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Buycoins Review 2024: Is It a Scam or Legit?
Swen Keller
- URL: https://buycoins.africa
- Headquarter: Lagos, Nigeria
- Year Founded: 2017
- Platform App: Web/Mobile
- No. of Cryptos: USDT, NGNT, BTC
- Fiats Available: Nigerian Naira (NGN)
- Withdraw Method: Bank Transfer
- Payment Method: Bank transfer and Direct Debit
Buycoins Review: Our Opinion
Our hands-on experience with this crypto exchange revealed that Buycoins is a limited trading platform.
The exchange only supports 3 trading pairs and only supports 1 fiat currency.
Beyond its limited spot market, there are no other features, you can’t margin trade or execute futures contracts, or do anything beyond the 3 supported trading pairs.
Also, while the exchange is targeted at advanced traders, it doesn’t offer enough pro features to attract experienced traders.
Company Overview About the Buycoins Pro Exchange
Buycoins was launched in 2017 and is headquartered in Lagos, Nigeria.
The platform is a local cryptocurrency exchange that supports crypto NGN trading pairs.
It was co-founded by Tim Ajiboye (CEO), Ire Aderinokun (COO), and Tomiwa Lasebikan (CPO).
Buycoins was created as a solution for Africans to “buy sell” cryptocurrencies using their local currencies.
That said, the crypto exchange has been in the news for the wrong reasons, as on June 8, 2020, the platform suffered a hack that cost it more than 27,000 USD when a couple of users took advantage of a system glitch and withdrew more than they had available in their Buycoins wallet to their Binance wallet.
Buycoins was unable to recover the funds and the CEO, Tim Ajiboye, complained about Binance’s slow response to their complaint.
Pros
- It supports the deposit and withdrawal of NGN
- User-friendly interface
Cons
- Limited crypto selection
- Limited advanced features
- It has been hacked
Unique Features
Credit Line
Credit Line is a zero-interest loan available to Buycoins users that allows them to make orders higher than their available balance.
This means you can buy and sell cryptocurrencies without having any coins in your account.
Credit Line is an exclusive feature and is available to specific high-volume users in Buycoins.
You can apply for a credit line on your USDT, BTC, and NGNT accounts.
As already stated, Credit Line is an exclusive feature and it is only available to users who meet the following requirements:
You must be an active Buycoins Pro user for at least 6 months
You must have completed tier 3 verification by submitting your government-issued identification document like NIN, Driver’s License, or International Passport
You must trade a significantly high volume of the currency you wish to loan in Buycoins Pro
Information on the Buycoins website shows that the exchange reserves the right to determine how much credit line is given at a time to a user.
Once your credit line is approved, you can use it for both Market and Limit order trades.
You will be able to buy or sell as long as you have available credit.
The maximum amount of crypto you can buy or sell with the loan is referred to as your credit line, this limit is determined by Buycoins.
You have 12 hours after your loan is approved to pay back the crypto credit. You cannot owe the debt for more than 12 hours. If you do, you will be charged a penalty whether your order gets filed or not.
This means that if you have not sent in Bitcoin or Tether or deposited NGNT to your Buycoins wallet to repay the loan, you will be charged a penalty fee of 0.5% of the owed amount.
Buycoins will charge you a second penalty fee of 0.5%, 3 hours after the first 12 hours has elapsed if you do not repay the debt.
That said, if you sent the crypto or funds for the repayment of the debt within 12 hours but the deposit was delayed by blockchain confirmation, you will not be charged a penalty fee.
Once you repay what you owe, you can apply for a fresh credit Line loan.
Buycoins will automatically increase your credit line as your trading activity increases. If however, your trading activity reduces, your line will be reduced.
Buycoins Pro Account Tiers
Buycoins Pro users are grouped into 3 tiers.
This grouping is determined by the level of verification they have completed and it also determines the type of transactions they will be able to complete within the exchange.
Available tiers are Tier 0, Tier 1, and Tier 2.
Tier 0
This is the lowest tier on Buycoins and the tier every new user starts at.
Users in level 0 have not completed any verification.
Since Buycoins is not a decentralized exchange, KYC verification is required for you to use the platform.
This means you need to complete at least 1 verification to be able to buy or sell directly from Buycoins and trade with other users.
Tier 1
To become a tier 1 user on this tier, you need to complete your bank verification.
This tier allows you to carry out limited transactions on your account.
You will be able to deposit and receive a limited amount of NGNT and other supported crypto coins.
As a Tier 1 user, you can sell and buy up to 50,000 worth of NGNT monthly. This means that the total amount of crypto you can buy or sell on Buycoins at this level cannot exceed 50,000 NGNT.
You can also withdraw up to 25,000 NGNT monthly.
That said, Tier 1 users in Buycoins Pro cannot access credit lines or send coins to external wallets.
This tier is best for users who trade a low volume of crypto monthly.
Tier 2
This is the highest account tier on Buycoins Pro and it gives users access to all of Buycoins features without limitations.
To become a Tier 2 account holder, you must have completed your bank verification, BVN & phone verification and provided the required government-issued identification.
As a Tier 2 user, you will be able to buy and sell unlimited amounts of NGNT with crypto monthly and buy and sell crypto at better rates in high volume mode.
You will also be able to deposit, withdraw, send, and receive an unlimited amount of crypto monthly, trade in the Buycoins Pro app, and access credit line.
Cryptocurrencies Available on Buycoins Pro
Buycoins Pro supports only 3 cryptocurrencies. Bitcoin, Tether, and Naira Token (NGNT) are the supported cryptocurrencies on Buycoins.
Fees
Buycoins uses the maker-and-taker fee model as listed below:
The USDT/NGNT pair has a maker fee of 0.05% and a taker fee of 0.15%
The BTC/USDT pair has a maker fee of 0.05% and a taker fee of 0.15%
The BTC/NGNT pair has a maker fee of 0.05% and a taker fee of 0.15%
Note that these trading fees are dynamic and Buycoins states that they are subject to change if you do not place your order fast enough.
Deposit Fees
You can make direct deposits on Buycoins for free, however, for the bank transfer option, Buycoins takes a 1.49% fee for each transfer. For deposits over 199,999 NGN, this fee is fixed at 2,050 NGN.
Buycoins Review: Payment Methods
There are 2 ways to deposit funds on Buycoins: Bank transfer and direct deposit.
Note that Buycoins Pro only supports Nigerian Naira (NGN) bank transfers.
That said, to add the direct deposit option, log in to your Buycoins account.
Next, tap the “Accounts” button at the bottom of the screen.
Tap the “Deposit naira” button at the top of the screen.
On the next screen, you’ll see 2 options (Bank transfer and Direct Debit).
Tap on, “Direct debit”.
Input the amount you want to deposit and then tap the “Deposit Naira” button.
Click “Continue” and then select the bank you use then enter your login details to verify your account.
Your account will be linked successfully, you just have to tap on “Pay” to authorize deposits.
Deposits on Buycoins are usually instant, however, the cryptocurrency exchange states that you can reach out to the support team if there are delays.
The bank transfer payment method follows the same steps as the direct debit option, however, rather than authorizing Buycoins to debit your bank account you’ll be given bank account details, you’ll need to transfer naira to the provided account using an account with the same registered name in Buycoins Pro.
Security
Our detailed firsthand scrutiny of this crypto exchange showed that Buycoins Pro is a secure exchange for Nigerians looking to trade NGNT.
Buycoins requires KYC verification for users to access its full suite of features. Customer’s personal information is collected to help the customer support team resolve disputes and offer personalized service to users.
Users’ information is also collected to prevent and investigate users who may want to use the exchange for prohibited or illegal activities like terrorism financing and money laundering.
All user personal data, transactional information, and certain payment Information collected by Buycoin are securely stored.
Buycoins maintains secure physical, electronic, and procedural safeguards in compliance with applicable laws.
Also, all credit card data are securely transferred and hosted off-site by a payment vendor.
Buycoins servers and systems are protected with several security measures including firewall and data encryption. Also, physical access to the Buycoins Pro infrastructure is limited to only authorized personnel.
Buycoins users’ accounts are protected with passwords or biometrics. Two-factor authentication is also required for authorizing naira deposits and external transactions.
Staking Rewards
Buycoins does not support any form of staking or rewards programs.
Opening a Buycoins Account
To get started with Buycoins, you need to first open a Buycoins account. To get started, go to https://buycoins.africa and then tap the “Trade Now” button at the center of your screen.
At the top of the page, you’ll see a notification with links to “Create an Account” or “Sign In”.
Click the “Create an Account” link.
On the page that opens you can enter your email address to start trading in Bitcoins.
Click “Continue*.
Once the new page opens you can create your password, which must include 8 characters, 1 symbol, and a capital letter.
Tap on” Create Account”.
To finish the account creation process on the Buycoins Pro website, you’ll need to enter the code sent to your registered email address by the Buycoins Pro team.
Enter the verification code.
After this, tap on the “Sign In” button on Buycoins Pro and you’ll be automatically logged into your account.
That’s it! You’ve created an account on Buycoins Pro.
However, before you can “buy-sell” Bitcoin, USDT, or NGNT on Buycoins Pro you’ll need to verify your identity.
The identity verification process on Buycoins Pro involves you submitting your Bank Verification Number (BVN) and uploading a Government Issued Identification Document such as your National Identification Slip or International Passport.
Trading Experience
From our direct engagement with this crypto exchange, we’ve ascertained that Buycoins offers a limited advanced trading experience suited for people who want to trade NGN pairs.
It doesn’t offer a large selection of trading pairs like crypto exchanges such as Kraken Pro or KuCoin Pro offers nor does it match up with the number of products available.
That said, Buycoins offers a Credit Line that allows traders to borrow USDT, NGNT, or BTC with zero interest to complete a trade.
It also has fees as low as 0.05% which would be beneficial to high-volume traders.
You can access the trading platform on an iOS or Android device as well as on the web.
Customer Support
Through our team’s firsthand analysis of this crypto exchange, we observed that Buycoins offers customer support via Live Chat and email at support@buycoins.africa.
Users can also reach out to the customer support team via X (formerly Twitter) at @buycoinsupport and Instagram at @buycoinsafrica. By following Buycoins on X you will stay up to date with events as users on X are the first people to know whats Buycoins is up to.
Buycoins has a FAQ page, a Help Center, and a Blog where users can get valuable information on how to navigate the platform and troubleshoot common problems.
Customer Satisfaction
Buycoins is a basic crypto exchange for beginner traders in Nigeria.
The majority of users are satisfied with the ease of use of both the Buycoins Pro website and the mobile app.
Education
Buycoins does not offer education.
Is Buycoins Right For You?
Buycoins is right for you if you’re a Nigerian looking to trade popular cryptocurrencies against the naira.
Final Thoughts
Buycoins is a limited crypto exchange with a basic “buy-sell” feature. It is only accessible to Nigerians and doesn’t offer any trading pairs outside the Nigerian Naira.
However, it offers zero-interest loans for high-volume traders, which is its major standout feature.
FAQ
Most frequent questions and answers
Buycoins was founded by Tim Ajiboye (CEO), Ire Aderinokun (COO), and Tomiwa Lasebikan (CPO).
You use Buycoins by depositing naira, which is converted to NGNT. After this, you can trade NGNT against USDT or BTC in the spot market.
Buycoins is located in Lagos, Nigeria.
You can contact Buycoins via the live chat on their official website.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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