Exchange Review: Bittrex

Bittrex
  • Editor Rating
  • Rated 2 stars
  • 40%

  • Bittrex
  • Reviewed by:
  • Published on:
  • Last modified: February 14, 2015
  • Trades
    Editor: 58%
  • Funding
    Editor: 20%
  • Compliance
    Editor: 24%
  • Platform
    Editor: 70%
  • Help & Support
    Editor: 38%

Cryptocurrency exchange Bittrex was founded at the start of 2014, operating from Nevada in the United States.

Trades

Bittrex is one of the few exchanges that allows for trading in a seemingly unlimited number of cryptocurrency pairs. There are currently 190 pairs in the Bitcoin markets alone. The trade fees are at 25 basis points per trade, which can be a bit expensive since most cryptocurrency pairs have to be traded through either Bitcoin, Litecoin or Blackcoin rather than being traded directly. For example, trading Dogecoin to Darkcoin requires trading Dogecoin for Bitcoins first, before converting Bitcoin to Darkcoin. In total, 50 basis points in trade fees will then be paid. This does not even include the bid-ask spreads. For the currency pairs in the example, there is a more than three percent spread on BTC/DOGE while there is an almost two percent spread on BTC/DRK. Overall, this indicates reduced liquidity and can make trading quite costly. Even for BTC/LTC the spread can be over half to one percent.

Funding and Compliance

Bittrex LLC is officially registered in Nevada (United States), with business ID NV20141155096. The registration is active per the third of April 2014, and the exchange has been around since the start of this year. Other than the previous, there is not a whole lot of information available on the company. As an altcoin exchange without a fiat market, Bittrex is not subject to regulation as a money transmitter. The company thus has no registration with FinCEN, and does not need to comply with otherwise typical regulations. The exchange therefore receives the lowest score with regard to funding and compliance. At the very least, the exchange could have done a Proof of Reserves audit to offer some financial transparency. A lack of financial transparency and (a need for) regulatory compliance indicates an increased risk for using Bittrex services.

Platform

With a high number of cryptocurrencies available for trading on Bittrex, navigating between them can be considered chaotic. Of course, this risk is inherent to making this many cryptocurrencies available, but Bittrex could have done a better job at managing it. Apart from the previous, the platform is very easy to use. The trade screen even offers a button to buy or sell the maximum number of coins. Also, depositing and withdrawing is very quick and to the point. Two-factor authentication can easily be found and activated as well. The website is responsive, making it more accessible to mobile platforms, but an App is not offered. There are also no research amenities or portfolio performance analysis tools.

Bittrex Order

Help & Support

A big disadvantage is that there are practically no guides on Bittrex. The exchange does offer a FAQ, but it could hardly be any more limited. There is a user chat from which one may receive some support, and the exchange can still be contacted via email. But other than this, there is very little to add to this section.