ItBit.com Review – Scam or Not?
ItBit is a Bitcoin exchange that offers cryptocurrency trading services including the over-the-counter (OTC) service. The company was launched in November of 2013, and its headquarters is in New York. They have an international office in Singapore and offer free deposits and withdrawals in Singapore dollars.
The exchange has emerged in the moment when everyone thought that Coinbase is getting ahead of the US-based exchange pack. But Chad Cascarilla, the co-founder, and CEO of itBit, raised impressive $25 million investment and announced itBit would be regulated as a bank in New York. This regulation meant itBit would be able to offer exchange services in all 50 states in the US, surpassing its main US competitor, Coinbase, which offers its services in 33 US states.
Verification at itBit
The verification process is following the industry standards and strong anti-money laundering regulations, so it requires identity verification as well as proof of residency.
Identity verification requires the government-issued document such as passport, national ID card or driver’s license. The proof of residency is a bit more complicated and requires a legal and traceable document with your full name and address. The address must be your current physical residential address, and the document must be in English, which can be a problem sometimes.
Verification usually takes between one to three business days to be completed. US citizens may have to answer some system-generated questions in order to get verified.
There are no trading limitations for unverified accounts. Supported FIAT currencies are USD, EUR, and SGD. All FIAT currencies can be traded against Bitcoin. The exchange doesn’t support any altcoins at the moment.
Domestic Wire Transfer in the US has a fee of 10 dollars, and International Wire Transfer fee charged 40 dollars.
ItBit has introduced a new, simple trading fee structure in the November of 2015. In case that the 30-day trading volume doesn’t surpass 8000BTC, taker fee is 0.20%, and maker fee is 0%. If the trader has a 30-day volume higher than 8000BTC, special lower fees apply. Special fees are not available to the public, and in order to get them, users will have to contact the exchange at ICG@itbit.com.
When it comes to deposits, USD Wire Transfer have a fee of $10 from the US and $40 from other countries. SWIFT deposit fee is $40 + agent fees.
For EUR deposits with SEPA Transfer the following fees apply:
- Transfer below 50,000 EUR – 3.70 EUR
- Transfer above 50,000 EUR – 35.15 EUR
Non-SEPA transfers in EUR – 1% of the amount transferred with a minimum of 3.71 EUR and a maximum of 35.15 EUR.
Singapore dollar and Bitcoin deposits are free of charge.
US dollar withdrawal via ACH is free up to $3000 for US citizens, and over $3000 the fee of $20 is applied. International Wire Transfer fee is $40. SWIFT transfers are also charged $40 plus intermediary charges paid to the third party.
EUR withdrawals with SEPA transfer under 50,000 EUR are charged 8.14 EUR and SEPA transfer exceeding 50,000 EUR are charged 70.32 EUR.
Singapore Dollar and Bitcoin withdrawals are free of charge.
Withdrawal limit is set to $2,500 daily and $15,000 monthly by default. After the two-factor authentication is added to the account, the withdrawal limit is automatically raised to $15,000 daily and $300,000 monthly.
itBit.com Trading Analysis
ItBit enables trading FIAT currencies for Bitcoin. The liquidity in all currency pairs is very good, as the bid-ask spreads for all FIAT currencies with BTC sticks in the range from 0 to 0.15 percent.
The exchange doesn’t offer a lot of trading functions, and the only available utility is a limit order. Advanced orders such as stop-loss are not available. The exchange doesn’t support margin trading or short selling at the moment.
Ease of Use
It seems that a lot of effort have been put into the design of itBit. The platform looks immaculate, and it’s very easy to use. The website is optimized for mobile use, but the trading platform doesn’t offer apps for Android or iOS.
One of the problems with the itBit is the speed. The website is slow, especially for mobile users. In volatile Bitcoin markets where every second counts, this can pose a serious problem.
ItBit has one of the best FAQ databases which covers almost any question related to the exchange functionality, its policies, and Bitcoin in general. The exchange offers an extensive education library and has a 24/7 email support with fast response time.
When it comes to complaints, users often mention phishing emails sent by a fake itBit email address. This isn’t directly related to the exchange, but it does some damage to its reputation as people are prone to believe in these complaints.
ItBit Security Analysis
ItBit is a well-secured exchange with two-factor authentication on login. Each login triggers an automatic email with login time and IP address to prevent any hacks. It uses third-party security with multiple layer DDoS protection, making it a tough cookie to crack for the hackers.
All customer funds are kept in cold storage, which is verified by the New York Department of Financial Services. Finally, itBit offers FDIC insurance on all fiat balances owned by US clients which go up to $250,000.
The exchange hasn’t been hacked until now. They don’t use PGP encryption in emails.
itBit Review Conclusion
ItBit is a top US exchange and for a good reason. They are the only Bitcoin exchange in the world that has been federally regulated and offers service in all 50 states. The trading platform’s liquidity is good in all currency pairs and their fees are competitive.
- Federally regulated
- Available in all 50 states of USA
- Good liquidity and competitive fees
- Keeps BTC in cold storage, backed by audited reserve minimum
- No mobile apps
- No margin trading and short selling
- No ACH transfers
If you’re based in the US, itBit is definitely a good choice for a Bitcoin exchange. But users who are looking to trade other coins might want to consider other trading platforms, such as Kraken.
Do you have good or bad experiences with this Bitcoin Exchange? Please share them!