QuickyCoin is a Cryptocurrency Exchange, E-Wallet & Payment Processor
QuickyCoin.com is a new cryptocurrency exchange that was founded in late 2013. QuickyCoin.com is a cryptocurrency exchange that provides three services:
- An exchange for consumers to buy and sell cryptocurrencies
- An e-wallet for consumers to store cryptocurrencies
- Payment processing for merchants to accept cryptocurrencies in business-to-consumer transactions
QuickyCoin.com accepts these cryptocurrencies from any consumer or business globally:
QuickyCoin.com exchanges the most common national currencies for cryptocurrencies, including the US dollar, Euro, and the yen.
QuickyCoin.com tries to make itself easy to use. It allows consumers to buy cryptocurrencies using:
- Credit and debit cards
- Bank wire transfers
- Western Union
- Money Gram
Is QuickyCoin.com Safe?
Bills.com’s research revealed little about this company and its financial backers. QuickyCoin.com is a young business and as this was written in mid-2014, has had its doors open for less than 12 months. It is owned by Rosecrest Investments Limited of Hong Kong, about which little can be found about the company. The names of the company officers, or who is on the board of directors for Rosecrest Investments Ltd, is unknown.
The lack of information and short life does not mean the company is a scam or will not be in business 10 years from now. The lack of information means outsiders cannot evaluate the financial health of the company, or the size and experience of its management team.
The recent collapse of Mt Gox, which was the largest Bitcoin exchange, is a strong warning to all cryptocurrency users. Mt. Gox collapsed due to underfunding, a weak management team, and a lack of regulator supervision.
You should carefully examine an exchange’s financial health before you do business with them. Also, continue to monitor the health of any exchange so you are not caught by surprise.
No Government Regulation
QuickyCoin.com and other cryptocurrency exchanges are not regulated. This means there are no government agencies overseeing their operations. This is in contrast to banks and stock exchanges, which are heavily regulated by the countries in which they do business.
If QuickyCoin.com or another cryptocurrency exchange violate the terms of the contract you sign with it, your only recourse is suing the exchange in the civil court system. Suing the exchange will not help you, if the exchange has ceased operations.
Keep a record of your cryptocurrency exchanges, purchases, and purchases. If you reside in the US, you may have tax liability if you use bitcoin or another cryptocurrency for transactions. Read the Bills.com article Understand the Tax Implication of Using Bitcoins to learn more about IRS Notice 2014-21.
How to Use QuickyCoin.com Safely
Until QuickyCoin.com and other cryptocurrency exchanges prove otherwise, do not risk more than you can afford to lose. For example, it would be unwise to exchange your life savings for a cryptocurrency and then store it in a QuickyCoin.com e-wallet or another cryptocurrency exchange’s e-wallet. As Mt. Gox’s collapse proved, a cryptocurrency exchange can disappear overnight, leaving customers empty-handed.
By contrast, keeping your life saving in a US bank is very safe because accounts are insured by the FDIC should the bank ever fail. Mutual funds are a more risky place to keep a large sum, but are overseen by regulators, so the chances of a stock fund disappearing are low.
Make sure you understand an exchange’s fees. When exchanging a national currency (such as the US dollar) for a cryptocurrency, QuickyCoin.com charges a 10% transaction fee. The company does not publish a rate for exchanging a cryptocurrency for a national currency.
Cryptocurrency exchange’s generally do not allow consumers to reverse transactions, in the same manner as credit card issuers. The lesson here is you should use a cryptocurrency for transactions with merchants you know and trust.
Read the Bills.com article How to Reduce the Risk in Exchanging Bitcoins to learn alternatives to exchanges, and how to reduces your risk in cryptocurrency exchange.
Bills Action Plan
Little is known about QuickyCoin.com, a Hong Kong-based cryptocurrency exchange, e-wallet, and transaction processor for merchants. Before you trust your money to any cryptocurrency exchange, realize none are regulated and you should follow these best practices:
- Do not give an exchange more than you can afford to lose.
- Understand the exchange fees.
- Read the fine print in exchange contracts to avoid surprises later.
- Be sure you want to complete a transaction because once completed, they are not reversible.
- Watch the news: Cryptocurrency values are volatile and may rise or fall without notice.