On many official altcoin websites you can find information about how to purchase that particular altcoin. Among the exchanges mentioned on these websites you will probably also come across LiteBit.eu. But is it really an Exhange like Kraken or PoloniEx? The answer is NO! However, that doesn't mean you shouldn't use it!
Litebit.eu is a company based in The Netherlands and especially convenient for Dutch people as they can use IDeal which is a free instant payment method that all the Dutch banks use. Litebit.eu offers 40 different cryptocurrencies of which some aren't always easy to buy. This is one of the reasons why I am pretty sure there are people all across the world using this website to make their purchases.
Anyways, after signing up you will need to get verified which can take multiple days. However, with the current hype this seems to be the case on all the major websites which enable users to buy cryptocurrency. It took me over 8 days to get approved on Kraken. After approval the limits for LiteBit.eu are pretty high and there are multiple payment methods as you can see below.
In my opinion there are 4 main things worth mentioning about LiteBit.eu and this will also make clear why it isn't an exchange.
The price for 1 Ethereum on LiteBit at the time of making the screenshot was 227.20 EURO whilst the price for 1 Ethereum on Kraken was 218.87 EURO. All the prices for the different cryptocurrency are around 5-7% higher then the prevailing market price as that is how they make their money. They probably purchase the coins on Kraken and then just sell them on their website for a premium.
As they purchase the coins in advance and then sell them on to people like you and me they have stock. This is shown here and they do run out of coins multiple times a day. This can be annoying as, form my own experience, it can easily take 40 minutes or more in which the price can suddenly go up.
Regularly they perform maintenance which prohibits you from purchasing certain coins. All you can do is wait and take a look at another cryptocurriency that might be worth investing in.
Most cryptocurrencies come with a small description and link to the official website but more importantly a link to a wallet. LiteBit.eu also gives you the opportunity to keep certain cryptocurrencies in your LiteBit Wallet but I prefer not too. Therefore the link to a wallet is very helpful for people that don't know too much about cryptocurrency but do want to get their share of coins without doing research.
On top of the premium they charge on each coin you will only pay 0.42 EURO as a transaction fee. If you wish to purchase Ripple for a total amount of 100 EURO LiteBit is easier, faster and cheaper then Kraken as a bank transfer can take a while and you pay a fixed fee of 10 EURO. If you are a heavy hitter looking to invest thousands of EURO's in cryptocurrencies, which are available on an actual exchange like Kraken, then LiteBit will turn out to be a lot more expensive.
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Nice review. Would you suggest to use litebit? I'm a newbie in crypto but I think this website could be good for small investments, and to buy just few coins. If you have fiat and you want to buy on a stock exchange you have to purchase bitcoin or eth and then move your coins. It's not that hard but you pay multiple fees. Litebit is just faster for small amounts of money.
I use LiteBit so I would recommend it. Although now for bigger purchases of Ethereum, Bitcoin and Ripple and crypto's that are worth more then a few cents I use Kraken. SEPA transfers wont cost you anything and the fees are 0.16%. However, many crypto's aren't available on Kraken so I use LiteBit or ShapeShift when possible.
Yes, it is a good place to start and you can find here coins that are otherwise more difficult to get by. But do your selling somewhere else. For me the problem is not by buying from them for a little bit more, but when I am selling. There is where you get played the hardest. There is a difference like 10 to 20 percent in the price which you can buy and sell the same amount of coins at that moment.
I always use it for buying coins with fiat money. I don't trust those exchange site because they can be hacked
Litebit is hacked twice already in the last 2 months. The last time the hacker managed to get my name, password, phonenumber, bank account number, my positions but not my coins. So you know. Litebit is not safe either. None of them are. Because there is a single point of entry. Which means very hackable. :) :) the next big thing we need is decentralised exchanges. And yes I did not stopped using there services. It is way to convenient, but it made me move my coins to safer places. 😂
Prices are 20% higher as in exchanges today.