Is GateHub Actually Secure?
GateHub is supposed to be totally secure despite legitimate reports of hacking in the past (more on the hacking incident later). All private keys and passwords are encrypted so well that even GateHub’s administrators can’t access them – only the user can. This includes the use of two-factor authentication for all bank transactions. This system is considered more than adequate, and even though it was hacked, its security is up to par compared to many other sites. That said, nothing is safer from hacking than storing holdings on your own.
GateHub has many reports of terrible customer service. Some forums have called it the site to stay away from. There have also been reports of having to re-verify one’s account for seemingly no reason and other troubling complaints that have brought much scrutiny. Basically, it’s not a good option unless you are investing in Ripple. If you are investing in others, it would be wiser to choose a different site. Having said that, we can’t write the site off completely as there are also many reports of the site being safe and normal. The question is, does the convenience the site offers in dealing with Ripple justify overlooking it’s less than ideal reputation? That depends on your needs and preferences.
Since GateHub specializes in Ripple, it allows users to trade and move it across the Ripple network very easily. However, the site is an independent business that is separate from Ripple itself.
It also enables trading and moving Bitcoin, Ethereum, and Augur as well. You have many options, including coin-to-coin trading and trading these coins against Euros, U.S. dollars, or other currencies. You can also purchase coins with cash or bank transfers.
Digital assets other than Ripple, such as Bitcoin, Ethereum, and Augur, are issued through a special gateway within the site called GateHub Fifth. This is a platform for exchanging Ripple for one of these other digital coins. There are varying exchange rates for each coin.
Site Layout and User experience
GateHub’s interface is designed for convenience for all users, allowing them to send funds to others, receive funds, and trade within the wallet. Experienced users will find it easy to use and comprehensive, complete with price and market depth charts. There is also a mobile app available for both Android and Apple phones and devices.
It uses a dark theme which is attractive and easy on the eyes.
The platform also requires users to have an XRP reserve. This means that you must have funds in your account, which must be in the form of XRP (a Ripple protocol). This keeps away potential malicious users and scammers. It can be accomplished by one of three ways:
1. Ask another GateHub user, such as a friend, to transfer Ripple to your account.
2. Make a deposit in another cryptocurrency, such as Bitcoin.
3. Purchase Ripple from a third-party site and send it to your GateHub account.
The minimum reserve cannot be withdrawn, and 20 XRP is required to activate the account and keep it operational.
The site’s trading fees are relatively low compared to other exchanges, though there are still a few sites that charge even lower fees.
The platform also offers the ability to check stats and market trends in real time before starting any transaction.
GateHub claims that its user interface is simple to use, but it is quite technical and can be confusing for first-time users. Even for those who know how to exchange Ripple, Bitcoin, and others, it can still require exploring the site to figure out how to achieve their goals.
As mentioned above, GateHub offers relatively low trading fees, but they are not the lowest. Also, they charge fees for everything except for SEPA (Single Euro Payments Area) deposits.
Unlike other cryptocurrency exchanges, GateHub does not offer any type of margin trading.
The biggest complaint seems to be that transactions can become quite slow. This may be because the site cannot keep up with its daily workload. Transactions are recorded on the public Ripple Consensus Ledger, rather than its own servers. This causes an issue as well, since this will slow things down considerably any time the public servers are overloaded. The site will continue to suffer delays as long as it is using public servers.
There are also rumors that the site is not as secure as it claims, and slow transaction times indicate that the site is being attacked. This is not entirely paranoia: GateHub was indeed hacked in August 2017. Though the company claimed that clients’ personal information and balances were not affected, there were reports of digital assets having been stolen that were worth around $5 million, and some clients have stated that they never received their coins back.
Various complaints have surfaced in customer reviews, including:
More Pros than Cons
GateHub was incorporated in 2014 by GateHub Limited, which is based in London. It specializes in Ripple but is not owned by Ripple. It also allows trading in other digital coins. It is secure, with encryption, two-factor authentication, and mandatory reserves. It comes with a convenient and attractive interface, though it can become complicated to use for first-timers. It offers lower-than-average fees and unique features. Unfortunately, there are a few drawbacks: the site is technical, those low fees are charged for almost every service, and it does not offer margin trading. There also seem to be issues with security, slow transaction times, and slow or lacking customer support. Overall, the pros outweigh the cons. Check out a rundown for yourself:
Specializes in Ripple, but allows trading of Bitcoin, Ethereum, and Augur as well
Independent from Ripple
Ability to trade coins against currencies such as EUR, USD, etc.
Ability to purchase coins via cash or bank transfer
Special platform for coins other than Ripple
Supposedly very secure, with encrypted private keys and passwords and two-factor authentication for bank transactions
Convenient, comprehensive, and attractive interface
Mandatory reserves to keep away scammers
Low trading fees
Unique features, such as checking market trends and stats
There have been security concerns, including a major hack in August 2017
Interface can be confusing and difficult to navigate for some people
Mandatory reserve to get started.
Fees are charged for every service except SEPA deposits
No margin trading
Complaints from customers regarding slow ID verification, slow transaction times, and slow or unresponsive customer service