Livecoin Exchange: A Promising Platform or a Security Nightmare?

Livecoin Exchange, founded in 2013, positioned itself as a significant player in the cryptocurrency exchange market, particularly known for its extensive selection of trading pairs and fiat support. Based in England, with servers located in Louisiana, USA, Livecoin was designed to cater to a global audience, excluding users from the United States due to regulatory constraints.

Key Features of Livecoin Exchange

1. Wide Range of Supported Assets: Livecoin supported over 100 crypto/fiat trading pairs, including major currencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and fiat currencies such as USD, EUR, and RUB. This extensive range made it a versatile platform for traders looking to diversify their portfolios.
2. User-Friendly Interface: The platform boasted a simple and intuitive interface, suitable for both beginners and experienced traders. It allowed for easy navigation and customization, enhancing the user experience.
3. Competitive Fees: Livecoin employed a flat fee model, charging a 0.18% fee on all trades, which is below the industry average. This competitive fee structure made it an attractive option for high-volume traders.
4. Security Measures: Livecoin offered standard security features such as two-factor authentication (2FA), SMS, and email notifications. It claimed to use cold storage for funds, although specifics about their security protocols were not detailed.
5. Deposit and Withdrawal Options: The platform supported various payment systems for deposits, including Payeer, PerfectMoney, and AdvCash. Withdrawals could be made to Visa and Mastercard, as well as other payment services like Yandex.Money and WebMoney.

Pros and Cons of Livecoin Exchange

Pros:

• Extensive Asset Support: Over 100 trading pairs, including multiple fiat currencies.
• Competitive Fees: Low trading fees with additional volume-based discounts.
• User-Friendly Interface: Intuitive and customizable interface suitable for all levels of traders.
• Diverse Deposit Methods: Multiple payment options for fiat deposits and withdrawals.

Cons:

• Regulatory Uncertainty: Not regulated in major markets, raising security and reliability concerns.
• Security Issues: Inconsistent transparency about security measures and a significant hack leading to closure.
• Slow Customer Support: Users reported delays in customer service responses and transaction times.
• No Margin Trading: Lacked advanced trading features like margin and futures trading.

Recent Events and Closure

In December 2020, Livecoin experienced a severe security breach that compromised its infrastructure and exchange rate setup. The hack led to the platform’s eventual shutdown, marking a significant blow to its credibility and trustworthiness. This incident highlighted the vulnerabilities and risks associated with unregulated exchanges.

User Feedback and Market Perception

User reviews of Livecoin were mixed. While some praised its wide range of assets and low fees, others criticized the platform for slow transaction times and inadequate customer support. The lack of transparency about the team behind Livecoin and its regulatory status also contributed to user skepticism.

Comparison with Competitors

Compared to other major exchanges like Binance and Kraken, Livecoin offered a broader range of fiat trading pairs but lagged in terms of security and advanced trading features. Binance, for example, provides comprehensive security measures, a wider range of cryptocurrencies, and advanced trading options like futures and margin trading. Kraken is known for its robust regulatory compliance and high security, making it a safer option for traders.

Conclusion

Livecoin Exchange presented itself as a versatile platform with competitive fees and extensive asset support. However, its regulatory uncertainties, security issues, and eventual closure due to a hack underscore the importance of choosing a well-regulated and secure exchange for cryptocurrency trading.

In summary, while Livecoin had several attractive features, its significant security breach and lack of regulatory oversight serve as cautionary tales for traders. Potential users should prioritize security and regulatory compliance when selecting a cryptocurrency exchange.