UPEX

Overview of UPEX

UPEX is an exchange from the Kingdom of Bahrain, focusing on investors from the Middle East and North Africa-region (the MENA-region). The exchange claims to be the “leading cryptocurrency exchange” in the MENA-region.

The exchange launched in 2018. In addition to English, UPEX is also available in Arabic. Update 15 July 2021: This exchange has closed down.

UPEX states on its website that its parent comapny OneMena is “approved for the financial sandbox by the Central Bank of Bahrain”. But after our inspections, this Exchange currently has no valid regulation.

Pros and Cons

Pros

As a few of its advantages, UPEX highlights that it is approved by the Central Bank of Bahrain, that it supports fiat currency deposits and that it has a large number of users (300,000 users)

Cons

Lack of regulation: While UPEX claims its parent company is “approved for the financial sandbox” by the Central Bank of Bahrain, the exact nature of this approval is unclear. A “sandbox” program typically allows for testing new financial products or services in a controlled environment. It doesn't necessarily equate to full regulatory approval for all exchange operations.

Higher Trading Fees: Though lower than the historical industry average, UPEX's 0.20% flat fee might be on the higher side compared to emerging trends with some exchanges moving towards 0.10% fees.

Limited Deposit Methods: UPEX doesn't support credit card deposits, which might be a drawback for some users who prefer that convenience.

Uncertainty for US Investors: The lack of clear information regarding US investor restrictions necessitates additional research for US users to confirm eligibility before attempting to trade on UPEX.

Regulatory Authority

It has been varified that this Exchange currently has no valid regulation, please be aware of the risk.

Security

Regarding security, UPEX currently lacks any significant authority's validation of its regulations. While UPEX claims to be approved by the Central Bank of Bahrain, which could imply some level of regulatory oversight, it's essential to note that regulatory approval doesn't directly translate to robust security measures.

Cryptocurrencies Available

UPEX offers a wide range of cryptocurrencies for trading, such as Ethereum Classic, ChainLink Coin, NEO Token, MetalCoin, Polymath Token and 18 more.

Fees

This exchange doesnt treat takers (persons taking orders off the order book), and makers (persons placing the orders that the first group of persons take off the order book) differently. Instead, they charge something that we call a “flat fee”. This means that they charge both takers and makers the same fee. The fee they charge is 0.20%.

0.20% is an acceptable trading fee. Global industry average has historically been around 0.25%, and UPEX's fees are accordingly a bit lower than the historic global industry average. Today, however, we are today seeing more and more exchanges moving towards lower trading fees, and new industry averages are starting to form around 0.10%. So in comparison with the new emerging trading fee averages, UPEX is a bit on the high end.

UPEX charges a withdrawal fee amounting to 0.0005 BTC when you withdraw BTC. This is around 40% lower than the industry average, as the industry average is arguably around 0.0008 BTC per BTC-withdrawal.

Payment Method

UPEX does offer fiat currency deposits via wire transfer, but you can‘t deposit via credit card. So, if you for any reason would prefer to deposit to your choice of trading platform via your credit card, then you need to find another exchange. Don’t worry though, you can find an exchange that accept credit card deposits and other fiat currencies simply by using our Exchange Finder tool.

However, as UPEX at all accepts fiat currency deposits, it qualifies as an “entry-level exchange” where new investors can take their first steps into the thrilling crypto world.

Trading Platform

This platform is not only available from your desktop, you can now also access it via your mobile. Most traders in the crypto world today carry out their trades via desktop (around 70% or so). However, there are naturally people out there that want to do it from their smart phone as well. If youre one of those people, then this platform can still be for you.

Is UPEX a Good Exchange for You？

Overall, UPEX might be a suitable option if you're located in the MENA region and prioritize features like Arabic language support and lower withdrawal fees. However, the unclear regulatory environment and potential security concerns are significant drawbacks. If security and established regulations are paramount, or if you're located outside the MENA region (especially the US with unclear eligibility), a different exchange might be a better choice.

FAQ

Q: Is UPEX a safe and secure exchange？

A: This lack of clarity regarding regulatory oversight makes it difficult to definitively assess UPEX's security posture. If prioritizing top-notch security, a well-established exchange with a proven track record might be a better option.

Q: What are the advantages of using UPEX？

A: If you're located in the Middle East or North Africa (MENA) region, UPEX offers several perks. Their platform is available in Arabic, and they allow fiat currency deposits via wire transfer. Additionally, their withdrawal fees for Bitcoin are lower than the industry average, and they boast a convenient mobile app for on-the-go trading.

Q: Are there any drawbacks to consider with UPEX？

A: Their trading fees might be slightly higher compared to some emerging trends. Additionally, they don't accept credit card deposits, and US investor eligibility is unclear, requiring further research.

Q: Is UPEX a good fit for me？

A: It depends on your needs. UPEX caters well to MENA investors seeking an Arabic platform with fiat deposit options. However, if security is a top priority, a more established exchange with clearer regulations might be ideal.

Q: Where can I learn more about UPEX？

A: While UPEX's website offers some information, it's crucial to conduct your own research. Look for independent reviews, compare fees and features with other exchanges, and ensure they align with your trading goals and risk tolerance.

Risk Warning

Cryptocurrency exchange investments come with inherent security risks. It is important to be aware of these risks before engaging in such investments. Cryptocurrency exchanges are susceptible to hacking, fraud, and technical glitches, which can result in the loss of funds. It is recommended to choose reputable and regulated exchanges, stay updated on security measures, and be vigilant in detecting and reporting any suspicious activities. Please ensure that you understand the risks involved and note that the information contained in this article is for general information purposes only.