Considering the growing conversations around crypto, both newcomers and veterans of the crypto space are looking for the most efficient platform to trade crypto. This piece reviews one of such platforms: Bitfinex, where we’ll offer insight into the basics of how the exchange works, shed some light on fees, security, supported currencies, trading options, and more, while summarizing with the pros and cons of this exchange.
General Info about Bitfinex
Bitfinex is a trading platform that is owned and managed by iFinex, Inc. In 2012, the exchange was launched by Raphael Nicolle with headquarters in Hong Kong.
The exchange records a high volume of trading and user activity and is considered one of the largest cryptocurrency trading platforms.
Though Bitfinex is generally common with traders all over the world, the company recently decided to end services to users in the U.S. and focus on their user base in other countries.
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The exchange currently processes approximately $2B worth of trades daily, and with a daily trading volume of about $600m for its BTC/USD pair, the exchange accounts for approximately 6.27 percent of the total market.
Fees
The fee schedule on Bitfinex is defined by trading volume covering the last 30 days, as well as the maker or taker status. Maker fees are at 0.1% while taker fees are 0.2%. Maker fees are waived for trades above $7.5 million. On the other hand, deposits above $1000 are free while users are charged a fee for deposits below $1,000. This is to encourage bulk deposits. A fee of 0.1 percent is charged for bank wires.
When compared to other exchanges, Bitfinex’s fee is highly competitive.
Security
Due to the hack suffered by the exchange in the past, security has become a priority on the platform. The site utilizes database encryption and duplication, in addition to username and password, ensuring that trading cannot be halted by an external influence. Two-factor authentication (2FA), GP encryption, and a host of advanced verification tools are also employed to monitor changes in account activity.
Trading Options
The platform features an array of trading options. For example, traders have access to different order types such as limit, market, and stop orders, including margin trading. Additionally featured are iceberg, trailing stop, One Cancels Other (OCO), fill or kill, and post-only orders.
Added to this, Bitfinex users are allowed to trade with leverage reaching up to 3.3x via their peer-to-peer margin funding facility.
Customizable Interface
Once registered, the platform allows you to customize your work space to your personal preferences like choosing between themes, setting up notification and data references, organizing your order book columns, and more. You can also customize the page layout by moving the trading sidebar to the left or right.
Bitfinex API tools allow you to design your own charts, monitor and direct your orders and positions, and follow the trail of your trading history and wallets. With these options to customize, it seems that Bitfinex is using pyschology to enhance client satisfaction.
Supported Currencies
Bitfinex presently features approximately 72 market pairs that are linked to the four base currencies: EUR, USD, BTC, and ETH. Additionally, Bitcoin Cash (BCH), Monero (XMR), Litecoin (LTC), Ethereum Classic (ETC), NEO (NEO), Dash (DASH), EOS (EOS), OmiseGO (OMG), Ripple (XRP), Zcash (ZEC), and 0x (ZRX) are just a short list of currencies that can be traded on the platform.
Bitfinex also allows fiat purchases of the two main digital currencies.
Customer Support
The Bitfinex customer support team is available 24/7 and communicates with users via email. Though responses can take much longer, the support team typically respond to queries within 12 hours. Additionally, a knowledge base section that covers major issues is available on the site, as well as other question and answer pages.
PROS AND CONS
Based on the information we have gathered, below are the pros and cons of using Bitfinex.
Pros
Good security tools and features.
Low chance of being scammed by fellow traders.
Competitive transaction fees in the exchange space.
Verification is not needed for trades.
Ability to customize the interface and use API functions.
An impressive number of order type functions.
Availability of margin funding market.
Cons
Very basic wallet services.
Features a limited number of purchase methods.
Beginners might find the interface confusing.
High 30% limit on balance during margin trading.
Not available in the U.S.
Conclusion
Bitfinex is certainly one of the most established exchanges present today and is the largest BTC exchange by volumes. The exchange provides a service that matches the need for experienced traders and institutional investors.
We highly recommend that you use of all the security features available on this or any site. As a general rule, it’s best to keep your cryptocurrencies in a secure wallet rather than an exchange.
Disclaimer
Content provided by CryptoTraderNews is for informational purposes only, and should not be construed as legal, tax, investment, financial, or other advice. All information is of a general nature. As always, there is risk with any investment. In exchange for using our products and services, you agree not to hold CryptoTraderNews Pro, its affiliates, or any third party service provider liable for any possible claim for damages arising from decisions you make based on information made available to you through our services.
