ItBit Exchange Review: All Info In One Place
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Cryptocurrency exchanges are platforms where one can buy or sell cryptocurrencies in exchange for fiat money such as US Dollars or other cryptocurrencies. There are two types of exchange platforms. The first is market maker exchanges which bid and buy digital currencies from sellers and then sell them to other buyers at a profit. The second type is matching platforms which merely act as a marketplace like eBay, for connecting buyers and sellers to each other and then charging a small fee for this.
ItBit is a matching exchange platform that only trades Bitcoins. However, there are other platforms which deal in more than one cryptocurrency. The trading prices are typically determined in an open market depending on the value of a given cryptocurrency. The value of a cryptocurrency is determined by factors such as demand, supply, and trust.
What is ITBIT?
ItBit is an American financial services company that offers two kinds of services: Bitcoin exchange and OTC (Over the Counter) desk services. These services are available to both individual active traders and institutional organizations. Bitcoin exchange allows users in the US and globally to buy and sell Bitcoins to other users on the platform. Bitcoins can be exchanged with three different fiat currencies; the US Dollar(USD), Euro(EUR) and Singapore Dollar(SGD). The OTC (Over the Counter) desk service is a boutique service that specializes in large Bitcoin trades of at least 100 Bitcoins. ItBit also offers digital asset custody services for institutions willing to protect and secure their digital assets. These assets are stored and secured by a regulated New York State Trust Company.
ItBit is unique in that it is the first regulated Bitcoin exchange platform in the US and the only company in the cryptocurrency community with Bitcoin exchange and OTC desk services available in one account. ItBit was licensed by the New York State Department of Financial Services (NYDFS) in the year 2015.
ItBit has its headquarters in New York, United States, with an international office in Singapore. The company was launched in November 2013 by its current CEOs Charles Cascarilla and Richmond Teo and has grown to become the most significant exchange in the US. The itBit platform is supported in 50 states in the US with the exception of Texas and is also available in all countries worldwide.
Which buying and selling options does itBit offer?
itBit currently supports buying and selling of Bitcoins against three different fiat currencies which include USD, EUR, and SGD.
Users with accounts that have 2-factor authentication (2FA) enabled, have a daily withdrawal limit of 30,000 USD and a monthly limit of 600,000 USD. Users without 2FA enabled in their accounts have a daily withdrawal limit of 2,500 USD and a monthly limit of 15,000 USD.
itBit accepts deposits in US Dollars, Euros, Singapore Dollars and Bitcoins. Withdrawals can also be made in these currencies.
itBit provides a dedicated OTC desk service for high volume traders with trading amounts exceeding 100 Bitcoins. These clients mainly institutions enjoy personalized trading support, competitive pricing, and broad orderbook.
ItBit does not limit trading amounts for both Bitcoin exchange and OTC desk service as long as the user has submitted all the required verification information.
ItBit does not support reversal of transactions once an order has been executed.Users ought to be careful when trading.
itBit payment methods
Payments can be made in either fiat money or in the supported cryptocurrency. Payments in US Dollars can be made through wire transfer using networks such as SWIFT. Payments made in Euros can be made through SEPA (Single Euro Payments Area) bank transfer. Payments in Singapore Dollars can be made only through bank transfer
Payments can also be made in Bitcoins by transferring Bitcoins to or from the user’s itBit wallet account to the platform’s address.
itBit does not support payments using credit cards, debit cards or PayPal.
What are the supported cryptocurrencies on itBit?
ItBit only supports trading in Bitcoin.
Interested traders with other cryptocurrencies, therefore, have to exchange them for Bitcoins in order to be able to use the platform.
ItBit’s Bitcoin exchange service uses a maker-taker model for charging trading fees to its users. Makers are simply traders placing maker orders while takers are traders placing taker orders. Makers are not charged any trading fees while takers are charged a fee of 0.2%. These fees apply to users with a 30-day trading volume of below 2,500 Bitcoins. Customized fees are applied to the rest of the users with a trading volume above 2,500 Bitcoins. This model ensures the platform operates with a deep liquidity pool that provides a favorable trading environment at favorable prices for its customers.
ItBit also charges a flat trading fee of 0.1% for all transactions done through the OTC Agency trading desk.
In addition to trading fees, itBit charges deposit, and withdrawal fees. Deposits made using wire transfer attract a fee of 10 USD for users within the US and a fee of 40 USD for users in other countries. The following fees are charged for deposits made in Euros using SEPA transfer:
- Deposits below 50,000 Euros – Fee of 3.70 Euros
- Deposits above 50,000 Euros – Fee of 35.15 Euros
Deposits made in Euros using non-SEPA transfer attracts a fee of 1% of the deposit amount.
Withdrawals of up to 3,000 USD made electronically using the ACH (Automated Clearing House) network are free for citizens of the US. A higher amount attracts a flat fee of $20. Withdrawal through international wire transfer draws a fee of $40 for users outside the US. The following fees are charged for withdrawals made in Euros using SEPA transfer:
- Withdrawals below 50,000 Euros – Fee of 8.14 Euros
- Withdrawals above 50,000 Euros – Fee of 70.32 Euros
All deposits and withdrawals made in either Bitcoins or Singapore Dollar are free of charge.
As compared to other exchanges. Deposit and withdrawal fees are however high,especially for non-US citizens.
The following table summarizes itBit fees charged for various transactions.
|Service||Transaction type||Method of payment||Fees Charged|
|Bitcoin Exchange||Trading||All||0.2% fee|
|OTC desk||Trading||All||0.1% fee|
|Bitcoin Exchange||Deposit||Wire transfer||10 USD fee (US Citizens), 40 USD fee (Non-US Citizens)|
|Bitcoin Exchange||Deposit||SEPA transfer||3.70 EUR fee (<50,000 EUR), 35.15 EUR fee (>50,00 EUR)|
|Bitcoin Exchange||Withdrawal (US citizens)||Wire transfer||Free (<3,000 USD), 20 USD fee|
|Bitcoin Exchange||Withdrawal (Non-US citizens)||Wire transfer||40 USD|
|Bitcoin Exchange||Withdrawal||SEPA transfer||8.14 EUR fee (<50,000 EUR), 70.32 EUR fee (>50,00 EUR)|
|Bitcoin Exchange||Deposit and Withdrawal||Bitcoin or SGD payment||Free|
What are itBit’s verification requirements?
Since itBit is a regulated platform, it follows strict verification procedures to prevent money laundering and comply with the US government financial policies.
Verification involves identity verification and proof of residency. This consists of the provision of government-issued identification documents such as passport, national ID card or driving license. Proof of residency verification is much more extensive and requires the provision of a legal and traceable document containing your name and location address. In addition to this US citizens have to answer some system generated questions before being verified.
Institutional applicants both US and non-US based are required to fill and submit some special documentation as part of the verification process.
Typically, verification takes one to three business days to be completed. However, itBit has a knowledge-based authentication system for US citizens that take much shorter time to be completed.
What unique features does ItBit have?
ItBit provides powerful API services that include a Bitcoin trading API and a market data API. This allows institutions and high-frequency traders to access various market and trading data which they can use in their programs and applications.
Itbit also allows trading without limitations for unverified accounts. However, limits apply when it comes to withdrawal transactions.
Is ItBit safe?
What is the user community trust on ItBit?
The general consensus is that ItBit is an ideal exchange platform for trading large amounts of Bitcoins, especially in the US. The company has an excellent reputation due to its strict adherence to financial policies since it is licensed and regulated by the New York State Department of Financial Services (NYDFS). This strict adherence to laws and regulations makes it a secure platform to use.
ItBit is the perfect platform for investors interested in trading Bitcoins securely and who have no problem revealing their identity.
There have also been no reports of ItBit being hacked or their security breached.
What security protocols does ItBit employ?
ItBit is a well-secured exchange with high-security standards and procedures to secure user’s assets and data.
To start with, the exchange provides a two-factor authentication feature to its users to enhance the security and safety of their accounts. This feature requires users to give an auto-generated code which they have to input every time they log into their accounts. This is in addition to the user’s username and password.
The platform offers a 100% offline Bitcoin cold storage to its users to ensure the safety of their coins. The platform also uses multiple layers of DDoS protection which fortifies it from attack by cybercriminals. Fiat deposits made by users within the US are kept in regulated banks in the US where safety is assured.
How is itBit’s customer support?
ItBit has average customer support through which users can make inquiries. Inquiries can be made via email or phone.This support is active 24/7. OTC desk service clients have access to superior personalized customer support around the clock. In addition to this, itBit has an extensive FAQ section on their site that provides all the necessary information one can require.
What is itBit’s handling speed?
Using ItBit is disadvantageous when it comes to handling speeds especially for users living out of the US. Payments made through wire transfer typically take 2 to 3 days to be completed. Verification also takes the same amount of time to be completed. However, for US citizens, handling speeds for various services are much faster.
The ItBit website is also quick in handling various requests made on the site such as trading once payments have been made.
How to use itBit?
ItBit has an excellent easy to use platform that has been designed and optimized for both mobile and desktop viewing. There are three different services offered by the company that is Bitcoin exchange, OTC desk service, and crypto asset custody services. The following is the procedure when accessing these services on itBit.
Bitcoin Exchange and OTC trading
- Create an account on itBit. This can either be an individual account or an institutional account.
- After signing in, the site will request for further verification information which includes Identification information and proof of residency. Provide this information accurately in order for the account to be approved.
- The next step is to fund your account in either conventional fiat currency or Bitcoins using the various methods of payment supported.
- The user can now begin trading. Trading in the exchange is achieved by placing bids or offers for either buying or selling Bitcoins respectively.
- The platform will automatically pair matching bids and offers and display them to the user. The user can then place an order to either sell or buy Bitcoins.
- After placing an order, the order is processed, executed and then cleared instantaneously to avoid being viewed by other users.
Crypto Assets custody services
- Click on the ‘Custody Services’ tab on the top ribbon of the main page.
- The site will then prompt you to fill a form. The form requires your identification information, the specific type and a number of crypto assets you wish to store and your contact information.
- The platform will then allocate the user with a member of their custody services who will assist in further procedures.
In a Nutshell
The best thing about ItBit is that it’s a regulated, secure, reliable and strictly compliant Bitcoin exchange. This platform is especially suited for high volume traders due to its excellent perks for such traders. It also charges relatively favorable trading fees for all its users.
It’s, however, not suitable for use by traders seeking anonymity since it follows a strict know your customer policy. It’s also not ideal for beginners especially those living out of the US due to the high deposit and withdrawal fees charged for non-US citizens. It also supports only one cryptocurrency hence not suitable for traders interested in other cryptocurrencies besides Bitcoin.
|It’s a regulated and secure platform.||Supports only one cryptocurrency.|
|Offers good liquidity and competitive fees to its users.||Does not support payments using credit cards and debit cards.|
|Is supported in all countries worldwide.||There is no user anonymity.|
Hopefully, you’ve found information shared in this article helpful. Every single day we publish carefully curated content about cryptocurrencies on our site. We invite you to check it out and learn the numerous investment options the cryptocurrency space offers.