WazirX review 2020
The increasing popularity of cryptocurrency has given rise to many crypto-based or blockchain-based technologies today. One of those technologies is the crypto exchange platforms that aid in the buying and selling of cryptocurrencies such as Bitcoin. In other words, people need platforms to exchange their coins, and as always, each platform distinguishes themselves with the type of services they offer and their market niche among other factors.
WazirX is an Indian cryptocurrency exchange that supports the buying and selling of Bitcoins, Ripple, Ethereum, Dash, and Litecoin among other virtual currencies. The exchange process is based on a Peer-to-Peer (P2P) model in a unique auto-matching open order book exchange. The exchange also allows you to trade-in these virtual currencies.
Transactions at WazirX are also supported by its recently launched cryptocurrency, WRX, which you can use to pay transaction fees on the platform.
The exchange was founded in 2018 by Nischal Shetty, Sameer Mhatre, and Siddharth Menon. According to the WazirX website, the exchange is for both professional traders and first-time crypto investors. The good thing about WazirX is that you can start investing in the world’s top cryptocurrencies by buying Bitcoins using Indian Rupees. Once you buy Bitcoins, you can use it to exchange with the many other cryptocurrencies accepted on the exchange.
WazirX has had the monopoly as the only crypto exchange on the Indian soil, courtesy of the Reserve Bank of India (RBI)’s banning financial institutions from dealing with cryptocurrency exchanges and any other business or individual trading on virtual currency. While other exchanges such as ZeebPay, Koinex, and Unocoin among others closed shop, WazirX survived because of its P2P business model that does not require support from mainstream financial institutions.
However, the ban was recently lifted by India’s top court, the Supreme Court, allowing new or existing exchanges to come into the Indian market once again.
WazirX allows for an instant deposit of INR through UP, IMPS, NEFT or RTGS. Whether you’re using Desktop, iOS, or Android versions of the App, you can follow the procedure to deposit INR to your WazirX account as highlighted on the exchange’s website.
The payment or deposit will take a maximum of 24 hours to reflect in your WazirX exchange account. But most deposits take a shorter time, some as fast as one hour.
WazirX, however, does not accept credit card deposits, neither does it accept other payment methods such as PayPal, Neteller, Skrill, and MoneyGram among others.
Cryptocurrencies on WazirX
WazirX exchange is a platform where you can trade over 70 cryptocurrencies. The exchange is designed into three segments based on base currency pairs of USDT, BTC, and INR. USDT is the Tether USD currency 100% backed by Tether’s reserve of US dollars. 1 Tether equals 1 USD as per the exchange rate, but the price may fluctuate based on the demand and supply. The exchange allows you to trade in any of the currency exchanges.
WazirX has been quite successful in India, and now expanding to the rest of the world. In India, WazirX has been offering three types of opportunities for traders: spot market trading, P2P market, and SFT trading.
Today, the exchange is spreading its P2P service across the globe. Its unique auto-matching feature gives it a cutting edge to solve the fiat-crypto exchange problem for everyone. Other than India, WazirX is also accepted in many countries within their respective local currencies, including the major European countries, Indonesia, Nigeria, Russia, Saudi Arabia, Turkey, and Ukraine.
WazirX has a comprehensive security measure where it requires users to verify verification when setting up an account. The exchange sends you an email for account verification on the email address by you. To verify your email, you will need to click on the verification received to proceed ahead with account creation.
The next step is to set up your account security, and to do this the exchange offers two options for your account security:
- Google Authenticator App
- Mobile SMS Service
As a user, you will need to choose either of the available options. However, the authenticator app is known to be safer as compared to mobile SMS which is prone to the delayed receipt and possible SIM card hacking.
The final step of your registration will require you to select your country. This is also the stage where you’re given the option of opening your account with or without the “Know Your Customer” (KYC) option. The two options provide different capabilities. Without KYC you are only limited to depositing and trading on your Wazir account. KYC option provides you with the capability to withdraw and trade P2P you need to complete KYC.
Completing KYC will require you to provide full names as appearing on your KYC document, date of birth, address as per the KYC document.
You will complete your KYC registration by uploading the scanned copy of your KYC documents and selfie. WazirX team will verify your account within 24-48 hours after assessing your documents.
Trading, Deposit and Withdrawal Limits
WazirX has elaborate trading, deposit limits, and transaction. The limits are placed on each cryptocurrency traded on WazirX. For example, the buy and sell fees are 0%. The minimum sell or buy order value should be 14.5 USDT and the maximum buy order that you can place is 2000 USDT. On the other hand, say you want to withdraw BTC from WazirX, the maximum and minimum amount you can withdraw are 3 BTC and 0.001 BTC respectively.
WazirX explains that they have put the withdrawal limit for coins to encourage traders to combine multiple small withdrawals into larger and fewer ones. This, they believe, will help them efficiently process withdrawals faster, especially during high withdrawal sessions, when too many small withdrawals can cause server overload, hence technical delay.
Trading and Withdrawal Fees
WazirX has set two types of fees; trading fees and withdrawal fees.
As a trader, you will be able to trade crypto in three different markets; spot market, P2P market, and STF trading.
The exchange has set a minimum order size, which means a trader’s buy or sell will be limited to at least an X amount of specific crypto.
Spot market: you can trade various crypto pairs at a trading fee of 0.2% for both the buyer and seller.
P2P market trading: WazirX has only eight currencies paired against USDT, including Indian Rupee (INR), EUR, Indonesia Rupee (IDR), Russian Rouble (RUB), Nigerian Naira (NGN), Saudi Riyal (SAR), Turkish Lira (TRY) and Ukrainian (UAH). But you can enter only USDT/INR transactions in India.
WazirX charges withdrawal fees when you move your crypto coins from one wallet to another.
The withdrawal fees vary from one crypto to crypto and are subject to minimum and maximum amounts. For example, if you want to withdraw 1 BTC from your WazirX wallet and move it to another wallet, a fee of 0.0005 BTC will be charged from the 1 BTC before a withdrawal is processed from WazirX. The receiving wallet will receive 1 BTC less 0.0005 BTC, which is 0.9995 BTC.
The table below illustrates the fees applicable for BTC transactions.
|Withdrawal fees||0.0005 BTC|
|Minimum withdraw amount||0.0010 BTC|
|Maximum withdraw amount||3 BTC|
|Minimum deposit amount||0 BTC|
Similarly, the USDT withdrawal fee is 1.5 USDT, while that of WazirX is 10 WRX.
Smart Token Fund (STF) market trading: WazirX offers new crypto traders with an STF transaction facility that helps them learn how to use the platform. This facility allows rookie investors to get help from smart and experienced crypto traders who can guide them through in running their portfolio at a small fee calculated in terms of the percentage of profit made.
The exchange collects 0.25% to takers and 0.10% to makers, which is the average crypto market average.
It is easy to notice that WazirX’s fee is quite elaborate. The problem with such a comprehensive fee structure is that it confuses traders because they have to refer to the table to identify whether they will be able to afford the transaction and trading fees. Calculating the fee can be a complicated affair especially if you’re not comfortable with numbers.
Regarding security measures, WazirX provides a regular security audit to ensure its platform is properly secured. It starts with ensuring that a user verifies their credentials during registration through an email (Google Authentication App) or Mobile SMS service.
The exchange has also been represented by their security score of C, as rated by Mozilla at the Observatory test, which is in line with the global industry average. Additionally, the exchange’s platform can be used on all known operating systems, including the web and mobile web, Android, iOS, macOS, and Windows.
When the RBI banned mainstream financial institutions from associating with crypto trading in India, many crypto businesses and exchanges closed shop and completely severed links with virtual currency trading. Needless to say, India’s crypto industry suffered massively because of this decision. But WazirX managed to overcome the ban by being innovative. They bypassed the RBI ban by pursuing the P2P business model.
Today, WazirX is the biggest crypto exchange in India. To add to its reputation, Binance acquired it in November 2019, further boosting its credibility.
The good news is that the Supreme Court scrapped the ban in crypto trading. The move by India’s highest court has notably expanded the county’s crypto community and saw WazirX’s trading volume increase ten-fold.
Needless to say, WazirX is reputed for its ingenious business models, including P2P, fiat gateway, and a simpler user-interface among others.
WazirX own crypto coin is called a WRX token. It was launched to build a crypto community and reward the initial subscribers. WRX coin total supply is capped at 1 billion. Today, there are about 107 million WRX coins in circulation and are traded in 11 active markets.
You can use WRX coin to pay trading fees for all your crypto trades. WazirX offers a 50% trading fee discount for those who use WRX coins to pay fees. The exchange has stated that they will halve the discount next year, 2021, and remove it entirely after the fourth year.
WazirX has a huge user base that provides it with enough liquidity since you can easily find buyers and sellers on the platform. The recently launched WRX token is a huge step towards establishing its global recognition. The exchange’s utility, value, and liquidity have increased notably since the launch of WRX. With close to 20 million WRX tokens already created, the exchange has done exceptionally well given the token is new in the market.
Customer Support Service
WazirX has an elaborate customer support system. First, they are making use of most of the social media platforms as a medium for customer service. They have accounts with Twitter, Telegram, Facebook, Medium, and YouTube.
You can also use WazirX’s comprehensive Contact Us section to reach them for specific services.
Getting Started on WazirX
Like any other online trading account, signing up on the WazirX website or its App requires basic personal details such as email addresses and passwords.
Once you submit your email address and password, you will be prompted to verify your email.
Take note that you cannot change the email id after confirming the registration process. So it is advisable to provide an email id that you are sure to continue using for the longest possible time.
Also, note that you do not need a separate registration detail when you want to use the P2P exchange. You can just get the user name, commonly referred to by the exchange as XID. Once you log in, you will find a separate tab for P2P on the website. On the mobile app version, you will find it by clicking on ‘fund’ to access the P2P exchange.
The exchange window will show you open orders, a window to place orders, and previous P2P orders.
While there are lots of advantages to trading on the WazirX platform, USDT is being traded on the premium price, which discourages many traders. If buyers are willing to pay premium prices, the liquidity can handle up to INR 20000 to 30000 worth of orders without much price fluctuations. The implication is that if you want higher value orders, you may just have to wait.
While the WazirX P2P exchange also works on its mobile app, some users have complained that the P2P mobile app version hardly loads.
The other limitation is the 15 USDT for first order, which limits new traders from making substantial trading activities.
Similarly, the auto-matching is quite limiting because of the partial matching. If you want to buy or sell a huge quantity, chances are that you will have to wait a while until the entire order is filled and make or receive multiple payments from many different people.
There has also been a complaint about the 24 hour time for resolving or responding to dispute. A trader can raise a dispute after only a couple of hours. The other only alternative is to find a trader outside WazirX, make the deal, and then place orders on WazirX using each other’s XID for matching.
Lastly, the USDT withdrawal fee is quite on the higher end. A 10 USDT fee to withdraw is discouraging for arbitragers, considering exchanges such as Coindelta charges only 3 USDT for the same.
One of the most important advantages of WazirX exchange is its adequate liquidity in a crypto market that has undergone a difficult time due to regulatory resistance and skepticism from the masses. WazirX also ticks all the boxes of security, customer support, unique P2P service, and reputation among others. That is, the platform is safe, fast, and conveniently available on smartphones, Windows, and Mac.
The exchange lets you access more than 70 global cryptocurrencies through its P2P, STF, and Exchange mechanism.
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