Bitso
Bitso Review 2023: An Expert's Comprehensive Analysis
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Overview
General
Fees
Customer service
Requirements & Accessibility
Pros
Cons
Key Takeaways
Origins
Introduction
Moving forward with our deep dive into the top 100 crypto exchanges, next up on the conveyor is Latin American pioneer exchange, Bitso – a platform that provides a range of crypto trading services. Being the world’s largest exchange for buying and selling digital assets with Mexican Pesos (MXN), Bitso cut a niche in the lucrative but less-explored Latin American market. But is it actually any good? Join Coinscan as we get suck in and find out!
History
Bitso's story began in 2014 when the founders, Ben Peters, Daniel Vogel, and Pablo Gonzalez – recognized the growing interest in cryptocurrencies in Mexico and Latin America – but saw a lack of reliable platforms for buying and selling digital assets. They set out to create a solution that would make it easy for anyone to access the fast-growing crypto market.
Bitso was officially launched in April 2014, starting out as a Bitcoin/Mexican Peso trading platform.
Just like most businesses, the early days were challenging for the exchange as the team had to educate the market and overcome the lack of trust in the technology.
However, it persevered and gradually built a loyal user base and over the years, and has expanded its offerings to include other cryptocurrencies such as Ethereum and Ripple, as well as a variety of trading pairs.
The Mexican-based exchange has also grown rapidly, establishing itself as a leading player in the Latin American crypto market- gaining recognition and attracting investment from major investors in the industry.
In 2016, the exchange had its first-ever partnership with Zmart Group to open over-the-counter (OTC) Bitcoin sales in convenience stores across Mexico. At the time, the Mexican giant exchange had managed to register over 20,000 users, transacting $2.5 million daily. Today, Bitso continues to innovate and adapt to the constantly changing crypto landscape, striving to make digital assets accessible to even more people across the region.
User Experience
Ease of Use and Design
Bitso was created to make it easy for anyone to access the crypto world, regardless of their level of technical expertise – and this has helped to keep them at the top since its establishment.
The exchange's user interface is intuitive and straightforward, allowing users to quickly navigate the platform and find the information they need.
Unlike several other exchanges, one of the key design elements of the platform is its simplicity.
Bitso's landing page is clean and uncluttered, with clear calls-to-action that guide users to the main features of the platform. The exchange's trading web environment is also well-designed, with an emphasis on user-friendliness.
The navigation menu is easy to understand and provides users with real-time market information and charts, as well as a variety of order types and tools for managing their trades.
Bitso recognizes the fact that most users prefer to carry out trading activities from their mobile phones, which is why the platform also offers an app that provides the same functionality as the web platform and allows users to trade on the go.
The crypto market is an industry where learning never ends and most exchanges operate with that physiology, including Bitso.
To that effect, the platform also offers a range of educational resources, like a comprehensive FAQ section, tutorials, and a blog that covers a wide range of topics related to cryptocurrencies and trading. These resources are tailored to help users understand the basics of the platform, how to trade and how to be safe while trading.
This approach has helped to attract a wide range of users, from novice traders to experienced investors.
Usage and Popularity
Bitso's usage and popularity have grown significantly since its launch.
Being the first digital asset trading platform in Mexico, the exchange had to take the hard path of educating the weary Mexican market about the usefulness of the novel currency. This was the only way to establish itself as a trusted and reliable exchange for buying, selling, and trading digital assets- and build a strong brand in the larger Latin American region.
The exchange has a strong focus on serving the Mexican market, but it also serves customers from other Latin American countries.
Bitso's user-friendly interface and low fees make it a hit with both experienced traders and first-time buyers- as such features are what every crypto trader is looking for. Therefore, it goes without saying that any exchange that offers such is likely to be rated among the top players in the market.
Currently, the platform reports a $36 million 24-hour trading volume, with XRP/MXN being the biggest trading with a daily trading volume of $22 million.
Bitso's popularity has also been reinforced by its strong focus on compliance and security, which has helped it to gain a 5-star rating from its users in terms of trust – and gain approval from regulators. The exchange has implemented strict AML and KYC policies, which is important for any exchange but particularly for an exchange operating in a regulated market.
It also holds a license from Mexico's Central Bank, which adds to its credibility.
Bitso's marketing team clearly knows that the expansion of services is one of the keys to growth in business as it has continued to expand over the years.
In 2020, the platform launched its Alpha platform, a crypto-to-crypto trading platform for professional traders, which has been well received by the market so far.
Customer support
This section is where most crypto exchanges' shine rubs off, but Bitso prides itself on providing excellent customer service to its users.
The exchange has a dedicated support team that is available 24/7 to respond to all forms of user queries. This team can be reached via email, phone (hallelujah), or through the platform's built-in support center, which provides a wide range of resources and tutorials.
Including a phone number is a rare occurrence in the exchange business- so, this is pretty much commendable for Bitso.
The platform also boasts a comprehensive FAQ section that covers a wide range of topics related to the platform, cryptocurrencies, and trading is also available. The questions are regularly updated to ensure that users have access to the most up-to-date information.
Bitso's customer support team is known for its quick response times and helpfulness, a clear indicator that they have undergone proper training on every aspect of the business and customer needs. More significantly, the support team can provide assistance in both Spanish and English- which is a big plus for the largely Spanish-speaking Latin American population.
Fees and Promotions
Fees
Trading fees are the backbone of exchanges and like many others, Bitso has adopted the Maker-Taker fee model, which is designed to provide greater liquidity to the markets and reduce the spread between the purchase and sale prices.
By rewarding both makers and takers, Bitso aims to create a more active and attractive market for its users.
In this regard, Bitso charges different fees for trades made in markets against Bitcoin (BTC) and trades made in markets against Mexican Pesos (MXN).
For trades made in BTC markets, the maker fee is 0.075% and the taker fee is 0.098%. This places Bitso's fees slightly below the global average.
For trades made in MXN markets, the maker fee is 0.50% and the taker fee is 0.65%. But traders can save further on this fee as their trading volume increases within a 30-day range.
Bitso also charges deposit and withdrawal fees, which vary depending on the type of deposit or withdrawal and the currency being used.
Comparison
Both Bitso and Bittrex are cryptocurrency exchanges that offer a wide range of features and services. However, there are some key differences between the two platforms, which may make one a better choice for certain users than the other.
Ultimately, the best exchange for you will depend on your individual needs and preferences.
If you are a beginner, or if you are looking for an exchange with a strong presence in Latin America, then Bitso is a good choice. If you are looking for a global exchange with a wide selection of cryptocurrencies and trading features, then Bittrex is a good choice.
Safety Essentials
Security
One common thing among top crypto exchanges is that they place a high priority on security by implementing a variety of measures to protect their users' assets and personal information, and Bitso is no exception. The exchange has a dedicated security team that is constantly monitoring the platform for potential threats and vulnerabilities.
Unlike some crypto exchanges, one of Bitso's key security features is its incident response program.
In the event of a security breach or other urgent situation, an incident response team will respond quickly to contain the threat and minimize any potential damage.
This is a critical aspect of the exchange's security strategy, as it allows Bitso to respond quickly and effectively to any potential security threats.
In addition, Bitso also places a strong emphasis on data privacy by having strict data privacy policies and procedures to ensure that user personal information is kept safe.
These include encrypting sensitive data and regularly auditing the platform for potential vulnerabilities. The exchange also uses the two-factor authentication (2FA) process for login and withdrawal, which adds another layer of security for users.
Moreover, the exchange has a bug bounty program, which encourages users and security researchers to report potential vulnerabilities in the platform, thereby identifying and addressing potential security issues before they can be exploited by attackers.
Another worthy security step taken by the exchange is having an awareness program that is aimed at educating users about cryptocurrency security and best practices. These include resources such as tutorials and guides on how users can secure their accounts and protect their assets.
Controversy
Just like any other cryptocurrency exchange, Bitso has not been immune to controversy.
In 2018, the exchange suffered a security breach, which resulted in the loss of an unspecified user amount of digital assets.
The exchange quickly took action to address the issue by establishing immediate disqualification of withdrawals and deposits to allow them time to address the issue. The exchange eventually compensated the affected accounts, but the incident raised concerns about the exchange's security measures.
There have also been some complaints from users regarding the exchange's fees and trading platform, as some have reported experiencing delays in order execution.
However, the exchange has been responsive to such complaints and has made improvements to the platform to address these concerns (this is quite impressive in an industry whose majority of players never respond well to controversial events).
Proof of Reserves
Bitso, like a number of other reputable exchanges, maintains proof of reserves by regularly publishing a report that shows the total amount of assets held in its cold storage wallets and the total amount of liabilities it owes to its users. The exchange has been publishing a report on its proof of reserves since 2016- including its asset and liabilities.
The company claims that its annual report is audited by external firms, although they haven’t expressly revealed the identity of the said auditor. Nevertheless, this report simply acts as a way for the exchange to demonstrate its solvency- which helps it build trust with its users.
But we can give the exchange a benefit of the doubt as it holds a license from Mexico's Central Bank, which requires the exchange to comply with strict regulations and maintain a certain level of solvency. This license is an additional layer of assurance for the users that their digital assets are safe with Bitso.
Conclusion
Bitso is a reputable and well-established cryptocurrency exchange that has been serving the Mexican and wider Latin American markets since 2014.
Being one of the pioneers of the crypto exchange business in Latin America, it offers a user-friendly interface, low trading fees, a variety of trading pairs, a strong focus on compliance and security, a dedicated customer support team that is available 24/7, a comprehensive FAQ section and educational resources, and a transparent approach to handling any issues or complaints.
The crypto exchange has also been transparent about its proof of reserves and holds a license from Mexico's Central Bank. While the exchange has faced some minor controversies, it has been transparent and responsive in addressing them and continues to work towards providing a reliable and secure platform for its users.
Bitso is a great option for anyone looking to access the crypto sphere in Latin America.