You could use any bit you want with this.
The little loop that is laying at the side is what you would hook the bit too. To take the bit on and off you unclip the snap that is up by the buckle. When unclip the bit will just have a strap on each side with a snap at the other end of the strap.
Becky
What about the curb chain? Do you take that off too, when you switch to halter mode?