Introduction: The Current Landscape of the Cryptocurrency Market and the Importance of Choosing the Right Exchange

In the fast-paced and constantly evolving world of cryptocurrencies, selecting an appropriate exchange, especially for advanced strategies like arbitrage, is of paramount importance. The cryptocurrency market, with its significant volatility and remarkable profit opportunities, has always attracted traders. However, successfully capitalizing on these opportunities requires access to platforms that not only ensure the security of assets but also excel in terms of transaction speed, order execution accuracy, and the provision of professional services. Choosing the right exchange directly impacts profitability, reduces the risk of price slippage, and enhances the overall user experience.

Arbitrage traders, due to the nature of their strategy, which relies on exploiting minute price differences in very short time frames, particularly need platforms with the lowest latency and highest accuracy. Every millisecond of delay or every percentage of additional fees can erode their profit margins. Therefore, a thorough examination of an exchange’s technical infrastructure, fee structure, and execution capabilities is critical for this group of traders. This report provides a comprehensive analysis of the Tapbit exchange, its key features, and a comparison with domestic and international competitors to offer precise, data-driven guidance for traders. The primary focus is on evaluating Tapbit’s suitability for arbitrage strategies, considering all operational and security aspects.

Section 1: Introduction to Tapbit Exchange and Its Position in the Cryptocurrency Market

Tapbit is a relatively new but rapidly growing player in the global cryptocurrency ecosystem. With a focus on providing secure and efficient trading services, the platform has managed to secure a notable position in a short period.

History and Vision of Tapbit

Tapbit was established in 2021. Based in Seychelles, this exchange has grown rapidly and has secured a place among the top 31 exchanges in reputable global rankings such as CoinMarketCap. This rapid ascent in rankings reflects Tapbit’s successful strategies in attracting users and providing competitive services.

The platform currently boasts over 150,000 registered users and consistently ranks among the top 10 exchanges for liquidity on CoinMarketCap. This prominent position in liquidity rankings is particularly significant for arbitrage traders. High liquidity means large orders can be executed with minimal price slippage, which is critical for maintaining profit margins in arbitrage trading. Strong market depth enables the exchange to withstand significant market volatility and provide a stable trading experience for users.

Tapbit’s vision focuses on delivering secure and stable trading services for major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and USDC to global investors. The exchange strives to operate in over 190 countries, offering broad accessibility to users from various regions worldwide. Additionally, Tapbit continuously releases updates to enhance user experience and expand platform capabilities, including optimizing order types and adding new cryptocurrencies. This proactive approach to development demonstrates the exchange’s commitment to meeting the evolving needs of the market and its users.

Core Products and Services of Tapbit

Tapbit offers a wide range of products and services to meet the diverse needs of cryptocurrency traders and investors:

• Spot Trading: The platform enables instant buying and selling of cryptocurrencies at market prices.

• Derivatives Trading: Tapbit allows users to trade in derivatives markets such as futures and perpetual swaps, providing additional opportunities to profit from price volatility.

• Earning Products: The exchange also offers products for generating passive income from cryptocurrency assets.

Key features that distinguish Tapbit from many competitors include:

• $40 Million Insurance Fund: This fund is designed to protect users’ assets against extreme market conditions or internal platform incidents. The existence of such a fund provides a layer of assurance for users and reflects the exchange’s commitment to the security of their investments.

• 24/7 Customer Service with 5-Minute Response Time: Tapbit prides itself on its customer service, promising rapid responses within 5 minutes. This response speed is highly valuable for traders, especially in volatile market conditions.

• Smart Matching System with Millisecond Trading Experience: One of the most critical features for arbitrage traders is Tapbit’s order matching system, which delivers a millisecond trading experience. This high-speed order processing allows traders to capitalize on the smallest price differences and seize arbitrage opportunities before they disappear. This capability is a direct technical advantage for arbitrage and indicates that Tapbit’s infrastructure is designed for high-frequency, low-latency operations.

• Quantitative Market-Making Strategies: This feature shows that Tapbit provides tools to facilitate market-making activities, which can enhance liquidity and improve the trading experience.

• Partner Rebate System: This system rewards partners and referrers, contributing to the expansion of Tapbit’s user community.

Tapbit also supports over 700 digital assets, including Telos (TLOS), providing extensive trading options and enabling portfolio diversification.

Platform Credibility and Security

Security is a cornerstone of any cryptocurrency exchange’s credibility, and Tapbit has implemented multiple measures in this regard:

• Multi-Signature Wallets and Hot/Cold Wallet Separation: Tapbit ensures asset security by using multi-signature wallets and managing hot wallets (for daily transactions) and cold wallets (offline storage) separately. Cold wallets protect assets from cyber attacks, while hot wallets are used for daily transactions. This layered approach minimizes the risk of theft.

• Risk Control System and Professional Firewall: Transaction security is ensured through a comprehensive risk control system and a professional firewall service architecture. These systems help identify and prevent suspicious activities.

• 24-Hour Compensation: Tapbit promises 24-hour compensation for user losses caused by platform incidents. This commitment, combined with the $40 million insurance fund, demonstrates the exchange’s responsibility toward users’ assets and provides greater peace of mind. This level of commitment to compensation, which goes beyond standard security measures, significantly enhances user trust and the platform’s credibility.

• Banking-Grade SSL Encryption: The exchange uses banking-grade SSL encryption to protect data and communications.

Tapbit’s public commitments emphasize transparency and operational security, including:

• No Misuse of User Assets: Tapbit guarantees that users’ assets will not be misused for the exchange’s trading or investment purposes, ensuring funds are used solely for users’ transactions.

• No Arbitrary Asset Freezing: The exchange promises not to arbitrarily freeze users’ assets, except in cases of suspected illegal or illicit activities such as money laundering or stolen assets.

• No Malicious Platform Manipulation: Tapbit ensures no malicious manipulation occurs on its platform, using reliable third-party data sources for accuracy and transparency.

• 5-Minute Withdrawal Completion: The exchange promises to complete withdrawals within 5 minutes. If withdrawals take longer than 15 minutes, Tapbit will compensate for each order to ensure users’ funds are not unnecessarily delayed. This withdrawal speed is a significant competitive advantage for arbitrage traders needing rapid fund transfers between exchanges.

• Full Compensation for Losses: Tapbit guarantees full compensation for any user asset losses due to extreme conditions or platform errors. This commitment, alongside the $40 million insurance fund, significantly boosts user confidence in the platform.

• Security Prioritization: Tapbit prioritizes security, conducting regular stress tests and security audits and strictly adhering to security standards to ensure users’ assets are always safe.

Licenses and Regulatory Framework

In the cryptocurrency space, a robust regulatory framework and necessary licenses play a critical role in establishing trust and legitimacy. Tapbit claims to hold several key licenses:

• MSB (Money Services Business) License: Issued by the U.S. federal government, indicating compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations in the United States.

• NFA (National Futures Association) General Financial License: Tapbit also claims to hold an NFA license from the U.S. federal government. The NFA is a self-regulatory organization for the futures and derivatives industry in the United States.

• SVGFSA (St. Vincent and the Grenadines Financial Services Authority) Cryptocurrency and Forex Business License: This license indicates legal operations in cryptocurrency and forex under SVGFSA supervision.

However, a critical note regarding these licenses: Efforts to directly verify the existence and active status of these licenses (MSB, NFA, and SVGFSA) through relevant public databases do not yield definitive results, and the information is not fully publicly accessible. This means users may need direct access to additional information from the exchange or deeper investigations to accurately verify Tapbit’s regulatory status. This lack of transparency in public license verification could be a concern for some investors seeking the highest level of regulatory assurance. In financial markets, particularly in cryptocurrency, regulatory transparency is a key factor in building trust and reducing operational risks.

Section 2: Arbitrage in Cryptocurrency: Why Tapbit Can Be a Suitable Choice

Arbitrage is a trading strategy that seeks to achieve risk-free or low-risk profits by exploiting temporary market inefficiencies. In the volatile cryptocurrency market, this strategy can offer attractive opportunities.

Basics of Arbitrage in the Crypto Market and Its Types

Arbitrage in the cryptocurrency market generally involves exploiting price differences for the same digital asset across different exchanges or within different trading pairs on a single exchange. The primary goal is to buy an asset at a lower price in one location and sell it at a higher price elsewhere to profit from the price differential. While this strategy carries lower risk compared to other trading methods like swing trading or long-term investing, it requires a deep understanding of market mechanics, high speed, and accuracy in calculations.

The main types of arbitrage in the cryptocurrency market include:

• Cross-Exchange Arbitrage: The most common form of arbitrage, where a trader buys a cryptocurrency on an exchange where its price is lower and immediately transfers and sells it on another exchange where the price is higher. This strategy requires constant monitoring of prices across multiple exchanges.

• Triangular Arbitrage: Conducted within a single exchange, this involves trading three different cryptocurrencies to exploit minute price differences between trading pairs. For example, a trader might convert Bitcoin to Ethereum, then Ethereum to Tether, and finally Tether back to Bitcoin, hoping to end the cycle with more Bitcoin than initially started. This strategy requires extremely fast execution and low trading fees to be profitable.

• Spatial Arbitrage: This type focuses on price differences across international exchanges, driven by regional demand differences or local regulations. This strategy can involve greater complexity due to fund transfers between countries and regulatory issues.

• DeFi Arbitrage: With the rise of decentralized exchanges (DEXs), arbitrage opportunities have emerged on these platforms. DeFi arbitrage bots exploit price differences for an asset across different DEXs.

Importance of Speed, Accuracy, and Professionalism in Arbitrage Trading

Success in cryptocurrency arbitrage heavily depends on three key factors: speed, accuracy, and platform professionalism.

• Speed: The critical factor in cryptocurrency arbitrage is speed. Cryptocurrency prices fluctuate every second, and arbitrage opportunities are typically fleeting, disappearing quickly. Thus, the ability to execute trades rapidly significantly increases the likelihood of securing profits. Even a few seconds of delay can lead to missed opportunities or losses. Using fast blockchains like Tron (TRC20) can help minimize transaction times.

• Accuracy: Precise calculations and real-time price monitoring tools are essential to correctly identify profitable opportunities and account for all costs (such as fees and slippage). Arbitrage bots enhance accuracy by eliminating emotional decisions and operating based on advanced logic and algorithms, helping users identify potential profits in real time.

• Professionalism: Choosing reliable exchanges with high liquidity is crucial to ensure trades can be executed quickly with minimal slippage. Sufficient liquidity in each trading pair is vital to prevent price changes before a trade is completed. Transaction fees (including trading fees, deposit/withdrawal fees, and slippage) can significantly impact arbitrage profitability and must be carefully factored into calculations. Experienced traders select exchanges with the lowest fees to avoid profit erosion.

Tapbit’s Capabilities for Arbitrage

Given the critical need for speed and accuracy in arbitrage, Tapbit offers several key features that make it a potentially suitable choice for this strategy:

• Smart Matching System with Millisecond Trading Experience: Tapbit features a smart matching system that provides a millisecond trading experience. This directly addresses the need of arbitrage traders for rapid order execution. In a market where prices change rapidly, the ability to execute orders in fractions of a second can make the difference between profit and loss. This capability indicates that Tapbit’s infrastructure is designed to handle high transaction volumes with exceptional speed, which is critical for capitalizing on fleeting price differences in arbitrage.

• High Market Depth: Tapbit boasts high market depth, enabling it to withstand extreme market conditions and provide the necessary liquidity for large trades. Strong market depth means a high volume of buy and sell orders near the current price, reducing price slippage, which is crucial for maintaining profit margins in arbitrage. When a large trader executes an order, high market depth ensures the executed price closely matches the expected price.

• Fast Customer Service Response: 24/7 customer service with a 5-minute response time indirectly aids arbitrage traders. In case of technical issues or the need for urgent support during time-sensitive strategies, quick access to support can prevent potential losses.

This combination of high execution speed, sufficient market depth to reduce slippage, and rapid support makes Tapbit an attractive platform for arbitrage traders. The platform’s ability to process large transaction volumes instantly provides a strong competitive advantage in this domain.

Role of Smart and Fast Platforms (e.g., Soodjoo) in Arbitrage

Arbitrage trading, due to its time-sensitive nature and computational complexity, increasingly relies on automated and intelligent tools. Cryptocurrency arbitrage platforms, often referred to as arbitrage bots, are designed to automate this process. These bots can identify and execute profitable opportunities at speeds impossible for humans.

Key features that a smart and fast arbitrage platform like Soodjoo (mentioned in the user’s query) should have include:

• Multi-Exchange Integration: A professional platform must be capable of connecting and trading across multiple cryptocurrency exchanges simultaneously. This allows the bot to identify price differences across the global market.

• Real-Time Market Monitoring: Arbitrage bots must scan the market 24/7 to detect price differences across various exchanges. Cryptocurrency quotes change every second, so rapid tracking of price discrepancies is essential.

• Auto Trade Execution: Upon identifying an opportunity, the bot should execute buy and sell trades automatically without human intervention. This automation significantly enhances the speed of reacting to market changes.

• Profitability Calculator: An advanced platform must account for all fees (trading, withdrawal, and slippage) to calculate true potential profits, preventing unprofitable trades.

• High-Frequency Trading (HFT): To capitalize on fleeting price differences, the bot must be capable of executing multiple trades in short time frames (at the millisecond level). This speed ensures opportunities are not missed.

• Multi-Currency Support: The platform should support a wide range of cryptocurrencies to identify more arbitrage opportunities.

• Risk Mitigation and Management Tools: Including dynamic stop-loss settings, customizable trading limits, and filters based on market volatility. These features protect capital in unpredictable market conditions.

• Inter-Country Arbitrage: The ability to exploit price differences between exchanges in different countries.

• Wallet Integration: To facilitate fund transfers between exchanges.

• Cross-Chain Arbitrage: Enabling trading across different blockchain networks to maximize income opportunities.

• Dynamic Fee Calculator: For precise analysis of dynamic fees to ensure trade profitability.

• Low Latency Performance: Using advanced technologies to minimize delays in trade execution.

• Dashboard Analytics and Reporting: Providing insights into market trends, trading history, and profits.

• Regulatory Compliance Module: Ensuring compliance with KYC/AML and other trading regulations.

• Scalability for Institutional Use: Robust architecture to efficiently handle high trading volumes.

• Security and Encryption: Ensuring end-to-end encryption and protection of user data and transactions against cyber threats.

Such platforms, by automating the process, eliminating human error and emotional decisions, and operating 24/7, allow traders to capitalize on arbitrage opportunities with maximum efficiency and profitability. These tools connect to exchange accounts via API keys, enabling automated trade execution and providing a comprehensive suite of advanced tools to help traders navigate cryptocurrency markets effectively.

Section 3: Detailed Analysis of Tapbit’s Operational Aspects

For any trader, especially arbitrage traders, a thorough understanding of an exchange’s operational aspects, including fee structure, settlement times, response speed, and registration requirements, is of utmost importance.

Fee Structure

Fees play a critical role in trade profitability, especially in arbitrage strategies with low profit margins. Tapbit offers a competitive fee structure:

Trading Fees

• In spot trading and derivatives trading, Tapbit charges fees. Public reviews indicate that Tapbit charges a Maker fee of 0.02% and a Taker fee of 0.06% for derivatives trading. These fees are competitive compared to some major exchanges like Binance (0.02% Maker / 0.04% Taker) and Bybit (0.02% Maker / 0.055% Taker).

• Some user reviews describe Tapbit’s trading fees as “competitive.”

Deposit Fees

• Generally, cryptocurrency deposits to exchanges are free, and Tapbit is no exception. Available information indicates that cryptocurrency deposits to Tapbit incur no fees.

• For fiat deposits, Tapbit may charge fees. Some reviews suggest that exchanges may charge for bank wire deposits (e.g., Bitfinex charges 0.10% with a minimum of $60). However, precise details about Tapbit’s fiat deposit fees are not directly available in public sources.

Withdrawal Fees

• Cryptocurrency withdrawal fees on Tapbit are fixed and vary depending on the cryptocurrency. This is a common industry standard. Users must refer to the settings section in the Tapbit app for detailed fee and withdrawal limit information.

• Precise details about Tapbit’s withdrawal fees are not publicly available.

Settlement Times and Withdrawal Request Speed

The speed of settlement and withdrawal of funds is critical for arbitrage traders who need to move capital quickly between platforms.

Cryptocurrency Withdrawals

• Tapbit promises that withdrawals are completed within 5 minutes. This speed is a significant advantage.

• More importantly, Tapbit commits to compensating for each order if withdrawal times exceed 15 minutes. This compensation policy reflects the exchange’s confidence in its infrastructure and commitment to providing fast services.

• In comparison, cryptocurrency withdrawal times from other exchanges vary. For example, Binance typically processes withdrawals in a few minutes, but this can take longer during network congestion. KuCoin generally processes withdrawals in 30 minutes, but for larger amounts or during network congestion, it may take 2-3 hours. Bybit typically processes withdrawals in about 15 minutes, but this can extend to a few hours during network congestion or additional security checks.

Fiat Withdrawals

• Specific information about fiat withdrawal times from Tapbit is not available in public sources. Generally, fiat withdrawals from cryptocurrency exchanges are more time-consuming than cryptocurrency withdrawals due to reliance on traditional banking systems. For example, fiat withdrawals from exchanges like Kraken can take from instantaneous to 5 business days, depending on the method and currency. Nobitex requires 24 hours for the first rial withdrawal.

Customer Service Response Speed

Responsive customer service is crucial for quickly resolving issues and providing guidance, especially for active traders. Tapbit promises 24/7 customer service with a 5-minute response time. This response speed can be highly beneficial in emergencies or when rapid clarification is needed. User reviews on app stores also praise Tapbit’s “exceptional customer service” and “quick responsiveness.”

Registration Requirements and KYC

Like most centralized cryptocurrency exchanges, Tapbit requires Know Your Customer (KYC) verification to comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.

• KYC Process: The KYC process typically involves collecting basic personal information such as full name, date of birth, and residential address. Users are also required to provide a copy of a government-issued ID (e.g., driver’s license or passport) and, in some cases, a selfie or facial recognition video for biometric verification. Some exchanges may request additional documents, such as utility bills or bank statements, to verify the residential address.

• Importance of KYC: KYC helps exchanges verify user identities and detect and prevent suspicious activities like money laundering or terrorism financing. This process enhances user trust and ensures the platform complies with legal standards.

• Tapbit’s Registration Requirements: Although precise details about KYC levels and associated restrictions for Tapbit are not publicly available, it can be expected that Tapbit, like other centralized exchanges, requires users to complete the KYC process for full access to its services. Some exchanges may allow limited cryptocurrency purchases or withdrawals without full KYC, but full KYC is mandatory for increased withdrawal limits and access to all services.

Countries Where Tapbit Does Not Provide Services

Geographic restrictions, due to regulatory laws and sanctions, are common for cryptocurrency exchanges. Tapbit does not provide services in certain regions. According to available information, Tapbit does not serve users in Cuba, China, North Korea, or any other “restricted regions” defined in Section 35 of its Terms of Service.

Generally, many international exchanges refrain from providing services to countries like Iran, Cuba, Crimea, North Korea, Syria, and Sudan due to sanctions and strict regulations. These restrictions pose challenges for Iranian users seeking access to global cryptocurrency markets.

Section 4: Comparative Analysis: Tapbit vs. Key Exchanges

To better understand Tapbit’s position in the market, a comparison with domestic Iranian exchanges and some of the largest international exchanges is essential. This comparison focuses on key metrics such as fees, settlement times, KYC, and credibility.

Tapbit vs. Domestic Iranian Exchanges (e.g., Nobitex)

In Iran, due to international sanctions and banking restrictions, access to reputable international exchanges is often challenging. Domestic exchanges like Nobitex play a vital role in Iran’s cryptocurrency ecosystem. Nobitex is recognized as Iran’s largest cryptocurrency exchange.

Fee Structure

• Nobitex: Cryptocurrency deposits on Nobitex are free. For rial withdrawals, Nobitex charges a 1% fee with a cap of 4,000 rials. Cryptocurrency withdrawal fees vary depending on the cryptocurrency.

• Tapbit: Detailed trading fee information for Tapbit was provided earlier (0.02% Maker and 0.06% Taker for derivatives). Cryptocurrency deposits on Tapbit are free. Cryptocurrency withdrawal fees are fixed and vary by cryptocurrency.

• Comparison: While Nobitex has a capped fee for rial withdrawals, Tapbit charges fixed (not percentage-based) fees for cryptocurrency withdrawals, which can be more cost-effective for large amounts. However, Nobitex’s access to fiat (rial) is a significant advantage for Iranian users, which Tapbit lacks due to its lack of rial support.

Settlement Times and Withdrawal Speed

• Nobitex: For cryptocurrency withdrawals, Nobitex typically takes up to 2 hours, depending on the cryptocurrency and the number of block confirmations required. The first rial withdrawal may take up to 24 hours after the initial payment, but subsequent requests are processed “normally and in a short time.”

• Tapbit: Tapbit promises cryptocurrency withdrawals are completed within 5 minutes and commits to compensating for delays exceeding 15 minutes.

• Comparison: Tapbit significantly outperforms Nobitex in cryptocurrency withdrawal speed with its 5-minute promise and compensation policy, making it highly attractive for arbitrage traders.

KYC Requirements

• Nobitex: Nobitex, like other centralized exchanges, requires KYC verification. Its API documentation indicates that user verification includes email, phone, mobile, identity, selfie, bank account, bank card, and address. Some reports suggest Nobitex may allow large withdrawals without stringent KYC checks.

• Tapbit: Tapbit also requires KYC, including personal information, government-issued ID, and possibly proof of address.

• Comparison: Both exchanges require KYC, but reports indicate Nobitex may have been less stringent in enforcing full KYC for large withdrawals in the past.

Credibility and Security

• Nobitex: In June 2025, Nobitex suffered a cyberattack resulting in the theft of over $90 million in assets, raising concerns about its security. Additionally, Nobitex faces regulatory compliance risks due to facilitating transactions related to sanctions evasion and connections to sanctioned entities.

• Tapbit: Tapbit has a $40 million insurance fund and promises 24-hour compensation for losses due to platform incidents. It also uses multi-signature wallets and separates hot and cold wallets.

• Comparison: Tapbit demonstrates a stronger approach to security and loss compensation compared to Nobitex, especially given Nobitex’s hack history.

Tapbit vs. Other International Exchanges (Binance, KuCoin, Bybit)

Comparing Tapbit with major international exchanges helps contextualize its competitive position globally.

Binance

Binance is the world’s largest cryptocurrency exchange by trading volume and user base.

• Fees:

  • Binance: Spot trading fees for regular users are 0.10% Maker / 0.10% Taker. Users can receive further discounts by holding BNB (Binance’s native token) or increasing trading volume. Futures trading fees are 0.02% Maker / 0.04% Taker.

  • Tapbit: Derivatives trading fees are 0.02% Maker / 0.06% Taker.

  • Comparison: Binance is slightly more competitive in Taker fees for derivatives.

• Settlement Times and Withdrawal Speed:

  • Binance: Cryptocurrency withdrawals typically take a few minutes but may take longer during network congestion. ACH deposits on Binance.US have a 7-day withdrawal lock.

  • Tapbit: Cryptocurrency withdrawals are promised within 5 minutes.

  • Comparison: Tapbit is highly competitive in cryptocurrency withdrawal speed with its 5-minute promise, potentially outperforming Binance, especially with its compensation policy for delays.

• Restricted Countries:

  • Binance: Restricted in the United States, Canada (Ontario), Iran, Cuba, Crimea, North Korea, Netherlands, Nigeria, United Kingdom, and Belgium.

  • Tapbit: Restricted in Cuba, China, North Korea, and other “restricted regions” defined in its Terms of Service.

  • Comparison: Both exchanges restrict countries like Iran and North Korea.

KuCoin

KuCoin is a popular global exchange supporting over 700 cryptocurrencies.

• Fees:

  • KuCoin: Spot trading fees for regular users are 0.10% Maker / 0.10% Taker. Discounts up to 20% are available by holding KCS (KuCoin’s native token). Futures trading fees are 0.02% Maker / 0.06% Taker.

  • Tapbit: Derivatives trading fees are 0.02% Maker / 0.06% Taker.

  • Comparison: KuCoin and Tapbit have nearly identical fees for derivatives.

• Settlement Times and Withdrawal Speed:

  • KuCoin: Withdrawals are typically processed in 30 minutes, but larger amounts or network congestion may take 2-3 hours.

  • Tapbit: Cryptocurrency withdrawals are promised within 5 minutes.

  • Comparison: Tapbit outperforms KuCoin in cryptocurrency withdrawal speed with its 5-minute promise.

• KYC Requirements:

  • KuCoin: Since August 31, 2023, KYC is mandatory for all new users, and existing users without KYC face significant trading and deposit restrictions. Non-KYC users can withdraw up to 30,000 USDT per day.

  • Tapbit: Tapbit requires KYC, but details about levels are not publicly available.

  • Comparison: Both exchanges require KYC, but KuCoin provides clearer withdrawal limits for non-KYC users.

• Restricted Countries:

  • KuCoin: Restricted in the United States, China, Hong Kong, Singapore, Thailand, and countries sanctioned by Seychelles (e.g., Iran, North Korea, Syria, Sudan, Cuba).

  • Tapbit: Restricted in Cuba, China, North Korea, and other “restricted regions.”

  • Comparison: Both exchanges restrict countries like Iran, China, North Korea, and Cuba.

Bybit

Bybit is a popular exchange for derivatives trading, supporting over 470 cryptocurrencies.

• Fees:

  • Bybit: Spot trading fees range from 0.005% to 0.10% Maker and 0.015% to 0.10% Taker, among the lowest in the industry. Futures trading fees are 0.02% Maker / 0.055% Taker.

  • Tapbit: Derivatives trading fees are 0.02% Maker / 0.06% Taker.

  • Comparison: Bybit is slightly more competitive in Taker fees for derivatives.

• Settlement Times and Withdrawal Speed:

  • Bybit: Withdrawals typically take about 15 minutes but may take longer depending on network conditions. Cryptocurrency withdrawals are generally processed in 30 minutes.

  • Tapbit: Cryptocurrency withdrawals are promised within 5 minutes.

  • Comparison: Tapbit outperforms Bybit in cryptocurrency withdrawal speed with its 5-minute promise.

• KYC Requirements:

  • Bybit: Bybit does not require KYC to open an account or start trading, but non-KYC users face restrictions. They can withdraw up to 20,000 USDT per day but lack access to fiat deposits/withdrawals, earning products, and staking. Full KYC is required for up to 30 million USDT daily withdrawals.

  • Tapbit: Tapbit requires KYC.

  • Comparison: Bybit offers more flexibility for non-KYC users at a limited level, while Tapbit appears to mandate KYC for full access.

• Restricted Countries:

  • Bybit: Restricted in 15 countries, including the United States, Canada, France, United Kingdom, China, Hong Kong, Singapore, Uzbekistan, North Korea, Cuba, Iran, Sudan, and Syria.

  • Tapbit: Restricted in Cuba, China, North Korea, and other “restricted regions.”

  • Comparison: Both exchanges restrict countries like Iran, China, North Korea, and Cuba.

Comparison Table

Comparison Summary

• Speed: Tapbit stands out with its 5-minute withdrawal promise and millisecond order matching system, surpassing many competitors for arbitrage purposes.

• Fees: Tapbit’s fees are competitive, but Binance and Bybit may offer slightly lower Taker fees for derivatives.

• Security: Tapbit’s $40 million insurance fund and 24-hour compensation commitment provide a significant security advantage over Nobitex (with its hack history) and some international exchanges with less clear insurance details.

• Regulatory Transparency: While Tapbit claims significant licenses, the inability to verify them publicly is a drawback compared to exchanges like Binance and KuCoin, which have clearer (though sometimes challenging) regulatory statuses.

• Geographic Access: All international exchanges reviewed, including Tapbit, restrict Iran. Nobitex is the only domestic option for Iranian users.

Section 5: Conclusion and Recommendations

Tapbit exchange has established itself as a significant player in the cryptocurrency space with its focus on speed, security, and user experience. The platform’s features, such as its millisecond order matching system, high market depth, and 5-minute withdrawal promise with compensation, make it particularly appealing for arbitrage traders who require high speed and accuracy. The $40 million insurance fund and commitment to 24-hour compensation provide a layer of assurance that is highly valuable in the high-risk cryptocurrency market.

However, like any platform, Tapbit has areas that require further scrutiny. The lack of complete transparency in publicly verifying its regulatory licenses (MSB, NFA, SVGFSA) could be a concern for investors seeking the highest level of regulatory assurance. In a market where trust is paramount, easy verification of an exchange’s regulatory status can significantly enhance its credibility.

Compared to domestic exchanges like Nobitex, Tapbit excels in cryptocurrency withdrawal speed and loss compensation commitments. However, Nobitex offers the advantage of direct rial access for Iranian users, which Tapbit lacks. Against global giants like Binance, KuCoin, and Bybit, Tapbit is highly competitive in execution and withdrawal speeds, even surpassing them in some cases (e.g., withdrawal speed). Its trading fees are also within a competitive range. However, larger exchanges may offer higher overall liquidity and a broader range of products and trading pairs.

Suitability of Tapbit for Arbitrage

Based on the comprehensive analysis, Tapbit is highly suitable for arbitrage, particularly due to:

• Unparalleled Execution Speed: The millisecond order matching system and 5-minute withdrawal promise allow arbitrage traders to capitalize on fleeting opportunities with maximum efficiency. This speed is key to arbitrage success.

• Adequate Market Depth: High market depth reduces price slippage, critical for maintaining arbitrage profit margins.

• Support for Smart Platforms: Tapbit’s technical infrastructure provides a suitable environment for integrating and operating arbitrage bots (e.g., platforms like Soodjoo mentioned in the user’s query). These bots can use Tapbit’s APIs to automatically identify and execute arbitrage opportunities with high speed and accuracy.

Recommendations

For arbitrage traders and global investors, the following recommendations are provided:

• For Arbitrage Traders: Consider Tapbit a serious option due to its high execution speed and market depth. Its technical capabilities align directly with the needs of this strategy.

• Verify Regulatory Status: Before depositing significant funds, users should attempt to independently verify Tapbit’s license status through direct contact with the exchange or by searching relevant regulatory databases (if publicly available).

• Risk Management: Even with the insurance fund and security commitments, it is always advisable to distribute assets across multiple exchanges and use cold wallets for long-term storage.

• Use Automated Tools: To maximize arbitrage profitability, use smart and fast platforms that integrate with Tapbit. These tools can assist with 24/7 monitoring, automated trade execution, and precise risk management.

• Check Geographic Restrictions: Users must ensure their country of residence is not on Tapbit’s restricted list to avoid account or asset freezes.

In conclusion, Tapbit is a powerful and promising option in the cryptocurrency market, especially for those seeking high speed and efficiency in arbitrage trading. However, as with any financial decision, thorough research and understanding of all aspects before investing are essential.