Automated Trading on Bittrex: Strict API Settings and KYC Policy

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Bittrex is one of the world's oldest cryptocurrency exchanges, having opened in 2014. Since then, it has enabled traders and investors to satisfy their thirst for trading a wide range of pairings and assets.

Bittrex may now be regarded as a sophisticated digital asset exchange with a global customer base. Bittrex International appears to function within the regulatory framework established by the European Union (EU) and Malta's regulatory authorities (e.g. the VFA Act, short for Malta Virtual Financial Assets Act).

The exchange positions itself as a pioneer in the blockchain revolution leading the world. It focuses on introducing new ideas to the cryptocurrency industry and discovering new methods to incorporate crypto coins into everyday life. Bittrex's "Blockchain Incubator," for example, collaborates with diverse industry teams to develop new cryptocurrencies.

Trading Background and History

Bittrex is a cryptocurrency exchange established in the United States that specializes in paired cryptocurrency exchanges. It was founded in February 2014 by Bill Shihara, Richie Lai, and Rami Kawach, three cybersecurity experts with backgrounds in Microsoft, Amazon, and BlackBerry.

The exchange swiftly became one of the most well-known brands in the crypto trading community. It incorporates a self-regulated approach known as the Transaction Systems Based on Trustworthy Technologies Act (also known as "The Blockchain Act"), seeking governmental clearance. As a result, all of the company's clients are obliged to perform stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.

In 2019, Bittrex's trading engine was upgraded which enhanced the platform’s processing speed up to 20 times, made it more scalable, and capable of supporting additional features and upgrades such as USD and EUR markets. In addition, Bittrex Global, a new branch of its exchange based in Liechtenstein, was created.

As a result, the exchange currently runs two separated platforms with shared liquidity. The primary Bittrex exchange caters to the cryptocurrency environment in the United States, whereas Bittrex Global caters to all non-US users across the globe.

Bittrex Trading Volume and Products

Bittrex's primary product is its spot trading platform, which lets users trade in three distinct crypto-based markets and a USD market, provided their request for USD withdrawal and deposit capabilities.

When choosing an exchange, traders usually check its daily trading volumes to make sure that supply for their preferred coins meets adequate demand on the exchange. Low trade volume may be a turn-off for investors who want to trade big.

Bittrex allows users to exchange US dollars, the most popular cryptocurrencies BTC and ETH, as well as several dollar substitutes including USDT and TUSD for various cryptocurrencies such as ADA, TRX, and ZEC.
With a 24-hour trading volume around $180 million at the press time, Bittrex is ranked 26th out of over 150 crypto exchanges in terms of trading volume. According to Coinranking.com, Bittrex features 311 coins available for trading across 770 markets which include leveraged tokens and several tokenized stocks tradable against BTC, USDT, and USD.

Trading Interface

Bittrex offers to its customers the fast and informative trading interface equipped with TradingView charts, containing over 100 technical overlays and price data down to 1-minute intervals. You may also view depth charts and the exchange order book for all coins listed on the exchange.

The platform supports an array of the most in-demand trading instruments, such as market and limit orders, stop-loss feature, and one-cancels-the-other conditional links. Traders can also place trailing stop-loss and ladder limit orders, obtaining more control over their investments and executing more complex risk management strategies. Furthermore, Bittrex gives you the option of cancelling an order if it cannot be completed soon after it is placed.

Bittrex, in addition to being a cryptocurrency exchange, also provides an online wallet service. It has all of the functionality that any bitcoin wallet on the internet would have. Apart from bitcoin, up to 264 cryptocurrencies and digital tokens are available for storing and payments via the Bittrex wallet.

Bittrex trading interface overview.
Bittrex trading interface overview. Source: Bittrex Global

Bittrex Fee Schedule

Bittrex uses a flexible fee schedule based on users’ 30-day trading volume. All newcomers will be charged a 0.75% commission fee for placing both maker and taker orders. This fee will reduce to 0.5% as soon as the 30-day trading volume exceeds $5,000. users can reduce these fees to as low as 0% for all maker orders and 0.05% for taker orders in case their monthly trading volume exceeds $100 million.

Bittrex Global fee schedule
Bittrex Global fee schedule. Source: Bittrex Global

Bittrex's base trade costs are in the middle of the pack compared to other cryptocurrency exchanges like Binance, Kraken, and Bitfinex - it's neither the cheapest nor the most costly for low volume traders.

Bittrex allows you to fund your verified account using a bank card (VISA), wire transfer, SEPA transfer, or cryptocurrencies with no deposit or withdrawal fees. The cost of a VISA deposit is 3%, whereas your bank determines the cost of a wire transfer. SEPA transfers, on average, are less expensive and quicker than conventional wire transfers.

Bittrex does not charge any fees for cryptocurrency deposits, including fiat deposits. It does, however, charge for withdrawals, which vary in price depending on the cryptocurrency being withdrawn.

When it comes to withdrawal costs, Bittrex is typically fairly competitive. Even though they match some of the lowest prices offered sometimes, they're not the cheapest choice out there when it comes to low-volume trading or withdrawals for any cryptocurrency (e.g., for Litecoin withdrawals). Nonetheless, when their 30-day trading volume grows, large-volume traders are entitled to significant discounts.

KYC on Bittrex

Since Bittrex Global is so tightly regulated, you must go through a strict KYC procedure to prove your identity. This aids in the protection of millions of global users. Thanks to upgraded automatic ID verification technologies, the identity verification process has become quick and painless. The vast majority of customers have their accounts verified in under 15 minutes.

Clear photographs of your current and valid identity document (e.g. international passport, national identity card, driver's license) are required as part of the approval process.

Bittrex Jurisdiction

Bittrex is located in the United States, where it is legal to purchase, trade, and sell cryptocurrencies. The exchange has opened partner exchanges in Liechtenstein, Hong Kong, South Africa, New Zealand, Australia, Chile, the United Kingdom, Estonia, Mongolia, Singapore, Bahrain, and Canada to seamlessly provide crypto trading services around the world.

Strict regulation, however, bears significant difficulties for residents from countries where the regulatory environment is not favorable or transparent enough for the exchange to continue operating.

Since Sept. 24, 2020, the exchange suspended providing its services to traders from Ukraine, Belarus, Burundi, Mali, Myanmar, Nicaragua, and Panama. Clients from these countries were obliged to withdraw their tokens from the exchange prior to that date.

These restrictions have affected users from those countries who attempted to continue bot trading on Bittrex after Sept. 24, 2020.

Automated Trading on Bittrex

Bittrex offers a comprehensive and sophisticated API that includes REST endpoints for transactional operations and a Websocket service for live market and user data updates.

To guarantee the platform's efficiency and availability for integrated users, the Bittrex API allows call limitations on all third-party endpoints. Before starting a bitcoin trading bot Bittrex users must take into account that the exchange’s API can make a maximum of 60 API requests per minute. After the time restriction has been reached, calls will not be processed (fails), and the time limit will be reset at the start of the following minute of the first call.

Bittrex allows business and high-volume accounts to contact customer service for further information to continue to operate at their best. As previously stated, the REST API at Bittrex is used for the majority of order handling and works perfectly for launching bots on Bittrex. Market orders, limit orders, ceiling orders, good-til-cancel orders, immediate or cancel orders, fill-or-kill, post-only, and conditional orders are available for Bittrex bot trading via the REST API.

At Bittrex, the v3 WebSocket was created to allow clients to subscribe to a live stream of information about changing things in the system rather than polling the REST API for changes. It was created to complement and work in conjunction with the v3 REST API. As a result, the payloads in the messages delivered from the socket are structured to match the relevant data models from the v3 REST API.

Launching Bittrex trading bot with Bitsgap

Traders who seek the best Bittrex trading bot must always take into account the exchange’s harsh regulatory requirements and strict compliance procedures.

  • Create a new Bittrex account or log in to your existing one.
  • Navigate to the API Keys page from your “Settings” section in the top-right corner of the screen.
Managing API settings on Bittrex.
Managing API settings on Bittrex. Source: Bittrex
  • Activate the permissions that will allow you to use specific Bitsgap functionalities. Due to security concerns, it is recommended to disable withdrawal authorization for any Bittrex crypto bot. Note that Bitsgap won’t allow you to start any robot for Bittrex if your API key contains withdrawal permission.
  • Before you add your API key and Secret key to Bitsgap, please copy them somewhere safe.
  • Log in to your Bitsgap account and go to the “My Exchanges” section page and select “Add exchange”.
  • Select Bittrex from the pop-up window.
  • Click “Connect” after pasting your Bittrex API key and Secret key. Everything is ready! Your account has now been properly linked, and you are ready to use the most advanced cryptocurrency trading bot Bittrex users can access on the market.