LiteBit Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team
LiteBit Review – is it scam or safe?
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.
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 Review – is it scam or safe? Conclusion
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