Exchange Review: Cryptsy
- Reviewed by: Digiconomist
Cryptsy is an exchange based ter the U.S. with its headquarter te Delray Beach, Florida. The exchange wasgoed founded ter 2013.
Update January 15, 2016: Cryptsy has announced that it is insolvent spil a result of a hack attack one and a half years ago. This hack caused a loss of 13,000 BTC and 300,000 LTC. This wasgoed never disclosed, and the exchange hoped to get away with this by eventually repaying its users from profits. An increase te withdrawals ruined this project, and has caused Cryptsy to go after ter the footsteps of the infamous MtGox. Digiconomist had predicted this te March 2014, concluding that it would only be “a matter of time before Cryptsy faces a serious accounting or security failure”. Te hindsight, this prediction became a reality just four months straks.
Cryptsy is widely known for the number of cryptocurrency pairs that can be traded on the podium. If you want to trade overheen a 100 cryptocurrency pairs, this is undoubtedly the right exchange for it. It should be noted that most cryptocurrencies pairs, however, cannot be traded directly. Trades have to be executed through either USD, Bitcoin or Litecoin. Only six major cryptocurrencies can be bought directly with USD. The bid-ask spreads for trading are rather high, being two procent or more for BTC/USD or even up to nine procent for BTC/LTC. The regular trade fees for a buy or sell order add another 25 fundament points. This is, however, a bit deceptive given the limited number of possible ongezouten cryptocurrency pair trades. Trading Dogecoin for Peercoin, for example, would therefore require two trades and cost 50 onderstel points ter fees.
The only available order type is a limit order, market orders are not available. The default values for the buy or sell price are equal to the best available ask or bid respectively. Advanced order types could be more extensive, but at least trigger orders (stop-loss orders) have bot made available.
The funding options for Cryptsy are very poor. Making an international deposit is only possible through e-wallet EgoPay. Te order to get money ter an EgoPay wallet, another account at another service is required. It is possible to use Payza to this purpose, which accepts canap/wire transfers and credit cards. The fees involved ter this can make funding not just complicated, but also very expensive. The funding options for U.S. customers are better, albeit not ideal either. Checks and money orders are accepted from the latter group.
Update January 22, 2015: Payment processor EgoPay has ceased trading. The influence on this review is minimal, spil it wasgoed not rated spil a serious funding option.
Cryptsy is registered with FinCEN, but does not provide any public audit information such spil Proof of Reserves. This could help ter fending off persistent rumors that Cryptsy operates off fractional reserves. Ter a public discussion, it wasgoed indicated that Cryptsy did have an outer audit for its USD implementation and does not trade on fractional reserves. But again, further details were not provided.
Update January 15, 2016: The rumors on Cryptsy operating off fractional reserves turned out to be true, spil it had being doing so since it lost 13,000 BTC and 300,000 LTC te a hack te July 2014. Cryptsy managed to hide this for one and a half years. See update at the top.
Despite having a crowded interface with all tradable cryptocurrencies, buying and selling is very straightforward. The trade screen can be lightly found, and placing an order is spil effortless spil coming in an amount and pushing a button (a confirmation will be shown very first). Extra information such spil the order book is available, albeit there are no extra research amenities. Portfolio spectacle analysis is not available either, albeit it is possible to get a trade report. Spil is common for most exchanges, accounts can be secured with two-factor authentication.
Help & Support
Concerning the functionalities, Cryptsy offers a wiki that provides good guidance on how to use them. Some specifications of each tradable cryptocurrency can also be found. The support is a bit disappointing. The FAQ does not suggest much information. Cryptsy cannot be reached by phone, and a toegangsbewijs system is available for any questions. The exchange is sometimes criticized for taking too long to reply to a toegangsbewijs even te the past few weeks. There is a community forum and a user talk which offers a little compensation.