NiceHash is this a scam? Review and Customers Reviews

NiceHash – is a company from Slovenia founded in 2014. The founders are Marko Kobal and Mataj Škorjanc. The platform became one of the world’s first brokers for the sale of computing power. It is the main, but not the only business of the Slovenians. In addition to cloud mining, the company created its own cryptocurrency exchange.

The trading platform is ancillary in nature and allows customers to exchange mined cryptocurrency for stabelcoins. The volume of transactions is not large – only about two million dollars a day. Nevertheless, NiceHash is trying to improve the exchange and attract new users to it. Even among those not interested in cloud mining. But is NiceHash a scam? Let’s find out in this review.

 

Why NiceHash?

In a day at NaisHash there is an exchange of the equivalent of 35 – 40 BTC. The main trading pair is Bitcoin on Tether USDT. This direction accounts for 36% of all transactions on the platform. The second place has the pair ETH/BTC, here 15 percent. The third place is the exchange of Ravencoin to Bitcoin, about 9% of the total volume. If we talk about individual coins, contracts with Tether occupy 52% of all exchange transactions on the exchange. Bitcoin is in second place – pairs with the main cryptocurrency take 45% of the volume. Etherium is in third place.

The exchange runs a conservative business. It does not offer cryptocurrency trading with large leverage, stop-loss functions or staking investments. There are no cryptocurrency loans either. The Nicehash exchange aims to allow customers to fix profits in cloud mining and exchange new cryptocurrencies to Bitcoin for withdrawal. Therefore, the speed of the exchange comes first. Given the small volume of trading, the lack of liquidity in unpopular areas is compensated by the exchange itself.

NysHash cares about reputation and safety. But there are some sad moments in its history. For example, in 2017, the company was attacked by hackers, resulting in the theft of 4,700 bitcoins, $64 million at the exchange rate at the time. Because of this, CEO Marco Kobal left the project. The company itself announced that it would improve security and gradually recoup the losses. The lost funds were returned to customers in December 2020.

Purchase of computing power

By opening an account on the website nicehash.com, customers can buy or sell processing power. It works like this:

• One user has a cryptocurrency mining farm set up. He registers with Nyshash and installs the software.
• The second customer does not have a farm, but wants to mine cryptocurrency. He opens a customer account and deposits funds for cloud mining.
• The buyer chooses a pricing plan and specifies what kind of cryptocurrency he wants to mine.
• The system finds a suitable miner for him and passes the order to him.
• The miner mines the desired cryptocurrency and gets a fixed fee for it according to the tariff.
• The buyer receives on his wallet mined coins.

Such a system is convenient because the miner does not depend on the exchange rate of the cryptocurrency and receives fixed money for electricity and equipment costs. The investor does not have to understand the technical complexities, buy a farm and set it up. Instead, he invests and receives the cryptocurrency. The exact number of coins is predictable: the system knows the current complexity of the network, the reward per block and the hash rate of miners. Risks familiar in the cryptocurrency world are shared between the transaction participants. Market dangers due to rate fluctuations fall on the shoulders of the investor – he will lose money if the price of the coin collapses sharply. And the costs of mining, such as equipment upgrades and electricity charges, as well as the increasing complexity of mining, are borne by the seller of the capacity (How to Make Money on Cryptocurrency?).

 

How to exchange cryptocurrency on the NysHash platform?

Customers have two ways to exchange cryptocurrency in Nyshash. The first is an internal exchanger. It is available in the menu “Exchange”, section “Exchange”. The exchanger is arranged simply: two forms, in one – the coin being sold, in the second – the one being bought. For example, exchange Bitcoin for Ethereum. The first line must specify how many BTC we will give, and the second line will contain the amount of ETH, that we will get for our BTCs. Click “Exchange”, the funds are deducted from one wallet and credited to the other. The transaction is almost instantaneous, and commissions are entered in advance.

The second way is “Trading”. This section is located in the “Exchange” menu. After entering it, the user will see a standard page for a crypto exchange with a chart, a price chart and orders. The price chart and indicators for technical analysis are provided by TradingView. This set is enough for a cursory analysis and assessment of the market situation. On the left side, under the Nicehash logo, you can choose the pair to trade. The default setting is BTC – USDT. The drop-down list has all the altcoins available for mining on the site. But there are no cross rates – all coins are offered in pairs with either BTC or USDT. Once you’ve chosen the exchange direction you want, move on to the orders. They are located at the bottom right and have two tabs:

• Market. With this setting, transactions are conducted according to current market quotes. The value is automatically selected from the market stack. That is, if the trader sells 2 BTC, the cheapest order to buy two bitcoins from the entire order book will be selected. The client only needs to enter the amount of the transaction into the order. The amount of cryptocurrency will be calculated automatically.
• Limit. In such a transaction, traders themselves specify the value at which they are willing to buy or sell the crypto. Suppose a client has created an order to buy 1 ETH at a price of 1,650 USDT. This means that the order will hang in execution until an order to sell Ethereum at 1,650 USDT appears in the order book.

What type of order to choose depends on the trader. Orders at the market price are executed faster, but sometimes at an unprofitable cost. Limit orders, when the market price is analyzed, allow you to create a profitable deal. But the execution time is delayed until the chart comes to the right price range.

 

Verification on the nicehash.com platform

Unverified customers can get some services on the Nicehash platform. But entering personal information expands the client’s possibilities. It becomes possible to make a deposit in euros with a bank card. To be verified, the client must go to the settings of his profile, section “Account restrictions” on the site nicehash.com. The page will show the current level of verification. For those who have just registered, it is zero. With such an account it is already possible to make cryptocurrency deposits and connect to a mining pool. But there will be no fiat support.

To raise the level, click on the “Confirm” button. A form with warnings will appear. Clients can have only one account in the system in their name. If access to it is lost, you can’t register a new one. Instead you should contact the support service and restore access. In the form you’ll need to tick the boxes to agree to the data processing policy. Then fill out the form:

• The user’s first and last name.
• Date and place of birth.
• Country of residence, province, city. Enter street name, house number and zip code.
• Enter the ID number from your document. This can be your passport number or your ID card number, if you have one.

The second step is to upload your passport or ID card. In the drop-down list, select the country that issued the document. Click on “Upload Document” and select a scanned document or photo on your computer. There are prompts on the form showing what the image should be. The third verification step is to take a selfie with the document you uploaded earlier. The face and letters in the passport must be clearly visible. Verification of the questionnaire takes 24 hours, in some cases up to three working days.

 

Deposit and withdrawal

To deposit, the user needs to go to the “Wallets” section or click on the orange button with the wallet image in the menu. The page will show accounts with all the cryptocurrencies available on Nyshash – from Bitcoin to Ravencoin and Statis Euro. Next to each of them there are two buttons – deposit and buy. By clicking on the “Buy” button, the customer will go to the exchanger, where he can transfer one crypto to the other. If you click on “Deposit”, the system automatically generates a deposit address. In the window that opens, you need to click on “Show address” and it will appear:

• QR code. Scan it with your cell phone camera if you use a mobile wallet.
• Deposit address. This is the public address of the wallet to which you need to transfer coins from a third-party storage. Cryptocurrency sent to this account will be credited to your balance.

For some altcoins, there is additional identification. For example, Memo ID for Stellar or EOS. These identifiers will also be available in the replenishment window. To send funds from the exchange, you need to click on the wallet with the desired coin on the site nicehash.com. The “Withdraw” button will be available at the top. It opens the window for withdrawal of funds. You will need to select a wallet, from which funds will be sent. Then specify the sending address and the amount. The system itself will calculate the processing time of the transaction and the network fee.

Commission of the crypto exchange nayshash.com

Nicehash trades are covered by a standard commission of 0.5% of the contract. This rate does not change depending on whether you buy or sell – both maker and taker pay half a percent. All in all, it’s a pretty expensive exchange when compared to other online trading platforms. But Nicehash has a flexible discount system, suitable even for small traders.For verified users conversion from euros to Bitcoin and vice versa is available. Amounts from 25 EUR to 100 are subject to a commission of 1.45 EUR. Transactions from 100 euros are charged at 1.45%.

How do I get a discount on commissions?

The basic commission level of 0.5% is valid if the volume of client’s transactions does not exceed 1 000 euros. As soon as the user passes this level, the commission will be reduced to 0.4% per contract. This rate is valid until the amount of transactions does not exceed ten thousand euros. Further trading levels are calculated as follows:

• Transaction volume up to 100,000 EUR: 0.3% (maker and taker).
• Volume from 100,000 to 1 million euros: 0.2%.
• Up to 10 million, 0.1 percent.
• From 10 million to 100 million: 0.05% for maker, 0.08% for taker.
• Up to 1 billion euros: 0.04% – 0.06%.
• Up to 10 billion: 0.03% – 0.05%
• Up to 100 billion: 0.02% – 0.04%
• Over 100 billion euros: 0.01% maker, 0.03% taker.

The Nyshash trading discount scheme differs from other exchanges in the cumulative effect. That is, on most platforms the trader needs to maintain the volume of contracts to be within the discount. In Nicehash, it’s enough to exceed the bar once to lock in a commission. Simply put: as soon as the total amount of transactions for the entire time of using the exchange exceeds 1000 euros, the commissions change to 0.4% – 0.4%. They will not return to the standard half percent, even if the trader stops trading altogether.

Withdrawal fees

Cryptocurrency withdrawal fees depend on the specific coin, as well as the withdrawal method. Let’s take Bitcoin as an example:

• Sending to another bitcoin wallet: payment will be 0.1% of the transaction, plus 0.00005326 or higher – blockchain commission.
• Withdrawals via Coinbase and Lightning Network are free.
• Withdrawal via Payeer – 0.95%. This is the payment of the intermediary.
• Withdrawals in euro fiat currency are available to a bank account. This is a free procedure. ETH withdrawals are charged at 0.1%, plus 0.01977695 of the transaction amount. All other cryptocurrencies are also charged 0.1% of the withdrawal, plus some amount depending on the size of the transfer.

 

NysHash bonuses

For Nyshash, its own exchange is only a supplement for the convenience of customers buying and selling computing power. The company executives have no task to attract as many traders to the exchange as possible. This is evidenced, at least, by the high level of commissions. Therefore, any bonuses and promotions for customers of the trading platform is also not provided. Of the “chips” one can only highlight the previously mentioned system of discounts, as well as a referral program.

Referral program

All clients of the site can attract new users with referral links. The program is available in the profile settings, section “Referrals”. To connect and receive a special link, the client should write to the support service Nayshash. Reward in the program – 5% of the company’s income from the referral activity. The reward is accrued both for trading transactions of the invited person, and for his purchases in the market of computing power.

 

Complaints about NiceHash

NiceHash is an experienced player in the cryptocurrency world. Over the years, the platform has accumulated a lot of both positive and negative feedback. Users note that the principles of the system are simple and friendly for novice traders, miners and investors.

What customers like:

• There are no commissions for depositing accounts.
• Quick setup and start of mining.
• Fast transactions with Bitcoin on the exchange, high liquidity in the pair BTC/USDT.
• The presence of internal exchange, the ability to recharge in euros.
• Using Lightning Network, you can withdraw cryptocurrency without commission.
• Reliability of the company. Known management, transparent operations.

In negative reviews, users complain that the cryptocurrency can only be traded via Bitcoin or Tether. The low speed of withdrawal of cryptocurrency is put as a minus, although this is partly the fault of the network itself. After the hack in 2017, the company’s reputation suffered somewhat, but trust was restored by restoring users’ wallets.

Some users say that the site blocked their transfers in cryptocurrency. Although in the rules, the exchange allows such transactions without verification. Probably, the algorithm marked the transfer as suspicious, and the support service requested documents from the client to determine his identity and jurisdiction.

If there are any reviews about NiceHash crypto exchange, we will definitely publish the information in social networks. Sign up so you don’t miss anything!

Please keep yourself informed about news and complaints. We copy the most valuable information to social networks, so please sign up!

 

Crypto exchange regulation

The main operating legal entity is NICEHASH Ltd. This company is registered in the British Virgin Islands, a popular jurisdiction with low taxes and convenient legislation. Its head office is located in Maribor, Slovenia. Both the platform’s management and technical staff work here.

Slovenia is a member of the European Union and since Nayshash is officially represented in this country, the company is allowed to legally use payments in euros. Therefore, users deposit and withdraw this currency, but cannot use the U.S. dollar. Also Nicehash is committed to comply with European law. Today, EU states are trepidatious about financial and cryptocurrency organizations. Such companies are under the microscope of regulators. For customers, this is a guarantee of transparent and honest work of the organization.

Read the terms of use at nicehash.com

Nicehash.com User Agreement

When a user registers on the site nicehash.comThe user is asked to check the box to agree to the company’s user agreement. The agreement is made on behalf of NICEHASH Ltd. The company is registered in the British Virgin Islands, which means that it is subject to the laws of this Caribbean state. Any legal disputes must be resolved first and foremost at the place of incorporation of the legal entity.

Nyshash defines itself in the agreement as an intermediary organization between clients. This applies to both the power trading brokerage business and the exchange. For traders, Nicehash is just a platform, between the seller of a cryptocurrency and its buyer. Users accept the risks and any monetary losses associated with trading transactions fall solely on their shoulders. The service is accepted on an “as is” basis. Occurrence of technical errors in exchange work is admitted. If functions have been broken as a result of an error, the client should contact the support service as soon as possible.

The company is committed to complying with legislation and international practices to prevent money laundering and tax evasion. In some cases, the administration has the right to freeze a user’s account if his transactions seem suspicious and related to financial crimes.

Customer Service

Users can request help through the ticket system. It is available after registration, in the right corner in the form of a button with a question mark. For any questions customers can write to the company’s email address: [email protected]. Nicehash is represented in some social networks. There are official pages on Facebook, Twitter and Instagram, VKontakte. Technical information about the platform is published on GitHub. Discussions take place on Reddit and on the official server in Discord.

 

NiceHash is a Scam?

NiceHash – is one of the big players in cloud mining. The brand has been around for more than 7 years and consistently gets good reviews. Yes, the company’s reputation suffered after the hack in 2017. But the management was able to make up for the loss of customers and earned “pluses in karma”. Our opinion: Nicehash is definitely not a scam. They offer a clear product that is in demand. The owners of the firm get a stable profit from commissions, and customers – from cloud mining and cryptocurrency trading.

Every day the services are used by 600 thousand clients. The total amount of money, including mining and exchange, is comparable to the largest cryptocurrency exchanges in the world. The project has good reviews, no materials about blatant “scams” were found. There are negative reviews, but most often they are associated with technical difficulties, rather than with deception from the site.

 

Conclusion

Evaluate NiceHash as a full-fledged cryptocurrency exchange is difficult. Here you can exchange cryptocurrency and withdraw it to a wallet, but nothing more. Today’s users demand more – farming, staking, loans, advanced order settings, cross rates and trading algorithms. NysHash, on the other hand, is just an exchanger, with the option to make a deposit in euros.

Much more from the platform are clients interested in mining. Cloud cryptocurrency mining can really be profitable for those who know how to assess risks and predict market dynamics. If you need a minimum on cryptocurrency exchange, NysHash can be used. And experienced traders with a complex trading strategy and large volumes need to look for another cryptocurrency exchange.