Quick background

About Coinex

Coinex was founded in December 2017 by ViaBTC (one of the largest mining pools), with investment from Bitmain (also owner of Antpool, and the famous Antminers).

About CET

CET is an Ethereum ERC20 token that is used as transaction fee in Coinex. CET is being ‘mined’ (generated would be a more appropriate term) while the exchange is being used. Coinex also claims that they will burn CET if too much of it is mined in the future. 

How can you make money out of it

Coinex allows you to lock CET in order to get ‘shares’ from the transaction fees. 10,000 CET get you one share, 20,000 CET get you two shares and so on. 25,000 do not get you 2.5 shares. So the rest of the CET that are not to be used, can remain unlock. You can lock your CET instantly, and when unlocked, they become available to spend 24hours. By locking CET, Coinex distributed dividents daily in the form of CET and various other coins (eg BCH).

How much money can you make by locking CET

At the time this article was written (21th of Jul) with 50,000 CET locked ($4,921), you get around 0.03910859 BCH (equal to $29). That is around 0.5% daily. A rate that is extremely difficult to find anywhere.

What are the risks

As for any ERC20 token, the same applies to CET. The token might go bust, and there goes your investment. The other risk, is that the exchange itself does not grow, and therefore the utilization of the token is not the desired one. With Coinex growing fast during the past few months (currently being the 8th exchange in volume), I doubt that this is the case.

Process for buying CET and getting shares for dividends

The whole process is really easy. It should take you around 10’. The only thing that can take long is the ID validation process, which is usually completed in less than one day and requires you to take an image holding your password with a paper with the current date written on it.

What you need

1. Internet connection: For obvious reasons

2. Mobile phone or Google Authenticator: For 2-Factor Authentication

3. Passport: For KYC process

4. BCH, BTC, ETH, USDT: These are the main cryptos that you can trade with in Coinex. Get them from your favorite exchange

Let’s start!

Create and secure your account

Visit Coinex.com and click on ‘Sign up’ button on the top right part of your screen. Enter your details and do not forget to click on ‘Get code’ to get the activation code to your email, prior to completing the form.

After successful signup, click on the ‘Security’ link on menu on the left, and then click on the ‘Bind’ button to link your account to Google Authenticator (Google Authenticator is available both for iOS and Google Android phones, and it is easy to install and activate).

Now, in order to lock CET for getting dividends every day, you need to perform a quick KYC procedure. Click on ‘My Info’ on the menu on the left, and then on ‘Verify’. You will need to enter your passport details, and then take a picture of yourself holding the password with a paper writing the current date and that it is for Coinex. KYC should just take a few hours.

Deposit to your wallet

CET is trading against the following cryptocurrencies: BCH, BTC, ETC and USDT

Click on the ‘Wallet’ link on top to get a deposit address for BCH. Using your favorite exchange or wallet, transfer the amount that you are willing to invest to your Coinex address.

Buy CET

When the transaction is confirmed, you can use the exchange to buy CET. Click on the ‘Exchange’ link on the bottom and then buy CET. You can start by buying 10,000 CET and then buy more when you are more confident with the process.

Lock CET and wait

Now that you have your CET in place, you can buy ‘shares’ by locking CET in 10,000s. Please note that 15,000 will not give you 1.5 share. You can only buy 1,2,3…and so on.

Click on the ‘Mining’ link on the top, and then click on the ‘Lock’ button just below the CET Available info. You will be able to select the amount of CET that you are willing to lock.

That’s it!

Now, every day after 00:00 UTC, dividends will be distributed to your account. The dividends are from the transaction fees used in Coinex (80% of the transaction fees are allocated to users). The most important coins that you will get dividends in are BCH, CET and USDT. Following bellow is a screenshot of the latest dividends that I received on the 20th of July. As you can see, by locking 50,000 CET, you can get around 0.03 BCH/day.

What you can do with the dividends, it is up to you. You can either re-invest them by buying CET or spend them any way you want.

My experience so far

I have been using Coinex as an exchange for about a month, and so far everything is perfect. Deposits & withdrawals are on time and the KYC procedure only took a few hours. What I love more thought, are the dividends deposited daily to my account. It is so fun logging to your account and seeing free deposits to your account. 

On the long term, I think that more exchanges will follow Coinex paradigm of profit sharing between members, but so far it is its best of its kind.

DISCLAIMER: Cryptocurrency trading/investing involves substantial risk of loss and is not suitable for every investor. The valuation of cryptocurrencies may fluctuate, and, as a result, you may lose more than their original investment.