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itBit

itBit Review
Trader's rating 1
Editor's rating 4

Trading accounts and conditions

 

Account type Leverage Fees
Standard 1:1 *0.20% taker fee, 0% maker fee

*The OTC Trading desk for large orders charges a 0.10% flat fee per transaction.

 

itBit is a New York licensed US bitcoin exchange that offers services both to small retail and large and institutional clients. The service for smaller clients is called simply “exchange”, while the institutional service is called “OTC Trading Desk”. It is a “boutique service specializing in large bitcoin trades starting over 100 bitcoins”. It offers a deep orderbook, personalized trading support and competitive pricing. This service charges a flat fee of 0.10% per transaction. Additionally, itBit offers personalized service for active traders with a 30-day trading volume over 2,500 bitcoins.

 

Currently itBit offers trading only in Bitcoin against USD, EUR and SGD.

 

Unlike many exchanges who do not require verification at initial registration itBit does require immediate account verification, even before letting the users into their account. For the purpose one needs to provide a copy of government ID and proof of residence, which is more or less the industry standard. The verification process, particularly for foreign clients, takes a few days. For the institutional clients, there is a set of required documents that include incorporation or sole proprietorship proof.

 

ItBit does not offer leveraged trading, but there are cryptocurrency exchanges who do so, like Kraken, bitFlyer, Coincheck, Poloniex, etc. There is also a large number of forex brokers like IG, HYCM and easyMarkets, for example, who offer leveraged trading on CFDs on some of the most popular cryptocurrencies.

 

>> Forex brokers offering leveraged Bitcoin trading <<

 

The Company. Security of Funds

 

Company Country Regulation
itBit Trust Company, LLC USA  NYDFS

 

itBit is a New York based cryptocurrency exchange established in 2013 that operates legally in all 50 states, but also accepts international clients.

 

So far there are no unified rules and requirements for the US cryptocurrency exchanges, but the state of New York has introduced a license. In the spring of 2015 itBit has become the first US bitcoin exchange to get a charter from the New York State Department of Financial Services (NYDFS) under the state banking laws. There are two major cryptocurrency exchanges who have a New York bitcoin license: Coinbase and its institutional platform GDAX.

 

itBit employs robust security measures, such as two-factor authentication, multiple layers of platform security and 100% bitcoin cold storage. The company adheres to the CryptoCurrency Security Standard (CCSS) , which is a set of procedural requirements for secure handling of bitcoins established by C4, BitGo Inc. Additionally, all USD assets,  FDIC-insured and all fiat and bitcoin customer assets are fully protected and backed by mandatory capital reserves. Furthermore, the funds of itBit’s US customers are held exclusively in regulated US banks and do not leave American soil. ItBit also provides its US customers with the 1099 forms for tax reporting. 

 

The exchange also is fully compliant with the US anti-money laundering and know-your-customer procedures and requirements.

 

Trading platform

 

We could not gain access to itBit’s trading platform. We noticed, though, that the exchange provides access to market data with charts, the order book and the bitcoin network with a hash rate, market cap, mining revenue and average confirmation charts to anyone who visits the site. We find this fairly convenient.

 

We also came across user comments that the mobile web interface of the exchange is quite slow, but this could be actually caused by slow network and not by the platform itself.

 

Methods of payment

 

The only payment method for fiat currencies itBit accepts, is bank transfer and nothing else. This is quite inconvenient, as the bank transfers, especially the international ones, are far from instant and come with hefty fees. There are also default withdrawal limits of USD $2, 500 daily and USD $15, 000 monthly, but they can be changed. This, however, is done through printing out, filling in and e-mailing a two-page from and we find this a bit tedious.

 

The fact that itBit does not accept payments with credit/debit cards is quite inconvenient, especially for international clients who must pay through the nose for bank fees and wait several days for their payment to be processed.

 

>> crypto exchanges who accept credit cards <<

 

Conclusion

 

The best thing about itBit is that it is a regulated and strict cryptocurrency exchange. It takes rules, regulations and security very seriously and this is a very good thing.

 

However, those who wish to remain anonymous or register and start trading quickly, should go elsewhere and look for exchanges that do not have such strict and lengthy verification requirements. Those who have nothing to hide, though, would be absolutely fine with itBit.

 

A plus of itBit is the offering of special services and lower fees for the large traders.

 

What we do not like about this exchange is the fact that it does not accept credit and debit cards as payment. This, as we said, is not very convenient for a number of reasons.

 

Another minus of itBit is the fact that it does not offer other cryptocurrencies, besides Bitcoin. For those interested in trading in more than one or another altcoin, most exchanges have a somewhat larger selection. There are also platforms like Bisq and LiteBit who have a pretty big portfolio.

 

Pros Cons
NY regulation No anonymity
Robust safety Bitcoin only
Special service for large traders No credit/debit cards accepted
Accepts fiat currencies  

 

 

CoinSpot

CoinSpot Review
Trader's rating 1
Editor's rating 3.8

Trading Accounts

Account type Daily Limit Leverage Bitcoin Fee Altcoin fee
Standard $2,000/$10,000 None 2%  3% 

 

CoinSpot is one of the leading Australian cryptocurrency "gateway" companies i.e. a service which allows the purchase of crypto with fiat money. They put a lot of emphasis on domestic clients.

 

The company, security of funds

Company

Country Regulation
Casey Block Services Pty Ltd  Australia N/A

 

CoinSpot was founded in Melbourne in 2013. At the time of writing of this review they are not registered with a relevant Australian body, simply because the legislative process in the country is still in progress. You can read a brief summary of the current situation, as well as find reviews on the other major players in the space in the link below. 

 

>>Australian cryptocurrency exchanges<<

 

That being said, CoinSpot is a member of ADCA - the Australian Digital Commerce Association. This may not be a regulatory body, but it shows a long term commitment to the adoption of blockchain technology and it is viewed as a major player by its peers.

 

The company offers traders multiple wallet support, which is not the case with one of their direct counterparts CointTree. On top of that there is a mobile app which allows you to send crypto-payments on the go.

 

There aren't any reports of a massive hack, like the one experienced at Bitfinex, for CoinSpot. This is no guarantee of future security, but is still a nice sign.

 

The user reviews for CoinSpot are very mixed. Some people enjoy their service, while others are dissatisfied with the verification process, the speed of bank transfers (when selling coins) and the fees. Their service is definitely not cheaper than trading coins on some of the other exchanges, but at least they are very transparent when it comes to fees.

 

Trading conditions

 

Trading instruments (cryptocurrencies)

Over 30 coins are provided by CoinSpot. This is a very wide array, especially for a company which specializes in accepting fiat currencies. As a comparison, Coinbase offers only Bitcoin, Ethereum and Litecoin. 

 

Maximum daily volume

The initial maximum daily purchase volume at CoinSpot is $2,000. This can be increased to $10,000 a week after you have hit the first cap. While the company does not exclusively mention it, these levels are probably in Australian dollars.

 

Leverage

Leveraged trading is not supported at CoinSpot, which is quite understandable, given their targeted customers. This is simply a place from which one buys cryptocurrencies with Australian dollars. 

 

>>Forex brokers providing Bitcoin trading<<

 

It is worth mentioning, that if you are only looking to speculatively trade Bitcoin, instead of use it four transfers, another type of service may be better for you. We are talking about forever brokers, who offer cryptocurrency trading, like the industry leaders at IG. We must mention there are a few specifics to this kind of service and you should read our guide.

 

 

Fees

The fee structure at CoinSpot Is very clear, which is not the case with all companies who offer direct purchases of coins with fiat currencies. For instance the similar Dutch company Bitonic provides little information about its markups, which many users dislike.

 

CoinSpot charges between 2% (for Bitcoin) and 3% (for altcoins), when trading against the AUD and 1% for crypto to crypto trading. While the direct trading commission may be considered reasonable, 1% is high for digital asset trading. Other exchanges typically charge 0.20-0.25% for this activity.

 

>>List of all cryptocurrency exchanges we have reviewed<<

 

Additionally, the company charges fees on some AUD deposits. This varies by payment method and we will cover the details below.

 

 

Trading platform

 

CoinSpot does not provide what one would typically call a trading platform. The service has a convenient dashboard, which allows you to monitor your different wallets. It looks like this:

 

 

When buying a cryptocurrency one is greeted by a simple order-entry form, which gives you an estimate of the AUD you would have to pay for the given amount of coins. Here is a preview:

 

 

If you want to convert one coin for another, you would have to go through the sell menu. This felt very counter-intuitive, but then again you can find much better exchanges to do this (check the fees section for more information).

 

Additionally, a very simple form of charting is provided, as seen here:

 

 

The overall summary of this “platform” is that it does the job. Experienced traders will not enjoy this, but newbies will enjoy the simplicity.

 

Methods of payment

 

When depositing fiat currencies to CoinSpot, one can choose between POLi Payments, Bpay and a “cash” option, which features going to a newsagent and using Blueshyft. The fees for making a deposit are as follows:

 

POLi payments – free. 

BPAY payments – 2% fee. 

Cash payments – 3% fee. 

 

If you were to sell coins at CoinSpot, you would be funded via Bank Transfer. The company will not charge you anything for that, but the bank may. The actual cost and speed of the transfer will depend on the bank you use.

 

Conclusion

 

CoinSpot is an Australian cryptocurrency exchange, which allows trading against the AUD. They are a well known company, which is respected in the local Bitcoin community. The entire service is very beginner-friendly, but this comes at a cost. While the fees for fiat to crypto trading are acceptable, trading one coin for another comes at much higher rate than with other exchanges. This feels like a solid Australian entry level company, but active traders will prefer dealing with another exchange. Here is a summary: 

 

Pros   Cons
No major hacks yet Slow bank withdrawal times
Multiple payment methods (for AU clients) High crypto to crypto fees
A lot of altcoins supported Focused on Australia (only a con if you are non-AU)
Easy to use interface  

 

Forex
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