When choosing a cryptocurrency exchange, key factors to consider include jurisdiction, ease of use, liquidity, asset selection, security, trading fees, and insurance coverage. For those who want to dig deeper, examining the technical infrastructure is also valuable.
Introduction to Bithumb
Bithumb is a third-party exchange that allows users to buy, sell, and trade a variety of cryptocurrencies. It was created in 2013 by BTC Korea.com Co. Ltd and is headquartered in South Korea, making it one of the more established platforms in the industry.
Since its launch, Bithumb has grown to become one of the world's largest exchanges by daily trading volume. As of recent data, it regularly handles billions of dollars in transactions daily. A significant part of this volume comes from institutional investors, which helps ensure high liquidity and smoother trading experiences for all users.
The platform is designed to be user-friendly and accessible, making it suitable for beginners. Although most of its user base is from South Korea, the website supports multiple languages, including English, Chinese, Japanese, Spanish, and Hindi.
Supported Payment Methods
Before registering, it’s important to review the payment methods supported by the exchange. Bithumb supports both fiat and cryptocurrency deposits, but there’s a important limitation: fiat currency deposits and withdrawals are only available for South Korean residents using the Korean Won (KRW).
International users can still deposit and withdraw using cryptocurrencies. If you are new to crypto and don’t yet hold any tokens, one common approach is to first acquire cryptocurrency through a platform like Coinbase using a debit/credit card or bank transfer, and then transfer those funds to Bithumb.
Understanding Bithumb Fees
Deposit fees vary depending on the cryptocurrency you use. Deposits of some cryptocurrencies, like Ethereum, Ripple, and EOS, are free, while others, such as Bitcoin, Dash, and Litecoin, incur a small fee. For example, a Bitcoin deposit costs 0.001 BTC.
Minimum deposit limits are generally quite low. For instance, the minimum Litecoin deposit is 0.1 LTC, and the minimum Ethereum Classic deposit is 0.1 ETC.
Withdrawal fees also depend on the coin. Withdrawing Ethereum costs 0.01 ETH, and Bitcoin costs 0.001 BTC. Always check the Bithumb website for the most up-to-date fee schedule.
For trading, Bithumb charges a base fee of 0.15% of the total transaction amount. While this isn't the lowest in the industry, users can reduce this fee by using Bithumb vouchers, which can lower the cost by 0.01% to 0.07%. For high-volume traders maximizing these discounts, effective fees can become very competitive. 👉 Compare trading fees across platforms
Supported Cryptocurrencies
Bithumb supports a wide range of cryptocurrencies—over 100 different coins at the time of writing. This includes major players like Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash, as well as lesser-known projects.
Interestingly, due to high demand and specific market conditions in South Korea, popular coins like Bitcoin often trade at a premium compared to exchanges in other countries. Bithumb is selective about which coins it lists, focusing on projects it deems legitimate, which means new tokens from recent ICOs may take time to be added.
How to Register on Bithumb
The registration process on Bithumb is straightforward but requires providing detailed personal information to comply with South Korean regulations. Here’s a simplified overview:
- Visit the Bithumb website and click the "Register" button.
- Provide your email address and check for duplicates.
- Enter your mobile number for SMS verification.
- Submit personal details, including full name, date of birth, gender, and full residential address.
- Create a strong password and a 4-digit PIN.
- Agree to the terms and conditions.
- Confirm your registration via email.
After registration, you’ll be classified as a Level 1 user, allowing immediate trading. For higher withdrawal limits, you must upgrade your account by submitting identification documents.
Who Should Use Bithumb?
Bithumb’s platform is versatile, catering to both beginners and experienced traders. Its user-friendly interface and virtual credit feature allow newcomers to practice risk-free. For advanced traders, it offers robust tools like chart analysis and candlestick patterns, coupled with high liquidity due to its large trading volume.
The platform also includes features like international remittance. However, it’s important to note that full anonymity is not possible due to strict KYC procedures. Customer support is available 24/7 via live chat and phone.
Is Bithumb Safe?
Security is a critical concern for any cryptocurrency exchange. Bithumb operates under South Korea’s relatively strong regulatory framework, which mandates certain security protections for user funds.
The exchange employs several security measures:
- Mandatory personal information verification for account creation.
- Mobile number confirmation and two-factor authentication (2FA) for logins and withdrawals.
- Encryption protocols to protect user data.
However, Bithumb experienced a significant security breach in 2017, where hackers accessed thousands of accounts. The exchange compensated affected users and has since strengthened its security. There have been no major incidents publicly reported since then. 👉 Learn about advanced security practices
Users are always advised not to store large amounts of cryptocurrency on any exchange long-term. Utilizing personal wallets for storage is a safer strategy.
Pros and Cons of Bithumb
Pros:
- Established in 2013, with extensive operational experience.
- Competitive fees, especially with vouchers for active traders.
- High liquidity due to large trading volumes.
- 24/7 customer support via live chat and phone.
- Strong security controls and regulatory compliance.
- Suitable for both beginner and advanced traders.
Cons:
- Fiat currency services are restricted to South Korean residents.
- Past security incidents may concern some users.
- The identity verification process can be slow for account upgrades.
Frequently Asked Questions
What currencies can I use on Bithumb?
Only South Korean residents can deposit and withdraw fiat currency (KRW). International users must use cryptocurrencies for all transactions.
How does Bithumb keep my funds secure?
Bithumb uses mobile verification, two-factor authentication, and data encryption. It also complies with South Korean financial regulations, requiring user identification to prevent fraudulent activity.
Can I trade anonymously on Bithumb?
No. Bithumb requires all users to complete a identity verification process, making anonymous trading impossible on the platform.
What are the alternatives to Bithumb?
Popular global exchanges like Coinbase, Binance, and Kraken offer similar services, often with support for more international payment methods and different coin selections.
Was Bithumb really hacked?
Yes, in 2017, Bithumb suffered a security breach. The exchange compensated affected users and has since enhanced its security measures.
How do I contact Bithumb customer support?
Support is available 24/7 through live chat on their website and via telephone for urgent inquiries.
Conclusion
Bithumb is a major cryptocurrency exchange with high liquidity, a user-friendly platform, and strong security protocols. While its fiat services are limited to South Korea, international users can still access its crypto-to-crypto markets. The requirement for detailed personal information may deter those seeking anonymity, but it contributes to a more regulated and secure environment.
As with any exchange, it is wise to only keep necessary funds on the platform and use secure personal wallets for long-term storage. Always conduct your own research and consider your specific needs before choosing a trading platform.