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C-Trade

Latest release: 1.2.2 ( 2nd August 2022 ) 🔍 Last analysed 4th October 2021 . Custodial: The provider holds the keys
10 thousand
19th December 2020

Jump to verdict 

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Please help us spread the word discussing the risks of centralized custodians with C-Trade  via their Twitter!

Do your own research!

Try out searching for "lost bitcoins", "stole my money" or "scammers" together with the wallet's name, even if you think the wallet is generally trustworthy. For all the bigger wallets you will find accusations. Make sure you understand why they were made and if you are comfortable with the provider's reaction.

If you find something we should include, you can create an issue or edit this analysis yourself and create a merge request for your changes.

The Analysis 

App Description

C-Trade is a centralized trading platform:

Trade crypto perpetual contracts and derivatives in our convenient mobile app! We make it easier and faster to trade BTC and ETH on your mobile device.

It also appears to offer perpetual contracts for bitcoin and ethereum.

At C-Trade we currently offer BTCUSD and ETHUSD trading pairs, with up to 150x leverage at any time! Which is higher than the industry standard!

The Site

From Asset Security:

In order to keep your assets safe, almost all of our customer’s deposits are stored in multi-signature cold wallets. C-Trade always keeps the hot wallets topped up in order to be able to provide lightning fast withdrawals.

Found in the Terms and Conditions page:

12.3 At any given time, at C-Trade’s sole discretion, C-Trade reserves the right to close your account without prior notice and any remaining assets will be transferred to you at the address on record.
12.4 In addition, at C-Trade’s discretion, any accounts found to have breached the terms and conditions under any circumstances, including but not only limited to marketing campaigns, C-Trade reserves the right to close your account with immediate effect and all remaining assets shall belong to C-Trade without question.

The App

We downloaded the app to test out its features. It is possible to deposit bitcoin, and the app will generate a BTC address.

It is also possible to withdraw, though two-factor authentication is mandatory first.

Verdict

This app is custodial and thus not verifiable.

(dg)

Verdict Explained

As the provider of this product holds the keys, verifiability of the product is not relevant to the security of the funds!

As part of our Methodology, we ask:

Custodial!

Is the product self-custodial?

If the answer is "no", we mark it as "Custodial: The provider holds the keys".

A custodial service is a service where the funds are held by a third party like the provider. The custodial service can at any point steal all the funds of all the users at their discretion. Our investigations stop there.

Some services might claim their setup is super secure, that they don’t actually have access to the funds, or that the access is shared between multiple parties. For our evaluation of it being a wallet, these details are irrelevant. They might be a trustworthy Bitcoin bank and they might be a better fit for certain users than being your own bank but our investigation still stops there as we are only interested in wallets.

Products that claim to be non-custodial but feature custodial accounts without very clearly marking those as custodial are also considered “custodial” as a whole to avoid misguiding users that follow our assessment.

This verdict means that the provider might or might not publish source code and maybe it is even possible to reproduce the build from the source code but as it is custodial, the provider already has control over the funds, so it is not a wallet where you would be in exclusive control of your funds.

We have to acknowledge that a huge majority of Bitcoiners are currently using custodial Bitcoin banks. If you do, please:

  • Do your own research if the provider is trust-worthy!
  • Check if you know at least enough about them so you can sue them when you have to!
  • Check if the provider is under a jurisdiction that will allow them to release your funds when you need them?
  • Check if the provider is taking security measures proportional to the amount of funds secured? If they have a million users and don’t use cold storage, that hot wallet is a million times more valuable for hackers to attack. A million times more effort will be taken by hackers to infiltrate their security systems.
The product cannot be independently verified. If the provider puts your funds at risk on purpose or by accident, you will probably not know about the issue before people start losing money. If the provider is more criminally inclined he might have collected all the backups of all the wallets, ready to be emptied at the press of a button. The product might have a formidable track record but out of distress or change in management turns out to be evil from some point on, with nobody outside ever knowing before it is too late.