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I am open to your opinion and if you disagree with me I would be glad to hear it.
So ill keep this short.. I needed an api that let me generate addresses, send webhooks and withdraw cryptocurrencies through an api while I developed my own and I found coinpayments met that need.
Case 1
First thing I would like to mention is their fee structure. At first glance .50% on transactions is not too unreasonable but when you look further they also have a $4 flat withdraw fee on bitcoin. They say they subsidize it but im not sure they understand what that word means because in a lot of cases the normal blockchain transaction fee would be less.
Source: https://www.coinpayments.net/help-fees
I have put up with this fee and considered it a business expense but here is the part that really got me....
Case 2
I started running reports and conducting a full audit of my system. $900 out of about $19k worth of various cryptocurrencies was missing from my coinpayments account. Investigating further I found out they have another hidden fee.
Quote
Due to their architecture some coins have to be moved on the blockchain even for To Balance mode and the TX fee is deducted from those payments.
The problem I have here is...
- They don't mention what coins
- It doesn't always happen (Never happened when I was testing my system integration)
- The web hook makes no mention of the missing funds
- As far as I understand they shouldn't need to move the funds again within their own system and definitely shouldn't be charging me for that
Here is an example
Transaction valued at $3.14
Their fee $0.017
The transaction fee to move the eth within their own system $2.90
Remaining $0.23
Conclusion
It was my own fault for not doing full audits of my system more often. Coinpayments does mention all the fees on their website and technically they are not scamming however their business practices are shady and much better options exist, especially if you don't need a full api. Please think twice before choosing Coinpayments.
Thanks for reading.
