Overview
itBit is a U.S. crypto exchange that has been around since 2013. It was one of the first platforms in the country to get a trust charter and work under banking-level regulations. The service focuses on spot trading with USD pairs and caters mainly to institutions rather than casual users.
itBit - A Regulated Exchange for Serious Traders
itBit back in 2013 started with one clear idea: offer a safe and compliant place to trade crypto in the U.S. It operates under New York rules that apply to trust companies, meaning strict checks, audits, and capital requirements. The exchange is part of Paxos Trust Company, which adds to its credibility. Over the years it built a name for itself as an option for professional traders who want a regulated environment.
Trading and Features
The platform lists only a handful of coins like BTC, ETH, LTC, SOL, and LINK. All pairs trade against USD. There are two modes to choose from: a simple interface for quick orders and a Pro interface with order books and charts. For big trades over 100,000 USD, itBit also runs an OTC desk aimed at institutions.
Fees, Volume and Liquidity
Maker fees are set to zero. Taker fees are around 0.20 percent. Deposits and withdrawals go through ACH or wire transfers, with costs ranging from free to about 40 USD depending on the method. Daily trading volume sits around 20 to 25 million USD. This is far from the biggest global platforms, but enough to give solid liquidity for its main pairs.
Security and Oversight
The exchange is regulated and goes through regular audits and inspections. Over 90 percent of user funds stay in cold wallets that are insured and backed 1:1. Security is treated seriously, with strong protections and systems to stop market abuse. It also holds SOC 2 certification, which shows it follows high cybersecurity standards.
Reputation
Among institutional players, itBit has a good reputation. It offers APIs, custody solutions, and liquidity pools designed for professionals. For retail users, feedback is mixed simply because the platform does not target them. It works as intended, but it is not designed to be a global retail hub.
Pros and Cons
- Pros: Strong regulation under New York law; High security with insured cold storage and audits; Zero maker fees and fair taker fees; OTC desk and API support for institutions; Stable USD liquidity.
- Cons: Few coins and trading pairs; No margin, no derivatives; Higher costs for wire transfers; Not really built for casual or global traders.
Who Will Benefit
itBit is a good choice for institutions, funds, and experienced investors who value compliance and safety over variety. It is also useful for large trades thanks to the OTC desk. Retail traders looking for lots of coins, margin trading, or low-cost deposits will find better options elsewhere.
Final Thoughts
itBit is a niche exchange. It offers strong regulation, security, and a focus on USD pairs. For professional traders who need stability and trust, it is a reliable choice. For everyone else, it feels too limited and too formal to be a go-to platform.