Exchange

Bitfinex Exchange

Bitfinex is one amongst the most successful and efficient cryptocurrency exchange according to the market cap. Since 2012, iFinex Inc. is controlling Bitfinex operations.

About Bitfinex

Bitfinex is consistently ranking as the top exchanges with regards to daily trading volumes. Today, it is the most popular cryptocurrency trading platforms in operation. The platform caters more efficient, intermediate and advanced traders, providing a huge coin selection, trading pairings, and options.

The core cryptocurrencies listing on Bitfinex are Bitcoin, Litecoin, Ethereum classic, Zcash, Ripple, Dash, Monero, Lota, and EOS. The user can trade every single cryptocurrency against USD or Bitcoin with the least slippage. In the successive years, Bitfinex has become one of the largest Bitcoin exchange platform.

Bitfinex came in limelight when hackers found their way in Bitfinex system operations and stole $72 million Bitcoin. It was the second biggest hack on an exchange platform. Bitcoin value had an impact by the incident.

Bitfinex official website claims to have $160,148,976 around 24-hour trading volume, $1,293,257,130 as weekly volume and $7,621,682,739 as their monthly volume.

Features of Bitfinex

Bitfinex has various advanced features so that its users get more opportunities in the trading market.

Bitfinex features

Margin trading: This is one of the most prominent features of all. Under this service, a lender can lend some amount to a trader with a fixed amount and an interest out of it. This way, a lender can earn through this platform. Even the trader gets the benefit as he can trade with the money at a higher price.

Margin Funding: In a market, some lenders lend at Flash Return Rate (FRR). When the duration expires, the lender can renew the policies with new and better offers.

Interface: Another Interesting feature at Bitfinex is customization of Interface. A user can customize its trading bar with appropriate tools and currencies. Preferences can be saved in order to save time by quick navigation on the page.

The tables with the current value of a preferred currency can also be saved It helps a user keep a track on the market value. The order book can be sorted and organized as per choice. Various types of orders can be placed at Bitfinex platform such as limit orders with specified prices and market orders with buying and selling at the current price.

There is another order called TWAP (Time Weighted Average Price) where a single order is divided into multiple orders over a specified time period. Thus, Bitfinex is a user-friendly platform, which enhances the experience of trading and exchange.

Customer Support: The support team is available to serve 24*7 through email. Moreover, the team tries to respond to the queries within 12 hours; however, the answer seems to take much longer. Additionally, they have a knowledge base section which covers the majority of issues apart from the Q&A pages available on the site.

The Signup and Login Procedure At Bitfinex

Bitfinex sign up

Prior to initiating an account, the team at Bitfinex reminds new users showing a message that their service aims at more professional traders. Please read the pop-up box completely and agree to the terms and conditions.

Currently, the platform asks for temporary minimum account equity around 10,000 USD. Moreover, new accounts cannot trade or perform any function on this platform until they fulfill the required amount.

Also, to access fiat deposits and withdrawals, users need to agree and undergo a verification process which approx. takes up to 6-8 weeks to accomplish. After checking through all the necessary boxes, then the only user can move onto creating an account.

How To Create An Account On Bitfinex?

Bitfinex create account

The user can create an account by following the signup procedure mentioned above. Then, you need to enter the required details like username, email address, along with a password. The prompt box also asks you to enter the time zone with a unique Captcha text.

Deposit:

Once a user creates an account, they can start funding the account. How can you deposit- Let’s check it out!

Deposit

  • Click the “Deposit” button shown at the upper right-hand corner
  • The browser redirects you to the deposit page
  • Choose an option from a list of cryptocurrencies to deposit

Trade:

Once the user funds the account, they can start trading on Bitfinex. Check out the procedure:

trade

  • Click on the ‘Trading’ button
  • Select the pairing according to your preference
  • The user can also check for the quantity, price along with a type of the order you want to execute

Bitfinex Verification Process

The verification on this exchange accomplishes via email. There are two levels of validation namely:

  1. Individual
  2. Corporate

For Individual verification the user need should fall and follow below mentioned steps:

  1. The user should be or more than 18 years old
  2. They need to fee contact details
  3. The website needs two identification documents (valid docs)
  4. The user should have a bank statement on their name
  5. They need to provide proof of address (document) ex. Utility bill

For Corporate verification the user need should fall and follow below-mentioned steps:

  1. They should provide corporate document
  2. Every single director or major shareholder details
  3. They need to finish online form for every director or shareholder

Bitfinex Fees

Bitfinex operates in a tier fee structure. The trading fees vary between 0% – 0.2% based on user trade volume over the last 30 days. It also depends on the user paying for maker fees or taker fees.

Maker fees: The user needs to pay marker fees while adding liquidity to the order book. Like, if you place a limit order below the ticker price before buying or above the ticker price after sales.

Taker fees: Customers need to pay taker fees if they do exactly the opposite by removing the liquidity from the order book, filling an order which already exists in the order book.

Bitfinex fees

Transaction Fees

Every single deposit is fee-free, apart from bank wires which charge at the greater around 0.1% of the deposit amount or US$20.

Withdrawals seem to subject to a fee based on the currency user wishes to withdraw, or even the transfer type. You can check out the other similar fees here.

Trading Options Available At Bitfinex

Bitfinex trading platform is available for intermediate as well as advanced users. Moreover, it offers a wide variety of trading options. Additionally, to leverage the margin trading, the exchange provides the following orders types:

  • Market
  • Limit
  • Fill or kill
  • Stop
  • Trailing stop
  • One cancels other (OCO)
  • Post-only limit order
  • Hidden order

Trading Options Available At Bitfinex

This exchange attains a high volume of investors and trades, holding a high level of liquidity. So, the bid/ask and order count gets solve out in real time. Moreover, this gives members more flexibility in comparison to select the best time to place an order.

Margin Trading & Funding at Bitfinex

The home page of Bitfinex shows the trading bar with the real-time value of different trading pairs. There is also an order form, which gives an option of selecting the order type from the drop-down menu. Select the price for buying and exchange of currency. The summary of all the margins and funding is also present below the trading bar.

The chart shows the graphical representation of the real-time values of cryptocurrencies. It is an essential component for trading. A user can simply add funds to its account and either trade personally or lend its fund under “Funding” tab. Click on funding to see options such as “Bids & Offers”, “Auto-renewal”, taken and used funding etc.

An additional feature of Bitfinex is OTC (Over The Counter) where the users can trade in large amounts directly without involving any trading order books. The fee for OTC is 0.1% that both parties will have to pay.

Controversy Between Bitfinex and Tether

Since a long time now, Bitfinex has been closely connected with Tether, making wise of this Tether cryptocurrency, also familiar as USDT. These are now pegged to the US dollar, which is always worth around US$1. While any user makes US dollar deposits on this platform, it often gets credited to their accounts as USDT.

Moreover, there exist around 2 billion USDT in circulation. Also, the Tether Company claims to hold some currency reserves in case backing up all the Tethers moving in circulation. However, there is no such evidence regarding this claim.

Recently, Tether discontinued its converse with the auditors who were in charge of verifying this claim, facing further uncertainty. As Bitfinex receives much of Tethers’ liquidity, a majority of the user have concern over the exchange might not further seem financially secure as it claims to be.

Is Bitfinex Safe?

In 2016, Bitfinex has been a victim with a high-profile security breach, where the platform lost 120,000 bitcoin which was worth around $72 million. Moreover, the exchange compensated the specific users who lost bitcoin by issuing them a number of tokens which was equivalent to the lost number of bitcoin. Thus, a user can buy the tokens back at bitcoin prices over time.

Bitfinex reverts all the tokens within a year, completely compensating the affected users and proving its deep liquidity along with dedication to its customers in the procedure.

Bitfinex now is said to have strict security measures to protect client funds. Considering any time, it holds around 99.5% of client funds within cold storage. These are kept away from the eyes of hackers.

Moreover, the platform ensures to use 2-factor authentication during logins and withdrawals. They also enable email encryption for tracing withdrawals by IP. The new withdrawal IP’s are also locked for 24 hours.

Basically, these features connect various data encryption techniques and ensure client privacy is maintained.

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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