VALR Review: A Look at Its Growth, Offerings and Competition

As the world of cryptocurrencies continues to evolve rapidly, new digital exchanges are emerging to facilitate trading between these revolutionary assets. One such promising platform is VALR, a South Africa-based crypto trading broker that has quickly gained prominence in the region.

In this in-depth review, we’ll look under the hood at everything VALR offers. From its feature-rich trading tools and competitive fees to security practices and available cryptocurrencies, learn whether this exchange has what it takes to satisfy both beginner and advanced cryptocurrency investors.

Pros and cons of trading on VALR

Here are some of the main pros and cons traders should consider when evaluating whether VALR is right for their needs:

A Brief History of VALR

Founded in 2018, VALR was established with a mission to help bridge the gap between traditional finance and the decentralized world of cryptocurrencies. Based in Johannesburg, the exchange aims to provide a frictionless trading experience where users can seamlessly buy, sell, store, and transfer crypto assets.

After securing $1.5 million in seed funding led by notable backers like Bittrex and Montegray Capital, VALR steadily grew its user base and has emerged as a leading platform servicing over 100,000 active traders across South Africa. The exchange has successfully expanded beyond retail investors to incorporate over 50 institutional clients as well. In March 2022, VALR raised $50 million in a Series B round led by Pantera Capital, valuing the company at $240 million. The funding will be used to expand into more African countries and other emerging markets, as well as to offer more products and services to its customers.

VALR’s founders bring decades of combined experience in finance, technology development, and entrepreneurship. This well-rounded leadership no doubt helps fuel the platform’s growth and steady maturation as it continues innovating its offerings.

Trading tools and platforms

VALR provides two distinct interfaces catering to distinct experience levels – a beginner-friendly “Simple Buy/Sell” mode and a more advanced “Exchange Buy/Sell” terminal. Both integrate seamless TradingView charting for powerful technical analysis.

Image: User Interface of VALR

The Simple mode allows easy spot trading of crypto assets against ZAR with streamlined order entry. Meanwhile, the Exchange interface unlocks futures trading, stop orders, and advanced order types through an expanded feature set optimized for professional traders. Mobile apps are also available on Android and iOS devices.

World-Class API Trading

While VALR’s retail interface offers a seamless experience, the exchange truly shines through its vaunted APIs. VALR’s application programming interfaces are considered among the best in the crypto industry, allowing direct access to algorithmic and quantitative trading bots.

Some key features supported through VALR’s APIs include:

• Real-time market data streams for all listed assets
• Historical market and trade data going back to inception
• Full order management capabilities for direct market access
• Advanced governance controls for building customized trading strategies
• Seamless integration with third-party wallet providers and brokerages

Strong APIs are a must-have for power users and professional crypto funds. And for these demanding clients, VALR stands head and shoulders above competing platforms through its world-leading interface. APIs truly unlock the potential of borderless, algorithmic trading on a global scale.

Cryptocurrency selection

VALR supports over 85 leading cryptocurrencies for trading, including major coins like Bitcoin, Ethereum, Cardano, and Dogecoin. The selection covers many popular altcoins without becoming too niche. Most assets trade against the South African Rand, though crypto-to-crypto pairs are also available.

Fee structure

Transaction commissions at VALR are very competitive, with taker fees capped at a low 0.1%. Even better, liquidity providers enjoy a rare 0.01% rebate as makers. Instant crypto purchases carry a 0.75% fee.

No deposit, monthly, or inactivity fees are levied either. Withdrawals beyond the first per month are charged variable network costs. VALR’s transparent pricing structure ranks among the most affordable in the industry.

Security practices

Security is a top priority for any exchange handling valuable assets. VALR adheres to best practices like bank-grade encryption, two-factor authentication, and risk management tools.

It also stores the bulk of crypto funds in “cold storage” offline for improved protection. Partnerships with reliable custodians like Bittrex further bolster defenses against potential threats. Comprehensive ID verification also helps curb financial crimes.

Supported payment methods

VALR only accepts South African Rand (ZAR) deposits via wire transfers and linked bank accounts at present. This geographic limitation can inconvenience international users, though it caters superbly to the exchange’s domestic audience. Crypto deposits from personal wallets are always accepted fee-free as an alternative.

Customer support

Though VALR could certainly expand its education resources, the broker’s dedicated support center is adequate for typical user issues. Questions can be addressed online through efficiently organized categories and a searchable knowledge base. Response time could be improved however as live chat is lacking. Social media is also monitored for user inquiries.

Earning opportunities

To reward liquidity providers and promote expanding its user network, VALR offers a competitive four-tier referral bonus system. Inviting others results in trading fee discounts of up to 15% as well as commission percentages derived from referred contacts’ activities. This encourages positive growth.

Overall rating

On the whole, VALR gets high marks for its intuitive user experience, comprehensive toolkit, transparent pricing, and above-average security precautions relative to industry standards. However, some drawbacks like limited fiat support, thin learning library, and slow support response could turn off power users seeking more well-rounded options.

While perfectly functional for the average South African crypto trader, international or advanced-level clients with broader needs may prefer alternative venues offering wider features, instruments, and global banking access. Still, VALR earns a solid rating of 8/10 based on its merit in serving current operational objectives capably.

Comparison to Other South African Exchanges

Here’s a brief comparison of some key metrics between VALR and two other top South African-focused crypto brokers:

As you can see, VALR holds its own against the local competition despite certain shortcomings. Its broad asset selection, advanced trading interfaces, and stringent security separate it as a front-runner in this niche market. Still, alternatives offer specific advantages that may suit different user profiles better in some cases. Thorough comparisons are advised before committing funds.

The bottom line: Is VALR a good exchange for crypto traders?

VALR is a promising platform for crypto traders who want to access a wide range of digital assets with low fees and high security. The exchange has proven its reliability and performance since its launch in 2019, and has attracted over 100,000 users and 50 institutional clients. The broker also offers advanced trading tools and APIs for professional and algorithmic traders, as well as a generous referral program for loyal customers. However, VALR could improve its fiat deposit options, educational content, and customer support to cater to a more diverse and global audience. VALR is a solid choice for crypto enthusiasts who value simplicity, efficiency, and quality.