LBank Review: Is This Crypto Exchange Legit and Safe in 2024 (2024)

Are you in search of an exchange that allows you to buy and sell crypto for fiat? Or possibly an exchange that lists numerous altcoins and regularly adds new ones to its selection? This LBank review may assist you in finding the right service for your needs, as it provides these capabilities and several more.

While LBank is not the most well-known exchange on the market (definitely not comparable with industry giants such as Binance and KuCoin- that's why LBank exchange rankings are difficult to find, as well), it has still established a solid user base over time, and its team is committed to adding and maintaining crucial features that traders frequently seek. These features include spot trading, futures, ETFs, and even NFT services.

However, a question that arises for some is whether the LBank crypto exchange is legitimate. It is certainly an important concern, and will be one of the focus points in my LBank review. In the aftermath of FTX, it is more crucial than ever that traders exercise due diligence, making it necessary to scrutinize the LBank exchange and view it through a critical lens.

What is LBank?

Simply put, LBank is a crypto exchange comprised of a range of features and tools that you would expect from any centralized trading platform. It is designed for both novice and expert investors, with a comprehensive dashboard for spot trading, futures, and ETFs. In other words, the LBank crypto exchange is exactly what you would expect from this industry.

Additionally, it has an NFT marketplace and several ways of earning more money semi-passively by locking away your funds or lending them for a flexible period. Connected to this are methods of earning extra money by completing bonus tasks and joining its affiliate project.

At first glance, the LBank crypto exchange appears simple, with a straightforward approach. But is this accurate, or is there more to this service that needs to be clarified in my LBank review? Let’s explore the tools and features it offers and see how a deep dive can help us answer the question, “Is LBank legit?”.

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LBank Review: PROS

Let’s begin this LBank review by examining the pros it has to offer. Analyzing the positives is always a good starting point, as it makes sense to view a platform from its best angles first before uncovering any complications or unsavory aspects. This helps to frame LBank in a way that allows us to understand why its user base likes it and continues to use it.

A Range of Trading Options

LBank is versatile when it comes to the options it provides investors. It offers spot trading, futures, and ETF dashboards to its user base. All of these are feature-rich, and give you a good set of information to help you understand what is happening on the trading floor.

For instance, you can easily view the 24-hour high, low, change, and volume for any asset or pair. You can also browse through order books, and apply technical analysis tools to the integrated charts. Notably, all of LBank’s charts are provided by TradingView, which is beneficial for advanced investors who are accustomed to the precise range of measurements and metrics that this service offers.

It is beyond the scope of this article to list every feature that LBank offers through its TradingView integration, but to give an indication of the extent of them, I'll mention a few elements. You can plot cipher patterns, Elliot impulse waves, and time cycles, apply fixed range volumes along with long and short positions, and view moving averages with easily adjustable parameters. Essentially, these are tools designed for highly skilled and knowledgeable traders.

Many exchanges on the market feature TradingView integration, including top platforms like ByBit, so this is not exactly unique, although it is always appreciated as it is a clear indicator of the types of users that a company is aiming for. It is fair to say that nobody will appreciate tools like this quite like a professional trader.

However, there is one interesting aspect to trading on LBank that is not readily available in many other places. The service offers grid trading, which is a popular trading strategy typically found in the Forex sector. It involves placing buy and sell orders at regular intervals or price levels above and below the current market price. The basic concept of grid trading is to establish a grid of orders that capitalizes on price fluctuations within a certain range.

The trader sets predefined price levels or intervals, commonly referred to as grid lines or grid levels. These levels act as reference points for placing buy and sell orders. On LBank, this is not available for its derivatives, but it is present for its spot trading. It even includes a specialized AI that helps determine a potential seven-day yield in relation to this.

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Crypto Lending Service

For some reading this LBank review, one of its standout features will be its lending service. LBank has a crypto loan tool designed for people who want to borrow extra money to further engage in spot, margin, and futures trading. The borrowing options are either BTC or USDT, and the collateral is in either ETH or USDT.

Admittedly, these are limited choices compared to platforms like Binance, which lets you borrow from over 100 different coins and tokens, but the service is still useful for people who prefer to keep all of these activities within LBank’s modest ecosystem. Among its advantages, there is no transaction fee for this process, users can repay at any time, and interest is calculated hourly.

The loan range to choose from is between 7, 14, 30, 90, and 180 days (with an auto-renew option to toggle between). This means you can engage in short-term or medium-length loans, which is beneficial for day traders who might need a little more buying power than they currently have for some trades.

Perhaps the biggest perk LBank offers is that users do not need to jump through any unnecessary hoops to request a loan. The barrier for this is extremely low, as the company states that as long as you are registered with it, you can make a request. This openness is one of the ways the crypto world shines, contrasting with traditional loan processes, which are often stringent.

It is important in my LBank review to also consider the terms for overdue repayments, as this should always be kept in mind, even if you are certain you can repay a loan in a reasonable timeframe. LBank states that they allow an overdue duration of 72 hours, during which you will be charged three times the hourly interest rate. And if you fail to make the repayments within this period, then the collateral will be liquidated.

Fiat Buying and Selling Options

An important point to highlight in this LBank exchange review is that it offers both fiat buying and selling options. Having these on and off-ramps is very significant, and is one of the best aspects of using a centralized exchange, as opposed to a decentralized one that can only operate with crypto assets.

The platform supports the buying and selling of BTC, ETH, and USDT. While this is a small selection, they are undoubtedly desirable cryptocurrencies that traders frequently engage with. The fiat options it supports are more impressive, with gateways for USD, GBP, EUR, JPY, and currencies with less prominence on the world stage, like ILS, NGN, BRL, and many more.

Traders can use VISA, Mastercard, and bank transfers to buy and sell crypto and fiat. USD, GBP, JPY, and EUR support all three methods, although some other fiat currencies have more limited options. Overall, this shows an impressive level of functionality, and the ability to perform actions like this is a relatively good sign that LBank may be legitimate, as setting up on and off-ramps can be challenging for some exchanges, as it requires having a solid reputation and good business connections.

NFT Marketplace

LBank users have access to a dedicated NFT marketplace built within the platform. Users can browse a database of NFTs, uploaded and maintained by members of the LBank community. While most of these NFTs are made by unknown artists (or are created by AI), what is important is that the service is offered by LBank, adding more variety and value to its user base.

That being said, there appear to be some legitimate artworks being sold and traded here. In particular, the work of South Korean artist Soobok Lucas Park can be found on the marketplace, which is refreshing to see, as he is a traditional painter rather than a digital artist, and his work adds richness to the platform. It also shows that there are some people taking the marketplace seriously.

Most of the NFTs uploaded here are pictorial, but there is nothing stopping other types of NFTs, such as tickets or blockchain domains like those offered by Unstoppable Domains, from being added. This makes them excellent for traders looking for more options and opportunities to earn assets without leaving the platform.

In a more general sense, NFT marketplaces have become a sort of norm nowadays, as far as centralized exchanges are concerned. LBank doesn't necessarily stand out from the crowd in this regard - you needn't look further than the Binance NFT Marketplace to understand that.

Still - it's a rather cool feature that's certainly useful for anyone who's interested in non-fungible tokens, or who wants to perform all of their trading activities (as well as manage all of their digital assets) on a single platform.

LBank Review: CONS

Naturally, in order for you to develop a thorough understanding of LBank, we need to talk about the less-than-stellar aspects of this exchange, as well.

No review would be fair without examining the flip side and considering what elements are cause for concern or eyebrow-raising. This is particularly important within my LBank review as I am trying to ascertain whether the service is legitimate. Let’s delve into the points that stood out during my research.

Some Concerns Around Legitimacy

Determining whether an exchange is genuine is a serious matter. Oftentimes, it's not a simple as it might appear at first glance - there are a lot of variables involved, many of which present themselves to be two-sided, and you usually need to dig really deep in order to get the full picture.

It wouldn't be fair to outright state whether LBank is legitimate or not, since it's a complex question. However, what's worth pointing out is that some users of the exchange aren't exactly convinced by certain specific aspects of the platform - this is something that's clear from the LBank reviews those users leave online.

A lot of the apparent discontent comes from an audit that was performed on LBank, some time ago.

Specifically, Hacken.io, one of the leading auditing services in the blockchain and Web3 space, produced a report on LBank, where it made some concerning discoveries. For starters, it found discrepancies in its liquidity in 2018, revealing trade volume and price inconsistencies across different pairs. It also found further inconsistencies with trading activity, which Hacken ruled as "most likely randomized".

LBank's trading volume also appeared unusual when compared to its website traffic. The Hacken report states that, in 2018, its 30-day adjusted trading volume was higher than Kraken, KuCoin, and Gemini. Considering how all three are market leaders in the space, this was made more suspicious when juxtaposed with LBank's significantly lower social media following.

At the time of writing, LBank's stats still look strange. It appears to have a higher 24-hour trading volume than Coinbase, Kraken, KuCoin, and Bitfinex. Considering how popular services like Coinbase and Kraken are, this is strikingly odd and aligns with Hacken's findings from years ago.

However, it is worth mentioning that the report is now a few years old, and some aspects raised are no longer 100% relevant. For instance, during the creation of the report, it was hard to find the team behind LBank, whereas nowadays, several team members are listed on LinkedIn.

This is actually much more than a simple "fun fact" that you should be aware of. With centralized exchanges (CEXs), reliability is at the top of the priority chart, and anything that can help the platform appear more reliable is going to make a difference. Having team members doxed (at least at the LinkedIn level) adds faces to the services offered, which is certainly a big deal to be aware of.

Lack of Innovation and Originality

Now, straight from the get-go, let me address something - a perceived "lack of originality" or an innovative edge isn't necessarily a con, in and of itself. That being said, it becomes one when the platform (service) advertises itself as being very "innovative" at the top of the homepage.

The first thing many traders notice when they enter the LBank crypto exchange is that it has an aesthetic that looks and feels like a lot of other exchanges on the market. In fact, its landing page feels very similar to what Binance used to look like back in 2021. While similar aesthetics are not uncommon in the crypto space, it does give off an odd impression.

This impression is reinforced by the fact that LBank offers very little that cannot be found on other popular exchanges. Remember that we are not talking about traditional trading, where new ideas are shunned or viewed as reinventing the wheel. The crypto industry is rich, varied, and constantly evolving. There are many novel, unique, and groundbreaking things that an exchange can offer, as the industry is consistently changing.

For instance, Binance offers DeFi staking, liquidity farming, and its own blockchain. Coinbase offers a dApp catalog, cloud tools, and private client services. Understandably, these are top exchanges in this space, so you might expect them to push boundaries, but if a platform lists innovation as its first defining trait, it is reasonable to expect an attempt at something outstanding.

Keep in mind that there are other ways to be innovative than just competing with the leaders in crypto. Many platforms choose to carve out a niche for themselves by focusing on one specific sub-sector within the space, such as derivatives, liquidity farming, or loans.

It should also be noted that you do not need to be particularly innovative to thrive in this space– this is just one option. For example, an exchange that is not necessarily unique but is well-regarded in the industry is KuCoin. However, the issue at hand is that LBank presents itself as innovative without backing it up.Innovation is highly sought-after by traders seeking novel and unique approaches to trading, so this term should not be used lightly.

Of course, we're not really able to see what's happening behind the curtain, and what new features and / or services LBank is potentially working on. To add to that, as I've hinted at the beginning of this chapter, this is as much of a con as you'll make it out to be, really.

For some traders, this might be noteworthy. For others, especially those who are simply looking for crypto-exchanging functionality and not much else, it's likely to be less important or impactful.

No US Verification

Unfortunately for Americans, there is no LBank USA exchange support. This means that US citizens cannot get verified and gain access to additional features or higher deposit limits. This is disappointing as the US boasts a multitude of crypto fans and enthusiasts, and a lack of full accessibility means the company is cutting itself off from a wide range of traders and potential users. Not to mention, a lack of US support typically hurts trading volume.

That being said, Americans can use LBank to some extent. They can deposit crypto and conduct some crypto-to-crypto trades, but overall it will likely be a limited and frustrating situation for traders. For those just dipping their toes in the water, it might be fine, but professional US traders would likely find this to be a waste of time.

Annoyingly, the website does not clearly state that there is no LBank USA exchange support. You could argue that there is no inherent need to do this, as the US is not the center of the universe (or of the global crypto market), but the company could have been more transparent.

For instance, an extremely simple way to approach this would be to allow people to choose their country of origin on the sign-up page, so if they do not see their country, they would already know that the service is not for them. If LBank still wanted people to access the platform without verification, they could at least display a warning sign or a cautionary message.

The easiest way to implement this would be to show it to people who try to register with a phone number. +1 (USA) numbers are allowed. They can stay allowed, but if somebody uses one, then the website could easily be programmed to show a warning message about its limited utility for people in this country. Overall, it just comes across as quite unclear.

How to Sign Up to LBank

I have dedicated this section of my LBank review to demonstrating how to sign up on the exchange. This is a relatively simple activity, which will not cover the verification process, meaning that it will be relevant to all traders from around the globe.

Step 1: Go to the “Register” button at the top of the LBank homepage.

Step 2: You will be taken to a new page, and then prompted to enter either your email address or your phone number, along with a password. Bear in mind that, even though there is no full USA exchange support from LBank, you can still enter a +1 phone number. This means you should be able to use a phone number from any region around the world.

Step 3: After this, you will be given a standard verification puzzle to complete. This is simply a jigsaw piece that you need to slot into place with a slider. It is a very simple task that is used to prove you are not a bot attempting to flood the LBank network.

Step 4: You will be prompted to click a button that will send a verification code to either your email address or phone number. Once received, input the number. This is a one-time action, used to prove that your phone number or email address is legitimate, and that you have access to it.

After this, you will have successfully signed up on LBank. If you are in a country that LBank supports, then the next logical step would be to get yourself fully verified. But do not worry if you do not, as you can still explore the platform and try out some of the tools available. Naturally, a lack of verification will lead to a stunted experience, but it can teach you enough about the service for you to decide whether you like it.

Conclusions

This LBank review is a good starting place for anybody who is interested in learning more about the service, its features, and its drawbacks. While there are several positive elements to highlight, such as its trading tools and fiat buying and selling options, there are also some glaring issues that cannot be ignored.

The accusations of volume and traffic manipulation, the lack of originality and innovation (despite presenting itself as such), and the lack of US support make this exchange seem somewhatproblematic. It is not without notable faults and question marks around its operations. It's a sign that the company behind the platform has a lot of work to do, regarding its image and utility.

For some, these might seem like negligible issues, and for those people, they should continue using the platform as they have found elements of it that shine for them. But for those who might be looking for another platform to check out within this LBank review, some great alternatives are Binance, KuCoin, and Coinbase. These are all leaders in their own right, with a good range of tools and features, and dedicated user bases.

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