Is FatBTC reliable? – Full Exchange Review
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Although there are over a dozen cryptocurrency exchanges with high reviews, traders are always looking for new trading platforms to experiment with. Coinmarketcap.com lists 212 exchanges, some with 24-hour trading volumes of less than $100. FatBTC, a Chinese exchange, ranks 78th with a daily trading volume of $5.39 million.
The biggest exchange based on daily trading volume is BitMex, an exchange most notable for trading Bitcoins against US dollars. The largest cryptocurrency to cryptocurrency exchange is Binance, with a 24-hour trading volume of $1.84 billion. Bitfinex comes in third and popular US-based exchange, GDAX, ranks eighth.
Although it ranks at number 78, FatBTC has gained a lot of popularity since December 2017. The company claims to now have more than 100,000 daily traders. The following FatBTC exchange review explores all the important aspects of the trading platform.
What is FatBTC?
Launched in 2014 by Chinese based traders, FatBTC primarily targeted local traders. The official language on the website is still Chinese, but it now also accepts traders who speak English. FatBTC lists 24 cryptocurrencies, both popular and less popular cryptocurrencies. The exchange offers four main services:
- Purchase of Bitcoins using Chinese Yuan through bank transfer
- An online cryptocurrency wallet
- Purchase and selling of 24 cryptocurrencies
- Speculative investment of two in-house cryptocurrencies, Fat coin and Fat CNY
Except for the fact that the company is Chinese-based, there are few additional details regarding its founders and specific registration details. Despite this, the platform has been open and welcoming to traders from all parts of the world.
Limitations of FatBTC
There are currently no limits to buying or selling any of the cryptocurrencies listed on the exchange. However, the low trading volume of some coins means that there are times when the supply of the coins will be lower than demand. The average daily trading volume for ethereum against Bitcoins, for example, is $36,800. With such a trading volume, an investor who purchases ether coins worth $10,000 and above will have trouble buying or selling the coins.
Buying Payment Method
As a Chinese focused market, FatBTC facilitates buying of the following cryptocurrencies using Chinese Yuan via bank transfer: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple, DogeCoin, EOS, Dent, Dragon Coin, Kin Coin.
If you live outside China, you can fund your account using Bitcoins or Ethereum coins. You also have the option to add funds using popular altcoins like Bitcoin Cash and Ripple.
Selling Payment Methods
FatBTC pairs most cryptocurrencies with Bitcoin, Ethereum or Chinese Yuan. You can sell any cryptocurrencies and receive cash if you are Chinese, or receive Bitcoins or ether coins. According to the website’s daily trading volume, most traders sell their cryptocurrencies in either Bitcoins or Chinese Yuan.
At the time of writing, FatBTC lists 24 cryptocurrencies. Most of the coins on the exchange contribute less than 5% of daily trading volumes. In fact, Bitcoin, Ethereum and Bitcoin Cash contribute 84% of the exchange’s daily trading volume. 63.35% of all trading involve Chinese Yuan and Bitcoins. The top 13 cryptocurrencies contribute less than 1% of daily trading volumes.
Bitcoin, Bitcoin Cash, Litecoin, and EOS are the top most popular cryptocurrencies on FatBTC. Less popular but rising cryptocurrencies on the exchange include TRON, Electra, and Dogecoin.
With fixed 0.2% trading fees, the FatBTC exchange has lower fees than most exchanges. The average trading fee is 0.25%, with a few exchanges offering up to 1%. Here is how fat BTC fares regarding fees compared to popular cryptocurrency exchanges.
Some exchanges charge a maker versus taker fee, whereby sellers, who provide liquidity to the coin, are makers. Takers are traders buying the coins. Some exchanges charge a fixed trading fee irrespective of whether you are buying or selling a cryptocurrency.
As you can see above, only Binance and HitBTC beat FatBTC in fees. However, FatBTC does not charge deposit fees, while some exchanges that purport to charge low or no trading fees do. The exchange does, however, charge a slightly high withdrawal fee of 0.5% Bitcoins.
Creating an account on the trading platform is fast and easy. To register, the exchange asks for your email address where they send a verification code. Once you enter the code, you can create a password and log in immediately. No additional details are requested. If you want to fund your account using Bitcoins, the exchange provides a deposit address. If you want to make a deposit using Chinese currency, the exchange will provide a bank account number.
FatBTC Special Features
To attract more traders to the platform, FatBTC is constantly offering bonuses and gifts to their traders. When promoting the introduction of Newifi Gold, for example, the exchange promised to giveaway a Tesla electric car, a tour, Apple devices, and bonuses to the top 10 traders.
The trading platform has an announcement tab on the left corner where news and important information is regularly updated. On top of that, there is a live chat box where you can ask for assistance 24/7.
Is FatBTC Safe?
While the exchange is not so popular, they have a great reputation online. Review sites rate FatBTC above 3.5 out of 5, generally indicating favorable user experiences. However, it’s worth noting that there are very few websites with helpful reviews about the exchange. Use these parameters to judge whether FatBTC is safe or not.
It’s hard to find any information about the exchange posted before December 2017. This is despite the fact that the exchange claims to have started in 2014. Nevertheless, the developing community trusts the exchange so far. On average, three out of every four comments about the exchange are in support of its services.
The exchange’s website is secured using HTTPS protocol to prevent attacks from hackers. They store 95% of traders’ coins offline and offer traders a two-factor authentication security procedure to further enhance security on the platform. Traders also secure their login details with a password. So, is FatBTC safe? Like most exchanges, the Fat BTC trading platform is still vulnerable to hackers. Investors should always hold most of their funds in secure, personal wallets.
The exchange has three main ways mode of communication with traders:
- A live chat box.
- A ticket system where traders can submit their messages.
- Social media on Telegram, email, and Twitter.
So far, there have been no significant complaints about the exchanges customer support. If anything, most traders appreciate the exchange’s quick customer care.
Like any other exchanges, FatBTC is bound by blockchain speeds in completing bank transfers. When trading, however, trades are completed at lightning speed rates. The only time a trade may not be quickly completed is when trading with high amounts of Bitcoins and Ethereum. The exchange does not have such high liquidity, and this may disappoint huge traders.
How to use FatBTC?
The trading platform has a fairly easy user interface. You can access any of the services on FatBTC by following these steps:
Step 1: Create an Account
As already mentioned, creating an account on the exchange only requires a genuine email address. Through the email address, the exchange provides a verification code which helps you create an account. Verification to log in on the exchange is your email address and a password.
Step 2: Fund your Account
Except for Chinese traders who can fund their accounts using local currency, most traders will have to fund their accounts using Bitcoins or Ethereum. FatBTC provides a deposit address unique to each cryptocurrency. Fund your account with a minimum of 0.05 Bitcoins, and you can begin trading on the exchange.
Step 3: Trade
This exchange is a little bit unique. The website separates trading into four:
- Markets paired with FCNY
- Markets paired with Bitcoins
- Ethereum Markets
- Fat Coin Markets
FCNY is like Tether (USDT), the coin tied to the US dollar. FCNY is tied to Chinese Yuan and owned by the exchange. The fat coin is also owned by the exchange. If you want to trade altcoins, you have to check the major coins on the exchange they are paired with. Ripple, for example, is paired with FCNY. If you want to trade Ripple coins, you have to exchange your Bitcoins into FCNY.
Trading requires a slight curve, which can also be expensive when trading Bitcoins with other cryptocurrencies not paired with it.
Step 4: Withdraw Funds
As already mentioned, the minimum coin withdrawal amount is an equivalent of 0.05 Bitcoins. There is a fixed withdrawal fee of 0.005 Bitcoins. The Deposit and Withdrawal tab can be accessed on the far right corner of your screen. When depositing coins, you lock them with a unique password that you also use when withdrawing them.
In a Nutshell
Although FatBTCwas launched in China in 2014, the world just heard of the Fatbtc trading platform in late 2017. It’s fast-growing, thanks to a user-friendly, responsive website and good customer support. Its 24-hour trading volume is still lower than that of the best-rated exchanges, which makes it an unsuitable website for veteran traders.
Beginner traders, however, will find the exchange’s ease of use pleasing. The low trading fees and availability for multiple cryptocurrencies further makes it a dynamic exchange.
Pros of FatBTC
- Bilingual support.
- Fast and efficient customer care.
- Supports multiple currencies.
- Frequent bonuses and giveaways.
Cons of FatBTC
- Low liquidity.
- It’s a new website for most people, and there is little information about its founders and addresses.
- The charts on the website are not very helpful.
- Markets are paired with different cryptocurrencies, making it difficult and expensive to trade sometimes.
The true user experience of FatBTC will be evaluated as the community grows. Its liquidity is also very low, making it difficult for serious traders to feel attracted to the exchange.
Thank you for reading our FatBTC review above. Hopefully, it will help you make an informed decision of whether to trade on the platform or not. Finally, our website publishes new reviews and guides regularly. You are welcomed to stay updated with information from our guides by regularly visiting our website.