HitBTC Review – Is HitBTC Scam or Reliable?

October, 2018 | AtoZMarkets – In this HitBTC review, we analyse one of the top 5 cryptocurrency exchanges. Since traders have mixed bias for this cryptocurrency exchange, we will try to answer the main question – "Is HitBTC scam or reliable? Can I trust HitBTC?

Let us remind you that AtoZMarkets Cryptocurrency exchange reviews are not sponsored and they are personal opinions of the authors. If you are a trader, or investor and you want to share your opinion, please refer to our comments section below this review. Meanwhile, if you are from HitBTC and you would like to add comments please contact AtoZMarkets editorial team, though, we don't promise changing our opinion.

How to open HitBTC crypto exchange account?

To start with Hitbtc account opening does not require KYC. All you need is to verify your email. Once you register, you should make sure that you have enabled two factor verification on your account and additionally what we would recommend is using whitelisting. 

Whitelisting basically means that you only enable withdrawals to your select list of wallets and only those wallets will be accepted for withdrawal. This way, just in case your account is compromised, you are kind of insured that your funds do not disappear.

-       High liquidity

-       Good matching engine

-       No limits for deposits/withdrawal of users’ cryptocurrency assets

-       Strange and unexpected fee structure

-       More than 150 instruments available (easy to list new ICO tokens – you just pay)

-       High level of security (except when tokens suddenly disappear)

-       Stable REST API and FIX API

One of the strange issues with this crypto exchange is the fact that they tend to add dead tokens to their exchange with similar or same name as a good token in the market. This creates confusion with traders and if you just check the abbreviation, you will make a loss. So, you have to double check the token description as well in the account section.

Where is HitBTC based in?

There is no one public information on where HitBTC is based in. The company never participates in any summit, or conference, or expo and has had in the past a legal presence in various countries. They keep switching from one country to another.

The company initially was established in 2013 under operation of Ullus Corporation. Since then we have seen Hong Kong, UK and a few other countries as the company location. However, based on the information we have, HitBTC is in fact located in Russia.

According to the information we have received from some of the insiders working with this exchange, the company has its team scattered between Saint Petersburg, Kazan and Moscow. Additionally, the company settles its salaries in cryptocurrencies as well.

HitBTC fees

HitBTC fees are among the highest fees for the crypto market.

The company will often charge deposit fees, withdrawal fees, as well as trading fees for traders. Meanwhile, for new tokens they will charge listing fees, liquidity fees and marketing fees.

HitBTC trading fees

HitBTC trading fees are based on "maker-taker" model with the purpose of narrowing the spread. They have rebate system for makers thus, "makers" are encouraged to keep adding liquidity to the market.

HitBTC takers fee

The takers fee is 0.1% from the trade. The taker pays the fee from the committed trade.

The "taker" is a trader who removes the liquidity from the book by placing an order that matches immediately with an existing order on the book.

HitBTC rebate

Contrary to HitBTC takers fee, makers are getting incentives to create the liquidity in the market. HitBTC rebate program is designed to make people to place pending orders rather than instant orders. "Makers" are not charged a fee. On the contrary, they receive a 0.01% HitBTC rebate from the trade.

The "maker" is a trader who provides liquidity to the order book by placing a limit order below the best ask price for the buy and above the best bid price for the sell.

HitBTC deposit fees

Yes, you heard it right! You will have HitBTC deposit fees and they are flat! 0.0006 BTC for Bitcoin deposits without caring much about the size of your investment. If you by accident deposit smaller than 0.0006 BTC to your account, you will get nothing in your account!

HitBTC withdrawal fees

This company has an appetite for fees! HitBTC withdrawal fees are among the highest ones in the entire cryptocurrency world. I have just withdrawn 152 Bitcoin Diamonds from this exchange and they charged 7 BTD, that is 15 USD transaction fee!

Or if you want to withdraw any other alt coin or token, you will be charged between 8 – 20 USD worth of coins. HitBTC withdrawal fees are a rip off!

HitBTC new token listing fees

Remember when I said, HitBTC has an appetite for high fees?! Well, earlier they teamed up with another Saint Petersburg based company, ICOBench and created a listing package for $270,000 (USD).

Thus the company will charge between the number of pairs and liquidity options up to $350,000 in listing fees and of course more in tokens.

Additionally, traders generally do not wish to have new ICO tokens listed in HitBTC as they have a very bad reputation (Sh*tBTC). This is due to the fact that most of the tokens listed on this exchange tend to tank in price.

Is HitBTC Safe?

The biggest concern for people wondering if HitBTC is safe or scam. This company is jumping jurisdiction to jurisdiction to avoid regulation. However, sooner or later this will show its side-effects. Therefore, if asking the question “Is HitBTC safe?” our answer would be, technically they are safe, however HitBTC is a risky crypto exchange!

Is HitBTC regulated?

This company does not have any regulation, and they are trying to hide where they are located.

Is HitBTC reliable or SCAM?

While we can not vouch for any company being reliable or scam, we can say that HitBTC is not reliable but they are not SCAM either. The biggest issue about HitBTC is how they change their fees every now and then, followed by the way they change their address.

There are also many people claiming that HitBTC is scam. Their claims suggest that HitBTC does not pay affiliate fees, HitBTC sent the withdrawal to a different account and traders’ funds disappeared from their HitBTC accounts. Unfortunately this is something we can not verify. Since this company is hiding their location, we consider their trust index is much lover from our perspective as well!

There have been a growing number of complaints by users of accounts being frozen and withdrawals being prevented. You can read some of these on the r/HitBTC subreddit. We cannot verify validity or legitimacy of these claims. 

Do you have any experience with HitBTC? Let us know in the comments section below.

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