and Android apps or through a third party service by using their API features. Anyone can use any of the exchange’s services irrespective of their country of origin. The only challenge is that the site uses predominantly Korean and trading is done using Korean fiat.
Trading on Coinnest
Coinnest has a tier verification system that affects the amount of Won traders can deposit. At the basic level, users verify their accounts using ID and phone contacts. The minimum deposit amount for new users is around 10,000KRW, an equivalent of $10.
The selling amounts limits also vary depending on the level of verification. There are no withdrawal charges, fortunately, which mean you can withdraw any amounts above the miners’ fees.
Korean traders have four payment options: SK Telecom, LGU+, Kt and Smart Save 22l. Non-Koreans can access the company’s services using bank transfers. Credit card payments are not accepted, and you cannot make any cryptocurrency deposits without verifying your account.
Coinnest supports 36 cryptocurrencies at present, and each can be sold for Korean Won. Korean traders have the option to withdraw their funds through any of the supported payment methods (Kt, LGU, SK Telecom and Smart Save) but non-Korean traders have to rely on bank transfers.
Coinnest was the first Korean exchange to support NEO and Gas. It also became the first exchange to support Pundi X, a token used by a cryptocurrency credit card provider. Generally, Coinnest supports growing cryptocurrencies not traded by other Korean exchanges.
The exchange supports Engine, Energo, Qlink, Monaco and a variety of other coins rarely supported by fiat to crypto exchanges. Bitcoin, Ethereum, Litecoin and the top 10 coins are also supported, but their trading volumes fall below that of other coins.
Hshare is the most traded coin on the exchange, followed by NapoleonX coin.
Like nearly all top 10 exchanges, the Coinnest trading platform offers a fee of 0.1% for every transaction made. There are no extra Coinnest fees, not even deposit or withdrawal fees. The only cost to trade on the exchange is the 0.1% for both market makers and takers.
In order to start trading on Coin nest, you must verify your account by providing your national ID details and your phone number. Unfortunately, the SMS verification process tends to fail for most countries despite being an enabled feature, making it difficult to use the exchange if you are not based in Korea or China.
The verification process is simple nonetheless, as it only involves ID, phone number, and bank details. Users who want to raise their buying and selling amount limits must provide document certification for extra account verification.
Coinnest Special Features
Coinnest provides a chart that analyzes every supported cryptocurrency in a more detailed manner compared to what typical exchanges provide. The chart analyzes price movements by the minute and the different offers for the coin on Coinnest English. The chart also offers the ability to change the colors used to depict different movements for the coins.
Another unique feature on Coinnest is the auto-updating feature that shows the prices of different cryptocurrencies and their minimum/maximum prices. The feature auto-updates every minute and displays the prices on the top widget.
Is Coinnest Safe?
Last April, Coinnest’s officials were arrested for alleged fraud allegations. The company’s co-founder and CEO, Kim Ik-hwan was one of the arrested suspected. The news caused confusion among Korean crypto traders, with some accusing the exchange of being a scam.
So, is Coinnest scam? The news about arrests at Coinnest may have scared some traders, but the exchange enjoys great support from users. With trading volumes of at least $2 million per day, the exchange has been steady throughout the last six months.
Non-Korean traders are the most skeptical about Coinnest, but this should come as no surprise considering that the exchange does not make it easy for outsiders to trade with them. Korean is used almost predominantly, and even when the English language feature is enabled, a lot of details on the exchange are in Korean.
Security is a major concern for many new traders on the site. Coinnest has HTTPS encryption for their site and uses Komodo secure for extra protection, but they still hold most coins on hot wallets. With a new exchange getting hacked every month, most traders are wary of entrusting exchanges with their funds.
To secure trading accounts, traders must create login passwords of at least 8 characters, enable 2-Factor Authentication and use a PIN code to process withdrawal requests.
Coinnest claims to provide customer support 24 hours, 7 days a week every month. Support is offered through online live chatting features, via email contact and physical visits to their offices in Seoul, South Korea. Users can also request for phone contacts or social media communication although social media channels offered are only accessed in South Korea.
Since most of the company’s users are Chinese, there are no complaints about Coinnest in any English supported forum or review website. That’s not to say the exchange does not have unsatisfied customers, only that there are yet to be any complaints published on any online platform in English.
Except for Korean traders who are allowed to make deposits using fast payment methods, non-Korean traders will find Coinnest handling speed to be poor. Bank transfer is the main deposit method and funds can take up to a week before appearing in your Coinnest account.
When it comes to trading, however, Coinnest has a fast order matching engine. Trades are completed almost immediately. However, the exchange has relatively low trading volumes for some coins, but popular coins like Bitcoin and Ethereum still have high liquidity.
How to use Coinnest?
Step 1: Create an Account
Visit Coinnest.co.kr and signup to create an account. The sign-up process is easy as you only provide an email address and a password. Coinnest sends an email verification link like most exchanges after which you are logged into your account automatically.
Step 2: Verify your Account
Account identity verification is compulsory for nearly all South Korea based cryptocurrency exchanges. It’s a law passed in the country. For Coinnest, account verification involves a simple ID and phone address verification.
Step 3: Provide Bank Details
After verifying your identity, the exchange requires that you verify your bank details by providing account numbers and other essential information. The exchange doesn’t ask for multiple details though, only the necessary information needed for you to deposit funds.
Step 4: Charge/Deposit Funds
Coinnest uses slightly different terms for depositing, trading and withdrawing funds. Making a deposit is referred to as “Charging.” You can deposit any amount from as low as $10 to $5000. The amounts are set in KRW, with 1000KRW representing $1.
Korean traders using faster payment methods like LGU+ can expect to start trading on the same day, but non-Korean traders must wait for up to 5 business days.
Step 5: Make a Trade
Coinnest is one of the most user-friendly trading platforms in spite of the language used. Coins are listed twice, on the icon named “Trade” and below the Menu area where popular coins are listed alongside their prices and trading volumes.
If you want to trade any coin, pick its name from the “Trade” icon, and you will be directed to the trading area. Select the amount of money you want to spend, enter your transaction password and confirm the payment.
The Selling feature is located next to the buy feature, and it’s as easy to sell any coin on Coinnest as it’s easy to buy. The transaction fee for both buying and selling is 0.1%. Advanced traders also have the option to make orders by issuing order prices and waiting for traders to bid.
Coinnest Review Summary
Is Coinnest legit? Coinnest is a registered and licensed cryptocurrency exchange based in Seoul, South Korea. As such, the company is fully legitimate, with a working platform and services used by more than 500,000 South Koreans.
The exchange platform was launched in 2017 and quickly grew in popularity within South Korea and China. Coinnest accepts members from all countries around the world, but it’s customized to favor traders who understand Korean.
Trading is done using Korean Won as the trading pair, but users can also fund their accounts using cryptocurrencies.
- Quick sign up process.
- Easy to use trading platform.
- Supports NEO and Gas, which most South Korean exchanges don’t.
- Verification is fast.
- No deposit and withdrawal fees.
- The site provides sketchy details about the site’s security and ownership.
- The English language is not fully supported, and the translation is poorly done.
Who is Coinnest best for? Coinnest is a great site for South Korean traders and Chinese traders with access to the quicker payment methods. The exchange’s trading volume is medium sized, making it suitable for beginner traders and medium budget traders.
Since Coinnest made its name by supporting cryptocurrencies not supported by other South Korean exchanges, it’s a good site for Korean traders who would love to expand their trading portfolios.
Thank you for reading our Coinnest review above. The exchange is most suited for Korean traders, if you are looking for exchanges available in any country, check out our site. We have numerous exchange reviews and guides.