Although not among the top crypto exchanges around, Bit.com shows enough promise that it piqued our interest. Most interesting is its offering of crypto options and futures, which account for the majority of its over $37 million 24-hour trading volume. At the same time, the company boasts of being one of the top-performing and secure exchanges.
Naturally, we had to find out if Bit.com could really check all those boxes and did a deep dive into the exchange. You can find more information in the next sections but first a quick overview of the main features.
|Mobile app||Yes (Android, iOS)|
|Number of coins||6|
|Customer support||Live chat, Twitter (@bitcom_exchange), Telegram|
Bit.com was launched in July 2020 by Matrixport, which is a spinoff of Bitmain Technologies since February 2019. Bitmain is the world’s largest producer of crypto mining equipment known as ASICs since being founded in 2013 by Juhan Wu and Micree Zhan. During that time, it has been so successful that it was rumoured to be going public at a $40 to $50 billion valuation.
With so much money being made while still remaining a private company, Bitmain ventured into other crypto businesses. One of those ventures was Bit.com, which primarily offers crypto derivatives such as futures and options. It still has spot crypto trading but derivatives are the main offering.
Among the key selling points Bit.com prides itself in are security and performance. These are important in crypto trading and the platform believes it can provide institutional level performance and security. Therefore, it promises to protect your investment while improving your performance. Both are bold claims, so let’s see if it can deliver.
There are 3 asset classes at Bit.com that you can trade on this platform:
On the spot market, cryptos are traded at the current market prices against other cryptos. 7 cryptos in total are available and each is paired against the other to create a market of 9 pairs. Some of the available pairs are:
This is a very limited number of coins compared to other exchanges but it also makes Bit.com a specialized platform. Add to that, short selling is also possible whereas it wouldn’t be possible on many other platforms. It means that you can make a profit whether a coin is going up or down.
An options contract is one that grants the holder the right to buy an asset at a specified price in future. However, they are not obliged to make the purchase, meaning they can choose to do so or not. What’s attractive about options is that you only need to put up a portion of the trade’s value known as a margin to create the position. It then allows you to trade even with limited capital.
Bit.com was one of the first platforms to launch crypto options trading and remains to be among the top destinations for options traders. For now, you can only trade options in BTC, ETH and BCH on this platform, which is again very limited. As crypto options continue to grow in demand, this exchange is bound to draw in even more trading volume and perhaps more options.
Futures contracts are quite similar to options in that you only need a margin to initiate the position. Unlike options, though, where you are not obliged to fulfil the contract, futures contracts have both a specified date and price. They are typically denoted in quarterly periods often for March, June, August and December. On this platform, you will find such futures for BTC, ETH and BCH.
What’s unique is that Bit.com also offers perpetual futures. With this kind of futures, there is no specified date of expiry so, in theory, you can keep the position open forever. However, as we shall see in the fees section, this is not possible. Nevertheless, it’s yet another innovative financial product made available to traders on the platform.
Each of the above asset classes acts somewhat independently. This is to say they have different conditions, fee schedules, etc. But users don’t need to have 3 separate accounts to access all markets because of Unified Margin (UM). The system allows you to use the same account without any limitations and is another revolutionary feature on Bit.com.
As mentioned before, you only need a portion of a trade’s value to create the position on this platform. This is known as leverage/margin trading. It is available on futures and options contracts but spot traders don’t have this facility. For futures contracts, the margin is a whopping 50x. Meanwhile, options traders get a 10x margin.
If, say, you’re trying to purchase Bitcoin futures for the 31 December contract valued at about $50,000 at the time of publication, you would only be required to place a $1,000 margin. Even then, all the potential profit would be yours. So, if BTC price went up to $51,000, your potential profit would be $1,000 despite putting up $1,000 – a 100% return.
Keep in mind, though, that leverage trading is risky because potential losses are also yours. If perhaps the BTC price dropped to $49,000, that $1,000 loss would be deducted from your margin, leading to a margin call and losing you the entire capital. This is why you’re often warned that it’s even possible to lose more than you invested.
The main trading platform is a web-based platform accessible from most web browsers. Such platforms are ideal for traders because you don’t need to download any apps. Therefore, you’re free to access your account and trade from any desktop device within reach.
In the above image, you can see a snapshot of the platform and some of the features. It may look complicated at first, but it needs to be robust to provide all necessary tools. Among the most important ones are technical analysis tools, Tier 2 market data and advanced trade controls. These should give you an edge over other traders who only get a buy/sell button.
As for mobile traders, apps for both iOS and Android are available for download. Compared to the desktop platform, you may not get as much control. But they still have all the key features one would need albeit on a much smaller display.
Trading fees on Bit.com are not standardized like on some other exchanges. Instead, the fee schedule is tiered to encourage more trading and reward active traders. The complete fee table can be seen here and in the snapshot below.
You will notice that the fees are different for each asset class and divided into maker and taker fees. Maker fees are charged for pending orders that add liquidity into the market. On the other hand, taker fees are slightly higher because the traders are taking liquidity away by trading on current market prices.
Fees are also charged for deposits and withdrawals. They are different for each coin and the complete list can be found here and in the snapshot above. All in all, the fees are within the industry average and not too high.
To make a deposit on this platform, you can only do so using crypto and not through fiat. Deposits are accepted in the form of USD, BTC, BCH, USDC, USDT, CHESS and PEOPLE. For each type of crypto deposit, you will be given a deposit address and additional instructions to follow. It is important to follow the instructions closely to avoid loss of your assets.
Bit.com is not a licensed crypto exchange in any jurisdiction by a financial regulator. This is why the company does not offer services in several jurisdictions where they demand a license before providing services to residents such as in the US. On the other hand, the company has the backing of some of the most reputable crypto leaders from Bitmain.
Add to that, Bit.com provides security through an insurance fund and a qualified custodian. At the start of the exchange, 200 BTC was dedicated to the insurance fund. Adding to it, a portion of the fees are used to purchase more BTC to protect users’ funds. At the same time, the custodian ensures that adequate measures are taken to protect the funds.
Aside from the basic advantages of trading at Bit.com, there are other advantages such as random prizes. The current one running at the time of publishing involves a reward pool of 5,000 USDT. All you need is to trade on the newly listed PEOPLE token and stand a chance to win.
Advantages and disadvantages
|Dsdaq pros||Dsdaq cons|
|Trustworthy team of developers||Limited number of coins|
|Industry-grade security||Average trading fees|
|Multiple asset classes|
Is Bit.com legit?
Yes, it is.
Has Bit.com been regulated?
No, it’s not licensed.
How much does Bit.com charge?
Fees vary and can be found here.
How do I contact Bit.com?
Is the Bit.com exchange available in the US?
No, it’s not.