BITFINEX

Bitfinex Review

Bitfinex is one of the biggest and most advanced cryptocurrency exchanges in the world. Thanks to its advanced trading features, access to multiple altcoins, and deep liquidity Bitfinex is ideal for serious traders who are looking to make money from cryptocurrency.

In addition to being the largest bitcoin exchange in the world, Bitfinex has a customizable interface that allows you to personalize your workstation. Its platform is completely equipped with margin trading and ten different order types that you can use for trading the market without limitation.

Bitfinex was established in 2012. iFinex Inc. is currently in control of its operations. The major cryptocurrencies on the Bitfinex platforms are Bitcoin, Ethereum classic, Monero, Litecoin, Zcash, Ripple, Lota, Dash, and EOS. all the cryptocurrencies can be traded against Bitcoin or USD with minimum slippage.

How Bitfinex Works

Bitfinex has three primary functions – it is a pure bitcoin to fiat exchange, a liquidity provider, and a margin trading. The platform offers several features that are available that expand the financial positions that you can take. An example is the ability to short Bitcoin via margin trading.

Also, the exchange offers a set of other cryptos besides for Bitcoin, such as Ethereum and Litecoin.

Deposits and withdrawals take place via the regular bank transfer. The fees for bank transfers are 0.1% and a minimum of $20. Bitcoin and Litecoin are free.

The exchange takes its users’ security seriously. They have moved from a hot waller cold waller set up to segregating its customer funds where each user can access their own wallet, which they can review on the blockchain.

Security at Bitfinex

In 2016, Bitfinex was a victim of a high-profile security breach. The breach compromised 120,000 units of bitcoin. Ever since then, naturally the investors have been wary of the platform. That being said, the exchange has tight and strict security measures in place for protecting its client funds. Approximately 99.5% of client funds are held in cold storage and away from hackers.

Also, the platform uses 2-factor authentication for logins and withdrawals, and email encryption for monitoring withdrawals by IP. New withdrawal IPs are locked for 24 hours.

These features, together with other data encryption techniques, ensure maintenance of client privacy.

Bitfinex Exchange Rate and Fees

Fees at Bitfinex are very low, as is standard for large, trading-focused exchanges. At low volumes, the traders who take the offers of others (“takers”) will pay 0.2% in fees. Those traders who instead place trades in the order book will pay just 0.1%. Maker fees are completely waived for accounts which have traded more than $7.5m, whereas take fees could fall as low as 0.1% with sufficient volume.

Bitfinex Special Features

Bitfinex has various advanced features, giving its users more opportunities in the trading market. One of the most noticeable features is the margin trading. Under this service, a lender can lend some amount to a trader with a fixed amount and can interest out of it. This way, lenders can earn through the platform. Even the trader gets the benefit since he can trade with money at a higher price.

In margin funding market, some of the lenders lend at Flash Return Rate (FRR). When the duration expires, the lender can renew the policies with newer and better offers.

The customization of the interface is another interesting feature at Bitfinex. Users can customize its trading bar with appropriate currencies and tools. You can save the preferences to save time by quick navigations on the page. The tables with the current value of a preferred currency can also be saved, which helps a user keep track of the market value. You can sort out the order book and organize according to your choices.

Various types of orders can get placed on the platform, like limit orders with specified prices and market orders for buying and selling at the current price. There’s another order called TWAP (Time Weighted Averaged Price) where single orders are divided into multiple orders over a specified period.

All this makes Bitfinex a user-friendly platform, enhancing the trading and exchange experience.

Ease of Use

The user interface is fantastic. The platform has quick options for buying or selling digital currencies, as well as for placing orders.

The website is mobile-friendly and responsive. It is fast, and real-time trading is possible. Also, mobile apps are available for iOS and Android.

Buy/Sell at Bitfinex

At Bitfinex, buying limits are listed at 0.1% taker fee for those trading $30 million or higher per month, so that it may be assumed that no buying limit exists beyond the market supply.

Bitfinex Trading

The best way of familiarizing yourself with trading at Bitfinex is by creating an account. All that is required is an email address. Once you’ve created an account, click the “Support” tab at the top right of the interface.  Then, click on the “Tours & Guides” option and follow the interactive guides.

Bottom Line

Bitfinex is one of the major cryptocurrency exchanges, unfortunately, they suffered a major blow following the 2016 hack. That being said, the exchange managed to handle the situation as best as possible. Bitfinex is a good exchange for forex traders, who are willing to venture into the cryptoverse. The platform has an intuitive feel. On the other hand, one needs to have a cryptocurrency wallet already to deposit in the first place, which is a major drawback for the “uninitiated.”

To see how Bitfinex ranks against other industry-leading crypto exchanges and trading platforms see our comparison charts. Read our expert reviews, see our ratings and compare the best online trading platforms, features, fees, and more.