[ARCHIVE] Wex cryptocurrency exchange review: registration, trading, reviews

The cryptocurrency exchange market is growing day by day. Along with the recognized “elders” of this area, Bittrex, Bitfinex, Exmo, Kraken, other companies are emerging that want to get their hands on part of the promising market. One of them is the Wex cryptocurrency exchange.

What kind of exchange is Wex?

The website wex.nz, the official website of the exchange on the Internet, appeared in the summer of 2017. But in reality the company has been operating much longer. Wex is the successor to the famous BTC-e exchange, from which in the summer of 2022 the FBI seized equipment and took away all fiat money. But the exchange team continued to fight and created a new company called Wex. According to information on the official website, Wex was able to restore the BTC-e user base and user profiles.

In addition, the Wex team announced that they will return money to all BTC-e participants. 61.79% of balances were returned in fiat and cryptocurrency, 38.21% were returned in WEX tokens. WEX quotes fluctuate between 60-67% of the rate of the corresponding currency: for example, the USD ET token costs 0.674 USD.

Thus, users received back 70-80% of the money they lost on BTC-e. Moreover, 50% were returned in the first week, and BTC-e participants did not need to undergo verification. Wex also promises to buy back its tokens at a 1:1 ratio within 1-2 years. For example, for 1 USD ET its owner will receive 1 dollar.

There have never been cases in the cryptocurrency community where an exchange withstood an FBI attack and the loss of all money, and even managed to recover a month later, compensating users for their money. Today, the Wex cryptocurrency exchange operates stably and there is no reason to worry. The number of users is growing, which means that management’s policy is bearing fruit.

Silent sale and price jumps

In early July, a lengthy article appeared on RBC about the possible purchase of WEX by Dmitry Khavchenko, a former DPR militiaman from Crimea, who is allegedly backed by Konstantin Malofeev, chairman of the group’s board of directors. However, Khavchenko insisted that he was acting independently and buying the exchange exclusively with his own funds. In addition, according to RBC, it is planned to re-register the exchange in one of the unrecognized republics, and its staff will be relocated to Crimea.

Most of this information remained unconfirmed, but it excited the Russian cryptocurrency community and collapsed the prices of BTC-e debt tokens, the purchase of which WEX resumed a few days later. At the same time, the exchange officially denied these rumors on Twitter, but noted that it is ready to consider investment proposals that will be aimed at further development of the platform, including the repurchase of tokens, support for new trading pairs and improvement of customer service. But in such situations, the truth is always somewhere in the middle, and you should not completely trust both “insider” information and official statements - as a rule, both sides are covering up details that can be very significant.

Soon after the news about the purchase of the exchange and its refutation appeared, the rate of BTC and other cryptocurrencies on WEX began to diverge increasingly from the prices on other cryptocurrency platforms. A certain difference had been accumulating for several months, but it was not yet so noticeable that there was reason to sound the alarm. But after July 10, the process got out of control, as the exchange sharply increased the commission for withdrawing fiat currencies; in most directions it reached 10% or more. By the evening of July 11, the price of Bitcoin on WEX reached $8,999, while on other platforms it remained in the region of $6,200 - $6,400.

As might be expected, the unexpected spike prompted speculation in the industry media that WEX was either having problems with solvency or bank service, or was preparing to close. Moreover, on July 9, a message appeared on the exchange’s Twitter about “scheduled technical work” scheduled for July 12. It should be recalled that it was “technical work” that BTC-e explained when the site went offline in the first hours after the arrest of Alexander Vinnik; the terrible truth emerged only the next day. Therefore, analogies with MtGox inevitably arise, and many similar circumstances served as the basis for these statements.

The nominal, but essentially former director of the exchange, Dmitry Vasiliev, tried to put an end to the rumors and speculation by publishing a detailed, but not very specific explanation on his Facebook page on July 12. In his message, he blamed the problems of the exchange on its new owners, in particular he mentioned the vice president for the development of organized trading in digital financial assets of RACIB Dmitry Sutormin.

According to Vasiliev, since the end of 2022, Sutormin “represented himself as the administrator of the exchange and carried out the purchase and sale of WEX codes in any volume.” This is what he explains the difference in rates - a large number of codes on the market that were resold without being backed by sufficient collateral in fiat currencies. At the same time, the rate is growing, since there are few people willing to sell cryptocurrency, and it remains the only real way to withdraw funds from the site. The surge in the rate of Bitcoin and other cryptocurrencies can be explained primarily by their purchase by large clients to withdraw funds from the exchange.

In addition, on July 4, when the first serious discrepancies in the WEX rate in relation to other exchanges were recorded, the founder of ICO BANK, Mikhail Zhukhovitsky, expressed his opinion on what was happening. He wrote that after the current situation, WEX “does not and will not have human fiat input,” and that withdrawals will only be possible through “murky” P2P electronic money exchangers that can only handle small volumes. Besides this, he o. However, BTC-e initially served as a gateway for exchanging rubles of various shades of gray into cryptocurrencies and back.

On July 12, Zhukhovitsky also commented on Vasiliev’s message and supported the version of Sutormin’s involvement in the sale of “unsecured codes.” He wrote:

“Sutormin is a great guy! Let me explain. Wholesale trading brings in 0.5-1%. The risks are high, there are a lot of hemorrhoids. Not a rewarding thing. And here a person is selling unsecured codes. That is, air, profit 100%. Someone wanted to buy a cue ball. I bought codes from Dmitry. Now he will pay another 30% or more for his indiscretion in choosing a partner. But, again, Sutormin is just a public figure and doesn’t decide anything on the stock exchange.”

Vasiliev believes that the exchange still has a chance to return to successful operation, but without his participation. Today, Dmitry Vasiliev is actually the only public person who knows anything about the internal affairs of WEX. Although he now actually states that other people have been at the helm of the exchange since the end of 2022, this did not stop him from introducing himself as the CEO of WEX back in June and pretending that the exchange’s business was going uphill.

One more detail can be added to this whole information mess: it was during the period of new difficulties on the former BTC-e that information appeared about the extradition of Alexander Vinnik, this time to France, which is actually an intermediate stage for his transfer to the United States. Was the violinist no longer needed?

Registration on the Wex exchange

Wex website design is very simple. You don’t need to search for a long time for the registration button. It is located in the top menu of the site, on the right side:

You can immediately get to the registration window by following the link https://wex.nz/reg/

Creating an account requires only an email, login and agreement to the Wex policy. It is recommended to use an email service with two-factor authentication to prevent attackers from gaining access to your exchange account through email hacking. However, this is not necessary:

As soon as you enter the data, the exchange will automatically generate a password. It contains more than 10 characters, and it is better to write it down on paper and store it in a safe place so as not to forget:

The last stage of registration is account confirmation. Go to your mailbox, find the letter from Wex and follow the link. The account will be activated and you will be able to trade on the Wex exchange without restrictions.

Verification

Unlike other exchanges, on Wex you don’t need to be verified to use the exchange’s features. You need to confirm your identity if you plan to replenish your account and withdraw money from it in fiat, as well as if you want to transfer money through a bank.

The verification menu is located in the “Security” section in the main menu of the Wex website:

To confirm your identity, Wex management must obtain information about your full name, identity card, place of residence, citizenship, date of birth. They must be entered in special fields. You will also need to send scans of documents as evidence. You will need to take a photo of yourself along with your passport:

Wex employees will review the information and documents. If everything is correct, your account will be verified and you will have access to the full functionality of Wex.

Refill

Wex supports 12 types of currencies: 9 digital and 3 fiat. Wex does not charge a commission for depositing cryptocurrency, so it is more profitable to use this option.

The section where you can deposit funds into your account is located in the “Finance” menu:

Next to each currency there is a “Top up” button. Click on it if you want to deposit money into your account. At the bottom of the page a menu will open with a QR code, wallet address and replenishment conditions for a specific currency:

The time it takes for money to arrive in your account depends on how quickly the cryptocurrency network confirms the transaction.

You can top up your balance in fiat. Wex supports US dollars, euros and rubles. Deposit methods differ depending on what you choose – EUR, USD or RUB:

Commission for replenishing rubles – 5%, euros – 9%, US dollars – 10%. Money is credited to your account instantly.

Features of using the code

When purchasing a WEX code, go to the “Finance” section and click the “withdraw” button opposite the desired currency in your own electronic wallet. Then enter the required amount beneficial to the seller, his name and click “withdraw”. The system may request confirmation - it is possible to use the code that was used when logging into your personal account. Then you should go to your own email and confirm the order for receipt. The received code is used for its intended purpose - it is copied, saved or sold to the recipient of the funds.

After receiving the code, it should be activated in Sberbank Online - to do this, go back to the “Finance” section, enter the combination and click “Redeem”. Then information comes about successful activation or refusal. In the latter case, contact the account technical support service.

Trade

Cryptocurrency trading is located in the “Trading” section:

At the top there are current quotes for all currency pairs. There is also a chart with Japanese candlesticks - it can be used to analyze changes in quotes:

The menu for buying/selling cryptocurrency or fiat is located at the bottom of the page. Standard interface:

There are two ways to trade on Wex:

• create your order - enter how much currency you want to buy/sell and at what price (fields “Amount of BTC” and “Price per BTC”), confirm the order and wait until someone agrees to your conditions;
• agree to the offer of another participant - click on any line in the “Sell Orders” or “Buy Orders” tables, click on “Calculate” (before this, the “Amount of BTC” and “Price per BTC” fields will be filled in automatically), confirm the transaction.

You can also view your active orders and transactions of other participants. Information is at the bottom of the page:

Please note that a commission of 0.2% of the transaction amount is charged for each transaction. This is less than some other exchanges: for example, Bittrex takes 0.25% of each transaction.

The Wex exchange trades its own WEX token. It appeared as a replacement for the fiat balances of BTC-e participants. Trading on the WEX token is available in a special section:

Since WEX are issued by the administration of the exchange, it also guarantees their redemption. Wex makes its profit through user fees. These incomes allow you to buy back Wex tokens. The company is also attracting investments to buy its coins back.

Strictly speaking, there is not one WEX token - there are 11 of them. For each currency traded on Wex, there is a Wex “brother”. Its rate is tied to quotes of “mother” money and fluctuates around 0.63-0.67 from the selected currency. For example, USD WEX Token costs $0.678 at the time of writing.

BTC-E and the beginning of history

An online platform for trading cryptocurrencies and fiat money in real time, BTC-E, was launched in 2011. By 2014, it reached third place in the world in terms of trading volume in the Bitcoin-dollar pair and first place in the Bitcoin-ruble pair. At the same time, the owners of the exchange remained anonymous for a long time.

The exchange was mainly aimed at an English-speaking audience, although it supported Russian and Chinese versions. Holders with a balance of less than $1,000 in fiat or equivalent were not able to write to the chat.

In 2012, an unidentified hacker allegedly carried out a successful attack on the exchange's resources. He bought some Bitcoin, Litecoin and Namecoin and withdrew them. The administration reported that the attacker withdrew 4,500 BTC (about 40 thousand dollars at the then exchange rate). After technical work, suspicious transactions were manually reviewed, and user balances were restored to the time “before the attack.” After this, several more successful attacks were carried out.

On January 22, 2016, the exchange website was blocked by a decision of the Primorsky District Court of St. Petersburg. The very next day she switched to the mirror.

Withdrawal of funds

The menu for withdrawing money from the exchange is located in the “Finance” section - in the same place as replenishment. On Wex there is a separate “Withdraw” button for each currency. If you are going to withdraw several types of money, you will have to carry out as many operations as there are types of currency you are trying to withdraw:

The most popular way to withdraw money from Wex is WEX-CODE. This is Wex's own development. Using it, you can withdraw funds from the exchange account without commissions, and the money will come instantly. You can generate WEX-CODE for any currency:

The conditions for withdrawing specific tokens are listed on the right side of the screen. Please note that these vary depending on the cryptocurrency. Also, the parameters differ when choosing the usual withdrawal method or when withdrawing via WEX-CODE.

WEX-CODE can only be generated by a verified user. To do this, fill out all the fields and click on “Withdraw”:

Next, fill out the field that requires the code from SMS (if you enabled two-factor authentication) and go to your mailbox. There will already be a letter with a ready-made WEX-CODE. You will pass it on to the recipient, who will enter the combination here:

Initially, the WEX-CODE system was conceived as a way to transfer money between exchange participants, but now it also allows you to withdraw funds from the system. Exchange systems have their own WEX-CODE. They, receiving money from Vex participants, transfer funds in the method chosen by the user, charging a commission. You can find the best exchangers on the Bestchange website:

For cryptocurrencies, withdrawal directly to the wallet is available. In this case, you will have to pay a commission. There are also restrictions on the minimum withdrawal amount. To withdraw funds, fill out all fields and wait for network confirmation:

Fiat withdrawals are carried out only through exchangers. So far, only a few companies have passed verification on Wex, but in the near future their number will reach 30. For now the situation is as follows:

Withdrawal directly to a bank card is available with a small (by the standards of cryptocurrency exchanges) commission. And if you withdraw to Yandex.Money, Qiwi, ADVCash or to a mobile phone account, you will not pay any fees at all.

Vex exchange partners

Representatives of the trading platform stated that they had established partnerships with many exchangers.

One of these is Allchangers.ru, which is used quite often in our country.

It should also be noted that WEX codes are accepted for payment in common electronic money systems :

• WebMoney;
• Qiwi;
• Yandex money.

It is also known that leading CIS banks provided significant support for the operation of the new exchange.

The features of the new cryptocurrency exchange are as follows:

• Purchasing and selling digital currencies.
• Organization of trades.
• Participation in financial transactions on conditions of complete anonymity.

go

Safety

Security settings are located in the “Security” section:

After registration you can change your password. When you create an account, you are given a difficult-to-remember code. Since your head is the safest place to store your password, change it to something you can remember. The corresponding setting is in the “Account” menu:

You can block your account if you want to limit your actions on the exchange or suspect that someone has gained access to your account. You can prohibit both individual actions (for example, only withdrawal) and any activity on Vex:

Two-factor authentication is a reliable way to protect your account from unauthorized access. It involves not only entering a password, but also receiving a message to an SMS/e-mail address. To set up two-factor authentication on Wex, you'll need the Google Authentificator app. Instructions for creating a key and the following actions are on the screenshot:

The last account security setting is IP whitelist. You cannot log into your Vex account from addresses that are not on this list. By default, only the computer from which the account was registered is included in the IP whitelist. But it can be expanded at any time:

You can also view your login history and find out when and who visited your account. It reflects the last 30 attempts and the status of their completion - successful or not. Wex also provides recommendations on how to act in emergency situations:

In general, Wex account security is maintained at a good level. It remains to be wished that client money placed on exchange wallets would be at least under the same protection.