In this Beaxy review, we compare the exchange’s pros and cons.
The goal is to help you decide if Beaxy Exchange is the right fit for you, or if you should look for a different cryptocurrency exchange.
At the end of the review, we also outline some Beaxy alternatives in case you want to consider other exchanges as well.
What exactly is Beaxy?
Beaxy is a brand new cryptocurrency exchange that aims to compete with Binance by offering a more powerful trading engine, more elaborate order type options, low fees, and excellent customer support.
Although Beaxy is registered in Nevis in the Caribbean Island, the exchange also has offices in Chicago and Illinois.
The team operating the exchange has proven to be very transparent. Beaxy’s CEO Artak Hamazaspyan, and CTO Mittal Patel, have both assisted multiple conferences and are actively engaging with their users on social media.
At the time of writing, Beaxy has a daily volume of just $8M. However, that is understandable when considering how young the exchange still is.
- 20+ coins listed and low trading fees
- Great customer support
- Simple to use
- Beaxy still has relatively low trading volume
How to trade on Beaxy
1. Sign-up and create account
The first step to start trading on the Beaxy Exchange is to head over over to the registration page and create an account. To do so, you will have to type in your full name, email, password, and date of birth.
After accepting the Terms and Conditions and clicking “Sign Up”, you will automatically receive a confirmation email with a verification link which you will have to click to activate your account
2. Pass KYC
After clicking on the link in your confirmation email, the next step is to log into your Beaxy account and pass the identity verification process.
Unfortunately, Beaxy requires all users to pass KYC. However, if you are planning to withdraw less than 30 BTC worth of crypto per day, the KYC process is very straightforward.
To start the KYC process on Beaxy, click on your “user” tab on the top right of the page and look for the “KYC” button.
Once you are on the KYC verification page, the first thing you will have to do is select your country of residence and also submit a picture of your National ID, driving license or passport.
Please keep in mind that if you’re submitting a National ID or driving license, you will have to take a picture of both sides of the document.
Finally, after you uploaded your document you will have to take a short video of yourself. This is required so that Beaxy knows that you are indeed the person on the identity document that you submitted.
Once you successfully completed the above steps, you will have to wait until you receive a notification that your documents have been approved. The review process might take up to a few hours.
3. Deposit funds
Once you have been notified that your KYC documents were approved, it’s time to deposit the funds that you want to trade with.
To deposit funds on Beaxy, click on the “My Wallets” at the top of your screen and select the currency you want to deposit.
Right next to your selected currency, you will see a “+” icon which once clicked, displays the different wallets that you can make the deposit to.
Since this is your first deposit for that particular coin, you will have to generate the wallet first. To do so, simply click “Generate address”.
After generating your address, all you have to do next is to deposit your coins on that address and wait until the transaction is confirmed by the network.
For Bitcoin transactions, this might take up to 15 minutes. For ERC-20 tokens and other coins it usually takes less than 5 minutes.
4. Start trading
After your transaction got confirmed by the network and Beaxy displays the funds in your wallet, you can now do your first trade.
To start trading, you can either click on the “Beaxy logo” at the upper left part of the exchange to be redirected to the homepage or you can also directly select the coin you want to trade in the drop-down menu on the left of the notification bell.
Once you are on the trading interface, you can now put up your first buy or sell order.
Beaxy offers several different order types in addition to regular limit and market orders. Some of these order types include Limit IOC, Limit FOK, Take Profit, and more.
After you selected the order type you want to make use of, the price and the amount, you can now execute your first trade on Beaxy!
At the time of writing, Beaxy Exchange has 22 coins listed with a BTC pair and 3 coins listed with a USDC pair. Some of the listed coins include BXY (Beaxy’s native coin), BTC, ETH, EOS, XRP, LTC, BCH, and XRP.
One of the strongest value propositions of Beaxy is its extremely attractive fee structure. Beaxy is one of the few cryptocurrency exchanges that have their own cryptocurrency, the BXY token.
Beaxy’s users can stake the native utility token of the exchange, in order to reduce their fees by up to 50%.
Additionally, if users combine staking BXY together with staking their earned loyalty points, they can bring them down even further to just 0.075%.
This is similar to Binance’s fee structure as well, which only offers lower fees than Beaxy for users trading more than 100 BTC worth of cryptocurrency a month.
Role of BXY coin
Beaxy held an ICO in September 2018 raising $3 million in funding. In the ICO, BXY utility tokens were sold which give traders that hold the coin several benefits on the Beaxy exchange.
BXY tokens serve two main purposes.
First of all, the coin can be used to reduce trading fees significantly, as described in the section above.
Secondly. BXY can also be used to claim a portion of the revenue generated by Beaxy itself. To claim a portion of the revenue and earn a return. BXY holders can swap their BXY for PLS tokens at a 1:1 rate.
Users holding PLS on the Beaxy Exchange receive a percentage of all transaction fees collected by the exchange based on the duration the PLS Tokens are locked.
If the token is locked for less than 1 month, PLS holders will be entitled to 15% of trading fees. On the other hand, this percentage increases by up to 25% if the token is locked for over 6 months.
Beaxy Customer Support
Beaxy has superb customer support. The exchange offers 24/7 support out of their 3 offices around the world.
Furthermore, Beaxy is also among the very few exchanges in the space to offer live chat support, this is especially valuable when a critical issue arises.
Beaxy’s customer support also includes a massive Help Center with tens of valuable articles explaining how exactly to use the exchange, and also a section with frequently asked questions and recent announcements from the exchange.
Beaxy always encourages users to first check their Help Center if a question arises, however, if you can’t find an answer then just head straight over to their support ticket form or live chat and you will get an answer almost instantly.
Beaxy user-friendliness and user experience
The most important factor in this Beaxy Review is definitely the topic of user experience and beginner friendliness.
Although Beaxy is clearly putting a lot of effort into making its exchange easy to use, there is a major difference to very basic exchanges like Coinbase.
The large selection of cryptocurrencies, different order types and charts may be a bit confusing for a newcomer to the cryptocurrency space.
A rich feature set doesn’t come without tradeoffs on the ease of use, hence why Beaxy is an ideal exchange for people that have already interacted with a cryptocurrency exchange at least once.
Finally, on the contrary to Binance, Beaxy currently does not have a mobile app, unfortunately. Even though Beaxy’s website can also be used on a smartphone, it’s not as user-friendly as a dedicated app would be.
Is Beaxy safe?
Beaxy takes security very seriously. Aside from all the standard security best practices like two-factor authentication, multiple servers, and powerful encryption, the exchange is also pioneering a security practice known as “IP whitelisting”.
This system can even protect users that have added their username and password into a Beaxy phishing site, by blocking an attacker if his IP does not match the one of the actual owner of the account.
Additionally, the exchange stores funds in multiple cold wallets distributed across dozens of secret geographic locations. This makes it essentially impossible for a criminal to compromise all of the exchange’s funds.
The KYC process is handled by Mati, an external KYC provider. All KYC documents submitted to Beaxy are encrypted and stored in AWS servers in the United States.
With all that said, while Beaxy does indeed follow top security practices, it will still remain to be seen how the exchange reacts in an emergency situation.
Performance and speed
One of the most important aspects of a cryptocurrency exchange is that it needs to be fast and perform well in times of high demand, a frozen order book or rejected order can at times cost the investor a lot of money.
In order to prevent the issues that have plagued exchanges like BitMex and Binance in times of exploding demand, Beaxy has developed an architecture that can support up to 225,000 tx/s for every trading pair.
With a total of 100 trading pairs, that would equate to a maximum capacity of 22.5M tx/s.
Does Beaxy require KYC?
In order to withdraw funds from Beaxy, all users must complete an identity verification process first.
The most basic identity verification level enables users to withdraw up to 30 BTC worth of cryptocurrency per day. To pass this KYC level, users need to submit a national ID document, driving license or Passport.
After an identification document is submitted, users will also have to record a short video of themselves to prove that they are in fact the owners of the document that they submitted.
What are some Beaxy alternatives?
Beaxy offers a decent exchange that is likely a good fit for most people reading this review. However, there are 3 main Beaxy alternatives that differentiate themselves by being superior on certain aspects.
Although Binance has had some minor crises in the past, having been hacked for 7,000 BTC at one point, its CEO has proven to handle such situations perfectly and no users have ever lost their funds.
Beaxy shares many characteristics with Binance, but is still nowhere near the daily volume of this titan and its security systems are also not as battle-tested yet.
Both Binance and Beaxy do not have fiat currency (USD, EUR, etc) markets for any cryptocurrency.
Once the largest cryptocurrency exchange, Bitfinex now controls a much smaller market share of the daily trading volume but is still the most liquid market for purchasing Bitcoin with actual US Dollars.
On the contrary to Beaxy, Bitfinex also offers margin trading and fiat currency pairs for several major cryptocurrencies, like ETH, LTC, and XRP.
That said, at the time of writing Bitfinex is being investigated by the New York General Attorney for fraud. This is a risk to keep in mind before depositing large sums of money on the exchange
Kucoin rose to popularity in late 2017 after listing several smaller cryptocurrencies that Binance refused to add to its exchange. Charging a trading fee of 0.1% for both maker and taker trades, it’s fee structure is slightly higher than the one of Beaxy.
Kucoin reports that it currently has a $400 Million average daily volume. However, that figure should be taken with a grain of salt in light of the recent wash-trading accusations that have been directed at the exchange.
CoinDiligent Staff Writer