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NAGAX Review [2022] | Trade & Store Crypto | Fees, Pros, Cons

Jordan
Major
Updated: 31 May, 2022
17 mins read

In this review, we will look at the NAGAX platform, a web3 social trading cryptocurrency exchange. Specifically, we will consider its features, products, pros, cons, and why it appeals to investors. Plus, we provide a detailed step-by-step tutorial on how to create an account on NAGAX and buy crypto using a credit or debit card.

About NAGAX?

NAGAX is an innovative cryptocurrency exchange launched in March of 2022 by German Fintech NAGA Group AG with its main offices based in Tallinn, Estonia. It is NAGA’s attempt at replicating its disruptive success within the traditional financial field in the nascent blockchain industry.

NAGAX seeks to introduce social trading as one of the main features whereby beginners and experts alike mingle and share their trading strategies through a ‘News Feed’ board.

As a standalone product, NAGAX is able to offer both brokerage and trading functionalities as opposed to its parent company which only offers crypto brokerage. Its users are able to buy some of the leading digital assets, including Bitcoin, Ethereum, XRP, and Litecoin while being able to trade an even wider range of assets.

The platform also offers support for the NAGA Coin (NGC), an asset that was instrumental during the 2017 ICO (Initial Coin Offering) through which NAGA Group AG crowdfunded the launch of the main NAGA exchange. NAGAX users can claim several perks within the NAGA ecosystem if they utilize NGC to pay for trading fees, among other uses.

NAGAX exchange offers the following key features to cryptocurrency investors and traders:

  • Fiat to crypto support – NAGAX users can be deposit funds to their accounts through either fiat or crypto with support for the US Dollar and the Euro;
  • Intuitive interface – NAGAX borrows its interface from its more established sibling NAGA Exchange which has been tried, tweaked, and tested over a number of years to result in a seamless and beginner-friendly UI;
  • Highly secure – NAGAX uses bank-grade security to protect its infrastructure while also keeping customer assets in cold storage. Additionally, users can set up 2FA measures to beef up the safety of their accounts;
  • Compliant with regulations – NAGAX complies with global financial standards and practices regarding AML (Anti-Money Laundering), CFT (Counter-Terrorism Financing), and Proliferation Financing (“PF”) risks. It also complies with Estonia’s local regulations, ensuring that it operates fully within the laws;
  • Multi-asset and country support – NAGAX users can access more than 80 cryptocurrencies from over 150 countries;
  • Low trading fees – the fees paid by NAGAX users are dependent on the amount of NGC tokens held within the exchange wallet, with higher discounts awarded to those with larger holdings.

Why do traders use the NAGAX exchange?

The biggest draw to NAGAX is its push toward social trading. Beginners are especially reliant on such a feature whereby they can learn and follow along with expert investors’ trading strategies. Through the social trading feature, users can either copy and duplicate the trades to their portfolio or use these shared strategies as a basis for creating their own.

Other than the obvious benefit to trading beginners, experts also can gain from the exposure and networking opportunities. Additionally, meeting like-minded people on the platform leads to the improvement of skills by learning from one another.

NAGAX is also a reputable platform owing to its relation to the NAGA Group AG. The latter is a publicly-traded company on the Frankfurt Stock Exchange offering services such as trading traditional stocks, forex, CFDs, and brokerage for cryptocurrencies. Since its launch in 2017, it has grown in popularity and trustworthiness which it passes on to its subsidiaries.

Other less prominent features on the platform that help draw investors include:

  • NAGAX Academy – here beginners and experts can learn new things or brush up on their knowledge gaps, respectively without having to visit different websites and possibly interrupting their trading activities;
  • News Feed – the default home screen of NAGAX comprises a column of news feed which is populated with activities shared by NAGAX users and other information from the wider cryptocurrency industry;
  • Cost-effectiveness – NAGAX is able to provide its facilities to users at extremely low fees, up to 87.5% transaction fee savings on major blockchains such as Bitcoin and Ethereum;
  • Robust wallet services – as a centralized cryptocurrency exchange, NAGAX provides crypto wallet services enabling users to store their assets safely on the platform at no cost. The funds held within user accounts are kept safe within offline wallets, and private keys are encrypted to prevent theft.

NAGAX exchange’s products and features

NAGAX exchange includes the following products and features which are covered in-depth below:

  1. Cryptocurrency spot trading;
  2. Social trading;
  3. Cryptocurrency brokerage;
  4. Crypto wallet;
  5. NAGAX NFT;
  6. NAGA Coin (NGC).

1. Cryptocurrency spot trading

The main product offered by NAGAX is cryptocurrency spot trading. As an exchange, its users can buy, sell, and trade between more than 50 pairs of major supported assets. Within its trading interface, users have the option to choose amongst various order types, which are:

  • Limit buy and sell orders;
  • Market buy and sell orders;
  • Stop limit orders;
  • Stop market orders; and
  • Trailing stop market orders.

Having a wide range of order types gives traders the leeway to create a wider variety of trading strategies according to their investment goals.

Within the trading interface, there is a provision to check real-time depth charts and the order book. Additionally, NAGAX offers seamless integration with TradingView, the leading technical indicator charting tool for traders.

2. Social trading

Investing in digital assets (or even any other asset type) can be complicated, with most beginners prone to make numerous costly mistakes. NAGAX offers the social trading feature borrowed from its larger sibling, NAGA enabling users to share trading strategies, techniques, and relevant knowledge.

The platform enables experts to monetize their feed by requiring subscribers to pay before viewing shared posts. This is a neat method of monetizing knowledge if the sellers need to broaden their income sources.

Popularly known as trading tips, these strategy posts can be:

  • Copied outright without modification, ensuring the receiver follows along with an expert’s trading moves; or
  • Modified to suit the traders’ goals, strategies, and risk factors.

Users can follow their favorite traders through the Feed feature on the homepage, where they can comment on posts, ask questions, react or even reshare onto their timelines the same way social media platforms work.

There are two kinds of posts displayed within the Feed: user posts and crypto news posts. The former are items posted by users within the NAGAX community, while the latter is news items aggregated from popular crypto-focused media websites.

3. Cryptocurrency brokerage

A brokerage platform typically acts as a middleman connecting buyers and sellers and facilitating cryptocurrency trades. Optionally, some brokerages can buy and sell these digital assets from and to the users, respectively. NAGAX uses the latter approach.

It supports buying and selling of the leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) using other digital assets or a payment card such as a Visa and MasterCard.

To buy crypto using crypto, NAGAX supports deposits in most of the leading cryptocurrencies. In the follow-up section below, we will demonstrate how to buy crypto using a credit card. Therefore, keep reading for the detailed step-by-step tutorial.

4. Crypto wallet

NAGAX offers a hosted cryptocurrency wallet with the support of more than 20 blockchains and thousands of tokens. However, it is worth noting that not all assets kept within the wallet can be traded since the platform may not support them as trading pairs. Users can thus only deposit, store and withdraw a majority of the available assets.

The exchange keeps private keys secure through a combination of MPC (Multi-Party Computation), offline storage, and encryption. This makes the wallet secure to use even by beginners.

NAGAX’s wallet blends seamlessly with other services offered, including the trading and brokerage features. Trading funds can easily be accessed from the wallet, while cryptocurrency purchased through the broker is automatically stored within the wallet.

5. NAGAX NFT

This soon-to-launch product enables NAGAX users to buy, sell and create unique NFTs (non-fungible tokens) based on the Ethereum blockchain. The feature also enables artists to create virtual storefronts to showcase their art, own collections, or those they have bought off the marketplace.

NFTS can be bought, sold, and traded on specific NFT marketplaces, and the NAGAX platform is now able to offer such as a marketplace.

NAGAX currently supports a Creator Fund or collection launchpad through which it pledges to support artists with up to $100k in prize money to be used for marketing collections.

6. NAGA Coin (NGC)

NGC is NAGAX’s ERC-20 utility token on the Ethereum network. The coin was initially created to facilitate the NAGA ICO (initial coin offering) in 2017, but following the conclusion of the ICO, the coin’s utility has evolved. NGC now plays multiple roles within the entire NAGA ecosystem, including NAGAX.

NGC holders can now use it for the following purposes:

  • Hodling‘- NGC holders can buy and keep their tokens over the long term for speculative reasons or claim trading discounts. Check out the section on fees and pricing to understand more about how you can leverage NGC to pay less in NAGAX trading fees;
  • Speculation – active traders can buy, sell or trade NGC for profit on the platform;
  • Paying trading fees – NAGAX allows its users to pay trading fees using the NGC token and claim discounts while doing so, depending on the number of tokens held within their wallets.

NAGAX Pricing & Fees

NAGAX charges three types of fees:

  1. Trading fees;
  2. Fiat deposit fees; and
  3. Asset withdrawal fees.

Trading fees are charged on a maker/taker basis, whereby makers are market participants that bring liquidity to the marketplace while takers draw it out. Effectively, makers create orders posted to the order book while takers fulfill these orders.

NAGAX charges a variable fee depending on the amount of NGC token holdings within the trading account. Here is a simple schedule that outlines these fees:

Note: You can claim a discount on these already competitive rates by opting to pay the translation fees using the NGC token. It is a feature you have to opt into by enabling it.

Credit card funding fees are typically higher on all cryptocurrency exchanges that support this method of payment. NAGAX is no exception. It is a convenient way to fund your account due to fast settlement speeds, but the convenience comes at a cost.

NAGAX charges a 4.5% fee for credit/debit card payments and 1% for bank transfers. There is a minimum of €3.99/£3.99/$3.99 or its equivalent amount in any other currency that the exchange can process.

The platform does not charge any fee on cryptocurrency deposits which makes it the most cost-effective method of funding your NAGAX account. However, network fees still apply for each respective token that you will send over a blockchain network.

Withdrawal fees vary depending on which asset you are withdrawing from your account. Visit the deposit/withdraw fee schedule page and search for the asset you are interested in sending off the exchange to check its specific fee, but here’s a sample of how much the platform charges for withdrawing funds.

Note: Remember to account for network processing fees as well on top of the posted withdrawal fees since these are NAGAX processing charges before the transaction is sent to the blockchain network.

Is NAGAX safe?

The NAGAX team has taken the necessary efforts to secure their platform and their users’ assets. So far, since its launch, there have been no reported security incidents.

Some of the security measures the platform has implemented include:

  • Using a multi-layered MPC (multi-party computation) technology to secure cold wallet keys. The MPC technology uses hardware isolation to secure these offline-based wallets;
  • NAGAX wallet is a hosted wallet meaning that it has custody of its users’ assets. The private keys to the various wallets are kept in encrypted formats to reduce the chances of compromise;
  • The platform is compliant with international financial regulations and relevant local laws within Estonia, Some of these regulations dictate that the exchange collects KYC and AML details to combat various forms of nefarious online activities and enhance the safety of platforms;
  • Users also get to participate in securing their accounts by the use of strong passwords and setting up second-factor authentication (2FA).

Note: To learn more about the platform’s security measures read our comprehensive ‘Is NAGAX Safe?’ guide.

NAGAX Customer support

The social trading aspect of the NAGAX platform helps reduce most of the requests to the customer support desk since anyone can ask a question to the community and get a response from any member on the platform. Users can chat amongst themselves using the ‘Messenger’ section.

Additionally, NAGAX traders have the option to follow other users’ activities on the platform through the Feed feature. They can comment, ask a question or even react to a post, making the whole experience on the platform more beginner-friendly, and less error-prone.

NAGAX also maintains a well-equipped Academy section with educational and informative articles for beginners and experts alike who may wish to learn something new or brush up on their existing knowledge base. The help center is also exhaustive on topics that may be of concern to NAGAX users. Here, you can find any piece of information, from how to create an account to how to use the API keys.

Finally, if you exhaust all these channels and find that you still need further help from the NAGAX team, you can reach them through:

How to create an account on NAGAX (step-by-step)

Now that you understand what NAGAX has to offer and how much it will cost you to use the platform, let’s discover how to create an account. Here’s a detailed guide.

Step 1 – Visit the NAGAX website.

NAGAX’s homepage can be found here. Click through the [Get Started] or the [Sign Up] buttons as shown below.

Alternatively, you can scroll down the homepage, read the sales copy and click on any of the provided [Create an account] buttons.

Step 2 – Provide a valid phone number.

Before even providing your KYC details, NAGAX will request your phone number and country of residence details to which it will send a confirmation text.

Fill in the reCAPTCHA puzzle then click on the [Continue] button to proceed.

The platform will send a verification text to your phone number. Check your phone messages and provide the verification code on the next screen.

Click [Continue] after providing the code.

Step 3 – Provide profile details.

In the next screen, NAGAX will request identifying details including your name, and email address. Also, here you will be requested to create a unique username and password.

Once done, click on the [Send] button to proceed. At this point, you have successfully created your NAGAX account and you will be directed into your account.

You will be able to access the general Feed on the account homepage where you can follow along with other traders or read trending news from various crypto-focused media websites.

Step 4 – Fund your account.

There are multiple routes to access the crypto funding page.

First, you can click on the [Buy crypto with credit card] button on the Feed/home page.

In the next screen, choose which cryptocurrency you wish to buy with a credit card.

In our case, we have chosen Bitcoin (BTC).

The second way to access the credit card purchase page is by visiting the ‘Crypto Wallet’ page. On the home page, click on the [Crypto Wallet] link on the left-side navigation bar.

Next, click on the [Buy/Sell] button.

The default option on the follow-up screen is to buy crypto with crypto. Click on the link at the bottom of the form field labeled [Buy BTC with Credit Card].

Alternatively, while you are within the Crypto Wallet page, scroll down or use the search box to identify the asset you want to buy. Click on the three dots corresponding to the asset to reveal a drop-down menu from which you can select the ‘Buy BTC with Credit Card’ option.

If this is your first time purchasing the asset and never have you deposited or held that particular asset in your wallet, NAGAX will generate a new wallet address for you. Click on the [Generate Deposit Address] button before proceeding to the next step.

Within the credit card funding page, provide the amount of fiat you wish to spend on your purchase.

Click on the [Continue] button to proceed to the Moonpay interface, where you will provide further KYC details such as name, address, nationality, and verify your email address.

The Bitcoin (or the asset you purchase) will instantly be deposited into your wallet account. Most card transactions are processed immediately.

Pros & Cons of NAGAX Exchange

Pros

  • Social trading features are appealing to trading beginners;
  • Supports both fiat and cryptocurrency deposit methods;
  • The platform is accessible from more than 150 different countries;
  • NAGAX users have access to over 80 different cryptocurrencies;
  • The exchange is compliant with financial regulations such as using KYC, AML;
  • There are free cryptocurrency deposits;
  • Transaction fees are competitive in the marketplace, and users can further reduce them by using NAGACoin (NGC) tokens;
  • The platform offers an intuitive user interface;
  • NAGAX team is working on improving the current offering with additions of an NFT marketplace, staking, project launchpad, and support for derivatives.

Cons

  • It currently does not offer a lot of features outside trading and brokerage services;
  • Only supports two fiat currencies: USD and EUR;
  • Some competing platforms support more digital assets;
  • There is no mobile app yet;
  • Hosted wallets are generally less secure than self-custody wallets;
  • The platform is relatively new with little history in the marketplace.

Final thoughts

Social cryptocurrency trading is gaining momentum as new and existing exchanges offer this feature to their users. Beginners appreciate it as it reduces the risk of investment by allowing them to learn from the community while experts get to gain exposure for their skills.

NAGAX is not only a social crypto trading exchange but also a brokerage, NFT marketplace, and a crypto wallet, all in one package, which might be convenient for crypto newcomers. Additionally, the platform charges attractive transaction fees and is available in more than 150 countries.

On top of that, the exchange is fully regulated and has a high-security standard. It may be a relatively new platform, but it is well poised to become a notable digital asset exchange as it works to launch more features to cover market demand.

To conclude, be sure to do your own research before onboarding any money-involved platform.

Frequently Asked Questions on NAGAX

What is NAGAX?

NAGAX is a cryptocurrency brokerage and exchange platform launched by the German Fintech company NAGA Group AG. It is based in Tallinn, Estonia.

Is NAGAX safe?

NAGAX is a secure trading platform, highly regulated, and compliant with multiple international financial laws. It adheres to KYC and AML provisions, stores encrypted versions of private keys to its customer’s crypto wallets in cold storage, and has implemented 2FA to help secure user accounts.

What is NAGACoin (NGC) and how is it used in NAGAX?

NGC is an ERC-20 (Ethereum-based) native utility token within the expansive NAGA ecosystem that includes the NAGAX platform. It can be used to pay for transaction fees, claim discounts, staking, and launchpad crowdfunding (when the platform activates this feature).

What are the trading fees on NAGAX?

NAGAX trading fees are relatively competitive. The platform uses a maker/taker pricing model but so far both parties pay equal fees within respective pricing tiers. The tiers are grouped depending on how many NGC tokens are held by the account user. Fees vary starting from 0.4% down to 0.05%, the higher the NGC held in your account, the lower fees you will pay. Sometimes you can save up to 87% of the fees.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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