Key Insights
- Upbit holds over 70% of the South Korean crypto market share.
- The platform recently merged with Naver Financial in a $10.3 billion deal.
- Users enjoy trading fees as low as 0.05% in the KRW market.
The crypto space has expanded over the last few years, and many exchanges have popped up.
Still, Upbit remains one of the most popular ones that investors go to. The exchange started in 2017 and has now climbed to the top of the trading charts.
The exchange started as a local project by Dunamu Inc. and has now become one of the go-to locations for digital assets.
Related: What happens if a crypto exchange shuts down overnight?
Upbit History and Recent Growth
The Upbit story starts with a vision from the exchange’s founder, Song Chi-hyung, in October 2017.
Under Chi-hyung’s guidance, the platform used a smart partnership with Bittrex to offer more coins than any local rival. This move worked perfectly and within just two months, it became the busiest exchange on the planet by daily volume.
Upbit has become one of the most popular exchanges in the world | source: Upbit
It also launched the Upbit Crypto Index (UBCI) in 2018 to help people track market trends.
The path to Upbit’s growth was not always smooth. For example, the exchange suffered a massive hack in 2019 that led to the loss of $48.5 million in Ethereum. However, instead of folding, the team built some of the strongest security protocols in the industry.
They earned ISMS-P and ISO/IEC certifications to prove their safety and by 2021, they were the first to register with the South Korean Financial Intelligence Unit.
Big changes arrived between late last year and now. Naver Financial announced a massive share swap deal to acquire Dunamu Inc. for $10.3 billion.
This merger has now put Upbit under the same roof as Korea’s biggest internet search company.
The founders, Chi-hyung and Kim Hyoung-nyon became billionaires through this deal, and they have pledged billions of dollars to grow AI and blockchain tech over the next five years.
Services on the Upbit Exchange
Trading is just the start of what this platform offers today. The exchange provides a full ecosystem for crypto and while spot market is the main attraction, there are other services that users enjoy.
Upbit hosts over 180 assets and allows South Korean users to use the KRW market for easy fiat transfers through K-Bank.
The platform also offers advanced order types, and high-frequency traders use Fill-or-Kill and Immediate-or-Cancel orders to manage their risk.
Secure 24-hour transactions with strong multi-factor authentication | source: Upbit
Passive Income through Staking
Investors looking for steady gains also use the staking service on the exchange. This feature lets users participate in blockchain validation without needing technical skills.
In other words, users can stake assets like Ethereum and Solana, or even the recently added Cronos (CRO), with a single click. Notably, the exchange also takes a small 10% fee from these rewards to cover node costs.
Digital Art and NFTs
The NFT Marketplace on Upbit offers users the cultural side of crypto. It features curated drops from K-pop stars and famous artists and even has a partnership with the SSC Napoli football club.
Users can also buy art or sell their own items on a peer-to-peer floor.
Smart Investment Tools
Long-term buyers tend to use the Coin Accumulation tool, which makes dollar-cost averaging easier.
You can set the app to buy a specific amount of Bitcoin or Ethereum every day or week, and this helps lower the average price you pay over time.
Institutional and Developer Support
Upbit also provides an “Open API” for developers to build third-party apps and trading bots.
This is important for big companies, as the exchange offers institutional-grade custody solutions through Dunamu. This includes multi-signature (Multi-sig) protection and “cold” (offline) storage to keep customer funds safe from online threats.
Trading Fees and Costs
One reason for the massive success of the Upbit exchange is its low fees, as illustrated by this table
| Market Category | Taker Fee | Maker Fee |
| KRW Market | 0.05% | 0.05% |
| BTC Market | 0.25% | 0.25% |
| USDT Market | 0.25% | 0.25% |
According to the table, trading in the KRW market is the cheapest option at only 0.05%. This is a huge attraction for high-volume traders, and depositing money or crypto is usually free.
However, withdrawal fees depend on which network you use. For example, sending tokens over the Ethereum network costs more than using Solana.
Network-Based Withdrawal Fees
Withdrawal fees are a bit different because they do not depend on the value of your trade. Instead, they depend on the specific blockchain network you use and every network has its own rules and congestion levels.
For example, sending tokens over the Ethereum network often costs more. This is because the network requires higher gas fees to process transactions.
On the other hand, using a network like Solana or Tron is much cheaper. These networks are built for speed and low cost and you can rest assured that before you withdraw, the app will show you the exact fee.
Transparency and Listing Standards
Upbit also works with the Digital Asset Exchange Alliance (DAXA), which helps set fair rules for the industry.
They also look at security, legal compliance and how much a project actually helps the ecosystem.
If a project does not meet these high standards, it will not be listed. This protects users from poor-quality assets. It also makes sure that the fees you pay support a reliable trading environment.
Fee Discounts and VIP Tiers
The platform sometimes offers tiered discounts for the most active traders. This means that as your 30-day trading volume grows, you might qualify for even lower rates.
This is part of some of its latest updates to keep the exchange competitive with other platforms. Note that these discounts apply automatically once you hit certain volume milestones.
The exchange also keeps a “100% Reserve” policy, which means that they do not use your money for their own investments.
Every won or coin you deposit isavailable for you to withdraw at any time. This honesty is why millions of people trust the platform with their money.
Unique Features of the Upbit Exchange
This platform stands out because it focuses on the specific needs of its users, and here are some of the most interesting.
Upbit offers features for professionals and beginners | source: X
The Upbit Effect and Market Power
Upbit is the undisputed leader in South Korea when it comes to crypto trading. The exchange controls more than 70% of all local trading, and when a new coin gets listed, prices tend to jump instantly.
Traders call this the “Upbit Pump,” and this happens because the platform has massive retail liquidity where thousands of users are ready to trade the moment a new asset goes live.
Advanced On-Chain Tracking
Security is a top priority for Upbit. The exchange uses its own On-Chain Tracking Service (OTS) to watch transaction flows in real time.
This makes Upbit stand out, because unlike other sites that use outside tools, Upbit’s OTS service was built in-house. It can spot scams or money laundering as they happen, and if a suspicious move occurs, the exchange can freeze the assets even after they leave the site.
Tracking the Market with UBCI
The Upbit Crypto Index (UBCI) is another special tool.
This is because it works like the S&P 500, but for crypto. In other words, users can track the “Market Index” to see how the whole sector is doing.
Not only this, but they can also look at the “Theme Index” for specific areas like NFTs or DeFi. This data helps traders make better choices based on actual information.
How to Create an Account
Setting up an Upbit account is a mobile-first process. This makes it fast, but sensitive, so following every step carefully is important.
- Download the App
Get the official app from the iOS or Android store. Sign up using your email or phone number, then create a password between 8 and 30 characters. - Enable Security
You must set up Two-Factor Authentication (2FA). The team recommends that customers use Google Authenticator or KakaoAuth, which are much safer than SMS codes.
- Link Your Bank
In order to use the KRW market, you need a K-Bank account. To do this, first link it in the “Bank Account Verification” area.
The app will then send a 1-Won deposit to confirm the link. - Identity Check
Complete the KYC steps to reach Level 2 or 3 and unlock full deposit/withdrawal limits.
KYC Requirements for the Upbit Exchange
The verification process on this exchange is very strict, because ithe Financial Services Commission (FSC) requires every exchange to know exactly who is trading.
Proof of Identity
You must upload a clear photo of your ID. South Korean citizens use their Resident Registration Card, but if you live elsewhere in Thailand or Indonesia, you can use a Passport.
Note that the system will reject any photo that is blurry or too dark, so be sure to take clear photos.
Live Facial Recognition
The app also uses a “Liveness Check” through your camera. This means that you might be asked to blink or turn your head on camera. This proves that you are a real person, and it stops hackers from using static photos or deepfakes.
Address and Job Details
If you intend to use higher trading levels, you need a utility bill or bank statement.
This must be less than three months old and you also have to share both your job and where your money comes from.
This is part of the Virtual Asset User Protection Act, and it helps stop money laundering across the platform.
FAQs and Common Questions
Can foreigners sign up?
Upbit Korea is mostly for residents with a K-Bank account. However, foreigners should check the Singapore, Thailand, or Indonesia branches.
Is my money safe if there is a hack?
The exchange keeps a 100% reserve policy. This means that most assets stay in offline cold storage.
In the past, the company used its own funds to pay back users after security issues.
Why are my withdrawals paused?
This usually happens during a network upgrade. If a coin like Ethereum or Solana is changing its code, the exchange freezes all transfers. This keeps your funds from getting lost during the switch.
What is an Investment Warning?
A red “Warning” tag means that investing in a coin is risky. It might have low volume or a shady team.
This could also be a sign that the coin might be removed from the exchange soon.
How does the On-Chain Tracking Service (OTS) help me?
The OTS is a tool that Upbit uses to watch for criminal activity. If your account is ever hacked, this system can track your stolen coins as they move across different blockchains.
It even allows the exchange to work with other platforms to freeze those stolen assets.
What are the daily withdrawal limits?
Limits depend on your verification level. In other words, if you have not completed your KYC, your daily withdrawal might be limited to about $850.
However, once you link your K-Bank account and pass the full identity check, these limits will be lifted.
Does the exchange offer customer support in English?
While the main app is in Korean, the international branches offer English support.
Note that for the South Korean site, most support is through KakaoTalk or email. You can also get help 24/7 through the app’s automated chat, but speaking to a real person is usually restricted to Korean business hours (KST).
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
