itBit is a bitcoin exchange and OTC desk you can access from one single account. Find out how the NYC-based itBit works today in our review.
What Is itBit?
itBit provides bitcoin trading services for financial institutions and active traders. Unlike other exchanges, it doesn’t cater towards small-time traders or those who just make a small number of cryptocurrency transactions.
itBit is based in New York City. It’s a regulated US financial services company. It’s not some quirky startup: it’s a professional bitcoin exchange designed for professional traders and institutions.
The regulatory status of itBit allows it to work with large financial institutions around the world. If you’re a large-volume bitcoin trader (over 2500 BTC per month), then itBit may be the right choice for you.
The company offers two core services: a Bitcoin Exchange and an OTC Agency Trading Desk. Both services are available from the same account screen.
The itBit Bitcoin Exchange is a platform that allows institutional and active traders to securely buy and sell bitcoin. Traders in the United States and around the world can enjoy deep liquidity, robust API services, and low fees on transactions.
All US dollars in the bitcoin exchange are FDIC-insured. That means all fiat and bitcoin customer assets are protected and backed by mandatory capital reserves.
Another advantage of the bitcoin exchange is that customer funds are stored in American banks. All US customer dollars are held exclusively in regulated US banks. Those dollars never leave US soil.
Finally, itBit is serious about reporting and paperwork: all US customers receive year-end 1099 forms for tax reporting.
OTC Agency Trading Desk
This is a boutique service specializing in large bitcoin trades starting at over 100 bitcoins. If you routinely make trades over 100 BTC on behalf of institutions, then the OTC trading desk may be the right choice for you. The company’s OTC desk offers a deep orderbook, personalized trading support, and competitive pricing, among other benefits.
The personalized trading support means OTC clients can work privately with one of itBit’s experienced traders straight through settlement. itBit also promises to provide fast settlement, with most OTC trades settled the same day.
With a flat fee of 0.10% per transaction, itBit competes with some of the cheapest OTC trading platforms on the market.
Advantages Of itBit
We’ve already hinted at some of these advantages above, but here are some of the things that distinguish itBit for both bitcoin exchange clients and OTC clients:
Personalized, Premium Services:
itBit describes its service as “personalized white glove service” with “special fee offers for institutions and active bitcoin traders”. The more you trade, the less you’ll pay.
Powerful API Services:
itBit uses APIs like FIX and REST to help integrate with the needs of active bitcoin traders and institutions who may use customized software.
Full Asset Protection:
itBit’s US customers receive full fiat and bitcoin asset protection along with account reporting. The USD in your account are FDIC insured, which means itBit is legally required to have a certain amount of cash in its vault at all times.
itBit provides dedicated customer support representatives through telephone and email around the clock.
High Regulatory & Security Standards:
itBit maintains strict regulatory oversight including global AML and KYC compliance. Furthermore, they maintain 100% offline bitcoin cold storage to ensure the platform and all client assets stay secure.
Exchange & OTC Trading From A Single Account:
itBit claims to be the only financial services company that allows customers to trade bitcoin on both a bitcoin exchange and OTC desk from one single account.
For a large, institution-oriented exchange, itBit has a surprisingly simple fee structure. Here’s how fees break down:
30 Day Volume Between XBT 0 and 2500: 0.20% (Taker Fee) and 0% (Maker Fee)
30 Day Volume XBT 2500+: Customized rates based on volume (Taker Fee) and 0% (Maker Fee)
Makers are not charged a fee because they add liquidity to the exchange. If your 30 day trading volume is over 2500 bitcoins, you’re eligible for special low rates.
Meanwhile, at the OTC desk, itBit charges a flat fee of 0.10% per transaction for large block size trades over 100 XBT.
How To Use itBit
You can start a new account with itBit by following through the process their sign up page.
You’ll need to choose whether you’re an individual investor or an institution, then provide personal details to complete the setup process. If you’re looking for an anonymous trading platform, then itBit certainly isn’t it.
itBit is based in New York City. The company originally launched in 2013. Since then, according to the About page, the company “has strived to push the boundaries of sophistication in bitcoin trading”.
In May 2015, the company obtained a trust company charger and opened the first regulated bitcoin exchange in the United States. Today, they continue to be the only company in the space that lets traders access a bitcoin exchange and an OTC desk from the same account.
You can contact the company by email at [email protected] Alternatively, they can be reached by phone at 1-855-997-2994. itBit also maintains an Asian office. The full name of the company is itBit Trust Company, LLC.
Ultimately, itBit is a highly-regulated and insured bitcoin exchange catering to active traders and institutions.
The company’s services are particularly appealing to those who routinely make trades over 100 BTC in value, or anyone who trades more than 2500 BTC per month. To learn more about itBit, or to sign up for an account today, visit their website.