Is Deepcoin safe?

Is Deepcoin safe? 

Deepcoin is a crypto asset exchange platform founded in November 2018 that allows users to trade over 100 cryptocurrencies, and engage in spot trading, copy trading, perpetual contracts and DeFi financial management savings. 

Deepcoin is a centralised exchange (CEX) based in Singapore with headquarters in the Seychelles and has been growing rapidly since its inception, reaching over one million registered users in nearly 30 countries, and surpassing a cumulative trading volume of over $1 trillion.

However, the safety of Deepcoin has come under scrutiny. While the platform is perfectly legitimate, and run as an official cryptocurrency exchange, there are some concerns with the safety features. For example, there is currently no KYC, which some have actually noted as a benefit. In this article, we will be analysing the features of Deepcoin and how safe it is for users.

Who founded Deepcoin?

Deepcoin was founded by Ego Huang, who is the current Chief Executive Officer of Deepcoin. Huang also goes by the name of Ego Peng, for example in this interview with The Coin Republic.

Huang grew up partially in China and partially in Canada, and has over 10 years of experience with wealth management as the head of a company with $7bn of assets under management.

Is Deepcoin regulated?

According to Deepcoin’s website, in terms of licences, there have been “Global Licenses Obtained” and Deepcoin is “consistently increasing its compliance efforts”.

According to a review by Cryptochooser, is registered in the Republic of the Seychelles and the company claims to be SEC-regulated. 

On Deepcoin’s website, the company announced a registration on the Dubai Multi Commodities Center (DMCC) for Proprietary Trading in Crypto-commodities

There are claims on the internet (for example on Coinranking.com) that Deepcoin has managed to obtain three major authoritative regulatory licences, which are the United States NFA, the United States MSB and the Canadian MSB, however, this remains to be proven, and it should also be noted that Deepcoin is not available in the US.

Deepcoin available countries

According to CoinMarketCap’s information on Deepcoin, the crypto platform is not available in:

• Hong Kong (China)
• Cuba
• Iran
• North Korea
• Crimea
• Sudan
• Malaysia
• Syria
• United States 
• Puerto Rico
• American Samoa
• Guam
• Northern Mariana Islands

Deepcoin is aimed mainly at the Asian market, and Singapore serves as its central hub of operations.

Novel features of Deepcoin

Deepcoin has all the regular features of a cryptocurrency exchange, such as spot trading, derivatives trading and copy trading, with over 100 cryptocurrencies available on the platform.

Deepcoin also allows high leverage available, with the maximum amount being 125:1.

Smooth deposits & withdrawals

Deepcoin has integrated with two fiat on-ramps, Simplex and Banxa. These platforms make it much easier for users to convert their fiat currency into cryptocurrency.

No mandatory KYC

One benefit of Deepcoin is that it has no mandatory KYC. This means that users can sign up and start trading crypto straight away, without having to prove their identity. However, if you are using Simplex or Banxa then you will need to pass their KYC checks.

Extensive TP & SL tools

Deepcoin has a range of Take Profit (TP) and Stop Loss (SL) tools, so users can fine-tune their trading and automate much of the trading process.

The platform offers three unique TP and SL functions:

• Position TP/SL
• Conditional TP/SL
• All selected TP/SL on position

Users also have the option to trigger part of the position or the whole position. Another novel feature that Deepcoin offers is that users have the option to set up 50 TP or SL orders per position.

The user can set up multiple positions, split or merge leverages, and could have up to 50 SLs or TPs per position, meaning that users can create entire automated strategies from their accounts.

How safe is Deepcoin?

Deepcoin like any platform has its risks, but overall the platform is safe. It employs security features and checks into its system, and it has currently over one million users.

Security strengths of Deepcoin

Deepcoin offers many security features that are standard for any functioning cryptocurrency exchange. 

These features include:

• Two-factor authentication
• Cold wallet storage
• Regular security audits
• Encryption

These base features ensure that Deepcoin is a safe system for any crypto trader.

3-tiered wallet system

Deepcoin also implements what it calls a ‘3-tiered wallet system’, which is designed to keep users’ assets safe 24/7. 

This strategy works by using three wallets, a cold wallet, a hot wallet and a small hot wallet to ensure that each level of the users' assets is protected.

The cold wallet adopts threshold signature and other encryption technologies to protect the users’ assets on the most fundamental level, even in the event of a company breach.

For the warm wallet, Deepcoin has implemented an industrial-level anti-hacker security system, so even though the assets are less protected than in the cold wallet, they are still secure.

For the small hot wallet, which is used for cryptocurrency transactions on the most surface level, Deepcoin cooperates with an industry-leading custodian that can manage account security.

Risks of Deepcoin

Although Deepcoin is overall a safe platform and has many users, there are some risks to be aware of.

According to CER, a cryptocurrency safety review platform, Deepcoin has a CCC rating, with a 51% security score, which is relatively low.

There has been no approved penetration test for Deepcoin, and most importantly, no proof of reserves audit. If there is a collapse, then there is no guarantee that there will be enough money to compensate users, and users will likely see their money disappear.

There is also no KYC for initial trading, which is a concerning feature, as it means that people can trade cryptocurrency anonymously and have potentially less responsibility for their trading, especially with the high leverage capabilities. This could also attract people who have been blacklisted from other platforms.

Conclusion

Overall, Deepcoin is a safe platform to use, however, there are safer platforms available. Many users can benefit from the lack of KYC and high leverage, which means they can begin trading straight away, but this opens up greater financial risks.

Remember, this article is not financial advice and you must always do due diligence before signing up to any platform. Crypto is a highly risky, often unregulated investment that can go down as well as up.

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Author

Caleb is a financial copywriter with a specialisation in fintech and forex. Former copywriter at Barclays and Paysafe. Contributing writer for LiquidityFinder. You can message Caleb here.