While there are dozens of bitcoin trading platforms available to people looking to buy and sell bitcoin, itBit easily differentiates itself from the masses.
itBit’s founders set out to build a compliant exchange which is what sets the New York-based company apart from its numerous competitors. In fact, it is the only regulated bitcoin trading platform open to all U.S. customers.
- 32 employees
- $30 million in funding
- Headquartered in New York City
- Thousands of users across the globe
- Board members include Senator Bill Bradley; Sheila Bair, former FDIC chairman; and Robert Herz, former FASB chairman
- Accommodates both retail and institutional traders
itBit Trust Company
itBit has a trust company that is licensed by the New York State Department of Financial Services. The company selected New York state because the founders are based in NYC, and it is the most difficult state from which a license can be obtained. For this reason, the certification is recognized nationwide.
As a part of this license, itBit protects all of users’ fiat and bitcoin currencies. It also offers tax documentation and FDIC insurance for U.S. currency deposits.
Since itBit is regulated, it must pass yearly exams, complete capital requirements, and face oversight to ensure its bitcoins are secure. Additionally, the company must maintain a certain level of regulatory capital and is liable to repay users in the event any currency is lost or stolen.
itBit enables users to trade three fiat currencies against bitcoin (XBT), including Euros (EUR), Singapore dollars (SGD), and U.S. dollars (USD). itBit holds all client bitcoins in cold storage, i.e., stored offline.
The screenshot below shows the user’s wallet, which displays account balances across all currencies. The wallet also offers the option to deposit and withdraw from their account.
To make a deposit, the user selects the desired currency. For every deposit, itBit generates a unique address, corresponding to the user’s wallet, which ensures funds are routed directly into their itBit account. The wallet dashboard also offers a visualization of all historical deposits, withdrawals, and currency trades.
Make a trade
At the top of the trading platform, itBit highlights the best bid and ask in the market, as well as the 24-hour bitcoin trading-volume.
To buy bitcoin, the user enters their desired limit-order price and amount, which will be filled only if the price of bitcoin reaches the user’s specified limit-price. Once they click buy and confirm the trade, their account updates in real-time to reflect the purchase.
The order book displays all executed, cancelled, and live orders in the market to all users. This transparent view of trades enables users to conduct their own price analyses.
itBit operates on a maker-taker fee structure, meaning that it pays rebates to users who are making money on its platform via limit-order execution. The rebate section shows the user their available balance to use toward future trading fees.
itBit is available internationally to users from 67 countries. The startup has offices in New York City and Singapore. It is currently looking for bank partnerships.
Check out itBit’s full live demo from FinovateSpring 2015 below, or visit the Finovate video archives.