On Monday, we shared an exclusive first look of CoinDCX’s new P2P solution for trading cryptocurrencies. Yesterday on Independence day, DCXinsta was opened to public. Today, I tested if it really is as fast and good as it claims to be. Spoiler alert: It is. Once you pay the seller, you receive the crypto within 60 seconds.
However, during the transaction, I accidentally entered the wrong reference number while entering the payment details, which led to me learning about DCXinsta’s dispute handling. So this is a review as well as a real life scenario of what happens when you are not careful or deliberately try to fight the system. Dispute handling is an integral part of all P2P exchanges and it is important for Fund Security.
DCXinsta offers 40+ coins/tokens for purchase with optional KYC and quick coin release. It is as simple as logging in and buying cryptocurrency from a supermarket. The moment you make payment, you receive the coins. Read on for a thorough review.
DCXinsta maybe a new offering from CoinDCX exchange, but old users are automatically on-boarded. It means if you are registered on CoinDCX, you can use the same credentials on DCXinsta.
For the testing I am going to buy 1633 ZIL. Why 1633? To hodl ZIL till 1/6/2033. I am just kidding. It’s a random number. We will follow the same steps that DCXinsta has shown on screen, technically.
Step 1: Enter Amount
Although the step on the screen says enter INR amount, you can enter either the cryptocurrency amount or the INR amount for purchase. I selected ZIL from the coin drop down list and entered 1633 in the quantity box.
Step 2: Pay the Seller
As soon as I hit BUY, the seller bank account details appeared on screen, I added the payee and made the payment. Took me about 3 minutes. However, I entered the ‘remark’ I put while making transaction instead of the reference number, so this became the use case for ‘What happens if I do not enter the correct reference number?’
I tried to be oversmart with my remark as well. Do not do this even as a joke. Your transaction will not process automatically.
Step 3: Get Crypto in 60 Seconds
As soon as I hit the verify button, a pop up appeared with all the details and waited for me to recheck and confirm. Even at this point I did not realise I haven’t entered the reference number of transaction but the remark. I hit confirm.
A timer appeared on screen and while this should have worked seamlessly, it didn’t. The 60 seconds were over. My transaction was officially in dispute and a new countdown appeared on screen for 10 minutes
Dispute Handling on DCXinsta
Within a few seconds, I received a call from Vivek Yadav from DCXinsta. This is at 3:10 AM in the morning. Vivek told me I must enter reference number, instead I had entered random string of words with my twitter handle (PS: It wasn’t random, it is self promotion). We joked about my stupid mistake at first. Later, he told me the resolution process.
I shared the reference number, Vivek said they handle all disputes manually and a transaction will only go into dispute if the buyer entered the incorrect reference number. Since it was “too late”, the team and the seller were sleeping, so Vivek said he will handle the issue first thing in the morning. I was assured my funds are safe, I knew that already. If this was day time, the issue would be resolved within minutes.
Come morning, 1633.9 ZIL were credited to my wallet and I got a text from the co-founder of CoinDCX Sumit Gupta that it was done. But I still had to check whether you actually receive cryptocurrency within 60 seconds or not if everything is done correctly.
Trial Two – 60 Seconds or Nothing
After the dispute was resolved, I still had my original question lingering in my head. Can I get the crypto within 60 seconds as they claim? So I placed a new order. I entered the amount: 1630 ZIL. I was given the seller details (same as last time), made the payment and the confirmed.
The timer popped up. Started from 1. I got worried when it reached 58. 59. Done. Received 1630 ZIL in my account. It really worked. I got my ZIL within 60 seconds of confirming the payment. This time I used my phone for trading.
The entire process we witnessed above is for buying cryptocurrency. If you want to sell cryptocurrency on DCXinsta, you will have to contact the admins of the exchange. There is no interface yet for sellers. “We want to make the Buy side experience seamless first”, says Gupta.
What is the secret?
Since I got the same seller details on both my orders and for placing new sell orders I have to actually contact the exchange, I believe that DCXinsta has appointed liquidity providers on their platform. What does that mean? It means that few people who hold huge amounts of cryptocurrency are made sellers on DCXinsta, so they don’t run out of liquidity.
Secondly, I believe DCXinsta has integrated the bank statements of these sellers on to a backend system. As soon as you enter a reference number, the backend matches it with the bank statement and confirms the transaction is completed. Kind of like what we used to see in the past with instant deposits, when they were active.
They aren’t doing anything against the RBI circular if the cryptocurrency is indeed sold by the person you are paying money to as a buyer.
Couple of Rough Edges
With technology evolving everyday, all products are developed in Agile mode. It’s built and then improved based on feedback from early users. I don’t have any negative feedback as such, it does what its supposed to do, lets you buy cryptocurrency for INR. However, a few things that may irk an average user can be attributed to
- Rs. 20000 Limit on each order. If you want to buy Crypto worth Rs. 100000, you can’t do that in one transaction
- Update: UPI is now enabled, so the point has been removed.
- Only 10 orders per 24 hours.
DCXinsta is good, with a reliable team backing the product. CoinDCX is based out of Mumbai. While it is true that you can receive cryptocurrency within 60 seconds, I don’t think that it is the fastest method. With other P2P exchanges, if the seller is online, you may receive the cryptocurrency within a minute too.
But what if the seller account gets reported by someone? You can’t always truly rely on high liquidity sellers because at the end of the day, their bank accounts can be frozen too under the current RBI diktat. User funds are safe. If bank accounts shuts, buyers can’t transfer funds, if buyer has transferred funds, they get crypto within 60 seconds.
That being said, the guarantee does make you feel better about trading on the platform. I do not like the order limit, but I suppose they will remove it once the product is regularly being used and remains stable. The dispute works even in the middle of the night. I discovered that thanks to my mistake but a good discovery nonetheless.
Give it a shot and let us know about your experience in the comments below.
Update: Seller Bank account risk added. Update on UPI payment method.