If you are looking for an exchange that offers large volumes of bitcoins then itBit just might be a good choice for you. This article reviews the platform in terms of its fees, verification requirements, trade properties, and security.
We also provide comparisons with other exchanges such as Changelly and Bittrex, as to flash out pros and cons of the exchange. We end with a history of the company and the concluding remarks, summarizing all points.
General Information about Exchange
itBit is a cryptocurrency exchange that gears its services toward more experienced traders and institutions. The platform offers two types of products for its clients, a regular online exchange, and OTC (over-the-counter) desk. Regular exchange orients towards individuals with smaller trades in mind, aimed at individuals doing regular instant trading. Below is the picture representing the order market.
OTC desk is more suitable for institutions, as the platform hold large volumes of bitcoins for low fees. Both platforms are backed up with the deep liquidity of the itBit coins storages. Its services are available globally, with all 50 US states supported.
The company offers customer support services through either direct email contact or extensive FAQ section. itBit does not offer mobile apps as additional platforms to work with, much like Bittrex and Changelly.
Account Registration and Verification
Registration at itBit itself is a little more demanding than other exchanges out there. The first step takes few minutes of work, as you need to simply provide your username, email, and password in the first step. Then, you would need to verify your email and provide your personal details (which cannot be changed later on!), as shown below.
Once you have passed the forms, now you have to go through full verification of your identity, since company follows AML and KYC policies. You choose what type of identity document you wish to provide, any of which must be in the English language, with an example being shown below.
Currently, only bitcoins are accepted at itBit as a tradable cryptocurrency. If you were looking for different sets of altcoins alongside with bitcoin, then Changelly and Bittrex would be the choice for you. These two platforms offer a wide range of coins for trade, with many pairs available as well.
At itBit, you can deposit fiat money through bank transfers only. American traders can use USD wire transfers at the flat cost of $10 while non-US investors are charged with $40. European traders have SEPA transfers that cost €3.70 for deposits of less than €50.000. Over that number would land you a cost of €35.15. Snapshot below is an example of the bitcoin trade order setting.
Bank transfers expressed in EUR would cost you 1% (minimum €3.71) from the funding amount while Singapore transfers are conducted free of charge. The costs are very much in line with exchanges like Changelly and Bittrex, who charge between 0.25% and 0.5%.
Exchange Rate and Fees
Apart from deposit fees, once you commence the trade, you should be aware of the transaction costs as well. itBit implements the taker/maker system, where 0.2% is charged for taker orders while maker offers do not cost a thing.
The OTC desk offers 0.1% fee per transaction for those traders that work with over 25 bitcoins per trading block. When combined with deposit fees, the costs at itBit are bit higher than those in Changelly and Bittrex.
The exchange rate operates close to the industry average, with less than 1% difference between buying and selling bitcoin price.
With the daily trade of almost 6.700 bitcoins, itBit offers deep liquidity for traders to use when buying and selling bitcoins. The said liquidity is possible through successful investment projects and crowdfunding, with over $25 million raised in 2013. Since then, itBit’s two services, exchange and OTC desk, provide growing number of bitcoins available for trade. Add to that competitive fees for a regulated business and you have a recipe for a large supply.
The platform established its operations in the year 2013, basing its operations in New York, USA. Since then, the company opened an international office in Singapore as well, gaining the access to Asian markets.
In mid-2015, the company obtained a trust company charter, becoming one of the first regulated cryptocurrency banks in the USA. With the license, it became a regulated company eligible for all 50 US states.
The first lines of defense are the company’s platform protection features. itBit keeps all the coins in cold storage, which can be checked by using Crypto Asset Custodial section of the site. Additionally, according to the audit requirements, a minimum reserve of funds needs to be kept in bank accounts at all time.
The personal security is maintained by two-factor authentication (2FA) and email notification systems. Both are used to keep the hackers away from your balances. You can see the 2FA setup page below.
Additionally, you have Multi-Signature wallets that use different address codes as a method of protection as well. Multisig wallets also use several factors of authentication of the transactions by combining web and phone confirmations.
Pros and Cons
⬤ low transaction fees
⬤ two distinctive exchange programs, regular exchange, and OTC
⬤ good deep liquidity rate
⬤ globally available services, all states in the US included
⬤ cold storage of all coins and audited reserves kept at all times
⬤ extensive verification needed for trade
⬤ a limited number of currencies and digital coins
⬤ only bank transfers accepted as deposit methods
⬤ mobile platforms are not available at the moment
If you are a serious trader who wishes not to be bothered by the large choice of trading tools, then itBit is a place for you. Armed with OTC desk and regular exchange and protected with advanced safety features, itBit is a safe haven for BTC traders.
Those who wish for more diversity in asset investments would find Changelly and Bittrex more accommodating for their needs. The reason for that lies in at that itBit supports only bitcoins as a trade asset.