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ItBit Review 2023: Fees, Security and Features
Luis Clark
- URL: https://paxos.com/itbit/
- Headquarter: New York City, US
- Year Founded: 2012
- Platform App: Desktop
- No. of Cryptos: 11
- Fiats Available: USD
- Withdraw Method: Cryptocurrency, Wire withdrawal, Silvergate Exchange Network (SEN)
- Payment Method: Cryptocurrency, Wire transfer, Silvergate Exchange Network (SEN)
itBit Review: Our Opinion
itBit has a simple, well-designed interface purposed for elite and institutional traders. The cryptocurrency exchange offers an over-the-counter (OTC) trading desk for large transactions, cryptocurrency custody services, APIs for advanced trading options — and a trading fees structure that favors high trade volume.
However, the cryptocurrency exchange only supports a limited number of just 11 cryptocurrencies, while the deposit and withdrawal methods are very limited and expensive. In addition, the exchange is only available on desktop platforms. There’s no mobile app support.
An Overview of ItBit
itBit cryptocurrency exchange was launched in 2012 by Paxos using a regulated blockchain architecture. Along with its New York City headquarters, it has international offices in London and Singapore.
itBit became the first cryptocurrency exchange to be licensed by the New York State Department of Financial Services in 2015, guaranteeing a basic level of security and insurance for customer assets.
The cryptocurrency exchange also received SOC 2 Type 2 certifications, showing that it is a top crypto trading platform with the tools to effectively service enterprise customers.
The itBit service is widely regarded as the only Bitcoin exchange that’s regulated and readily available in over 100 countries, including 50 states in the United States.
ItBit offer exchange services for professional and institutional investors. It is important to note that using any crypto exchange or service has both benefits and drawbacks. This section examines the pros and cons of the itBit trading platform.
Pros
- Powerful automated trading solutions for institutions and algorithmic traders
- Offers deep fiat-to-crypto liquidity pools for USD
- Safe and well-secured exchange regulated by the New York Department of Financial Services (DFS)
- OTC trading desk support via agency-only desk which offers a deep order book for trades over $100,000
- 100% cold storage for customers’ crypto assets on the trading platform
- itBit offers free deposits for USD wire transfers and SEN deposits for US clients
Cons
- Limited deposit and withdrawal methods
- Only 11 supported cryptocurrencies
- No mobile app support for investors who want to monitor their portfolio on the go
- USD is the only supported fiat currency on the trading platform
- Dollar withdrawal fees tend to be on the high side at $20 for US clients and $30 for international clients
Key Features of ItBit
Trading APIs
itBit offers three different types of APIs to assist in the execution of more complex strategies in addition to trading services through the default platform:
- The FIX API is tailored toward institutions and high-frequency traders.
- Market Data API is used to access itBit’s order books, pricing data, and trade data.
- REST API provides full trading functionality for algorithmic trading or algorithmic market analysis
OTC Trading
Over-the-counter (OTC) trading occurs directly between participants rather than via a centralized exchange. Without a middleman, deals are more lucrative and cheaper to execute.
Qualified personal or institutional investors can carry out OTC trading on itBit. The platform’s agency-only desk provides a deep order book, support, and competitive pricing for all supported cryptocurrencies. However, the crypto trade requirement must be over $100,000.
Cryptocurrencies Available on itBit
itBit has a limited number of supported cryptocurrencies that can be traded compared to other well-known exchanges. Although it supports about 11 crypto assets, itBit has some well-known altcoins like AAVE and LTC, as well as Paxos’ native coins. Here’s a rundown of some of the coins supported by the platform:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Binance USD (BUSD)
- Aave (AAVE)
- Polygon (MATIC)
- Chainlink (LINK)
- Uniswap (UNI)
- Pax Gold (PAXG)
- Pax Dollar (USDP)
ItBit Fees
The itBit exchange provides a simple fee structure that is competitive. The platform uses a maker fee and taker fee structure where maker orders, such as Post-Only orders (which increase exchange liquidity), are charged lesser fees than taker orders. These fees itBit charges ensure they have a deep liquidity pool, which enhances price discovery and creates a positive trading environment for all customers.
However, customers with a 30-day trading volume of more than $15,000,000 are eligible for a three basis point (bps) rebate on Maker orders. A bps is equal to 1/100th of 1%. The itBit fees are listed below:
Deposit Fees
Withdrawal Fees
Withdrawal Limit
- Individual customers $1,000,000 notional daily limit
- Institutional customers $50,000,000 notional daily limit
Payment Methods
The itBit cryptocurrency exchange is very limited regarding payment methods compared to other cryptocurrency exchanges. The platform only supports crypto deposits and wire transfers. However, customers should note that only FedWire or SWIFT transfers are allowed under wire transfers for personal accounts, while SEN is only available for institutional accounts. No funds sent via ACH transfers will be accepted.
ItBit Security
itBit, like other cryptocurrency exchanges, employs several security measures like most crypto exchanges. The exchange complies with “know-your-customer” (KYC) requirements and is regulated by the New York Department of Financial Services (DFS). Users’ assets also receive protection as:
itBit requires multiple-factor authentication (MFA) via an authenticator app, like Google Authenticator, when logging in. Each login triggers an automatic email containing
the login time and IP address. It uses third-party security and has multiple layers of DDoS protection, making it difficult for hackers to compromise.
- All customer funds are stored in cold storage.
- Also, itBit provides FDIC insurance on all fiat holdings held by US clients.
The exchange also offers regular crypto insurance for its native PAXG token and special custodial services for institutional clients, which include:
- 100% cold storage for digital assets, necessary cash reserves to support holdings, and regular, auditable account reporting
- PAXG insurance: The PAXG token is backed by real gold, and Paxos offers insurance and attestation reports to confirm the gold held in custody.
Opening an itBit Account
So far, in this itBit review, we’ve examined how this platform works, its features and fees. This section explores how to set up a trading account on itBit. The Bitcoin exchange has two types of accounts: personal and institutional.
Opening a Personal Account
Sign Up
Investors should go to either the Paxos or itBit websites and click “Create Account” to start. Users will be required to provide an email address and password. itBit will send a verification email to the user’s registered email address for account activation.
After verifying the email address, the link will take them back to the Paxos website. Log in using the registered email and password to complete the verification process. Users will be prompted to set up a Multi-Factor Authentication (MFA) device.
Verify Account
To verify the account, users must provide accurate and up-to-date information that matches the information on their valid government-issued photo ID — they’ll need to submit a photo of this ID later. Users registering as non-US customers should uncheck the box. Required information includes:
- First Name
- Last Name
- Date of Birth
- Identification Number
- Address
To complete their identity verification, customers must provide an up-to-date government-issued ID, such as a passport or driver’s license. The final step in the onboarding process will require users to take a snapshot of themselves holding their ID documents.
This completes the application process. Users can then wait to receive further instructions via email.
Opening an Institutional Account
To set up an institutional account, register an email address and verify it. However, users should select “I am registering for an institution” on the account verification page. Then fill out an account verification form. Complete all the necessary information and click on “Submit.”
The next step requires identity verification. Users can begin the ID verification process by providing the requested identity documents. Once completed the account verification, users will complete an Institutional Onboarding KYC application form.
Trading Experience on ItBit
itBit offers a straightforward interface. As a result, its online dashboard is well-designed and easy to explore. Users can start trading after creating their accounts by adding a bank account for a wire transfer or by depositing cryptocurrency to their accounts.
While itBit does lack some features found in other trading platforms, like margin trading or futures trading, but it offers other standard trading order types like limit orders, market orders, and post-only orders.
Customers can also take advantage of other advanced features, like OTC trading, which can be accessed through the itBit agency-only desk’s deep order book for crypto trades exceeding $100,000 — and powerful trading APIs for users like the FIX API, REST API, and Market Data.
Both experienced and institutional traders can benefit from the charting and analysis tools. Despite the order book’s complexity, a trader can learn it with constant practice.
Customer Service
itBit has a “Contact Us” option on its website for customer support, but there is no indication of a response time. The exchange claims to offer 24/7 customer support, which includes a FAQ page, a support center for existing customers, and a live chat option — where users can submit tickets or email questions to customer support.
Customer Satisfaction
To earn the trust and loyalty of customers, businesses must provide great customer service. According to itBit, customers can get responses to their pressing needs via the help center, FAQ, and a live chat option.
However, there are divided opinions from customers on third-party sites. Some active traders appreciate the ease of use and security the exchange offers. However, several customers have complained about the customer service’s slow responses and limited payment methods.
Does Exchange offer Education?
itBit offers an extensive education library to customers through the Paxos support center, FAQ page, and blog. Through these channels, users have access to firsthand information about new updates from the company and how to carry out self-help.
The blog also features articles about crypto ecosystem developments and the CEO’s personal updates. On the other hand, the support center and FAQ page provide guidance that ranges from facts about the business to details about how the exchange operates. The information offered in these areas is valuable, especially for crypto beginners.
Is itBit right for you?
itBit Crypto Exchange is designed for advanced and institutional crypto asset trading. The platform caters to users by providing perks like over-the-counter (OTC) trading desks for large transactions and several APIs for advanced trading. It secures users’ assets through security measures like cold storage and multi-factor authentication.
Traders dealing with large sums of funds will find the platform ideal for their use.
Final Thoughts
Our itBit review examined the exchange and provided some exciting discoveries. ItBit offers a deep trading platform with competitive fees across all currency pairs.
The large selection of APIs, the OTC trading platform, and the crypto asset custody service may make it an excellent choice for investors looking for a regulated, secure exchange to trade cryptocurrencies.
In spite of its numerous features, the lack of a mobile app and the limited funding options and crypto assets make it less desirable.
FAQ
Most frequent questions and answers
There are many reputable and trustworthy crypto exchanges. In the US, the popular ones are Coinbase, Gemini and Kraken. All three are regulated and licensed to operate in most US states, including New York. Furthermore, institutional investors can also use the itBit exchange as the platform is also trustworthy and regulated by top US financial regulators.
The fees itBit charges are among the lowest in the industry. The platform uses a simple trading fee structure like the maker fee and taker fee, where maker orders, such as Post-Only orders (which increase exchange liquidity), are charged lesser fees than taker orders.
VPN offers an additional layer of security against malware, viruses, and phishing attacks. A VPN masks the IP address of users, making it easy to trade crypto assets anonymously. It also prevents hackers or other crypto snoops from tracking the IP addresses or location of the user.
Investors who want to invest safely in crypto can use itBit. The New York State Department of Financial Services regulates the trading platform. It also offers security measures like multi-factor authentication, cold storage, and FDIC insurance for customers’ fiat balances.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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