Table of Contents
Introduction to Bittrex
What is Bittrex?190 different cryptocurrencies are listed for trading on Bittrex. The site also offers 284 unique trading pairs. Trading pairs are the two currencies for which an exchange rate is being offered. When you go to the Bureau de Change at your local airport, the fiat trading pairs look like this; 1 USD (US Dollar) = 6.32 CNY (Chinese Yuan) Cryptocurrency trading pairs look like this; 1 BTC (Bitcoin) = 13.42 ETH (Ethereum) The more popular cryptocurrencies, like Bitcoin and Tether, have the most available trading pairs. Bitcoin alone has more than 450 trading pairs on Bittrex.
What’s good about Bittrex?
- Fees: Bittrex charges a flat rate of 0.25% on every trade. This is a little higher than the average but makes things a lot simpler for newbies. Having one fee for all transactions makes remembering what you’ve spent much easier.
- Variety: Bittrex has a great choice of cryptocurrencies (>190). This allows users to trade with older well-known coins as well as newer ones like Loopring and Tron. Every day, Bittrex reviews which currencies it lists. It adds exciting new coins as often as it can. By comparison, Poloniex only has around 80 cryptocurrencies to trade.
- Verification: This is the process by which an exchange checks who you are before you’re allowed to start trading. Bittrex aims to take as little user information as possible while keeping the platform safe from harm.It does this using a service called Jumio, which checks local records. Jumio can verify over 100 million people in over 200 countries. This means that you only have to give your name, address and date of birth. It also means that traders from all over the world can use the exchange.
- Speed: Bittrex was built using elastic computing. This means the platform can process trades as soon as they happen.
What’s bad about Bittrex?
- Fiat trading: Bittrex doesn’t allow users to trade using fiat currencies, yet. In a recent podcast, Bill Shihara said that users will be allowed to trade in US Dollars soon. Until that happens, users must own Bitcoin, Tether or Ethereum before they start trading. Other exchanges like Coinbase and Kraken allow users to buy cryptocurrency with fiat currencies.
- Accessibility: Bittrex prides itself on being a secure platform but this has a downside. It seems that Bittrex might be too secure! Some users have been locked out of their own accounts. This problem has been blamed on the way Bittrex verifies its users. Bittrex is now working on the balance it has between security and easy user access.
- Customer service: Some users are unhappy with the way the platform deals with complaints. Some users have waited weeks for a response. Bittrex has said sorry for how long it took to fix the problems it was having with verification.
- Pump and dump scams: Bittrex offers its users a lot of different cryptocurrencies. Sometimes the newer cryptocurrencies are used for pump and dump scams. Here’s how they work;
- A group of investors, called Group A, pick a cheap coin. They buy lots of it. Let’s imagine this coin is called ‘Cheapcoin’.
- The price of Cheapcoin goes up. Other investors, called Group B, see that the price of Cheapcoin is going up, so they buy some too.
- Now that the price of Cheapcoin is high, Group A sells all of its Cheapcoin. The price of Cheapcoin goes back down.
- Group B are left with a coin that they can only sell for less than they paid for it.This type of scam can happen on any platform. Bittrex must be very careful when choosing which coins to list so that this doesn’t happen too often.
Bittrex SecurityBittrex is the most secure cryptocurrency exchange in the market. Its team are all experts in the area. In the system Bittrex uses, 80-90% of all currency is kept offline. This is called cold storage. So far, Bittrex hasn’t been hacked or lost any of its customers money. Bittrex also uses two-factor authentication for all of its transactions. Note: Two-factor authentication is where a user has to provide two kinds of information before a transaction can take place. The first kind is usually a password and the second is a code that is sent to the user’s mobile phone. As it is based in Seattle, Bittrex follows American law very closely. It follows the Anti-Money Laundering and the Know Your Customer programs set up by the US Government. These programs are designed to stop fraud and other financial crimes.
How to use Bittrex
How to open an accountGetting started is simple. Go to the Bittrex homepage and click on LOG IN and then SIGN UP. You’ll be asked to enter your email address and choose a password. Make sure it’s a good one!
Now, you’ll be sent an email. So, click on the link in the email to verify your email address. Next go to SETTINGS and click on BASIC VERIFICATION. You’ll be asked to enter your phone number, Bittrex will use Jumio to verify it. To turn on two-factor authentication, go to SETTINGS then TWO-FACTOR AUTHENTICATION. Once it’s turned on Bittrex will use Google Authenticator to send you a number. Enter the number and your account will be ready to use. Quick Tip: If you don’t have Google Authenticator then you can download it here.
Get a Bittrex addressAs I said earlier, you’ll need some cryptocurrency before you start using Bittrex. You’ll need to open an account at an exchange like Coinbase. Here, you can buy cryptocurrency with the fiat currency of your choice.
You will now be able to send Bitcoin from your Coinbase account to your Bittrex address and start making trades. Note: Wallets and addresses can be really confusing! Addresses are like your email address. You can tell people what your address is and they can send things to it. To get into your emails you need a password. In crypto, these passwords are called private keys and they are kept safe in wallets. So, addresses are public (anyone can see them) and wallets are private (only you can see them).
How to trade on BittrexBefore you make your first trade, you need to change a few settings so that Bittrex is legally allowed to help you trade. To do this, go to API KEYS and turn everything to ON except WITHDRAW. Have a look at the picture below to see what I mean. Now, go to CONFIG and select Bittrex as your exchange. I hope you’re still awake, because you’re ready to start trading! Select MARKETS choose the currency you want to trade. We’ll use Ark as our example. You can check what price Ark is being sold for in the ORDER BOOK. Now you can choose the amount you want and make a bid by clicking BUY ARK.
When your bid is accepted your new currency will be sent to your Bittrex wallet. When you’ve been trading for a while your wallet will look something like this. Quick Tip: When storing cryptocurrencies it is always best to use more than one wallet. You should keep most of your currency stored offline in hardware or paper wallets.
WithdrawalsWhen you’ve made a ton of money trading crypto, you might want to take some of it out. To do this, click on the ‘-’ icon on your account screen and enter the address where you want to send currency. For example, you could use your Coinbase address or another external wallet. Simple!