Home Cryptocurrency itBit Review 2021: First Regulated Bitcoin Exchange Analyzed

itBit Review 2021: First Regulated Bitcoin Exchange Analyzed

by Serge Shlykov

ItBit is the first regulated bitcoin exchange in the United States. The company was founded in 2011 by Charles Lee, a former Google engineer.

The itBit fees are the lowest in the industry. ItBit has a very low fee structure, which makes it an attractive option for people who want to trade Bitcoin.

Some cryptocurrency exchanges serve as bridges between the world’s fiat currencies and the realm of cryptocurrencies, while others are just trading platforms for one crypto token to another. Binance, Coinbase, and Kraken are examples of large exchanges that nearly everyone is acquainted with. Others are largely unknown outside of their own countries. Some are user-friendly for beginners, while others may be intimidating even for experienced traders. ItBit is one of the brands you may have come across when researching crypto trading. This is an itBit review for 2020, so keep reading to see whether ItBit is the perfect fit for you.

What exactly is itBit?

ItBit exchange, which has its headquarters in New York and an international office in Singapore, began operations in 2013 as a brokerage service that allowed customers to purchase Bitcoin using fiat money. The New York State Department of Financial Services granted them a charter in 2015, making them the first regulated Bitcoin exchange in the United States. ItBit is now fully licensed as a bank in New York, allowing them to provide exchange services to residents of all 50 states. This is something that not many exchangers can provide.

Is itBit a genuine company?

ItBit was the first licensed cryptocurrency exchange in the United States, and it is presently regulated as a bank in New York. As a result, ItBit is as genuine as it gets.

What is the purpose of itBit?

When you visit the ItBit website, you’ll see that the company’s primary focus is institutions and active bitcoin traders. ItBit offers both an exchange and an OTC desk for purchasing Bitcoin, however OTC transactions start at $100,000 USD. So, if you’re seeking to purchase a big quantity of Bitcoin, ItBit is a great place to start. However, if you just want to purchase a few dollars worth of Bitcoin, an altcoin, or conduct some crypto token trading, you should seek elsewhere.

What services does itBit provide?

ItBit provides a number of tools to help traders complete transactions quickly and securely. No ItBit review would be complete without a look at a few of the most notable, so here they are:

API for itBit:

ItBit has a number of APIs that you can use to incorporate their crypto asset market data into your trading or investing software.

They provide FIX (Financial Information eXchange). Institutions and high-frequency traders will benefit from the FIX API. Institutions, algorithmic traders, and active traders may all benefit from FIX.

There’s also the REST API to consider. For algorithmic trading or algorithmic market research, REST is an HTTP-based API that provides complete trading capabilities. This is a public API that allows you to get market data from the exchange without requiring login.

Finally, Market Data API is a REST API that allows you to access ItBit’s order books, price data, and trading data. There is also a Public API for obtaining market data from the exchange, which does not need login.

itBit Coins are a kind of cryptocurrency.

ItBit’s coin choices is very restricted. ItBit is a brokerage service that allows you purchase Bitcoin, not a crypto exchange, thus there was never any aim of providing a broad range of altcoins.

You may purchase Bitcoin (XBT) using US dollars (USD), Euros (EUR), and Singapore dollars on ItBit’s exchange (SGD). ETH, BCH, LTC, XLM, PAX, BUSD, PAXG, and USDT may all be used to buy Bitcoin on the open market.

Trading Desk in the Over-the-Counter Market

ItBit is an over-the-counter trading desk that allows you to purchase Bitcoin using fiat money and other cryptocurrencies. The majority of transactions are completed within a day. There is no withdrawal charge and there is a fixed transaction fee. However, bear in mind that the OTC desk’s minimum transaction is $100,000 USD.

Insurance provided by the Federal Deposit Insurance Corporation

All accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to a maximum of $250,000. ItBit has gone to considerable efforts to monitor and safeguard investors and traders, as well as resolve problems that might put the exchange at danger. This isn’t very frequent in the crypto world, so kudos to ItBit for taking precautions. While 250,000 USD in insurance may seem to be a lot for inexperienced, low-volume traders, it’s important to remember that this isn’t ItBit’s primary market. The guaranteed sum isn’t that remarkable for businesses and traders that have millions of dollars worth of Bitcoin on ItBit.

Security

ItBit prioritizes security. You’ll be asked to activate 2FA as soon as you create an account (two-factor authentication). While this isn’t uncommon among crypto exchanges, ItBit goes a step further by implementing security procedures across the board. ItBit uses several layers of protection in an attempt to establish the industry standard for the safest exchange. They claim to use the SSL protocol, 2FA, and complete encryption to safeguard the trading platform from DDoS attacks.

ItBit uses secure offline cold storage wallets to safeguard all of its customers’ crypto assets. Mandatory background checks and compliance training are required of all employees.

Regulation

ItBit became the first licensed crypto exchange in the United States after receiving a charter from the NYSDFS (New York State Department of Financial Services) in 2015. ItBit is completely regulated as a bank in the state of New York, allowing it to operate in all 50 states.

If there is one effect of regulation that some traders may see as a disadvantage, it is that anonymous trading on ItBit is no longer possible. KYC is required and is more thorough than on other exchanges. Users must submit photo identification as well as evidence of residency. It’s also slower than other forms of communication… KYC verification takes approximately a week, and you won’t be able to make any purchases or transactions until then.

Fees

itBit Review 2021: First Regulated Bitcoin Exchange Analyzed

It’s not cheap to deposit fiat money into ItBit. Domestic wire transfers cost $10 + agency fees (if applicable), and international wire transfers cost $25 + agent fees when depositing USD into your account (if any).

The following are the ItBit withdrawal fees: Domestic wire transactions (above $3,000) cost $20 plus agency costs, whereas ACH transfers (up to and including $3,000) are free (if any). International wire transfers cost $40 plus the cost of the agent (if any).

The trading costs are straightforward: the taker charge is 0.35 percent, while the maker fee is 0.03 percent. Special fees are offered, but you must trade more than 25 BTC to qualify. ItBit is better suited for institutions and other high-volume traders for this reason.

What about itBit’s alternatives?

It has been pointed out in this ItBit review that high-volume traders may truly benefit from ItBit’s capabilities. However, it is not for everyone. You should go elsewhere if you only want to purchase a few dollars worth of Bitcoin, want to start cryptocurrency trading, want to buy EOS, ADA, or any other altcoin, or just wish to remain anonymous (as many high-value Bitcoin holders do).

For novices looking to purchase their first tokens, Coinbase, Stormgain, and Kraken are excellent places to start. The first two include some helpful videos and how-to instructions for learning the fundamentals of cryptocurrency trading. Binance is a good option if you want a wider variety of tokens with a user experience that isn’t too intimidating. Coinswitch enables you to purchase and sell crypto without establishing an account on any exchange, which is ideal for people who wish to maintain a low profile.

Conclusion of the Review of itBit

ItBit is one of the most popular bitcoin exchanges. And, as you’ll discover after reading our itBit review, their reputation is well-deserved. ItBit’s exchange and OTC desk are both simple, quick, safe, and dependable ways to purchase Bitcoin. That so, it’s important to remember that ItBit isn’t designed for casual or low-volume, low-frequency traders. If you just wish to spend a few hundred dollars in bitcoin trading, you should certainly consider another option. But, first and foremost, let me congratulate you on your decision to purchase or sell many million dollars’ worth of BTC. Second, I’d like to point you that ItBit is an excellent option for your transaction.

itBit Review
  • User-Friendliness
  • Security
  • Selection of Tokens
  • Fees for trading

Pros

  • It hasn’t been hacked yet, therefore it’s quite safe.
  • As a bank, we are fully regulated.
  • Can provide services in any state in the United States.
  • The UI is simple to use.
  • All accounts are covered by the Federal Deposit Insurance Corporation (FDIC).

Cons

  • Regulation entails more intrusive Know-Your-Customer (KYC) procedures.
  • Low-volume customers will find it unsuitable.
  • Fees are a little on the expensive side.
  • There will be no cryptocurrency trading.
  • There is no margin trading or short selling allowed.
  • There will be no ACH transfers.
  • There is no mobile app.

The itBit crypto is a regulated Bitcoin exchange that offers many different cryptocurrency trading options. It was founded in 2015 and has since become one of the most popular exchanges. Reference: itbit crypto.

Related Tags

  • itbit exchange
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  • itbit status
  • itbit customer service
  • itbit margin trading

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