Ecoins – A new Brazilian Cryptocurrency Exchange

A new Cryptocurrency Exchange was inaugurated in Brazil. It is called Ecoins and was developed by New Version, a company based in Aracaju-SE that has everything to compete with existing exchanges.During beta testing, I’ve been in touch with David Coeni, Project Manager and partner at Ecoins, who kindly invited Criptonauta.net to know and evaluate the platform before its official release. Ecoins logo

A preliminary analysis was carried out during beta, and as the platform was launched, we took a look at the final improvements and corrections that were made. As in the first article on the Cryptocurrency Exchanges in Brazil, we used the same previous criteria: Document Check, User Account Creation, Operation and Fees and Security. Thus, before any other step, we verified legal status of the company.

ECoins – ecoins.com.br

DOCUMENT CHECK

The New Version Digital Services Ltda ME, Ecoins’s developer company has a valid registration.

Ecoins CNPJ

It is also up to date with the Federal and State Governments.

CREATING USER ACCOUNT

The site has a friendly interface. On user registration, you must fill five fields: SSN, email, name, password and password verification. To resume registration, the user must read and accept the Terms of Use. The link to the information is at the top of the screen and by clicking on it the field expands, displaying the Terms. After registration, an email is sent with a Transaction Password, to be able to perform transactions inside the exchange. The Terms of Use is definitely better than the competing exchanges. Very straightforward, it deals with each point in a succinct and understandable way. With regard to privacy, for example, it reports that will not share, publish, or sell users’ data to third parties, but estates that will make it available to government authorities if requested. Besides this information, it also explains their operating rates. It failed, however, to make clear what are the security measures used to secure and protect users, which undoubtedly would count as a differential.

OPERATION AND FEES

Ecoins seems to have studied well its competitors and tried to fill the gaps left by the older exchanges. Once logged in, the Home screen displays useful information such as the different balances (R$, BTC, LTC), Active Orders of Purchase and Sale, Deposits and Withdrawals also in Reais, Bitcoin and Litecoin. On the top menu are other useful information such as Order Book, Purchase, Withdrawal, Deposit, Trade History and Contact. Ecoins homepage Buying and selling is also easy. With large, intuitive icons and submission of orders to buy and sell on the same screen, you can plan well each operation that will be performed. The commission that will be charged is also clearly presented and the final value is automatically calculated. Volume – Inaugurated on February 04th, by the time of this article, Ecoins performed only one transaction. To encourage greater adhesion of users, Ecoins is offerering a grand opening promotion, which offers zero fee for withdrawals and deposits in Real; 0.3% commission for sale and purchase orders that are executed and also zero for withdrawal of LTC and BTC. The promotion is valid until 16:00 on February 13th, 2014, when conventional rates returns, which are: Deposit in Reais – 1.55% Withdrawal in Reais – 1.55% Execution of Sell Order – 0.55% Execution of Purchase Order – 0.55% Deposit or withdrawals of cryptocurrencies – no fees Deposits and withdrawals in BRL can be made through Banco do Brazil, Itaú, Bradesco, Caixa Economica and Banco Santander. Some of those banks are present in other South American countries, which makes possible to foreign traders to use ECoins. For verified users, validation time is up to 24 and for ordinary users, up to 48h.

SAFETY

As previously reported, one of Ecoins’ security measures is the Transaction Password, a kind of six-digit alphanumeric token that is used for each deposit and withdrawal. In our conversation, David Coeni also reported that the site uses encrypted SSL 256-bit certificate and adopted as reference the Open Web Application Security Project (OWASP). Regarding the storage of cryptocurrency, David says, “we chose a politics of 90% in paper wallets, where 90% of that amount is allocated in separated wallets to further enhance the security and the remaining 10% will be kept in hot wallet for not losing agility in processes.” The information on the used security are available on the homepage.

CONCLUSION

Ecoins has definitely arrived to compete on equal terms with Mercado Bitcoin and Bitcointoyou. If it still does not have the initial volume, Ecoins tried to compensate that by developing a much more user-friendly interface than its competitors. Another nifty innovation that Ecoins brought is the information panel on each of your windows over each navigation screen, providing useful info for first trip users. Regarding support, the website advises that “we have a support team aimed to clarify any doubts or problems that you may come to have through contacts by email and phone,” which is another difference, compared to the competitors. Just as the other Brazilian cryptocurrency exchanges, Ecoins opted by the American model, and in order to perform larger and faster transactions, it is necessary for the user to be verified. To do so, send digital copies of personal documents and proof of residence via specific form on the website. The validation time for deposits and withdrawals in Reais does not favor arbitrage transactions, ie buying one currency in one exchange and selling in it in another one. On the other hand, David tells that “during those first weeks we managed to have a dimension of how our flow will be and so will reduce this time to minutes. This will be our goal, I hope we can be a great alternative in the domestic market for everyone.” Lastly, we are really expecting that Ecoins become a robust cryptocurrency market in Brazil. Its arrival has certainly let the other exchanges on alert, both regarding the rates and on improving services. Regarding users, Ecoins so far is that the exchange with the most advantageous transactions rates. This points out that exchanges can be profitable even with lower rates and that we, as users, can force the market to make other exchanges to have more competitive rates, or risk losing their market share.

About Andre Torres

Andre Torres (Criptonauta) is an impact investment and inclusive enterprises consultant, member of Social Technologies Incubators in two different universities in Brazil – Mato Grosso Federal University (ITCP-UFMT) and Getulio Vargas Foundation (ITCP-FGV). Besides these activities, he’s a researcher at Digital Interactive Media group – MID – in UFMT, and is currently researching about the utilization of cryptocurrency related subjects in solidarity economy projects, with a special interest on microfinance and on educating and empowering the base of the pyramid.

One thought on “Ecoins – A new Brazilian Cryptocurrency Exchange

Leave a Reply