If you're becoming more interested in cryptocurrency, finding the most suitable exchange can feel like navigating a live minefield. With a seemingly limitless selection of both established and emerging outfits at your disposal, analysis paralysis can easily set in.
Luckily, we're here to help you out with today's exploration of the Bittrex platform.
Although it's temporarily put a hiatus on the opening of new accounts, the exchange has become one of the most favored and enduring cryptocurrency exchanges. Despite its relative infancy, Bittrex is already one of the most prominent multi-altcoin platforms with the largest choice available for pair trading and daily volumes into the hundreds of millions of dollars.
Security is one of the principal reasons underpinning its popularity. Founded back in 2014 and based in Las Vegas, one of the chief selling points of Bittrex is the trustworthy team behind it.
Four security professionals hailing from Amazon and top-tier tech companies are crypto-enthusiasts responsible for creating a safe, user-friendly cryptocurrency exchange fully compliant with US money laws.
With so many hacked or collapsed exchanges, it?s refreshing to find a platform like this which is fully regulated and holds a Money Service Business licence from FinCEN. With up to 90% of funds stored offline in cold storage, a custom trading engine that promotes brisk trading, and an API that makes withdrawing a breeze, it?s not hard to see why this site is getting over 160 million visits each month.
No exchange sites are without their drawbacks so read on for our frank, unbiased look at Bittrex then you can determine for yourself whether or not this cryptocoin exchange meshes with your investment needs.
If you're looking for an anonymous crypto currency exchange or you're dealing in high volumes, Bittrex is not for you. If, on the other hand, you want a regulated provider with a very broad spread of crypto assets, this platform should be one of your leading options.
Assuming you take the time to arrange a verified account, you'll have access to an enormous selection of 250 altcoins that you can pair trade against Bitcoin, Ethereum or Litecoin.
From Ubiq and Blackcoin through to Dash and Gambit, the world's your oyster if you fancy taking a punt on some lesser-known cryptos. The range of these assets means that Bittrex puts Coinbase and Poloniex in the shade. Cryptopia and other platforms that are not US-regulated are the only exchanges that outflank Bittrex for sheer scope of altcoins.
Unlike an exchange that allows you to readily exchange fiat currency for bitcoins and altcoins, this platform focuses on trading cryptocurrency for cryptocurrency. It's crucial to understand that you'll need to buy some Bitcoin or Ethereum from a local exchange that accepts your currency since you won't be able to directly purchase altcoins on Bittrex with fiat.
With margin trading not yet available and these restrictions on buying altcoins using real-world cash, the core focus of the Bittrex exchange is pair trading in this enormous spread of altcoins.
As we already mentioned, security is one of the prime motivators for choosing Bittrex as your altcoin trading platform so you can do business safely and confidently.
With no incidents of hacking and a rock-solid interface, the founding partners of this particular exchange have ensured you can trade in altcoins without worrying about them going astray.
One of the most fruitful methods of establishing whether or not any crypto exchange (others we've reviewed) makes sense for you and your investment needs is to read an abundance of user reviews.
While the platform is enormously popular, often what works for your colleague might very well not be the best fit for you.
Having scoured through a huge amount of feedback from both satisfied and disgruntled customers, we'll highlight now the leading advantages and drawbacks so you can decide whether this is the right platform for your altcoin trading?
The exchange is based in Las Vegas in the US. The company was registered in Nevada on April 3, 2014.
You cannot currently margin trade using this particular crypto site. This is something that might come to fruition in the future, but for now it's crypto pair trading only on this platform.
No. On the contrary, you need to buy your altcoins on Bittrex using BTC or ETH.
Yes. There's a hard cap in place for what you can withdraw to your wallet?
Unverified accounts are limited to the equivalent of 1 BTC daily while basic accounts allow you to withdraw up to 3 BTC. With an enhanced account you'll enjoy a much higher limit of 100 BTC per day.
This is not currently possible if you want funds in USD or any other fiat currency.
You?ll instead need to generate an address and a wallet in order to withdraw your crypto coins.
Since all crypto deposits need to be verified through the blockchain community, this network controls the transaction time.
When you're withdrawing altcoins from the digital marketplace to your wallet, the transaction will complete very shortly after you click on the email authorization link.
As outlined briefly above, you need to be fully aware of what fees are involved.
The flat rate of 0.25% is charged at the time of trading. This is lower than you'll get using Coinbase but not quite as competitive as Poloniex or as flexible as Kraken's more fluid, variable structure.
If you trade in larger volume, you won't be offered any incentive or rebate so you might want to look elsewhere.
Withdrawals do not attract a fee except for the transaction fee in the blockchain of the crypto currency you're using.
Overall, fees are slightly higher than the crypto exchange average but this is mitigated by rapid withdrawal times and dependable execution of orders.
First thing?s first, you?ll need to buy some bitcoin since the exchange platform doesn?t support the purchase of altcoins using credit cards, debit cards or regular bank accounts. Wire transfers were accepted up until March of last year but that facility is no longer in operation.
Although Bittrex claims it will offer dollar credits and deposits in the future, for now it?s not on the table.
Once you have your bitcoins lined up in your wallet, set up an account. Register your name and email address and confirm this by activating the email link. You'll need to verify your phone number and then activate 2FA for added security.
We?ll give you a brief rundown now on trading on Bittrex:
If security is a serious motivator, it pays to have your own wallet for storage. While exchange-hosted wallets are perfectly fit for purpose, you won't retain control of either the private or public keys.
Just because a wallet will be quickly and easily generated whenever you open an exchange account, you need to ask yourself whether or not you trust a third-party service that might be hacked or go out of business with your crypto coins.
Sure, the platform seems a safe bet, but it?s worth investigating your alternatives. From a web-based option like Blockchain or a cold storage service like Bitcoin Paper Wallet, just be aware you don't need to stick with exchange-based wallets.
One other key fact to bear in mind with your wallet on this particular exchange is that you should generate a new wallet only the first time you use the service. Changing a wallet address mid-transaction leads to the very real possibility of your bitcoins going astray.
If you're just beginning to trade altcoins and you don?t require any leverage, Bittrex is certainly a great starting point. Altcoin liquidity compares favorably with the other major exchanges and there's relatively little risk.
It's a secure and fairly robust platform from which to trade multiple crypto currencies but the questionable customer support must be taken into account.
For experienced day traders, the fairly high fees combined with no margin trading option and limited liquidity mean it's probably not the smartest exchange to use.
Our parting disclaimer would be never to deposit an amount you can?t afford to have potentially frozen but this is a general truth with all crypto exchanges rather than anything specific to Bittrex.
Overall, in a space where security is absolutely paramount, this element alone will continue to attract swarms of new visitors to Bittrex. For as long as the platform remains unbreached, it will continue to be a solid option if you want to pair trade in a multitude of alternative crypto coins.