Learn important things about fees, complaints, and even more. Then see how it compares to two alternatives. Get all that from this Livecoin.net review now.
Please read this review carefully because it has important information. This information can help you avoid the situation some people found themselves in. I really hope it helps you save your money.
Disclosure: this page has affiliate links that may make me money. But the content is objective and trustworthy.
Is Livecoin Exchange A Scam Or Is It Safe?
All of major cryptocurrency exchanges have received lots of complaints. So did Livecoin. But in comparison with many of them, the complaints are explainable by something less sinister than fraud.
Even in BitcoinTalk forum thread with complaints, many people say that Livecoin exchange works for them without problems. I checked to make sure that those people were not Livecoin shills. I explain the process I used to check that when I talk about the opinion of Reddit.
Even though Livecoin works for most people, some are experiencing difficulties and calling it a “scam”. Most of these accusations are exaggerations, caused by misunderstanding of cryptocurrency workings. Below I explain the most frequent complaints.
Frequent Complaint #1
In many cases, complaining person has sent cryptocurrency to a wrong address. Then wrote in a forum thread that Livecoin stole his cryptocurrency by refusing to help him retrieve his cryptocurrency.
For example, one person has sent bitcoin to bitcoin cash address. In theory, that can be remedied. Bitcoin Cash and Bitcoin addresses share the same structure.
In practice, however, retrieving bitcoin from bitcoin cash address isn’t that easy. Process requires a private key. The vast majority of exchanges refuse to give its customers private keys to their wallets. This includes top exchanges, such as GDAX, and lesser-known ones such as Livecoin.
In short, I wouldn’t call a situation like that a “scam”. It’s obvious that you should send cryptocurrency only to a wallet specifically designed for that particular cryptocurrency.
Frequent Complaint #2
In many cases, complaining person has sent ETH from contract address to regular Livecoin ETH address. Then he complained that Livecoin stole his ETH by refusing to help him retrieve it.
Livecoin cannot receive ETH from contract addresses and tells you about it before you make a deposit. Here is a screenshot from Livecoin website that shows this:
In other words, the complaining person did exactly what he was told not to do. Furthermore, other exchanges, including ShapeShift, have the same policy regarding ETH contract addresses.
People talked about this situation on GitHub. Someone asked Ethereum developer about it. Developer confirmed that an exchange, in that case ShapeShift, watches only incoming transactions, not contracts. Transaction from a contract address counts as a contract, so the exchange does not see it.
The developer went on to say that this situation is caused by “a misunderstanding of ethereum”. So ShapeShift, Livecoin, and other exchanges misunderstand ethereum. But that doesn’t turn any of them into scams. Instead, that requires you to make test transactions with tiny amounts.
This issue affects only exchanges that have contract ETH addresses. To be specific, contract address issue affects Bitstamp to Livecoin ETH transactions. But the workaround is simple: send ETH to your non-exchange wallet first, then send it to Livecoin. Of course, at first send only tiny amount.
Overall, Livecoin transactions work well. ETH Transactions from Bittrex to Livecoin work. But if you’re doing transactions in lesser-known cryptocurrencies, please make test transactions first.
Frequent Complaint #3
Some people say that Livecoin exchange is slow. However, Livecoin customer service have replied to all of my tickets within 24 hours. One possible explanation is networks of lesser-known cryptocurrencies. Many of them are not properly configured. But some people blame exchanges instead when dealing with them.
Frequent Complaint #4
Some people say that Livecoin has too many scam coins. That’s true. But some people found a way to profit off them. They identify when they are usually pumped. Then they sell them when the pump is over. So scam coins, while extremely dangerous, can also be extremely profitable if you’re smart.
Is Livecoin.net Secure Or Not?
Livecoin.net was never hacked. That’s impressive. Many major cryptocurrency exchanges were hacked. Bitfinex and Bithumb are among them.
The fact that Livecoin was never hacked tells me that they are are doing something right. This fact is also the reason you should seriously consider Livecoin. If they managed to avoid being hacked when two of the largest cryptocurrency exchanges could not, they have excellent security protocol.
That security protocol consists of two-factor authentication for login and PIN code for trades. Moreover, your account is secured by email notifications with verification codes. Once a withdrawal is initiated, you receive a verification code that you have to enter to complete a withdrawal.
Another security feature is IP white list. But please be careful with this feature. If you have dynamic IP address, you would block yourself from accessing your own account. However, there is a workaround. You can use static proxy or VPN if you have dynamic IP address and want to enable this feature.
Even though Livecoin.net has excellent security features, I urge you to get a hardware wallet asap. Hackers are getting smarter with each day. So you better protect yourself by transferring all of your cryptocurrency not used for trading to a hardware wallet.
Hardware wallets are recommended by cryptocurrency experts. So if you don’t have one, please check out the best hardware wallet right now because you deserve to keep all your crypto assets. You’ll be surprised by how affordable this wallet is.
Important Word Of Caution About Two-Factor Authentication
You can disable two-factor authentication only from email address used for registration. Furthermore, you would be required to provide additional information to disable it. That additional information includes last trades along with trading pairs and your last deposit amount.
After email with that information is sent and two-factor authentication is disabled, the account would be locked for 10 days. That enhances security of your account.
Please be careful with your smartphone so you never have to go through this process. It’s also a good idea to copy your last trades along with trading pairs and your last deposit amount to a text file.
However, Livecoin gives you a way to safeguard your account access in case of Google 2-FA loss. It can also be used to restore access to an account in case of email access loss or IP address change. IP address change applies only to people who have enabled IP white list on their accounts.
You can upload on Livecoin a picture of yourself holding a white sheet of paper with the name of their exchange and the date the picture is being taken. That picture must be at least 1920 x 1080 pixels and your face must be clearly visible.
In case you need to restore access to your Livecoin account, you can email email@example.com 2 current photos like the one described above. They must be taken in different places.
By going through that procedure, you would be able to unlock your account immediately if necessary. While this procedure is optional, it may be a good idea if you change email or phone frequently.
Conclusion Of This Section Plus Explanation Of How To Test Any Exchange
Livecoin.net is a safe exchange that has excellent security protocol. It’s definitely not a scam. However, I urge you to be cautious with any exchange, not just Livecoin. So below I explain a way to test any exchange.
At first, send the minimum allowed amount. After it went through and you performed a trade, transfer a bigger amount from the same address. That’s very important: only the same address. Even though it worked for one address, it may not work for another address because of contract address issue.
After you performed trades with small amounts, try withdrawing the money. Withdraw some of it as cryptocurrency and the rest as fiat money. After withdrawals are successful, you can send bigger amount of money.
Keep in mind that many legitimate exchanges occasionally experience difficulties with fiat money withdrawals. So if you aren’t intent on getting fiat money out of an exchange, you can try withdrawing only cryptocurrency.
Please continue reading this Livecoin review because it has more useful information.
What Are Livecoin Vouchers, Fees, And Deposit Methods?
It’s free to deposit cryptocurrencies. To withdraw them, you pay the usual network fees.
Livecoin does not support bank transfers or debit/credit card deposits. In this respect, fiat deposits are not easy. But that makes it possible for Livecoin to open a new account without verification.
To deposit fiat money, you need a Livecoin voucher. It’s a code that has fiat money value. Some of the websites from which you can buy a voucher are: AdvCash.com, PerfectMoney.is, Payeer.com, and Capitalist.net. Capitalist is the only one available in USA. See their fees below.
Livecoin Deposit And Withdrawal Fees
|Payment Method||Deposit Fee||Withdrawal Fee|
EUR, RUB: 5.5%
Plus, Payeer charges a fee from recipient.
|USD, RUB: 1%|
Livecoin Trading Fees
|Trading Volume For 30 Days In USD||Fee|
|0 - 100,000$||0.18%|
|100,001 - 200,000$||0.16%|
|200,001 - 400,000$||0.14%|
|400,001 - 600,000$||0.12%|
|600,001 - 800,000$||0.10%|
|800,001 - 1,000,000$||0.08%|
|1,000,001 - 1,500,000$||0.06%|
|1,500,001 - 2,000,000$||0.04%|
|2,000,001 - ∞||0.02%|
Important Word Of Caution About Capitalist.net, The Only Payment Method Available In USA For Fiat Money Deposits
This section applies to you only if you intend to deposit or withdraw fiat money.
There are few reviews about Capitalist.net. Most of them are positive. However, there isn’t enough information to make a definitive conclusion.
For this reason, I recommend you to avoid depositing fiat money into Livecoin. Instead, I recommend you to convert your fiat money into bitcoin through Bitquick. You’d get bitcoin in 3 hours or less and could start trading the same day.
The only downside to using Bitquick is that you can buy only $9,999 of bitcoin in one transaction. If you wish to buy more, you need to place a few separate orders. However, you need to deposit cash into the person’s bank account. So you’d need to make a few trips if you’re placing a few orders.
If you want to buy more than $9,999 of bitcoin in one transaction, you can use Bitit.
What Does Reddit Community Think Of Livecoin?
While there are some complaints, most opinions are positive. Many people say that it works for them without problems. That’s an encouraging sign. Reddit has a strict moderation system that usually weeds out shills. And even when a shill manages to escape moderation, you can easily identify him.
You can identify a Reddit shill in 3 steps: 1) go through the history of his posts; 2) check whether he posted more than one positive comment about the same company; 3) check whether he posted comments about other companies.
I went through this process for every Redditor who posted a positive comment about Livecoin. None of them posted more than one positive comment about Livecoin. And every single one of them had plenty of comments about other companies. Livecoin did not hire shills to promote itself on Reddit.
Livecoin Exchange Review Continued: How Does it Compare To GDAX And Kraken?
In this section, I compare Livecoin to these two exchanges. These two exchanges are major players in the cryptocurrency world. However, there are a few things about them that will surprise you. So please continue reading this Livecoin exchange review and you will find them out.
Privacy And Verification
GDAX exchange, just like its parent company Coinbase, is terrible in terms of privacy. They track your bitcoin after you moved it out of their wallet. Then they may close your account if you pay in bitcoin a company they don’t like. Even perfectly legal gambling website counts as such.
To get your account frozen, you don’t even have to transfer your bitcoin to a questionable company. Coinbase froze one account because the owner made a bitcoin transaction while on vacation in Cuba. Apparently, Coinbase employees have hard time dealing with other people’s vacations.
If Coinbase notified a person after freezing his account while he was in Cuba, that would be alright. That would show that Coinbase cares about security. IP address from a foreign country is suspicious. However, they never notified that person, and after more than a week, they never replied to his email.
Also, IRS targeted Coinbase. So they handed US government information about some of its customers. They will probably hand US government even more information in the future as new regulations are passed.
Kraken exchange isn’t much better. It wasn’t targeted by IRS because it has far fewer customers than Coinbase and GDAX. But it has lengthy and somewhat intrusive verification process. Some people waited more than a month to be verified. For some, it took even longer.
Livecoin is definitely better than both of them in terms of privacy and speed. You can trade fiat money for cryptocurrency and vice versa without verification. That’s impossible on GDAX and Kraken. So it’s faster and easier to get started on Livecoin.net than either on GDAX or Kraken.
Another bad thing about GDAX and Kraken is their popularity. In a way, they have become victims of their popularity. They often go offline during highly volatile periods when bitcoin is either skyrocketing or crashing. So it’s easy to miss big opportunities when trading on them. Livecoin.net, a lesser-known exchange, stays online most of the time because it has fewer users.
Number Of Available Cryptocurrencies
Another thing that differentiates it from GDAX and Kraken is the number of cryptocurrencies. Kraken offers 72 trading pairs. GDAX offers only 12 trading pairs. Livecoin offers 222 trading pairs. Furthermore, Livecoin is the only exchange where more than 90 altcoins can be traded for USD.
Some of the cryptocurrencies available on Livecoin can’t be found on other exchanges. So you can take advantage of them by being an early adopter. Of course, you should do due diligence to make sure they are legitimate. If you have any doubts or can’t find any information about them, please avoid them.
These new cryptocurrencies are extremely dangerous. But they pose a great opportunity if you’re smart. They occasionally skyrocket much faster than either ETH or BTC.
Of course, they also fall much faster than either ETH or BTC. So they present an extremely dangerous but potentially lucrative opportunity. This opportunity isn’t available on GDAX and Kraken.
Conclusion Of This Livecoin Review
Livecoin is a great exchange with excellent security features. These features, when enabled, make accounts extremely secure. It’s also easy-to-use and has low fees.
The only significant downside is the lack of direct fiat money deposit. This type of deposit requires an account with their partner payment processor. However, you can buy bitcoin from either Bitit or Bitquick. This way you can start trading within 24 hours.
I hope that this Livecoin review helped you make a decision. If so, you can visit Livecoin.net right now.
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