LiteBit is a Dutch company that buys altcoins and sells them on to clients, for a higher price, so it is acting more like a change bureau or simply a spot exchange. It does not offer leveraged trading. One of the main advantages of LiteBit is that it offers for sale a large number of coins, a total of 50, that can be purchased for EUR.
On the list are the major coins like Bitcoin and Ether, as well as more obscure ones like Gulden, Myriad, Radium, Dogecoin, etc.
Most cryptocurrency exchanges limit their offering to 10-15 coins, although there are some, like Luno, for example, who offer just one – Bitcoin, or Bisq, which offers over 120.
Like most cryptocurrency exchanges, LiteBit has several levels of verification, with the highest offering the largest monthly limits. We believe that for the occasional buyer/seller, the unverified account or Tier 1 (SMS verification) would be sufficient. Those who wish to trade in larger volumes need to raise their verification levels, but according to other reviews, doing so on LiteBit can turn out to be quite expensive for larger volumes.
On the other hand, for those who are interested in leveraged trading in cryptocurrencies, there are other exchanges like Kraken, Coincheck, Poloniex, Bitfinex, GDAX, BitMex, etc., who offer this type of service. There are also forex brokers where clients can trade on margin in CFDs on the more popular cryptocurrencies. The list of such brokers grows by the day in the past several months. Among the major ones are IG, HYCM, Admiral Markets, Plus500, Swissquote, etc.
The Company. Security of Funds
LiteBit is a Dutch cryptocurrency exchange that was established in 2013. It supports only European countries.
LiteBit is not regulated, but since the cryptocurrencies do not fall within the scope of neither the Dutch, nor the European financial regulators, this is hardly a problem at this point.
Besides, the Netherlands is one of the most Bitcoin friendly countries worldwide. It even has its own ‘Bitcoin City’, Arnhem, where you can pay with bitcoins in cafes, gyms, petrol stations, restaurants, pubs, shops and even Burger King. The Netherlands also has its own cryptocurrency – the Guldencoin – which can be used to pay for services and goods, for transferring money or as an investment.
Similarly to most cryptocurrency exchanges, LiteBit offers its clients own e-wallet for storing coins, but also supports a number of external e-wallets. We could not find specific information about the security of the storage.
However, we came across reports that LiteBit has been a subject to hacker attacks twice within roughly a month in 2017. According to the company, no client funds were stolen, but the hackers pilfered personal data, bank account numbers, addresses of the clients, which is actually quite alarming.
Besides, we have come across some claims that LiteBit has scammed one of its clients. It seems, though, that the exchange is wrongfully accused and has actually cooperated with the bank and local authorities who have blocked the user’s bank account that has been flagged as fraudulent. The prevailing attitude is that LiteBit is a reliable and stable exchange that provides fast and good service.
Since LiteBit does not offer cryptocurrency trading in the full sense of the term, its platform is not exactly a trading platform, either. It has a simple interface, which shows the price, plus the additional fees and costs, as well as a simple price chart. There is also the option to get price alerts by e-mail and some basic information about the tokens.
Methods of payment
LiteBit accepts both fiat currencies and bitcoins. However, the exchange does not accept credit cards, which are probably the easiest funding method. It does not support PayPal, either. Instead, it accepts bank transfers, GiroPay, the German payment system Sofort (it takes three working days for the payment from a non-German account to be processed), and the Dutch payment system IDeal.
There is also something called LiteBit credits. They are an internal payment method used to limit transaction costs and payment times. When using credits, no extra transaction costs are added to the client’s order, and the payment is always instant. LiteBit also accepts bitcoin.
LiteBit is a long-established cryptocurrency exchange that offers many altcoins and some of them are not that easy to find elsewhere. This is probably the main advantage of LiteBit over other similar services, but there are some minuses, too.
First off, we could not find clear information about the fees. They depend on the type of coin and the network cost. Plus, LiteBit obviously buys the coins from somewhere (naturally), stores a certain amount and sells them for a higher price. Nothing wrong with that, but there is the supply problem. If the supply runs out, LiteBit stops selling those coins until it gets more. By the time it does, nowadays the price may change significantly and this is not always a good thing.
Then there are the limited funding options, which pose several types of problems. First, the only fiat currency LiteBit accepts, is the euro. It is somewhat understandable, as LiteBit operates only in Europe and the dominant currency there is the euro. But there are countries like the UK, Sweden, Denmark, Norway, Switzerland, some of the Central and Eastern European countries who have their own currencies and conversion rates are not always favorable. Second, there are the bank transfer fees, which are not exactly low either. Third, there is the transfer time – international bank transfers, even within Europe, take days. So, maybe LiteBit is convenient for Dutch clients with the IDeal payment system, but hardly for anyone else in Europe.
Last, but not least, LiteBit offers only exchange services. There are exchanges, European included, like Coinroom, Luno and BitBay, who offer money transferring services and even the possibility to pay one’s bills.
LiteBit Review Conclusion
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