Common questions

My business is non-custodial, where users always control their own funds. How does Bits let me earn fees on user swaps and yield?

Bits uses account abstraction and wrapped smart contracts to provide on-chain background trading. For example, if a user wants to make a swap within your app, rather than interacting directly with a DEX like Uniswap, the user interacts with a Bits smart contract that wraps Uniswap. This provides your business with the regulatory benefits of being non-custodial while simultaneously allowing you to earn new revenue streams as if you were a centralized exchange.

What's even better? Users only need to sign a single transaction to get started. From there, you can leverage that signature to assist the user with making an uncapped number of trades or stakes.

Does Bits have an audit?

Our smart contract is in queue to be audited by Certik.

What happens if Bits gets hacked?

Bits is a technology layer that never takes custody of user funds. In the scenario there were a security breach, it would be possible for a hacker to execute trades prematurely (for example, if a user placed an on-chain request to buy Bitcoin if it crosses a $15,000 threshold) but it is not possible for the hacker to steal any funds.

How is Bits different from DEX aggregators like 1inch or Paraswap?

DEX aggregators like 1inch or Paraswap work to provide end users with the most competitive rates in DeFi. Bits offers DeFi infrastructure that allow your business to offer new types of trades (buy orders, sell orders, stop losses, etc) while earning a commission on each order and a percentage of user yield. The Bits API incorporates DEX aggregators to provide the most competitive rates in DeFi.

Does Bits help me be compliant with new legislation?

As regulation grows increasingly tighter, it's likely that governing bodies will focus primarily on crypto companies that handle and manage user funds directly -- which means that by incorporating Bits you very well may benefit from tighter crypto regulation.

Where are user funds stored?

Bits does not custody any user funds, while still allowing your business to offer all of the functionality of a traditional centralized exchange.

Are there any downsides to using a non-custodial CEX like Bits?

While it's fantastic no one can steal your funds, this means no one can recover your funds if you lose access to them. Since your funds are stored behind your email and/or phone number, as long as you maintain access to those you will have access to your assets.

What other advantages are there in using a non-custodial CEX like Bits?

Tons! By using Bits, you are not restricted to the dozen or hundred of assets offered by popular centralized exchanges. You are able to access anything in the world of decentralized finance DeFi the second it gets published on-chain. In essence, our users have the largest feature set web3 and crypto has to offer as soon as it appears on the blockchain.

How secure is Bits compared to other exchanges?

Typically, exchanges protect your assets with an email, password, or 2FA authenticator. Bits protects your assets using a similarly secure combination of authenticators, including your phone number, email, and even resources like your Google Account. The primary difference, however, is with Bits only you have access to your assets, and no one can steal or lend them without your permission.

Why don't I need to remember a seed phrase?

When creating a wallet with Bits, your device automatically splits your private key into three pieces. One of those is stored on your local device, another in a secure Amazon Web Services Center with restricted access (Bits has no access), and the last piece with a trusted third-party (magic.link). This ensures that only you are able to access your funds, and they cannot be stolen by any exchange.

What is a non-custodial CEX?

A non-custodial centralized exchange (CEX) is a type of exchange that never has custody of your assets. With a non-custodial CEX you can on-ramp (convert dollars to crypto), trade or swap digital assets, and maintain secure custody of your crypto. Think of it as an upgraded version of traditional CEXs (like FTX, Voyager, Coinbase, or Binance).

Where are my funds stored?

Bits is non-custodial, which means users maintain full ownership of their own funds. This limits exchange-side risk, so no need to worry about anyone lending your assets (or stealing them) without your consent.

How do I complete my round up once it's pending?

Bits will automatically complete the round up purchase for you once the minimum $25 threshold has been met.

Is Bits available outside the United States?

Unfortunately, not yet. Join our worldwide release waitlist here.

What's a boost?

A boost is a multiplier of your transaction round up. We currently offer a 2x, 3x, or 4x. Example: If your coffee is $3.50, Bits rounds up the extra $0.50, you can now boost this round up by 2x ($0.50 x 2 = $1.00), 3x ($0.50 x 3 = $1.50), or 4x ($0.50 x 4 = $2.00).

Why can I only add 3 tokens to my basket?

To help combat fees, Bits has capped the number of currencies you are able to invest in through a basket.

What's a basket?

A basket is a portfolio of cryptos you’d like to invest in. You can select up to 3 cryptos into your personalized basket.

How do I disconnect a linked card?

1:   Go to the Settings menu and select ‘Connect Card’

2:  Tap the ‘•••’ in the top right

3:  Tap ‘Revoke Access’

How do I connect my card for round ups?

1:   Go to the Settings menu and select ‘Connect Card’

2:  Tap ‘Add New Account’ where Plaid will open in a pop up

3:  Select your bank and login

4:  Select the cards that you’d like to round up

Why are Round Ups in $25 amounts?

To help combat fees, Bits automatically triggers a purchase once you’ve accumulated $25 in round ups. This is the ‘sweet spot’ for optimizing exchange fees to purchase amounts.

How do I cash out my investment?

To withdraw funds, please do so within your Coinbase account. All purchased assets are stored directly in your connected exchange. Bits does not handle or custody any of your funds.

Where is my crypto being stored?

Your cryptocurrency is being stored in your linked centralized exchange.

Exchanges Available (Oct 2022): Coinbase

Why does my bonus say it's pending?

The sign up bonus only becomes available once you complete your first round up.

How do I complete my round up once it's pending?

Bits will automatically complete the round up purchase for you once the minimum $25 threshold has been met.

What's a boost?

A boost is a multiplier of your transaction round up. We currently offer a 2x, 3x, or 4x. Example: If your coffee is $3.50, Bits rounds up the extra $0.50, you can now boost this round up by 2x ($0.50 x 2 = $1.00), 3x ($0.50 x 3 = $1.50), or 4x ($0.50 x 4 = $2.00).

Why can I only add 3 tokens to my basket?

To help combat fees, Bits has capped the number of currencies you are able to invest in through a basket.

How do I disconnect a linked card?

1:   Go to the Settings menu and select ‘Connect Card’

2:  Tap the ‘•••’ in the top right

3:  Tap ‘Revoke Access’

How do I connect my card for round ups?

1:   Go to the Settings menu and select ‘Connect Card’

2:  Tap ‘Add New Account’ where Plaid will open in a pop up

3:  Select your bank and login

4:  Select the cards that you’d like to round up

Why are Round Ups in $25 amounts?

To help combat fees, Bits automatically triggers a purchase once you’ve accumulated $25 in round ups. This is the ‘sweet spot’ for optimizing exchange fees to purchase amounts.