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An In-Depth Review of ItBit Cryptocurrency Exchange
ItBit is a popular cryptocurrency exchange and over-the-counter (OTC) trading desk that has been serving digital asset investors since 2013. In this extensive ItBit exchange review, we’ll explore how the platform works, its payment options and fees, security features, supported countries, and more. Our goal is to determine if ItBit is a legitimate and trustworthy place for traders of all experience levels to buy and sell cryptocurrencies.
Company Background of Itbit
Founded in 2013, ItBit is one of the oldest crypto exchanges still operating today. What sets ItBit apart is that it was the first digital asset trading platform to receive a Virtual Currency License from the New York State Department of Financial Services. This allowed ItBit to legally provide exchange services to customers in all 50 US states.
The exchange is owned and operated by ItBit Trust Company, with headquarters in New York City and international offices in Singapore. ItBit was started by finance veterans Chad Cascarilla and Charles Cascarilla, who felt that digital assets needed regulated institutional-grade venues for trading. They raised $25 million in their Series A funding round to build ItBit from the ground up with compliance and security at the forefront of its design.
Available Services of Itbit
ItBit operates both as a spot cryptocurrency exchange and an OTC trading desk. Through its exchange, users can buy and sell BTC and other major coins against the US dollar, euro, and Singapore dollar. The OTC desk facilitates larger trades of 10,000 BTC or more directly between two parties at spot or below market rates. ItBit also provides secure custody services for institutional investors holding large amounts of digital assets.
ItBit accepts wire transfers in USD, EUR, and SGD as deposit methods. Wire transfers are generally available within 1-3 business days and have no associated fees. ItBit does not presently support debit/credit card deposits or payment via third-party services like PayPal. Withdrawals can be made in the deposited currency via wire or other bank transfers for a nominal fee in some cases.
Liquidity and Trade Sizes
Both ItBit’s exchange and OTC desk boast strong liquidity due to the platform’s focus on large institutional players. The OTC desk sees average trade volumes of 350 BTC or more per transaction. ItBit does not impose volume limits on the size of trades that can be placed through the exchange either, provided accounts are fully verified. This makes ItBit suitable for all types of traders from retail to ultra-high net worth individuals.
ItBit has a simple and transparent fee structure:
- Maker fees on the exchange are free for 30-day trading volumes under 8,000 BTC. Above this threshold, discounted rates apply.
Taker fees are 0.2% for all traders.
OTC desk trades carry a flat 0.1% fee but are often executed at or slightly below spot prices.
Withdrawal fees vary based on currency and payment method but generally range from free to $40. Deposit fees max out at $40 as well depending on the deposit type. ItBit does not charge inactivity, funding, or account fees of any kind.
Security and Insurance of Itbit
As a New York State regulated trust company, ItBit must comply with stringent security and compliance protocols. Some key protections include bank-grade digital and physical asset security, two-factor authentication for logins, transaction signing via air-gapped “cold storage” servers, and ongoing third-party security audits.
ItBit also holds insurance on USD balances held at partner banks for up to $250,000 per customer through the FDIC. While cryptocurrency balances are not insured, ItBit has never suffered a hack or loss of customer funds since launching in 2013.
Reputation and Trustworthiness
ItBit has built an excellent reputation over nearly a decade in business due in large part to its regulatory compliance and security-first approach. There are no public reports of the exchange being involved in unethical, deceptive, or illegal activities. ItBit appears financially sound based on review of its audited financial statements as well. Most importantly, a search of forums and subreddits related to cryptocurrency reveals very few-to-no complaints or issues with the exchange over many years of operation. This paints ItBit as one of the most trustworthy names in the industry.
ItBit’s website and trading platform interface offer a familiar and intuitive design for buying and selling cryptocurrencies. New users can get started with the platform right away after account creation and identity verification. Depending on jurisdiction, this verification process may take 1-3 business days but provides access to additional features like higher withdrawal limits sooner.
Digital assets and fiat currencies are displayed in centralized wallets for transparency. Traders can place market or limit orders via the standard exchange interface. Charting tools, order books and market data are also available for advanced technical analysis and trade planning. Customer support is accessible 24/7 via phone, email and in-app messaging if any issues arise.
ItBit primarily caters to US customers but also accepts traders from other parts of the world. The only state not supported is Texas due to its unique regulatory guidelines. Outside of the US, ItBit customers hail from Europe, Asia, and other regions. Non-US users must provide more extensive identity verification including government ID scans.
Should You Use ItBit?
Summing up this extensive ItBit exchange review, the platform stands out as one of the most trusted and well-regulated options in the industry due to its history of always prioritizing legal compliance and security best practices. ItBit’s focus on large trades and ease of access for US traders makes it great for both institutions and active individual investors.
While payment options are still limited and a mobile app is missing, ItBit more than makes up for this with its robust feature set, competitive fees, and emphasis on serving professional traders. Accounts can generally be opened and funded within days. Excellent 24/7 support is also available should any issues arise.
Overall, ItBit gets strong marks for being one of the safest, most legitimate cryptocurrency exchanges operating today. Beginners and experienced traders alike will feel comfortable using ItBit to buy and sell digital assets. Its trustworthy reputation built over many years is unmatched among competitors. If security, compliance and institutional-grade trading infrastructure are priorities, ItBit deserves serious consideration.
How to Get Started With ItBit
Now that we’ve established ItBit is a highly reputable exchange, here are the basic steps to set up an account:
- Visit ItBit.com and click the blue “Create Account” button
Enter personal information like name, email and choose a password
Verify your identity by uploading ID documents
Fund your account by wire transfer or supported payment method
Enable two-factor authentication for login security
Place your first trade! ItBit supports market and limit orders.
Configure withdrawal processes and banking details
Upgrade to higheraccount tiers for extras like API access
Explore the ItBit platform, tutorials and 24/7 customer support
The registration and verification steps take 1-3 days typically. Then you can begin trading right away using available balance. Be sure to consult ItBit’s guides for any other specifics regarding your country or needs.
Other Things to Note
A few other points worth mentioning based on our research:
- ItBit does not currently offer a mobile app for on-the-go trading. Web access via desktop is required.
Supported coins are Bitcoin, Ethereum, Litecoin, Bitcoin Cash and a few stablecoins. More assets are coming.
No leveraged or margin trading products are available, keeping in line with ItBit’s conservative approach.
Large investors can request OTC block trades directly by contacting ItBit’s institutional trading desks.
Customer support is top-notch, responding to queries via multiple channels 24/7.
ItBit is working to launch new services like staking rewards, lending and additional fiat on-ramps.
Fees and features may change periodically based on trading volume tiers. Check website for latest.
Overall ItBit provides a full-featured yet simple experience well-suited for active cryptocurrency traders and investors focused on security, regulation and large trade sizes. New and experienced users alike should feel very comfortable onboarding and using the platform for spot digital asset trading.