Cryptocurrencies are in high demand around the world as people who invest their money into share markets are now interested in cryptocurrencies after seeing the incredible returns this offered. India is not far behind in this craze, and millions of Indians have started to invest in cryptocurrencies using a crypto exchange like WazirX, CoinDCX, Zebpay, CoinSwitch Kuber, BitBNS, etc.
However, two of the most in demand exchanges are CoinDCX and WazirX.
What are crypto exchanges and how do they work?
Crypto exchanges work similarly to stock exchanges, where using INR you can directly buy or sell Bitcoins, Ethereum, Ripple, Litecoin and many other crypto assets.
Two things that stands out for cryptocurrency trading is that-
1. Crypto trading is unregulated and is live 24/7 365 days a year.
2. You can use cryptocurrency to buy another cryptocurrency.
WazirX and CoinDCX both started their operations in 2018 and have created a platform for general people to buy or sell cryptocurrencies globally.
Crypto exchanges are not illegal but not regulated by any government body, financial body or central authority in India.
Hence, investors are advised to exercise caution while dealing with these assets and only invest the amount that their risk appetite allows.
WazirX vs CoinDCX – Which is the better crypto exchange?
Coming to the real question, let us now delve deeper into the two and see which exchange is better for crypto trading.
We are going to look at how they fare on the basic functionalities that are important to crypto investments. So, without further ado, let’s get started.
When it comes to trading, security is of prime importance. It becomes even more relevant in cryptos since there is no central authority governing this trade and the risk is entirely on the investors.
They take security very seriously and use the following methods to keep your account and funds safe –
- Completion of KYC and bank verification before allowing you unrestricted trading.
- Two factor authentication to access your account and perform tasksd like crypto withdrawals, INR withdrawals, etc.
- They stores 95% of cryptos offline in cold wallets and only 5% is available online. This way your cryptos are secured from hacking.
- CoinDCX is also partnered with BitGo for insuring your crypto funds.
In terms of security, WazirX also performs the required due diligence to ensure safety of user’s account and funds. Some of their key features are-
- WazirX uses KYC verification and bank verification during account creation
- Two-way authentication and email or sms alerts are used for account access, deposits and withdrawals.
- Wazirx is a subsidiary of Binance, which is the world’s largest crypto exchange. Therefore if any problem happens in WazirX a holder can move their portfolio to Binance for safe trading.
However, on the whole, I feel that CoinDCX has the edge when it comes to securing your cryptos and fiat funds.
2. Media coverage
Both the crypto exchanges have strong media coverage. The founders of both platforms appear in various media shows to educate people about cryptos and are leading the crypto revolution in India.
The #TryCrypto by CoinDCX and #IndiaWantsCrypto movement by WazirX are the most prominent marketing initiatives undertaken in the country to accelerate the rate of adoption of cryptocurrency in India.
In terms of followers, both enjoy a solid support from crypto traders across the country and beyond and have a huge social media base.
Hence, in terms of media coverage, both platforms have a stronghold and we do not really have a winner.
3. Trading fees
Trading fees is a very important factor, especially for those with high trade volumes.
They offer 0.1% as both makers and takers fee for trading, which is one of the lowest in India. The charges offered for crypto withdrawals are generally on the lower side when compared to WazirX.
They charge a fee of 0.2% for both maker and taker. Even though this is double to what CoinDCX charges, but a user can get 50% off on their fee by paying it using the WRX token. This is WazirX’s native exchange token and can be bought using INR like any other crypto.
Therefore, if you’re using WRX to pay your fee, then the fees is same for both the platforms.
While CoinDCX seems to have an advantage, the presence of a large number of tokens in INR pair and the option to reduce fee using WRX makes WazirX a better choice.
4. Features offered
Apart from trading, other features offered include margin, lending, staking, etc. Let us now see how these two platforms fare when it comes to features.
It provides spot exchange for direct purchase and sell of cryptocurrencies.
There is also margin trading and futures trading option available for the advanced traders.
There is another option to earn risk free passive income using their lending and staking options. Many popular cryptocurrencies can be staked or lent out for a fixed ROI, which makes holding on to these cryptos a profitable affair.
It provides spot exchange for direct purchase and sell of cryptocurrencies, much like its rival.
Apart from this, there is P2P market place for USDT using INR where users can directly purchase USDT for trading using their bank accounts.
Lastly, a smart token fund option is available which aims to help beginners to grow their portfolio in return for certain profit exchange. This is offered by crypto trading experts on their platform who have years of experience. People who are new to crypto investing can take advantage of this option to growt their investments.
In terms of features, CoinDCX has the clear advantage due to the availability of margin & futures trading along with staking / lending options.
5. Trading options
WazirX provides 4 base trading pairs and 70 cryptos against INR.
CoinDCX provides 11 base trading pairs and 32 cryptos against INR.
Therefore to buy other cryptos you need to first buy USDT and then you can go for the other cryptocurrencies.
Thus, in terms of coin availability, WazirX has the clear advantage over CoinDCX.
Based on facts we can say that both of them are good. While WazirX is user friendly, easy to use with 0.1% trading fees using WRX coins (0.2% normally) and wider range of cryptos offered. You can also withdraw INR directly to your registered bank account.
In CoinDCX trading fees is lower (0.1%) and it provides access to margin and future crypto trading. They have also launched a simplified trading app – CoinDCX Go. This allows new investors to easily invest in any of the mainstream cryptos without having to navigate through the spot trading screen which might seem intimidating to many.
Hence, in a nutshell, it would be safe to say that both WazirX and CoinDCX have their own USPs. Therefore, it is the individual investor’s requirement that will drive the decision of choosing a crypto exchange for long term use.
Do let me know which out of the two you would like to choose for your trading needs? If you’re still unsure and have any questions, drop them in the comments below and I will answer ASAP.
Made a decision? Why don’t you get started with your preferred exchange right away!!!
Looking for other options than above? Check this out.
New to cryptos and not sure how to start? This step by step guide will surely help.
Also, don’t forget to do these 5 things before you start investing in cryptocurrencies.
Ashish is Write it Right’s go to man for all things “Finance”. He started his passion for blogging and content writing during his college days back in 2013 and has been on and off ever since.
His hobbies include trying out different cuisines, binge watching shows, traveling and sleeping!!
Currently, he works full time as a Credit & Portfolio Manager and with his blogging, aims to educate the masses about Finance, Fintech and the Cryptocurrency revolution.