What is Bittrex?
Bittrex is a crypto-to-crypto exchange. You can only trade with cryptocurrencies on this trading exchange system. In other words, fiat currencies cannot be used.
Fiat currency is a state-sponsored currency. Chinese Yuan, British Pound, and The US Dollar are examples of fiat currencies.
But you can invest with US Dollar Tether. USDT is crypto money whose value is tied to the US Dollar. 1USDT is always equal to 1USD.
Bittrex has more than 190 different crypto money. It also features 284 different trading pairs. The exchange rate is formed between two currencies between the trading pair.
When you visit an exchange office, fiat currency pairs look like this:
1 USD (US Dollar) = 6.50 CNY (Chinese Yuan)
And Crypto money pairs look like this:
1 BTC (Bitcoin) = 25.41 ETH (Ethereum)
More popular currencies like Tether and Bitcoin are available for more trading pairs. There are over 450 trading pairs for Bitcoin alone on the Bittrex exchange.
Now you know what Bittrex was, by whom and why. “What is Bittrex?” In the next part of the review, you will learn about the advantages and disadvantages of using this exchange.
The Advantages of Bittrex
Diversity: Its cryptocurrency options are fantastic (> 190). It offers users the opportunity to trade both with the oldest coins and newer coins such as Tron and Loopring. Bittrex examines which currencies are listed every day and adds new coins frequently. To compare, there are about 80 cryptocurrencies on the Poloniex exchange.
Fees: It has a fixed fee of 0.25% for each trade. Although it is slightly higher than average, it makes the job very easy for beginners. Having a single fee for all your transactions makes it easy to calculate how much you spend.
Speed: It was created using elastic computing. In other words, the platform makes purchases and sales the moment it enters the transaction.
-Elastic computing is a system designed to deal with the excess workload. Even when it is busy, Bittrex offers fast service.
Verification: It is the process that allows the exchange to decide whether to trade or not. The purpose of the Bittrex is to get as little consumer information as possible to protect the platform. It uses the Jumio service that uses local records. Jumio can verify more than 100 million people in more than 200 countries.
Fiat Trading: It was not offering its users the opportunity to trade in fiat currencies. Then, Bill Shihare stated that users will soon be able to use US dollars for trading. Until then, users had to buy Ethereum, Tether, or Bitcoin before starting a trade. By 2021, payments in fiat currency are now accepted on Bittrex.
The Disadvantages of Bittrex
Accessibility: Although it has a secure system that Bittrex pride, there is also a downside of it. Bittrex might even be a little too safe! Some users cannot log into their accounts. Bittrex is working towards making it safe and accessible.
Customer Service: Some of the users are not satisfied with Bittrex’s approach and solutions to users’ complaints. Bittrex returns to some of these complaints weeks later. Bittrex apologized for the long time it took to resolve the issues.
Pump and Dump Scams: Bittrex provides its users many various cryptocurrencies. Sometimes new crypto money is used for pump and dump fraud. It works like this:
-Some investors are choosing a cheap coin. They buy a large number of them. The name of this coin is “Cheapcoin”.
-The price of it is increasing. When other investors saw the price of the coin rise, they also buy some.
-First investors sell all of the Cheapcoin it has, as the price of the cheap coin has increased. The price of the cheap coin is falling back.
-The latter group is left with a coin to sell for less than the price it purchased. This type of trick can occur on any platform. In order for this not to happen often, Bittrex needs to be careful about which coins it will list.
We can call Bittrex the most secure cryptocurrency exchange on the market. The team consists of experts in the field. In the system used by Bittrex, 80-90% of all currencies are stored offline, which is called cold storage. It has never been hacked or lost client money.
It also has two-factor authentication for all transactions.
Note: In two-factor authentication, the user must enter two different information before performing a transaction. The first is usually a password and the second is a code sent to the user’s mobile phone.
Based in Seattle, Bittrex closely follows American law. It implements Anti-Money Laundering and Know Your Customer programs created by the US Government. These programs are there to prevent fraud and other financial crimes.
The team works very hard to keep the platform safe. As mentioned earlier, the whole thing is finding a balance. Bittrex is very reliable. However, some improvements only need to be made in user access and fast feedback.
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