Note: I have updated this Gatehub review to alert you of the fact that Gate Hub has lately turned into a scam project. This review was done when they were still acting or pretending to be nice. This is not the case anymore. I have even asked them to come here and respond to accusations by a particular client who lost $5000 in their hands. If they respond, I will update this review accordingly. If they don’t, this notice will stand as is.
Is Gatehub safe? Most people want to know. So I thought to myself that writing a Gatehub review at this time would be the best way to reward those who want to know what Gatehub is and whether or not it’s a safe place to transact your Cryptocurrency at.
What is Gatehub?
Gatehub is a Cryptocurrency exchange which uses Ripple(XRP) as a form of digital coin for trading and moving money across the so-called Ripple network.
With a verified Gatehub wallet, you can trade XRP against several other digital coins and fiat currencies. You can send and even receive money in Ripple or through international wire, SEPA and many more.
Gatehub has even claimed that their user interface is simple and very attractive to the eye. But for me to confirm this statement, I had to sign up for an account before writing this Gatehub review.
The first thing I did was to go straight away to the marketplace since I wanted to test it out and get a true picture of how everything else worked.
I placed a test order, although I didn’t have any Ripple in my account yet. I got an error saying “Insufficient XRP reserve” . What does this mean?
It means Gatehub wanted me to add some funds into my account. Those funds have to be in XRP, a form of Cryptocurrency that probably started off as an ICO like this one.
Fortunately, there are 3 ways to achieve this. I could just ask a friend who uses Gatehub to send Ripple to my account, make a deposit in fiat or Cryptocurrency like Bitcoin or use a third-party like Poloniex to purchase Ripple before sending them to my GateHub account.
I know this sounds like a hectic process. But since we already have 3 choices, sticking to the most convenient option shouldn’t be an uphill task either.
Like most Cryptocurrency exchanges on the internet, one needs to verify their identity and physical address—– a process that can be quick or slow depending with the amount of traffic that Gatehub is receiving from new members.
When you’re new here, it can be really confusing because most people have no idea what Ripple is or even how to trade or exchange it for Bitcoin, Ethereum etc.
I have never traded my coins on this platform before since it feels a bit technical at first.
Yes, I know that I can exchange Ripple for Euro and vice versa. But for me to do so, I have to click around on the site, trying to figure out how to achieve that goal.
Gatehub Review: An XRP reserve
You’ve probably heard these talks before, and are wondering what the hell XRP reserve means.
I hear that the site introduced what is known as Ripple protocol, and there are special requirements for owning an account here. All accounts are required to hold some XRP reserve for purposes of warding off malicious people who could potentially create multiple accounts on the system.
This reserve is in place to act in a similar manner as Bitcoin mining fees. By having it in place, malicious users are automatically discouraged from opening multiple accounts since it becomes expensive to operate those accounts.
It’s mandatory for each account to hold 20 XRP, 5 XRP for each trust line and 5 XRP for every open order.
Therefore, if you have 50 Ripple, the required reserve will be a total of 35 XRP. Your balance will be 15 XRP. That’s the amount you’ll have at your disposal. If you want to understand this well, read this post.
Gatehub Review: My experience with the markets
When you go to the market area, you will notice a dark theme which is easy to the eye.
From there, one can view the various prices for Ripple in relation to Bitcoin and fiat currencies.
Clicking on any of the tabs corresponding to the pair you want to trade will load the chart in full screen mode.
From here, you can place a Buy or Sell order, just the same way you do it in your Forex broker account.
Scrolling downwards, you can see the current Buy and Sell orders respectively. Nothing complicated.
I do not know why this site loves to use fancy terms such as ”Gatehub Fifth”.
Anyway, upon close examination, I realized that this was a fancy way of saying Gatehub has a special gateway for other Cryptocurrencies like Bitcoin, Ethereum etc.
Usually, when you want to exchange Ripple for Bitcoin, you’ll need some mechanism for doing so as is the norm with Cryptocurrency exchanges.
In this case, they dubbed it ”Gatehub Fifth”. The cost of changing Bitcoin to Ripple is listed as 0.2%. Ethereum to Ripple is 0.3%, same as Dash, REP, ETC, and all other coins with the exception of QAU.
Gatehub review: Can this site be trusted?
Although it was incorporated in 2014, that does not mean that Gatehub is offering the best service as far as Crypto trading is concerned.
I know most readers were waiting for this part (after the boring part above). And my answer is straight forward.
It’s not a scam. But you will face a lot of inconveniences though. These problems seem to be striking them simply because the company is not able to handle the workload which they face on a daily basis.
With more people searching for ”Gatehub review or using terms such as Gatehub vs Kraken” to compare and even get some hints on whether or not they are safe to use, others are simply opening an account straightaway without first conducting due diligence.
This Reddit thread concerns me in as much as it would concern you.
The allegations is that Gate hub does not use their own servers. Instead, they use the public Ripple Consensus Ledger.
So when you create an account, a digital wallet will be created automatically for your account. Your actual XRP transactions are recorded in this ledger.
The issue is that when Ripple public servers are overloaded, transactions are slowed down. Furthermore, this overload can be as a result of a DDOS attack or something else. But users have reported slow transaction times nonetheless.
Is this a problem from the side of Gatehub? Probably, and that’s because unlike other high-end Cryptocurrency exchanges, this site routes transactions over public servers.
Public servers are known to suffer overload issues, which can prevent transactions from getting cleared.
The bottom line is this: You (as the client of Gatehub) will suffer. If you hold a wallet at Rippex or Poloniex, you will equally have to put up with delayed transaction times.
Until it gets fixed, this may be the only reason to avoid Gate hub and Rippex because of the public server issue.
On the other hand, it may be the reason why someone might pick Kraken, Polo or Bitstamp.
My best advice for you
Is Gatehub safe? Yes of course. But slow speed of transactions will put you off. Even as they scale the platform, they are likely to experience more problems in the future.
So if you’re just looking to trade Bitcoins casually or the traditional way, then an exchange like Paxful would be great. That’s all I can tell you for now. Thanks for reading this Gatehub review.