LiteBit is not a common crypto exchange, as we know it. In fact, it is a cryptobroker. The difference is that while using its services, you don't see the classic trading interface with buy and sell orders. Instead, the way of buying crypto is a bit different - you can send your fiat (EUR in this case) and buy bitcoin or some other alts directly from the company.
LiteBit is a cryptobroker from the Netherlands (a country which is quite crypto-firendly). The basic information about the company:
|Headquarter||2525 Ventures BV|
|Weena 740, 15th floor|
|3014 DA Rotterdam|
|Number of users||600,000|
|Website language||EN, NL, FR|
They state on their website that: "We serve over 600,000 customers" which is surprisingly high number. The number of their followers on Twitter is slightly over 13.3K.
Creating an account
Signing up for an account is a bit more complicated as it would be with Binance. Litebit is an European company so it needs to comply with the EU regulations and store some more data about the users. The screenshot below indicates all the necessary steps and information that a new customer needs to pass.
Source: Litebit.eu website registration form
In the first step you need to provide your personal information, create the password and insert your email. Anyway, Litebit can reject your password. They use data from haveibeenpwned.com to check whether the password has not been leaked before. In our opinion, this is a very good measure protecting their clients.
You should be also honest with your name and surname. Otherwise, when buying bitcoin or other cryptos, LiteBit can refuse your fiat transfer as your name does not match the one of your bank account (or the one on the credit card). So, just be honest.
In the second step, you will get an email with a security code. In a case that you did not receive the confirmation email, don't forget to check the spam folder.
Next step is to verify the phone number you provided in the form, so LiteBit will send you a text message. As with the email, the SMS will also contain a unique code that you will have to fill in later.
Last step of creating your account is about security. You can choose between SMS confirmation or Google 2FA verification.
Since May 21, 2020 Litebit.eu is asking its customers for some more additional information - your Address, City, Postal code. Moreover, they will ask you to scan your ID and send it to them.
Here are some basic features and description of the services you can expect:
|EU customers||Yes, except Germany|
|Restricted||See below the table|
|New account||name and surname|
|date of birth|
|Google 2FA or SMS|
|address, city, postal code|
|scan your ID|
|KYC for fiat||Yes, since May 2020|
|MasterCard||credit card with 3DS|
|1000 EUR per payment|
|VISA||credit card with 3DS|
|1000 EUR per payment|
|Fiat deposits||EUR only|
around 2.5 % worse
Bid / Ask price
|Withdrawal fees||bitcoin: 0.0004 BTC|
|ethereum: 0.006 ETH|
|dogecoin: 5 DOGE|
|Mobile app||App Store, Google play|
|Other benefits||Purchase to external crypto wallet|
Surprisingly, their terms and conditions state that they do not accept new clients from Germany. It exactly states: "For some countries LiteBit is not allowed to accept new clients due to national regulation, including but not exhaustive Germany and USA."
Besides these countries, in 2019 has LiteBit.eu applied stricter compliance requirements and is no longer offering crypto services to customers from following countries: Afghanistan, Bahamas, Belarus, Bosnia and Herzegovina, Botswana, Cambodia, Central African Republic, Congo- Kinshasa, Cuba, Ethiopia, Eritrea, Ghana, Guyana, Guam, Guinea, Guinea- Bissau, Iraq, Iran, Kazakhstan, Lebanon, Laos, Libya, Macedonia, Mali, Namibia, North Korea, Panama, Pakistan, Palau, Russian Federation, Serbia, Somalia, South Sudan, Sri Lanka, Sudan, Swaziland, Syria, Trinidad and Tobago, Tunisia, Uganda, Vietnam, Venezuela, Vanuatu, Yemen, Zimbabwe.
Moreover, please keep in mind that as LiteBit is a Dutch company, all the payments are done in EUR (not USD or any other currency). Article 16 of the rules states: "All transactions relating to the Service – other than transactions in cryptocurrency – are denominated in euros. Litebit does not accept and does not pay any amounts in fiat currencies other than euros."
Due to the KYC and AML requirements, LiteBit does verify the information you provided on registration. You also have to send a small amount of money from your bank account to prove that it is really your account and your name matches. Quote from the terms (Article 5 - Customer identification): "In order to buy or sell cryptocurrency or LiteBit credits (as described in Article 16), any user will be required to register an account with LiteBit and identify themselves. The level of identifying information to be submitted depends on a number of factors (such as transaction volume, trading volume, payment method and country of residence). You expressly agree that LiteBit may verify the veracity of such information in any manner necessary. As part of the identification process, users must also provide a small transaction to one of LiteBit's bank accounts. The name associated with the payment instrument chosen to effect this transaction (or the bank account directly or indirectly linked to the payment instrument, where applicable) must match the name of the user exactly."
In line with this requirements, you are also not allowed to create more than 1 single account. If you try to curcumvent this rule, both your accounts can be disabled. (Article 6 - Account use).
Coins and trading
When buying bitcoin or any other crypto, the best method according to our experience are LiteBit credits. It works like a pre-paid balance. You can top-up your account by sending certain amount of EUR to the account. 1 credit equals to 1 EUR, so that makes the calculation being quite simple - if you want to buy 100 credits, you will have to send 100 EUR (+ a small administration fee). Once you create order for buying Litebit credits, the system will generate you the exact sum, IBAN and a code which you are supposed to use when sending from your bank account. Our experience is that the money sent from EU bank account will be deposited the same or next day. So the transfer is really fast.
This is how LiteBit describes their Credits system: "When you purchase cryptocurrencies with SEPA or SOFORT/Giropay, it may take up to three business days to receive your payment. Upon receipt of a SEPA transaction, the number of cryptocurrencies will be recalculated to the current rate. Because the price fluctuates, this can be detrimental to the number of cryptocurrencies that you have ordered. That is why we offer LiteBit credits. A credit equals €1 and with these credits you can trade quickly on our platform."
Before you buy LiteBit credits, you need to link your bank account to LiteBit account first. The link is done by transferring a small amount of EUR to your LiteBit account. You can send 0.1 EUR or 1 EUR - it is up to you. This is how you can confirm that you are the owner of the bank account and your name matches with the one stated on registration. Generally, the LiteBit credits can be obtained in two basic ways. Either by fiat payment in EUR or by selling some of your cryptocurrency you keep in LiteBit account.
There are 53 crypto coins you can buy using LiteBit.eu as of now. 6 most popular cryptos traded are: bitcoin, ripple, ethereum, bitcoin cash, lto-network and binance coin. This is how the Buy interface looks like:
Source: LiteBit.eu web interface
As mentioned at the beginning of the article, LiteBit is not an exchange. It is a crypto-broker. The difference is that broker is a middle man between you and the exchange. As you can see in the picture above, there are no buy and sell orders that match each other. Instead, LiteBit offers you form where you can set the amount of bitcoin or any other crypto you want to buy. Broker will offer you a bit worse Bid and Ask prices, compared to exchange. The difference between Bid and Ask prices is called spread and the higher spread is broker's profit.
Have a look at the first blue arrow in the form. It points to 3 important information. First, there is a current bitcoin price for which LiteBit is willing to sell you the BTC for. Then there is the amount of your LiteBit credits (if you use them, or the sum in EUR you will have to send) and the amount of BTC you could buy with these credits. In this theoretical case, we could allow to buy almost 0.016 BTC with 100 EUR LiteBit credits.
If you are not happy about the BTC amount it is offering you, then you can either refresh the webpage (each time you refresh a different price will be shown - as the bitcoin price changes in the market) or you can set your own bitcoin amount you would like to get for your EUR. The difference between accepting the amount that is shown in the column automatically and the one you set by yourself is that the first one will be executed almost immediately (it is like "market order"). Your own amount can take some time to be filled (you are basically setting "limit order").
The second, yellow arrow points to the address where the BTC you buy should be sent. You can keep it in the LiteBit wallet or send it to your own BTC external wallet. In the picture above, the external wallet has been chosen, so the interface is asking for your exact receive address.
The last green arrow indicates the payment method. In this case the Litebit credits were selected. That means that the BTC amount will be bought immediately from the pre-paid EUR credits you have in your account. Should you select e.g. SEPA transfer, the process would take much more time. You would get a confirmation of your order to your email, with the amount you should send to your LiteBit account. Once the amount is received, LibeBit will start buying your bitcoin. But this is really something you have much less control over. First, it takes much more time to buy your crypto and second, at the time the money will arrive, you can get much worse price. Other means of payments for crypto or to top-up your account with LiteBit credits are: iDeal, SOFORT, GiroPay, Bancontact, MyBank, Credit card, Carte Bancaire, EPS uberweisung.
We have tried several different ways and the one that we think is the best is to buy some LiteBit credits and then buy crypto with them whenever you like. It is much like topping up your pre-paid cell phone. Then you can make a call whenever you like and know exactly how much you will get/spend.
Once you buy some cryptos, you can switch to "My balance" option in the top menu. There you will find all the coins you hold. This is a simplified picture of what you will see:
Source: LiteBit.eu account web interface
You have several basic options for each coin in the list - sell your coins, withdraw them to external wallet, deposit new cryptos and your recent transactions. Once you click the "withdraw" button you will see the withdrawal fees for each coin you own. Also there is no "buy" button next to the coins, but should you want to buy some, then you have the "Buy" option in the top menu.
Advantages and disadvantages
After the thorough review here is the summary of the pros and cons of trading with LiteBit.eu
Buying bitcoin and 52 alts with FIAT
|Long-established company in EU|
|It requires strong KYC from the beginning|
Trading fee (spread) is higher when comparying to crypto exchanges
|Missing withdrawal fees on the website|
|Fiat payments are possible only in EUR|
Since May 2020 Litebit.eu has lost its biggest advantage - buying crypto without much KYC. At present you need to deliver your full name, address and scan your ID to be able to deposit, withdraw or trade crypto.
LiteBit.eu is a crypto-broker located in the Netherlands. If you are thinking about creating an account with LiteBit.eu, please consider using our referral link. There is no kickback rate we can offer you to save some % on the fees, LiteBit will pay us from their own earnings for helping them grow.
Are you interested in reviews of other exchanges? Here is the list of our articles: Crypto exchange reviews
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