UPDATE 18 January 2023: A few hours ago, it was revealed that the founder of Bitzlato (Mr. Anatoly Legkodymov) has been arrested on suspicion of money-laundering of funds tied to "illicit Russian finance". This also resulted in the platform being required to shut down.
Here's a video extract from the US Department of Justice's press conference earlier today:
Accordingly, we have marked the platform as "dead" in our Exchange Graveyard.
To find a reliable exchange where you can start an account, just use our Exchange Filters and we'll help you find the right platform for you.
What is Bitzlato?
Bitzlato is a P2P-crypto platform registered in Hong Kong. It launched back in 2016.
At Bitzlato, people from different countries can post ads where they state exchange rate and payment methods for buying or selling any of the cryptocurrencies supported by the platform. You reply to these ads and agree to transact with the person you have replied to. The seller puts the relevant crypto in an escrow account, and when the parties have transacted and the seller has confirmed payment to Bitzlato, then Bitzlato releases the crypto from the escrow to the buyer.
In many ways, Bitzlato is like an online store or an Ebay for cryptocurrencies. Investors at the exchange post different “ads”, where they offer a price quote for a specific cryptocurrency. This ad can be for both buying or selling or either one of those actions. If you as another buyer/seller thinks the offer is good, you can just take it. The platform’s mission is to allow users to exchange directly, with no middleman.
Most crypto traders feel that desktop give the best conditions for their trading. The computer has a bigger screen, and on bigger screens, more of the crucial information that most traders base their trading decisions on can be viewed at the same time. The trading chart will also be easier to display. However, not all crypto investors require desktops for their trading. Some prefer to do their crypto trading via their mobile phone. If you are one of those traders, you’ll be happy to learn that Bitzlato’s trading platform is also available in mobile format.
Bitzlato also has an affiliate program. Through this program, you can earn up to 40% commissions on Bitzlato's trading fees generated from the contracts trading of your referrals. 40% is a decent level relative to the industry standards.
You can sign up to the affiliate program here.
Bitzlato Trading View
Every trading platform has a trading view. The trading view is the part of the exchange’s website where you can see the price chart of a certain cryptocurrency and what its current price is. There are normally also buy and sell boxes, where you can place orders with respect to the relevant crypto, and, at most platforms, you will also be able to see the order history (i.e., previous transactions involving the relevant crypto).
Bitzlato, however, is as mentioned above not really an exchange per se. It is more like an Ebay for cryptos. At this place, you can scan through a number of different sale/purchase ads that have been posted by other users of the platform. You can sort by payment method, price, popularity, coin etc, to find a seller/buyer that you want to transact with. The below is a picture of the list where you can find different offers at Bitzlato:
It is up to you – and only you – to decide if the above interface is suitable to you.
Bitzlato Trading fees
Considering the above business model, the distinction between parties on the exchange is not taker and maker, it’s rather more like person advertising and person responding to advertisement. The person responding to an existing offer is not charged anything (0.00%). The person who have created the offer needs to pay 0.50% in trading fees.
If comparing 0.50% to average trading fees for centralized exchanges, it is very high. However, there are great dissimilarities between Bitzlato and centralized exchanges somewhat explaining the higher fee. We recommend investors using Bitzlato to consider themselves whether this fee is to their liking or not.
Bitzlato Withdrawal fees
The final fee to consider is the withdrawal fee. Bitzlato charges 0.00014 BTC per BTC-withdrawal for the standard BTC wallet.
This fee is substantially below the global industry average, as the industry average according to the only empirical study performed on the subject that we know of, this one, is 0.00059 BTC per BTC-withdrawal.
This platform is an entry-level exchange, meaning that it is one alternative for people who would like to enter the cryptocurrency market and does not have any cryptocurrency assets to begin with. There are more than 250 different payment methods available to deposit with here.
Great work, Bitzlato!
Why do so many exchanges not allow US citizens to open accounts with them? The answer has only three letters. S, E and C (the Securities Exchange Commission). The reason the SEC is so scary is because the US does not allow foreign companies to solicit US investors, unless those foreign companies are also registered in the US (with the SEC). If foreign companies solicit US investors anyway, the SEC can sue them. There are many examples of when the SEC has sued crypto exchanges, one of which being when they sued EtherDelta for operating an unregistered exchange. Another example was when they sued Bitfinex and claimed that the stablecoin Tether (USDT) was misleading investors. It is very likely that more cases will follow.
Bitzlato does not allow US-investors on its exchange. So if you’re from the US and would like to engage in crypto trading, you will have to look elsewhere. Luckily for you, if you go to the Exchange List and use our exchange filters, you can sort the exchanges based on whether or not they accept US-investors.