What Is Bitso?
Bitso is a Mexico-based cryptocurrency exchange which was launched in 2014. The platform is noted for being the first crypto exchange ever to support cryptocurrency trading against the Mexican peso. In addition to trading services, cryptocurrency payment services from Mexican merchants are also supported.
Bitsopay and Mobile App
BitsoPay is a payment platform for merchants which enables them to accept Bitcoin payments without paying any fees. BitsoPay can be implemented into any physical retail location or online store. Once the Bitcoin funds have been received they are instantly converted into Mexican Pesos.
Along with the web-based wallet and trading platform, Bitso also offers a mobile app version of the exchange platform. The app is compatible with both Android and iOS systems.
Features
- Reliable customer support.
- Fast transaction confirmation times.
- Competitive fees for crypto-to-crypto trades.
- Safe and robust servers for enhanced security.
- multi-signature system available through BitGo partnership.
- Data recovery solutions are available.
- Two-factor authentication is available.
- Set of APIs which allow third-party development of Bitcoin applications.
- Supports fiat currencies and bank wire transfers.
Pros and Cons
Pros
Free MXN trading
Bitso allows local traders to convert their crypto into Mexican pesos and vice versa by using free SPEI electronic transfers.
Easy for beginners
The platform features a Knowledge center with useful video tutorials that can help novice traders to navigate the site and perform trades and withdrawals.
Transparent fee structure
The exchange features a transparent fee structure of its services, which is presented clear and precise on its website.
Low-cost crypto-to-crypto trading
Crypto-to-crypto trading incurs relatively low fees, approximately 0.15% per trade.
Wallet service integrated
BitGo, a highly-rated bitcoin wallet, has been integrated into the exchange, thus incorporating the wallet’s multi-signature security feature called Bitirin.
Cons
Limited selection of altcoins available
There is a limited list of supported cryptos on Bitso: Bitcoin(BTC), Bitcoin Cash(BCH), Ethereum(ETH), Ripple(XRP), Litecoin(LTC), TrueUSD (TUSD), Decentraland (MANA), Golem (GNT), and Basic Attention Token (BAT).
Limited to local use
The only fiat option supported by the exchange is the Mexican peso and its liquidity is focussed mainly in MXN pairs. This limits the exchange’s use only to Mexican and Latin American users.
High trading fees
The fees for converting MXN to cryptocurrency (and vice versa) can go up to 1%. This fee is much higher compared to other exchanges which have fees of around 0.15% (market makers) and 0.25% (market takers).
Simplistic interface
The exchange provides a simple web-based interface which features basic trading functions such as an order book and some basic charting. No stop limits, stop loss, or other advanced functions are available.
Not advantageous for low trade volumes
Traders that have low volumes are at a disadvantageous as the fees are higher.
No margin trading
Bitso does not support leveraged trading.
How to Use Bitso
- In order to open an account, you must first select from a drop-down menu what kind of account you want: for personal or business use.
- You will then be required to provide personal information such as a valid email address and a mobile phone number for account verification.
- Fill the form that will be displayed on the screen with the requested data.
- In the second form which will appear, enter the code that you will receive on the phone number you provided, and select a password and PIN.
- After you have completed these steps, a user ID will be given to you which you will use to login to your personal account.
- Check your email when you have received the registration notification from Bitso which alerts you that you have successfully created your account, and features all registration data and your user ID.
- You can now use the platform to trade with cryptos or buy and sell with Mexican pesos.
Security
Seeing as Bitso has fiat currency support, KYC and AML protocols are enforced to comply with legislation. Bitso features 3 levels of verifications and each having its own benefits.
- Level 1 requires mobile phone verification via an SMS text message after which you will receive an email containing with the account’s ID number.
- Level 2 requires uploading scans of passport and proof of residence document.
- Level 3 involves opening a ticket from their Help Center and selecting Account Verification/Level 3.
The exchange has implemented the multisig feature for its wallets and a 2-factor authentication mechanism.
Fees
Bitso applies a variable fee for its trades which depends on the number of transactions completed over a 30-day period. There are two fee models which are calculated for coins traded against BTC and coins traded against Mexican Pesos. Both cases are based on a Maker-Taker model.
The fees range between 0.1% and 1%. If trading volumes are higher, then the fees will get lower.
Zero fees are applied for SPEI transfers in MXN.
No fees are charged for BTC deposits, and MXN withdrawals through SPEI transfers also incur no fees.
Verdict
Bitso is a recommended exchange for those that what to sell or buy cryptos with Mexican pesos. If you are interested in more fiat and altcoin options, then it is best if you search another trading platform.
Featured Image: Twitter
