BitcoBrokers is a crypto exchange solution that offers a full white label service for crypto exchanges. Looking from the brokerage perspective, this means you can leverage on the rising cryptocurrencies trend by offering your users a flexible in-house fiat-to-crypto exchange solution. But are BitcoBrokers a good tool or just another company that is trying to leverage on the crypto buzz? Read our review to find out!
The Blockchain World
The blockchain technology, introduced by Bitcoin, has been around for a decade now, generating extraordinary levels of interest with the promise of faster transactions with lower fees, resilience to bureaucracy and absolute transparency. Subsequently, the Ethereum network introduced Smart Contracts which are similar to standard contracts in that they outline the general terms of a relationship. It is clear to many that the blockchain technology represents the second internet revolution and has wide-ranging applications across industries. The unprecedented access to information, which the Internet brought to the world has been further enriched by the blockchain technology which allows extreme levels of crowd coordination by eliminating the issues of trust and fault, thus addressing many previously unexplored sources of economic value creation.
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The emergence of cryptocurrencies such as Bitcoin, Ethereum and EOS among others and the upsurge of their value appreciation over time has led to the development of a wide range of various fintech solutions. BitcoBrokers is one of these offerings that has one singular goal – to allow clients’ users to buy and sell crypto.
BitcoBrokers offers a white label crypto exchange solution that has the full package – crypto exchange panel/website (depending on your preference), comprehensive admin panel, where you can control the entire behavior of the exchange – PSP, KYC, margins, verification tiers, and so on. As far as the UX is concerned, once integrated, BitcoBrokers exchange will look like a simple checkout mechanism for buying and selling cryptocurrencies.
It is important to note here that it does not come as a stand-alone feature, as you first need to team up with with one of two cashier brands we have already reviewed in the past – Praxis Cashier or Payneteasy. The initial technical setup for BitcoBrokers then is costly (see below for prices) but happens relatively quickly.
Once you are done, the users cannot tell the difference between your own interface and the rest of the deposit options, and the crypto exchange.
Many crypto exchanges face credit card rejections due to lack of various certifications – something BitcoBrokers claim they have resolved. But the explanation is rather unsatisfactory – they say that your clients’ transactions will not be blocked because BitcoBrokers is working with the best PSPs and banks. We know a giant such as CoinDeal is doing the same and yet their operations are facing serious issues with some EU banks.
The promise of BitcoBrokers is that they allow for any-fiat-to-any-crypto exchange. Meaning you can use USD, EUR and GBP for instance to purchase major cryptos like BTC and ETH. In the admin panel, you can do extensive customization of most of the settings in the platform: allowed/blocked countries, default currency, fee calculation model, a wide range of fee settings (buy/sell, APM, etc), payment options, bank account details, whitelisted Ips for the admin roles, wallet update settings, verifications, invoice settings and others. Worth mentioning here that many of these settings actually depend on the requisites of the PSP.
The admin panel supports multiple brands, which is actually not so common in the industry (as far as CRMs are concerned, to the best of our knowledge the only one that does that is PROFTIT’s CRM). Besides the KYC, which we will review a bit more closely, the rest of the sections in the Admin are fairly standard. The Dashboard is where you can follow and filter multiple KPIs on one screen, the Transactions where there is a list of all transactions and their respective details, the Roles section and more besides.
Know Your Customer (KYC) and Overall Security
For most people blockchain in general and cryptocurrencies in particular are synonymous with privacy and anonymity. This could not be further from reality due to various reasons, as everyone knows that buying and selling crypto can happen only after a (sometimes quite enduring) KYC procedure is passed. The KYC itself is done by companies that cost an arm and a leg to use.
In order to help cut the cost, BitcoBrokers have done some interesting customizations to the process. In the Admin panel you can introduce KYC leveling, based on the deposited amount. For example, if the user deposits $500 or less, the KYC might happen just based on ID. Then deposits of $10,000 or more could require the user to provide bank account statements, proof of address, etc. Most of the big boys in the industry such as Onfido, Trulioo, HelloSign and others come as already integrated within the platform.
As already mentioned, the user access is restricted via IP whitelisting, multiple right-allocation settings. The 2FA upon login makes it look very secure too.
BitcoBrokers Costs and… Estonia
EUR10,000 to get going and another EUR2,500 or 2% of the successful transactions (whichever is higher) per month do sound a bit of a stretch. While thinking about the costs, it is very important to mention that a company cannot operate a crypto exchange within the EU unless there is a registered Estonian legal entity behind it. This happens due to the specific legislation inside the Union, related to processing cryptocurrencies and the respective licensing which one can acquire by forming a legal entity in Estonia. Luckily, almost this can almost always happen via Estonia’s e-government. Why Estonia? Read our article.
This is at a very high level, although the platform is developed in a way that it is unlikely you would need someone on their end. Which once again brings the question to the high monthly cost – what is it for?
As volatile as cryptocurrencies are, they are not going to disappear any time soon. That is why brokerages all around the globe are looking for ways to utilize this trend in their favor. BitcoBrokers has developed a solution which provides flexibility and if you have enough cash to work with them, it is likely you will end up rather satisfied. Ping us if you want us to provide you with alternative options.
Based on the review above, on the scale from 1 to 10, our FinTechTycoon expert score is an encouraging
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