Cryptocurrency is gaining huge popularity in the Indian Financial Market. In simple words, cryptocurrency refers to digital representations of intangible objects, which can be used in a variety of applications and networks. Investors also look at cryptocurrencies as an investment vehicle. An increasing number of people are participating in crypto trading and investment. A large number of platforms and Apps had started offering services in relation to crypto trading in India. CoinDCX is one such crypto trading platform, which has emerged as one of the biggest crypto exchanges in India.
Launched in April 2018, by Sumit Gupta and Neeraj Khandelwal, CoinDCX aims to offer a user-friendly experience to its customers, where they can access a wide range of cryptocurrencies and other virtual financial assets. CoinDCX is backed by the highest security processes and insurance protection throughout the industry. CoinDCX is an ISO-certified company and offers high liquidity, quick onboarding services, and a reliable & secure trading experience. In January 2021, CoinDCX launched CoinDCX Go App, which allows users to legally trade bitcoins and other cryptocurrencies in an easy and simple manner. Currently, CoinDCX Go App is offering more than 200 crypto coins including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Binance Coin (BNB), etc. DCX is a Singapore-based company that specializes in Crypto-related financial services, and thus the name CoinDCX is an add-on to let the company showcase its uniqueness. CoinDCX has served more than 6 million users through its platform. CoinDCX thrives to democratize finance and to make crypto trading available for the general public. The tagline of CoinDCX is ‘Your Gateway to Crypto’ as it offers users the means to crypto trading.
Why should you choose to Invest through CoinDCX App?
In just 3 years of time, CoinDCX has successfully served more than 6 million users. CoinDCX has tailored its services to fit all kinds of traders, considering their risk tolerance, trading history, goal year, and frequency of trading. Although the trading volume of CoinDCX is far behind as compared its competitors like WazirX, it can be considered by investors for the following features and benefits offered by it:
- Wide Range of Trades offered by CoinDCX: CoinDCX Pro offers Spot, Margin, and Future crypto trading to its users. It allows spot trading with the near-limitless order book, Margin trading with up to 6X leverage across 400+ markets, and Future trading with leverage up to 20X.
- Lending Cryptocurrencies: CoinDCX provides a special option to you to lend your cryptocurrencies to earn interest in them. Through the ‘Lend’ option on the platform, you can lend your crypto coins. You shall receive the interest on such lending in the same cryptocurrency as the crypto that was lent. Through this option, you can put your cryptos to work and can earn passive income. Investors can earn up to 16.25% of annual fixed interest on such lending.
- Coin Staking: The users of CoinDCX have an option to stake their cryptocurrencies on the exchange to earn rewards. Staking, in simple words, is locking your cryptocurrencies. It provides you with a source of passive income. You just need to register for it, hold a minimum balance, and be eligible for earning the rewards.
- User Interface: The trading view provided by the CoinDCX platform is very user-friendly and interactive. The platform helps you to trade in crypto comfortably and in a hassle-free manner.
- Sub-Accounts: CoinDCX allows its users to split up their positions with the help of sub-accounts. Under this feature, each master account is allowed to have up to 20 sub-accounts. There is no fee charged for the transfer of assets between master and sub-accounts. You can access the sub-accounts through CoinDCX pro. Before enjoying this feature, you must complete your KYC verification.
- Instant Deposits & Withdrawals: Through the ‘Insta’ feature on CoinDCX, users can buy cryptocurrencies with Indian Rupees (INR). The maximum and minimum deposits & withdrawals limits depend on the KYC status of your account. You can deposit a minimum of Rs. 100 and a maximum of Rs. 5 lakhs if KYC is completed or else Rs. 10,000 per day. You can withdraw a minimum of Rs. 500 and a maximum of Rs. 5 lakhs if KYC is completed or else Rs. 10,000 per day through automated transactions and beyond that only through manual transactions.
Business & Revenue Model of CoinDCX
The business model of CoinDCX is designed to establish single-point access to cryptocurrencies available across more than 500 markets. CoinDCX boasts its capability of processing over a million transactions per second with the help of its highly scalable trade machine engine. CoinDCX offers a common platform to its users in the form of mobile apps and websites, where they can freely trade cryptocurrencies in a safe and secure environment.
CoinDCX generates its revenue just like any other cryptocurrency exchange in the country. CoinDCX charges various fees from its users such as deposit fees, withdrawal fees, trading commissions, and listing fees. Currently, CoinDCX is charging 0.1% takers fees and 0.1% makers fees. CoinDCX also allows investors to convert their INR to crypto coins and vice versa, earn by lending their crypto holdings, and leverage trades with help of margin trading. The liquid aggregation model of CoinDCX gives users access to liquidity from the leading crypto exchanges in the world.
Funding and Investors of CoinDCX
CoinDCX became the first Indian cryptocurrency exchange to enter the unicorn club. It raised $90 million in a Series C funding round, which valued it at $1.1 billion. This round of funding was led by B Capital Group, and existing investors like Coinbase Ventures, Polychain Capital, Block.one, and Jump Capital. The fresh fund is set to be utilized for ensuring crypto awareness around the country.
Competitors of CoinDCX
The awareness and popularity of cryptocurrency are growing at a rapid pace in India. Many new startups have come up to render their services in this segment. Though CoinDCX is one of the highest valued cryptocurrency exchanges in India, it faces tough competition from firms like WazirX, Coinswitch, Coinbase, Bitbns, Zebpay, etc.
With crypto adoption and trading rising in India and with the authorities all set to clarify the regulation and legal framework of the cryptocurrencies, CoinDCX has a huge scope for growth in the near future. CoinDCX offers some of the unique features to its users like coin staking, lending, margin trading, etc., and thus is grabbing the attention of the masses of the country. CoinDCX ensures that all transaction on its platform is safe, secure, and is reinforced by good customer support units.