BitGo Review

To explore the exciting world of Web3, you'll need a secure and reliable crypto wallet. But for some people, finding the right one can be challenging. That's where this BitGo review steps in to help you uncover a wallet option that might just fit your needs.

BitGo takes pride in being a pioneer and leader in crypto security technology, offering comprehensive features and highly secure wallet options. Let's see if BitGo lives up to its reputation and how it stacks up against other popular wallets like Ledger Nano X and Binance Wallet.

Beyond security and features, let's also take a look at BitGo's pricing structure to determine if it suits your budget. Without further delay, let's get right into it and explore what BitGo has to offer in detail!

Verdict at a glance: BitGo offers a secure, feature-rich environment for managing digital assets. It specifically excels in robust security measures, diverse wallet options, and additional asset services. However, its extensive functionalities may be too complex for beginners and are better suited for enterprises or institutional investors.

What Is BitGo?

Before diving into a more detailed BitGo review, let's cover the basics and answer the question, "What is BitGo?".

BitGo is a digital asset company that provides top-notch security, compliance, and custodial services for blockchain-based investments. Founded in 2013 by Mike Belshe and Ben Davenport, BitGo caters primarily to institutional investors, exchanges, and organizations requiring high security and compliance levels.

In the early days of cryptocurrency, BitGo pioneered multi-signature (multi-sig) wallets and later advanced to the threshold signature scheme (TSS) to enhance multi-party computation (MPC) technology. These innovations enable BitGo to offer some of the safest technologies, protecting over 600 cryptocurrencies across various blockchains.

BitGo has grown considerably over the years. Initially, they focused on secure wallets, but now they offer various services to help clients manage and protect their assets. In 2018, BitGo introduced BitGo Trust Company, which provides regulated cold storage to complement their original hot wallet service.

In 2020, BitGo continued to grow by launching BitGo Prime, which allows clients to trade, borrow, and lend digital assets. Additionally, they provide access to wallets that support decentralized finance (DeFi), crypto staking, and non-fungible tokens (NFTs).

Today, BitGo prides itself on being one of the leaders in digital asset security, custody, and liquidity. The company serves over 1,500 institutional clients across 50 countries and processes about 20% of global Bitcoin transactions by value, showcasing its pivotal role in the digital asset ecosystem.

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BitGo Review: PROS

Now that we’ve covered what is BitGo, let's explore some key advantages you can expect from this platform. There are some interesting features that I want to discuss in my BitGo review, including its diverse selection of wallet types and enhanced security measures.

Comprehensive Security Measures

Security is probably the biggest question you have in mind when you decide to check out this BitGo review. So, is BitGo safe enough to entrust your digital assets with? Well, the answer is a resounding yes.

BitGo prides itself on providing excellent security solutions for the digital asset economy. Let's explore some of the key security measures to understand why BitGo is so confident in its offerings!

Multi-Sig and MPC Protocols

BitGo is a pioneer of the multi-sig protocol for Bitcoin wallets. This measure enables users to approve transactions at different times, and signing happens on the main blockchain (on-chain).

The multi-sig process allows certain parts of the unsigned transaction to change, providing more adaptability. Additionally, it enhances security by requiring users to provide their own unique keys before enabling access to the stored money^[1].

This measure addresses the issue of shared control by implementing an approval quorum, requiring multiple signatures from different cosigners to authorize a transaction.

The multiple private keys arrangement makes multi-sig wallet harder to hack. It also provides the benefit of storing passwords in different locations or on various devices, reducing reliance on just one device.

On top of that, BitGo also uses the MPC protocol for certain cryptocurrencies, which is widely regarded as the gold standard for protecting digital assets. The protocol utilizes advanced cryptography to enable multiple parties to jointly approve transactions without revealing their private keys^[2].

The MPC signing process occurs outside of the blockchain network (off-chain) and requires users to be in sync. This protocol ensures that transaction details remain secure and cannot be intercepted or tampered with.

Note that whether BitGo's wallet employs MPC or multi-sign protocols depends on the blockchain of your cryptocurrency. Usually, account-based cryptocurrencies prefer MPC, while some blockchains allow you to choose between the two.

Regardless of the method, both involve multiple cosigners and offer robust security to protect your assets.

Threshold Signature Schemes (TSS)

BitGo enhances the security of its MPC wallets by implementing TSS, adding an extra layer of protection.

Each BitGo wallet incorporates three distinct keys: a user key, a backup key, and a BitGo key. Typically, transactions require a 2-of-3 signature process involving the user and BitGo keys. However, for added flexibility, you can also use the backup key and either of the remaining two keys to complete the 2-of-3 signature.

No matter which key combination you choose, any transaction requires two out of the three keys. This means that attackers won't gain complete control even if one key is compromised. Since you still hold two of the three keys, the stolen key is essentially useless on its own.

All in all, BitGo prioritizes the security of your digital assets by employing multiple security layers. These measures significantly enhance the safety of your cryptocurrencies, providing peace of mind. So, if you're still wondering, "Is BitGo safe to store my digital assets?” The answer is yes!

Extensive Selection of Wallet Types

A BitGo review would only be complete by covering its extensive wallet options. After all, it's a critical factor that makes managing your cryptocurrency easier, safer, and more personalized. Let's take a look at the different types of BitGo crypto wallets.

Custodial Wallets

Imagine having a substantial amount of money that feels too risky to keep at home. In such cases, banks act as trusted custodians to securely manage your valuables. Similarly, BitGo provides a comparable service for your digital assets through its custodial wallet option.

When you choose a custodial wallet, you're entrusting BitGo as a qualified and reliable partner to keep your crypto safe. Like banks protect your money, BitGo takes on the important task of securing your private keys. This protocol offers top-notch security among its wallet options.

Custodial wallets provide peace of mind in terms of security but can limit flexibility. Withdrawals may be slightly less convenient due to a 24-hour service-level agreement (SLA) for fund transfers.

However, if you’re still wondering, “Is BitGo safe?” because security is your top priority, I think its custodial wallet service is your best option, as it provides the most compelling solution for keeping your assets safe.

Self-Managed Hot Wallets

BitGo's self-managed hot wallets offer a good balance between security and convenience. Their main advantage is accessibility, allowing you to quickly and easily access your crypto for transactions.

You hold the user and backup keys, while BitGo securely stores the platform key in its hardware security module (HSM), a secure offline key storage. This multi-key protocol ensures that transactions require user and BitGo approval, adding an extra layer of security.

Key features of BitGo’s self-managed hot wallets include:

• Backup Key Storage: Ensure the safekeeping of your backup key with a trusted third-party service.
• User-Friendly Interface: Manage your funds directly through the BitGo app for added convenience.
• API Access: Programmatically access your hot wallets.
• Whitelisting: Implement whitelisting to pre-approve trusted recipient addresses where assets can be transferred.
• Velocity Controls: Controls the amount of transferable assets within a specific timeframe.
• User Management: Assign roles and permissions to different users individually for a more secure and controlled environment.

While hot wallets offer undeniable convenience, they are inherently less secure than cold storage options due to their online nature.

Self-Managed Cold Wallets

BitGo's self-managed cold wallets keep your private keys offline, significantly reducing the risk of online attacks that could endanger your assets. This arrangement is ideal if you want to manage your own cold storage or simply desire maximum control over your crypto assets.

This option is particularly attractive for institutions or firms that conduct infrequent, high-value transactions and prioritize the additional security that cold storage offers. In addition, some jurisdictions have regulations mandating key storage in specific physical locations, which cold wallets can facilitate.

Go Account

Go Accounts are unique among BitGo's offerings. These wallets are the only off-chain type and the only ones that can hold multiple assets, including fiat currencies.

Additionally, you can participate in the Go Network through your Go Account, enabling streamlined allocations, trades, and settlements with other connected enterprises and platforms. This network integration simplifies complex transactions and enhances operational efficiency.

Legacy Wallet Types

BitGo also provides legacy wallet types to ensure compatibility with older systems and protocols. These features include:

• V1 Wallet: The V1 wallet is the first version of BitGo’s self-managed wallet service and only supports Bitcoin.
• Custodial Paired Wallet: The custodial paired wallet functioned similarly to a hot wallet but is linked to a BitGo-managed parent wallet that approved all outgoing transactions.

To sum up this section of my BitGo review, I find it impressive that BitGo offers a variety of wallet types designed to meet different user needs. Whether you prefer a custodial solution for added security or a self-managed wallet for greater control, BitGo offers an array of options to match your preferences.

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Go Network Integrated Ecosystem

The Go Network is a unique ecosystem that connects businesses and platforms. This environment allows them to efficiently allocate, trade, and settle assets with each other.

By utilizing Go Accounts, you gain flexibility and security within an interconnected network. These accounts seamlessly integrate into the BitGo ecosystem, allowing you to create addresses and initiate transactions easily.

In addition, it comes with unique features that make them even more helpful, such as:

• Address Book: You can manage your network connections with ease. The address book feature lets you view a Go Accounts directory and establish connections with preferred partners to simplify settlements and transactions.
• Allocations: You can securely allocate assets from BitGo's cold storage to accounts on other platforms, allowing you to trade while keeping your assets safe.
• Trading: You can trade with BitGo as your sole counterparty, leveraging deep liquidity from leading exchanges.
• Settlements: You can settle trades between Go Accounts directly using multi-asset settlements, offering faster processing times, reduced fees, and minimized counterparty risk.

One of the Go Network's greatest strengths is its modularity. Depending on your needs, you can use its features either independently or together.

For example, if your primary interest is trading, you can trade directly from your Go Account with BitGo or allocate assets to a connected platform for trading.

On the other hand, to fully leverage the Go Network's capabilities, you can also integrate all of its features. It allows your clients to allocate assets, provide deep liquidity for trading, and facilitate off-chain trade settlements.

By providing these flexible options, the Go Network allows users to tailor their asset management strategies to their specific needs. This feature ensures a secure and efficient trading environment.

Comprehensive Crypto Management Tools

BitGo offers a range of services tailored to meet the needs of different investors. In this part of my BitGo review, let’s explore some of the standout features that make it a strong wallet option for you to consider.

Secure NFT Support

BitGo’s wallet is a neat choice for getting involved in the NFT world. It lets you easily receive, hold, and send NFTs using its secure hot or custodial wallets.

With hot wallets, you control two of the three keys, while BitGo keeps all three keys in cold storage with custodial wallets. This setup makes sure that your digital collectibles are safe with regulated, qualified custody.

Additionally, the wallet lets you smoothly access your NFTs through the BitGo user interface, keep an eye on their stats using MMI, or interact with them programmatically through API integration.

The API option is particularly handy if you want to programmatically manage NFTs from DeFi transactions. This flexibility ensures that you can jump into the NFT market while keeping your assets secure.

Collateral Management

BitGo reduces counterparty risk by separating collateral from trading partners and exchanges. It accomplishes this using account control agreements and custodial services agreements.

Additionally, your assets are insured up to $250 million against theft or loss of keys. This insurance policy can provide an extra layer of security, giving you peace of mind that your investments are well-protected.

Trading

BitGo provides access to deep, aggregated liquidity, ensuring quality trade execution without conflicts of interest. This means you get better prices and faster transactions, enhancing your trading strategy.

In addition, thanks to BitGo’s deep network of market makers and liquidity providers, you can trade at competitive prices and ensures you receive the best possible rates.

The wallet also makes trading more convenient by providing access to BitGo's integrated platform. This eliminates the need to manage separate accounts, streamlining the trading process. You no longer have to juggle multiple accounts or coordinate between different providers.

Borrowing & Lending

With BitGo’s established network of major assets, you can easily meet your funding needs from a single source. Simply demonstrate your creditworthiness, then work with BitGo Prime to agree on terms that suit your requirements.

In addition, you can lend directly to BitGo Prime and generate income with risk-adjusted returns. This feature is an effective way to make your crypto assets work for you.

BitGo’s borrowing and lending features support a variety of coins and tokens, including BTC, BCH, ETH, USDT, and LTC. This diverse selection gives you the flexibility and opportunities to maximize your investments.

Staking

You can also potentially earn blockchain rewards from your BitGo hot or custodial wallets by staking your assets. The process is pretty straightforward and relatively secure, making it an attractive option for generating passive income.

To get started, simply choose from several supported assets. Next, view the rewards rate and specify the amount you want to delegate. BitGo will handle the rest, including the delegation, provisioning the validator, and maximizing uptime to ensure you earn more rewards.

Once the blockchain confirms your delegation, these rewards become visible in your wallet, allowing you to track your earnings effortlessly.

Decentralized Finance (DeFi)

By linking your MetaMask to your BitGo crypto wallet, you can invest in DeFi with safer technology and better user controls. This protocol ensures that essential parties can view and authorize the flow of funds within your group.

As I've mentioned in my BitGo review, the wallet offers much more than just storage for your digital assets. It's a reliable digital vault integrated into a diverse ecosystem designed to enhance investments, specifically catering to large investors.

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BitGo Review: CONS

While BitGo boasts numerous perks and advanced features, no wallet is perfect. In the next section of this BitGo review, I'll explore potential downsides, helping you understand where BitGo might not meet your expectations or needs.

Possibly Overwhelming for Beginners 

While BitGo excels in providing a secure platform for managing digital assets, its extensive features may overwhelm beginner and casual users. The platform's architecture is more tailored to businesses and exchanges than individual investors.

BitGo's suite of features—including collateral management and wealth management tools—are undeniably valuable for businesses venturing into the crypto space. However, these features might feel excessive for individual investors simply looking to buy, hold, and occasionally trade crypto.

Beginners, in particular, may find BitGo's advanced platform daunting. While comprehensive documentation is available to guide users, the complexity of the platform might be challenging for those new to the crypto scene.

To close this section of my BitGo review, I find that the wallet is an appealing option for businesses due to its comprehensive and advanced features. However, individual users might find it too complex and may prefer simpler, more balanced options like Coinbase Wallet or Binance Wallet.

BitGo's Pricing Structure

As with any BitGo review, discussing the fee structure is essential. So, let’s break down the costs associated with BitGo crypto wallets and other services within their ecosystem.

First off, the BitGo wallet itself is free to download and use. However, when you initiate a transaction, you'll encounter an estimated blockchain fee, which covers the cost of processing your transaction on the network.

The type of fee you encounter depends on the cryptocurrency you're using:

• UTXO-based coins (like Bitcoin): Using a fee-per-kilobyte model, where the size of your transaction data determines the fee.
• Account-based coins (like Ethereum): Using a flat fee structure, regardless of transaction size.

Note that BitGo's estimated fees might be slightly higher than the base network fee. This isn't an extra charge from BitGo but a strategic approach to ensure your transactions are processed quickly and with a lower chance of failure.

Price Feeds

When you make transactions on BitGo Platform V2, the notional USD value is calculated using the BitcoinAverage rate and the CryptoCompare rate at the time of the transaction. On BitGo Platform V1, transactions are assessed using the Tradeblock XBX Index rate at the time of the transaction.

Assets Under Custody (AUC)

AUC fees are calculated for a set of wallets under an enterprise on a per-coin basis. This typically includes all of the customer’s custodial wallets, although it can vary by contract. The fees are based on a percentage of the average USD balance of assets under custody over the month.

Balances are recorded at the beginning of each hour. Transactions or price changes in the last hour of the month will be included in the following month’s average balance. Each coin and token bill is calculated separately and listed as its own line item.

Computing Average Balance

For each wallet, BitGo calculates the balance in coins at the top of each hour and multiplies it by the coin's price to get the hourly USD balance. These hourly balances are averaged to determine the monthly average USD balance. Then, the average is multiplied by the rate or tiered rates specified in the customer's contract.

Volume Discount Pricing (VDP)

VDP, transactional billing, and tiered billing refer to the billing structure for self-managed wallets. This billing applies only to outgoing transactions sent to wallets outside the customer’s enterprise.

In tiered billing, each coin starts the count from zero. For each externally sent transaction, the USD value counts towards the billable amount for that coin.

All in all, if you're an individual user, you don't need to worry about the complex enterprise pricing structures. The BitGo crypto wallet service is free, which is great news for personal use. However, depending on the network you use, you'll still encounter gas fees.

How to Use the BitGo Wallet

In the previous section of my BitGo review, I've explained its pros and cons, as well as its pricing structure. Next, let's create a BitGo account and set up a crypto wallet. The process is pretty simple, but I'll outline the steps for you to make it even easier.

How to Create a BitGo Account

Before you can use BitGo's crypto wallet, you'll need to create an account. The process is quite simple; let's walk through how to register on their website using a PC.

Step 1: Visit the official BitGo website using your preferred web browser. On the homepage, click the [Sign Up] button to initiate the account creation process.

Step 2: On the sign-up page, you'll be prompted to enter your email address and create a strong password for your account. Once you've filled in the details, click the [Sign Up] button. BitGo will send a verification email.

Step 3: After verifying your email, you'll be directed back to BitGo. Enter your personal information, including your name, date of birth, and country of residence. Click [Submit] once you’ve filled in the details.

Step 4: For added security, you’ll need to set up 2FA. Choose your preferred 2FA method from the list and click [Continue].

Step 5: Review and agree to BitGo's Terms of Use and select [Continue].

Once you've completed these steps, your BitGo account will be ready. You can now start exploring the platform's features by setting up a new crypto wallet.

How to Set Up a BitGo Crypto Wallet

Now that you’ve created a BitGo account, in this part of my BitGo review, I'll show you how to create a new crypto wallet.

Step 1: Open your BitGo wallet and navigate to the “Asset” tab. Then, click the [Create Wallet] to get started.

Step 2: Name your wallet and select the coins or tokens you’ll store. Some wallet services may not be available in your region. For now, let's stick with Bitcoin and choose the “Self-Managed Hot Wallet” option. Then, click [Continue] if you’re happy with your choice.

Step 3: Create a strong password for your wallet. For convenience, BitGo recommends using the same password you used for your account. Once you've set your password, click [Continue].

Step 4: After setting up a wallet password, you must choose how to create your backup key. Here are your three options:

• Use Trusted Partner: BitGo partners with Coincover to provide secure backup key storage. This is a hassle-free option, although it's unavailable for all assets.
• Bring Your Own Key: Use an external, offline key-generation system to create your backup key. If you choose this option, print the encrypted backup key and store the hard copy with the password in a secure place.
• Create a Key in BitGo: BitGo can generate a backup key for you, but this is the least secure option. It's recommended only for wallets with small balances and should include a whitelisting policy for additional security.

Let’s pick the "Use Trusted Partner" option for this wallet. Then, click [Generate KeyCard] to proceed.

Step 5: After selecting a backup method, your KeyCard with an activation code will automatically download. Enter the activation code, confirm you've securely stored your KeyCard offline, and click [Create Wallet].

Congratulations! You've successfully created your first BitGo crypto wallet. On this page, you'll find details like your asset type, wallet balance, and transaction history (once you start using it).

Pros

• Can be managed from mobile device
• Very secure
• Supports more than 5500 cryptocurrencies

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Pros

• A brand-new design
• Industry-leading security
• Coin, token and NFT storage

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Pros

• Supports over 7000 crypto assets
• Easy navigation
• Open-source

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Conclusions

To conclude this BitGo review, I believe that the wallet offers a compelling solution for those seeking a secure and feature-rich environment for their digital assets. It especially excels in robust security measures, diverse wallet options, and additional services.

However, BitGo's extensive functionalities, including API integration and collateral management, might seem too much for individual users just starting their crypto journey. These features are geared more toward businesses and large investors.

All in all, BitGo is undeniably a secure and reliable wallet, but its complexity might be a hurdle for beginners. If you're new to crypto, a more user-friendly wallet like Ledger Nano X or Coinbase Wallet might be a better starting point.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. C. Boschini, A. Takahashi, M. Tibouchi: ‘MuSig-L: Lattice-based multi-signature with single-round online phase’;

2. H. Zhong, Y. Sang, Y. Zhang, et al.: ‘Secure multi-party computation on blockchain: An overview’.