Cryptocurrencies are developing significantly in the financial world every day. Hence, many people seem interested in investing and trading crypto. Hundreds of cryptocurrency exchanges operate worldwide. Many firms are regulated, while others are not. Bitfinex is not a regulated crypto firm. Meanwhile, it is one of the most reliable exchanges that values traders’ safety over making money.
Let’s closely examine the Bitfinex cryptocurrency exchange.
What Is Bitfinex?
Bitfinex is one of the earliest crypto exchanges globally. Headquartered in Hong Kong, the exchange was founded by Raphael Nicolle and Giancarlo Devasini in 2012. Data reveals that it is the 6th largest crypto trading firm in terms of trading volume. Meanwhile, the exchange is both operated and owned by iFinex, Inc. BitFinex offers traders multiple options for their trading needs. These include margin, OTC, derivatives, and exchange trading.
Notably, BitFinex faced challenges in its early days. It encountered two hacks and controversies related to security flaws, price manipulation, and accusations of insolvency. In 2019, the company was investigated by the New York Attorney General for hiding $850M of clients’ funds. But it has become a famous crypto trading company because of its charming features and security measures.
- Suitable for experts
- Offers more than 400 trading pairs
- High Liquidity
- Low withdrawal fees
- Supports multiple fiat currencies
- Allows bank wire deposits and withdrawals
- Supports over 170+ digital assets
- Offers derivatives and margin trading, lending, and staking
- High trading fees
- Does not support US clients
- Not a regulated exchange
- Customer support through email
- Security issues
Key Features of Bitfinex
Ease Of Use
Although Bitfinex mainly serves professional traders, it is surprisingly easy for all users. The main dashboard of the platform is straightforward, easy to understand, and organized logically. Users can also access the exchange through its mobile app. It supports Android and iOS devices. Moreover, you can customize the dashboard. It offers advanced charting tools that allow you to easily analyze and monitor the market.
The platform takes security and safety very seriously. It faced some incidents of hacking, which raised concerns. Now, the exchange focuses on ensuring its customers are safe and protected. It stores 99.5% of user funds in a secure cold/offline storage system to protect clients’ money. It also uses the multisig feature for additional security.
For traders, there’s an extra layer of security when logging in and withdrawing funds. Traders have to go through 2FA to verify their identity. There is also a second level of security called U2F. It involves using a special physical key.
Trading Options Available
- Derivatives Trading: It enables users to predict the price of an asset or derivate it without actually buying or selling it. To trade, traders simply need to use their USDT holdings as collateral in their derivatives account.
- Exchange Trading: Central limit order books where customers can trade, withdrawal, and deposit digital tokens.
- Margin Trading: If users qualify, they can trade with 10x leverage thanks to support from a margin funding platform. This is a way for customers to make potentially bigger trades and increase their profits.
- Margin Funding: It is a specialized P2P financing marketplace where users can lend their money to others who want to make leveraged trades. In return, they earn interest.
- OTC Desk: On this platform, traders can interact and trade directly with each other without needing to use public order books.
The platform supports over 173 cryptocurrencies. However, some important assets are missing. These include USD Coin, BNB, and Tether, among the top 20 cryptocurrencies by market capitalization. Some of the well-known cryptocurrencies on platforms include:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP (XRP)
- Cardano (ADA)
- Solana (SOL)
- Dogecoin (DOGE)
- TRON (TRX)
- Polygon (MATIC)
- Litecoin (LTC)
Supported Fiat Currencies
Users can make deposits on this exchange using five different fiat currencies. These include AUD, USD, EUR, GPB, and JPY. However, users can buy cryptocurrencies more easily now. They don’t have to go through the boring process of transferring other coins from their wallet.
Bitfinex Fees Structure
Deposit & Withdrawals fees
|Deposit funds||Wire: 0.1% (min 60 USD/Euro)
|Withdraw funds||Wire: 0.1%
Express bank wire: 1% (min 60 USD/Euro)
Cryptocurrency: Fees vary
Bitfinex usually imposes withdrawal fees compared to advanced exchanges such as Kraken and HitBTC.
|Currency||Bitfinex withdrawal fee||Kraken withdrawal fee||HitBTC withdrawal fee|
|Bitcoin (BTC)||0.0004 BTC||0.00015 BTC||0.0009 BTC|
|Ethereum (ETH)||0.0009 ETH||0.0017 ETH||0.008 ETH|
|Litecoin (LTC)||0.001 LTC||0.001 LTC||0.053 LTC|
|Monero (XMR)||0.0001 XMR||0.0001 XMR||0.031 XMR|
The trading fees on the platform are highly competitive in the industry. The company uses the taker/maker trading fee structure. The maker fees vary from 0.1% to 0.0%. In contrast, the taker fees range from 0.2% to 0.055%. Meanwhile, these fees are prominently lower than the industry average.
Notably, holders of the cryptocurrency LEO can get discounts on trading fees. LEO is a utility token of the iFinex ecosystem. The exchange encourages customers to invest in it to get huge trading discounts.
- Holders of 1$ worth of LEO can get a 15% off on taker fees for crypto-to-stablecoin and crypto-to-crypto trades.
- Holders of $5,000 worth of LEO can qualify for 25% off on taker fees. Moreover, the holders also get a 10% discount for fiat trades.
- You’ll get significant discounts according to your LEO tokens if you have tokens of $10,000 or more.
Lending And Staking
These features allow customers to lend or stake their cryptocurrency holdings smoothly. There is a solution for those traders who don’t possess the technical knowledge to operate staking software. Exchange automatically handles their funds staking.
Moreover, it contains a separate P2P platform known as the ‘Bitfinex Borrow.’ On this platform, users can borrow funds from each other using their crypto as collateral. Borrowers can freely utilize the funds they get from the exchange. They can pick the loan duration and adjust the interest rate according to their requirements.
However, the amount they can borrow depends on account balance and the type of collateral crypto they use. There is a limit of $250K. Moreover, you have to fulfill some requirements for borrowing. Unlike regular banks, they don’t demand a credit check. The exchange’s loan service is popular among traders.
Plenty Of Trading Pairs
Crypto trading pairs are a fascinating feature for expert cryptocurrency traders. The exchange offers 400+ trading pairs, including crypto-to-crypto and fiat-to-crypto options. Investors can easily find their preferred option from this huge selection available. Moreover, users can take advantage of low taxes, fees, and account limits on Bitfinex to increase their earnings.
Bitfinex’s customer support team remains active 24/7. But email is the only way to contact the team. This can disadvantage investors as they may prefer faster ways to get help or answers to their questions. The company aims to resolve traders’ issues within 12 hours of raising their queries.
Additionally, there is a Telegram channel where the admin team addresses general queries. You have to utilize Exchnage’s official support ticket system for account-related questions. Additionally, Bitfinex does not allow private messages.
How To Sign Up for Bitfinex Exchange
Bitfinex is a popular crypto firm that offers clients a convenient way to purchase and sell virtual assets. Now, let’s take a look at how the signup process on the platform actually works.
- Go to the official Bitfinex website
- Tap on “Sign Up”
- Choose a username and password and give your email to the exchange
- Confirm your email address
- Sign up again to gain access
Bitfinex is a well-known crypto exchange that provides many analytical and financial tools. It is an affordable choice for experienced traders who deal with various cryptocurrencies. However, if you are a beginner, then Binance or Coinbase are better exchanges available in the market. Before you start trading, knowing about the company and the risks is essential.