What is Tux Exchange?
The exchange is a new Canadian based cryptocurrency exchange platform. Its official launch took place in August of 2016. They only specialize in trading a select few coins like Ethereum, Litecoin, Dogecoin, Peercoin, Dash, Namecoin, Zcash, Emercoin, Potcion, Blackcoin, Syscoin, Counterparty, Golem, Iconomi and Pepecash. All of these various coins listed can be traded on the exchange against the popular Bitcoin.
How Does Tux Exchange Work?
The exchange operates like any other exchange where you can trade altcoins for Bitcoin. There isn’t quite as much freedom on Tux Exchange, but there are several reasons it’s one of the best exchanges for the Canadian market. And like all exchanges, Tux has it’s advantages and disadvantages.
What Are the Advantages of the TUX Exchange?
Tux Exchange promises to have several beneficial reasons to use them. Most of them are the same standard promises made on other exchange platforms as well. But because they are in Canada, their promised advantages are not quite as common. The listed advantages of using Tux Exchange are as follows:
The Tux Exchange is a based in Canada. By some means this could be seen as the sign of a scam, although not entirely. It doesn’t mean it’s not a scam either. After all, Canada has a solid reputation of being a country that has tight regulations and legislative requirements when it comes to their financial services and any providers of them.
The exchange takes a percentage of 0.3% for its taker fee and a 0% maker fee. These are considered favorable conditions by the standards of most people, there are definitely exchanges that have lower fees however. And along with that, the exchange also promises free trading for clients who provide liquidity to the exchange.
It looks as though the clients of the exchange are very happy and satisfied with the service. And among those people, there are main advantages like 24-hour support, 7 days a week. Also, the system offers extreme speed with easy usage. And there is also a decent community focused around the exchange platform.
Tux has a withdrawal fee equivalent to BTC 0.0007. And any deposits made on the exchange are free. It’s a minimal cost by any standard, especially considering that there are zero network fees that need to be covered ever.
Tux also gives full online storage as well as offline storage (Hot and Cold) for any funds clients want to store. Not only that, but there is a two-factor authentication that is always in place for the purpose of protection.
In addition to that, the Exchange is hosted on the popular Amazon cloud platform AWS. Not only that, but Tux exchange also has plans in place to create additional cold storage reserves that include earned fees for trading to ensure the absolute security of client funds, hot and cold both.
The exchange also accepts US based clients as well. It’s a common occurrence in crypto exchanges, even though many states like New York make a Bitcoin license a requirement on the Cryptocurrency exchanges that operate within their territory.
Lastly, the exchange gives users a uniquely designed web trading interface, a lot like other exchanges It has price charts, market depth charts, order books and chat windows to connect with the support staff when needed.
What Are the Disadvantages of the Exchange?
Just like any other platform of exchange there are disadvantages along wit the advantages. Tux Exchange is a great platform, but some of the following issues are commonly complained about by the users of the exchange:
The exchange doesn’t offer leveraged trading of any type, which is something common to a lot of crypto exchange platforms. There are a few that do however: Kraken, Cexlo and Quoinex all offer leveraged trading. And when it comes to crypto exchanges, that have leveraged trading on them, they only offer OKEx and Bitmex. Another type is the ones that offer cryptocurrencies and fiat trading as well.
Other Forex Brokers who have CFDs included on their cryptocurrencies also have speculative trading on a margin. These have to be regulated Bitcoin Forex Brokers however.
Tux does not in any way work with fiat of any type and offers no trading of them.
They only have trading in pairs with Bitcoin, in example – non-Bitcoin Altcoins can be traded against each other on Tux Exchange.
Since they don’t operate with fiat currencies, it’s natural to assume and be correct that the exchange doesn’t accept any type of credit cards as viable payment options. There are other exchanges that do accept credit cards, Tux isn’t one of them though.
The exchange is not regulated as you would think. There isn’t a required regulation of cryptocurrencies on a national level in Canada, but all the same – some like Morex and All Coin are regulated and registered through FINTRAC in regard to them being a money service business. On another side of it, the exchange doesn’t operate with fiat currencies, so the registration isn’t likely needed.
Even though there are decent customer reviews, the Tux website doesn’t have any enough liquidity.
Tux doesn’t accept any coin requests; the addition of new cryptocurrencies is entirely at the mercy of the staff at Tux. And as of now, only the coins in the top 30 for their market cap are allowed on the exchange. A lot of people don’t like this, but it’s a good way to stop the exchange from getting cluttered with tons of lousy cryptocurrencies that no one cares about.
Tux Exchange Conclusion
Tux Exchange is apparently aiming their targeting at the nerdier traders. Specifically, the traders who are mostly interested in altcoins and cryptocurrency trading. They have a decent amount of coins on their exchange, but they can’t be traded against each other, only against Bitcoin. They don’t have any type of trading for fiat currency either. By many people’s standards this makes the exchange extremely limited, but it’s likely done like this for the sake of regulation.
Another thing that people commonly complain about with the exchange is that of the level of anonymity. It’s not entirely clear as to whether or not clients have to verify their identity. There is all no indication of the exchange offering its own wallet or not.
One of the best features of the exchange I the low fees for the takers as well as the positive customer reviews for happy clients with speed usage and a great customer support staff. Ultimately, Tux is a niche trading service for cryptocurrency enthusiasts, not really meant to target a wide audience.