Coincube is a relatively new virtual currency trading operation, which is apparently still in Beta stage. As such, there’s not much trader feedback available about the efficiency of the WAVE algorithm used for the auto-trading. One thing is certain: there are indeed a number of users out there who feel that the operation is indeed legitimate.
For the time being, it is not clear at all how Coincube.io plans to make money, and they will readily admit to it. Apparently, the creators of the operation are not particularly sure how they will make it all pay either. They are considering a premium version for the service, which might be paid, but there have been no decisive steps taken in this direction yet.
What is Coincube.io?
As said above, Coincube is a virtual currency auto-trader, but it offers much more than trading signals: it provides its users with full portfolio management, including diversification services. How exactly does it all work?
According to the introduction video on the homepage of Coincube.io, first and utmost, Coincube allows users to execute trades at several cryptocurrency exchanges at the same time. In addition to that, it diversifies investments into various currencies grouped into several categories. Market exposure can be manipulated by choosing between several such crypto-packages. The top 5 index for instance comprises the top 5 cryptocurrencies by market cap. For as wide a market exposure as possible, users are advised to go with the top 30 index, which will essentially invest in the top 30 cryptocurrencies by market cap. One couldn’t possible handle trading manually over such a wide range of assets.
In order to trade at a given exchange, the user is required to enter the API key of the said exchange into his/her Coincube.io trader.
Risk tolerance can be tampered with as well. A high risk tolerance setting means that all the currencies in the index will be traded equally. A lower tolerance setting will focus more on high market-cap currencies like BTC and less on smaller currencies which are theoretically more volatile.
After all the settings are made, Coincube’s WAVE algorithm gets to work, trading at the selected exchanges. Coincube is apparently limited to placing market making orders, in order to keep the exchange fees as low as possible.
Every user gains access to a portfolio page at the Coincube site, where they can keep an eye on the state of their investment.
As asset-prices go up and down, Coincube automatically rebalances one’s portfolio.
It is important to know that Coincube can only make trades through its API connections. It cannot withdraw coins for the user. This aspect of the operation can only be handled manually.
Can I Trust Coincube.io?
At this point, that question is a difficult one to answer… Whether or not you will find Coincube useful, depends on the efficiency of their trading algorithm, and in this regard there have already been some concerns voiced, though no one has called the setup unprofitable yet.
Promises and Features
Obviously, the main goal of using Coincube would be to generate profits, and there are no promises made in this regard either. Far from the too-good-to-be-true pitches of the scam industry, these guys apparently have no idea yet how well their system works. On one hand, this means we are not dealing with a scam, on the other, it is not exactly trust-inspiring either.
The fact that Coincube supports all the major exchanges is also a vote of confidence in its favor, as such exchanges will obviously take a second look at who they work with. They support Bittrex, Bitstamp, Gemini, GDAX, Bitfinex, Poloniex and Kraken.
As far as supported cryptocurrencies go, there are indeed an insane number of them available. There is a detailed page which makes all the information available in this regard at the Coincube.io site.
Question Marks and Red Flags
While Coincube is almost certainly not a scam, it does pose some question marks. Just how profitable is it? How does the trading algorithm work? Is it all worth the trouble? Will the owners set up a premium paid service?
As far as transparency is concerned, there are no shortcomings with this operation. The names and pictures of the team members are all displayed on the “team” page. These people are obviously not afraid to slap their names and faces on this product.
The CEO of Coincube is Robert Allen, while the CTO is Jibben Nee. Nee had apparently worked out a profitable cryptocurrency arbitrage program, before he joined the Coincube fold. The operation was launched in November 2014.
Some people have complained about the Coincube algorithm missing some obvious trading opportunities. Others have said that having crytpocurrency-based balances confuses the automatic trader, which seems to handle fiat currency balances better.
Coincube.io had a SimilarWeb global rank of 994,663 at the time of posting this review (October 2, 2017). This indicates the site is not very popular. However, it does get some traffic, especially from the US.
CoinCube Review Conclusion
Coincube does not appear to be a scam. Whether or not it is profitable over the short/long term is a different question though, one that for the time being, no one can properly answer. It has to be noted though that the features described above do work as advertised.