itBit

itBit Review

itBit Highlights

With a loyal user base that includes institutional investors and high net worth individuals, itBit has gained a reputation as a trustworthy exchange. Let’s look at the features in our itBit review that set this exchange apart from the rest:

• Regulated by the New York State Department of Financial Services, ensuring a high level of security and compliance for users.
• Offers a clean and intuitive user interface, making it easy for traders of all experience levels to navigate the platform.
• Provides a variety of trading options, including spot trading, OTC trading, and trading on the itBit FIX API, which caters to traders with different needs and preferences.
• Stores the majority of customer assets in offline cold storage, greatly reducing the risk of hacks and thefts.
• Supports several popular cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, as well as two native tokens—PAX Gold and PAX Dollar.
• Offers powerful trading APIs, including the FIX API protocol for institutional high-frequency trading and the REST API for high-frequency algorithmic trading.
• Provides multi-factor authentication (MFA) and military-grade encryption to safeguard personal identifiable information (PII) within its systems.
• Allows customers to escalate unresolved complaints to the New York State Department of Financial Services for added accountability and transparency.

What Is itBit?

itBit is a cryptocurrency exchange founded in 2012 and has since gained a reputation as a reliable platform for buying, selling, and trading digital assets. While itBit may not be as well-known as some of the larger exchanges out there, it has a loyal user base and is especially popular among institutional investors and high-net-worth individuals.

One of the standout features of itBit is its commitment to security. The exchange stores the vast majority of its customers’ assets offline in cold storage, which greatly reduces the risk of hacks and thefts. Additionally, itBit is regulated by the New York State Department of Financial Services and is subject to rigorous oversight and compliance requirements.

This should give users peace of mind knowing that they are trading on a platform that takes security seriously and is held to high standards.

Another positive aspect of itBit is its user interface. Our itBit exchange review found that it has a clean and intuitive design that makes it easy even for novice traders to navigate. Additionally, itBit offers a variety of trade options, including spot trading, OTC trading, and trading on the itBit FIX API. This flexibility is appreciated by traders who have different needs and preferences when it comes to buying and selling digital assets.

However, it’s worth noting that itBit has its downsides. For one, the exchange has a limited selection of cryptocurrencies available for trading. This may not be an issue for some traders, but individuals interested in trading lesser-known altcoins should consider some other best crypto exchanges.

Currently, itBit only supports Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Solana (SOL), Polygon (MATIC), Chainlink (LINK), Uniswap (UNI), and Aave (AAVE). Moreover, itBit has two native tokens: PAX Gold (PAXG) and PAX Dollar (USDP).

Additionally, itBit’s fees are higher than some other exchanges. While the exact price structure varies depending on the type of trade, users can expect to pay a premium for using the platform. This may not be a dealbreaker for institutional investors or those making large trades, but it could be a turnoff for smaller retail investors.

How to Open an itBit Account

Here’s a step-by-step guide on how to create a personal Paxos account, which can be used to access itBit:

1. Go to https://account.paxos.com/login in your web browser.
2. Click on the “Sign up” button.
3. Enter your email address and create a password.
4. Check your email for a verification message from Paxos and click on the “Verify Email Address” button in the message.
5. You will be redirected to the Paxos website to log in with your registered email and password to complete the verification process.
6. You will be prompted to set up Multi-Factor Authentication (MFA) for added security. Follow the instructions to set up an MFA device.
7. Next, enter your personal information, including your legal name, birthdate, social security number (for US customers), or document ID number (for non-US customers), and address.
8. Once your personal information has been submitted to itBit crypto exchange, you’ll be prompted to verify your identity by uploading a photo of a valid government-issued ID and taking a selfie while holding the ID.
9. Once your identity has been verified, you’ll receive further instructions via email on how to proceed with your account.
10. You can now log in to your Paxos account at https://account.paxos.com and access itBit by navigating to the itBit exchange.

It’s important to note that additional identification documents may be requested during the account verification process, and the verification process could take approximately 1 to 3 business days to complete. Once your account has been verified, you can deposit funds and start trading crypto on itBit.

Is itBit Safe?

As a trust company regulated by the New York State Department of Financial Services (NYDFS), Paxos, the parent company of itBit, must meet stringent requirements for capital reserve, consumer protection, compliance, and anti-money laundering. This oversight ensures that all customer funds are held in segregated accounts, providing a high level of protection.

itBit also offers multi-factor authentication (MFA) to provide an extra layer of security for account access. Furthermore, itBit claims it keeps 100% of customer assets in offline cold storage, which means they are not connected to the internet and therefore protected from cyberattacks. This provides a higher level of security than hot wallets, which are connected to the internet and, therefore, more vulnerable.

itBit also offers PAX Gold Insurance, providing coverage against any potential loss of the gold held in custody by Paxos for the benefit of PAX Gold token holders. Additionally, the platform maintains reserves for its stablecoins, such as Pax Dollar (USDP) or Binance USD (BUSD), in dedicated omnibus accounts at FDIC-insured US banks, providing FDIC pass-through insurance for stablecoin holders who are or will become Paxos customers for up to $250,000.

All information is securely stored based on a thorough risk assessment of its business value, sensitivity levels, and vulnerability to security threats. itBit also employs military-grade encryption to safeguard personal identifiable information (PII) within its systems.

What Are itBit Features?

Aside from being regulated by the NYSDFS and offering a basic exchange platform with limit orders, market orders, and post-only orders, itBit also offers an OTC trade platform and APIs.

OTC Trade

As an agency block trading business, itBit does not trade against its counterparties. Instead, the platform requests quotes from other participants and liquidity venues to show you the best price available in the market.

To get started with OTC trading on itBit, you must have a verified Paxos account and pre-fund it with USD or the digital asset you want to sell. Then, simply reach out to the OTC desk via email with the asset and amount you want to buy or sell.

Keep in mind that OTC trade pricing may vary from exchange pricing depending on liquidity access and order size. However, itBit’s OTC trading feature offers competitive minimum trade sizes of $100,000 notional value and fees of only 10 basis points (.1%) on the notional value of the trade.

itBit supports trades in several popular currencies, including BTC, ETH, LTC, BCH, PAXG, AAVE, MATIC, UNI, LINK, and SOL. Once you agree on a trade price, the trade will be booked and finalized, with most trades settling on the same business day.

APIs

According to our itBit exchange review, traders can take advantage of powerful trading APIs that provide direct access to the platform’s features and capabilities. These APIs are especially useful for institutions and algorithmic traders who require automated trading solutions.

For instance, the FIX API protocol is designed for institutional high-frequency trading, providing a fast and reliable connection to the trading engine. This allows for quick and efficient trade execution, which is essential in high-volume trading environments.

Additionally, itBit’s REST API is an ideal solution for high-frequency algorithmic trading. It provides traders with easy-to-implement trading solutions that offer maximum flexibility and customization.

Moreover, itBit’s market data APIs offer traders REST API or streaming WebSockets access to the platform’s level two order book market and trade data. This data provides traders with valuable insights that can help inform their trading decisions and strategies.

Whether you’re a small-scale individual trader or a large institution with high trading volumes, itBit’s APIs cater to traders of all kinds. They offer a reliable and efficient way to trade digital assets, with features that can help automate trading strategies, access real-time market data, and execute trades quickly and efficiently.

What Are itBit Fees?

For a 30-day trading volume of up to $25,000, itBit charges a maker fee of 25 basis points (bps) and a taker fee of 35 bps. For high trading volumes above $60,000,000, the taker fee is -3.0 bps, while the taker fee is 6.0 bps. According to itBit’s website, a basis point is one-hundredth of a percent.

The table below shows the full cost structure on this platform:

ItBit does not currently allow ACH withdrawals, and the table below shows the itBit withdrawal fees for wire, cryptocurrency, and SEN withdrawals:

Finally, the following table shows deposit fees for wire, crypto, and SEN deposits:

itBit Customer Support - Which Options Does It Offer?

itBit’s primary customer support channels are email and ticketing, which may not be as instantaneous as live chat or phone support, but it does offer extensive support through its knowledge base and FAQ section.

The platform’s support center is the go-to resource for existing users looking for assistance, where they can submit a ticket and gain access to various tools to help with any issues they may encounter.

While itBit’s customer support is focused on email and ticketing, it’s important to note that customers have the option to escalate any unresolved complaints to the New York State Department of Financial Services. This regulatory body ensures that itBit adheres to the highest standards of customer service and accountability.

itBit Reviews - What Do Customers Say About itBit?

What do actual customers have to say about their experience using itBit? Let’s take a closer look at some of the key points from customer reviews.

A common complaint is itBit’s limited selection of cryptocurrencies. Currently, the exchange only offers a handful of digital assets. This may not be an issue for some traders, but those looking for more variety may need to look elsewhere.

Another potential drawback is itBit’s cost structure, which is reportedly higher than some other exchanges. While the fees vary depending on the type of trading being done, some customers feel that they are too steep, particularly for smaller investors.

Lastly, opinions are mixed when it comes to itBit’s customer support. While some customers have had positive experiences, others have had difficulty getting in touch with support and resolving issues in a timely manner.

Final Thoughts: Is itBit Worth It?

In conclusion, itBit is a cryptocurrency exchange that has gained a reputation as a reliable platform for buying, selling, and trading digital assets. The exchange has several standout features, including its commitment to security, user-friendly interface, and powerful trading APIs.

However, it has its downsides, such as a limited selection of cryptocurrencies and higher fees. Overall, itBit may be worth considering for institutional investors and high-net-worth individuals, but smaller retail investors may want to explore other options.

While the exchange has received some positive customer reviews for its security and compliance, its limited customer support channels and mixed reviews highlight the need for improvement in this area. ItBit may be a solid choice for some, but traders should do their research and weigh the pros and cons before making a decision.

FAQ

Is itBit legit?

itBit is a legitimate cryptocurrency exchange that is regulated by the New York State Department of Financial Services.

Who are the founders of itBit?

itBit was founded in 2012 by a group of financial professionals, including CEO Chad Cascarilla, Rich Teo, and Andrew Chang.

What are the fees for trading on ItBit?

The fees for trading on ItBit vary depending on the type of trade and its volume. Our itBit review found that, for a 30-day trading volume of up to $25,000, the maker fee is 25 basis points (bps), and the taker fee is 35 bps. For high volumes above $60,000,000, the taker is -3.0 bps, while the maker fee is 6.0 bps.