Everything You Need to Know About CoinPayments
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CoinPayments is a merchant payments solution and wallet service platform that facilitates buying, selling and exchange of cryptocurrencies. Like other cryptocurrency trading platforms, potential investors and speculators are welcome to access this service which in turn benefits from fees charged on depositing, transacting and withdrawal. CoinPayments levies a fee of 0.5% on all transactions and accepts over 130 different types of cryptocurrencies.
CoinPayments was developed in Canada and boasts over 718,000 vendors in more than 182 countries in the world. This is actually very impressive as there only very few countries where CoinPayments has not established itself. CoinPayments provides a wide variety of services and merchant tools.
What does CoinPayments offer?
- Accepts over 100 altcoins including the major cryptocurrencies such as Bitcoin, LiteCoin, Ethereum, Ripple, Lisk, among many others. These coins are all held together in one wallet and the user may choose to convert the cryptocurrencies to whichever one he or she may want.
- Facilitates holding of monies in escrow in the anticipation of a sale to be carried out. This is a staple in almost all trading platforms as it provides protection to both buyers and sellers during a transaction.
- Provides shopping cart plugins for most of the popular web carts that are being used today. Some of these shopping carts are Magento, PrestaShop, Blesta, OpenCart, Oscommerce et cetra.
- Assists running of an Initial Coin Offering (ICO). An ICO is where a developer of a new cryptocurrency offers investors some of their new coins in exchange for coins like Bitcoin and Ethereum. This helps in raising millions for development of the new cryptocurrency.
- Provides a host of payment features and integrations that help the user’s process payments.
What are the features of CoinPayments?
- BitGo Instant – It’s a software that speeds up the transaction time between users while exchanging Bitcoin. Normally, for security and safety, bitcoins once sent to a different user need to be confirmed on the blockchain and this may take up to several hours. However. BitGo Instant on CoinPayment makes funds readily available immediately after receipt.
- Vault – This feature lets you lock your coins in the systems vault. It works in such a way that you have to wait a certain duration of time before spending your coins. The maximum period is 56 hours. This acts as a security feature because, in the event of a hack, funds cannot be immediately withdrawn thereby acting as a deterrent and security feature.
- Mobile Applications – That allows for access anywhere to persons with android and apple devices.
- Auto Coin Conversion – CoinPayments allows for automatic conversion of 55+ coins saving fees and time. For example, you may choose to have all received Lite Coin funds be auto-converted to Bitcoin. CoinPayments does that for you.
- Fiat Settlements – CoinPayments is slowly adopting fiat settlements to merchants in North America and Europe. This happens electronically or through direct ACH transfers to user’s bank accounts. Supported fiats currencies include the US dollar, British Pounds, Argentinian Pesos, Euros, Brazilian Reals and the South African Rand among others.
- Multi-Coin Wallet – CoinPayment allows for the creation of multiple wallets by the users.
- Point of Sale– CoinPayment also features a point of sale that can be used to accept payments in person.
- PayByName – This is a unique feature that is able to store unique information about each user. I would compare it to fingerprint technology whereby the fingerprints represent a unique characteristic of any user. This simplifies authentication and exchange of funds are made quicker. One unique tag is created to receive payments from all coins. The unique tags have an address that resembles something like $CoinPayments.
What fees are charged while transacting with CoinPayments?
CoinPayments fees are favorable. In comparison with similar platforms, CoinPayments actually fares well.
- It charges a modest 0.5% on all incoming payments.
- Commercial deposits are also paid at 0.5%.
- Coin withdrawals only attract the coin transaction (Tx) fee.
- Wallet services are done free of charge.
What are the limitations of CoinPayment?
- CoinPayments is a very robust exchange platform having a large variety of coins to trade from and has many unique features. In my interaction with it, I have not experienced the many limitations that plague other platforms.
- First, coins available for trading are numerous. Major coins with the highest market values such as bitcoin and ethereum are traded in CoinPayments.
- CoinPayments though, still weathering the aftermath of June’s 2017’s ripple hacking, faces a few limitations. Some users have made complains about slow transaction speed.
How to use CoinPayments?
Using CoinPayments is fairly easy. If you do not have an account with CoinPayments, you will have to sign up to one on the website.
- The 1st step begins by first prompting the new visitor to enter their personal details. These include:
- A unique username
- Email & Password.
- Select a Time zone.
- Reading and accepting the terms of service.
- After that is done, the 2nd stage is an email verification process. A link is sent to the email address provided in the first step.
- Once that is done, an account setup wizard helps new users familiarize themselves with how the merchant payment and wallet services work.
- In the merchant option, you get to choose what coins as a merchant you want to accept. There are 2 options here;
- Choose all the coins available.
- Select your coins of preference.
- The wallet service feature on the other hand also gives you 2 options;
- A normal wallet – Here is where you exchange your coins.
- $PayByName – Here is where you create a unique tag which you can receive payments from all coins.
Is CoinPayments Safe?
- CoinPayments offers a multi-signature and 2-factor authentication process which provides relatively good security to its users.
- CoinPayments nevertheless made headlines mid last year with a reported hack that made away with million dollars’ worth of ripple tokens.
- Reports made by CoinPayments say that this had been caused by a bug in the system. This devastating bug allowed for “thieves” to withdraw more ripple tokens than they had to create an error in the accounts. Many users had a rude awakening when they actually got communication from the trading platform notifying them of the loss.
- It so happens that the people who stole ripple tokens from other users were not hackers per se but long-standing customers of the platform.
- According to the company’s CEO, users took advantage of the bug in the system and over withdrew Ripple tokens at the expense of other users who were left with zilch. One Taiwanese investor reported having lost 2.45 million ripples which translates to about 700,000 US dollars.
- The company besides laying partial blame to users for not reporting the bug on time have committed themselves to resolve the problem going as far as setting aside a quarter of its revenue to settle accounts. Fortunately, users who had their coins in the vault did not lose any funds.
- CoinPayment however provides below average anonymity and as a result user accounts may be linked to individuals.
- CoinPayment has suffered terribly in ratings by it users which may be in part due to its recent hack. The highest average score I have come across is 2.4/5 with ratings as low as 1.5. This signifies a low reputation among the public.
- Users of CoinPayments have also had complains about its customer care support. Most of them have found it inadequate and others have termed it not useful at all.
CoinPayments seems to have been created with merchants in mind. It is popular with businesses that are keen on accepting altcoins but want to avoid the hustle of accepting each coin individually. Nonetheless only a selected number of coins can be facilitated here. This number is around 60 which in my view is more then sufficient. You can however choose, as a merchant, what type of coins you want to accept and then proceed to specify whether you would want them converted to your preferred coin of choice after receiving payment which can be done automatically.
- In conclusion, CoinPayments provides a good user experience for any merchant or users trading with it.
- It is easy to use and provides adequate assistance for newcomers in the way of account set up wizards albeit its customer care services lags behind.
- A detailed search on the internet shows claims by users claiming CoinPayments is a scam. They go on to give information on how CoinPayments disenfranchised them and that it encourages scamming activities by not having the proper security procedures and follow through. I have not been able to authenticate the veracity of this claims but in my opinion, it is highly probable that this is fake claims by ill-willed
- CoinPayments is in a critical position at the moment due to the Ripple attacks but the Company’s leadership is positive that they will overcome.
Pros of using CoinPayments
- Supports many countries across the world.
- Transactions fees are minimal.
- Allows for buying with fiat currencies.
- Supports many cryptocurrencies.
- Available in many languages.
Cons of using CoinPayments
- Was hacked last year and is struggling to get lost ripple tokens to its users.
- Slow transaction speeds.
- Lackluster customer care support.
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