Bitfinex is the Hong Kong cryptocurrency exchange founded in 2012 and owned by iFinex Inc, the Hong Kong company. The team members are also known to have worked with the Tether (USDT) project. The platform provides its users with exchange services. margin trading and all major types of coins and tokens are supported. Developers have competently elaborated security issues and provided their users with a reliable trading platform. To work with fiat currencies, a trader must pass two-factor authentication.
Developers have also taken care of supporting mobile platforms — apps are available for the Android and iOS operating systems. They can be found in PlayMarket and AppStore official stores.
Registration and Verification
To start trading a user needs to register a new account. There should be no difficulties — you needn’t enter any special data in the registration field. You just need to specify a name, email address and the desired password in the form.
The next step is to confirm the email address using the link that will come in the email. This will open access to the personal account, where the main opportunities will be available, for example, such as depositing money. But it is necessary to pass verification for full-fledged work and for getting the opportunity both to withdraw money and make a deposit in dollars. This will require a number of actions: to fill in the questionnaire with personal data, provide scans of documents confirming them. It is also necessary to present a bank statement from the account, from which the dollar deposit will be made. To verify the address of residence it is required to provide a scan of the bill for using utilities of no later than three months ago.
Deposit and Withdrawal
Depositing and withdrawing funds on Bitfinex can be carried out in a variety of ways. The exchange supports both fiat currencies (USD, EUR, JPY, GBP) and over 50 altcoins and tokens, including Bitcoin, Ethereum, EOS, Litecoin, Ripple, NEO, Bitcoin Cash, IOTA, Monero, Zcash, Dash, Bitcoin Gold, Metaverse ETP, QTUM. The exchange constantly expands the list of coins — once the coin becomes established on the market, it has high chances of being included in the Bitfinex portfolio. Minimum Investment amount is $50 — or equivalent in any other currency.
In addition to cryptocurrencies, users can make bank transfers and withdraw funds on credit cards. To do this, go to the withdrawal section. There are no limits on the withdrawal.
It is more profitable to use cryptocurrencies for depositing, because in this case, no commission is charged. If a bank transfer was chosen, the commission is at least 0.1%, but not less than 20 USD. Thus, if the amount is small, the trader loses a lot of money.
Trading on Bitfinex
Bitfinex supports both stock exchange and margin trading. The former option involves using the trader’s personal funds, and in the latter one the leverage is applied. Financing in this case is provided by a special platform. This means that anyone can borrow money from another trader at the exchange and make trade using it. It should be noted that in the event of a rate drop, the user may lose his money, because the open order will be closed automatically, and the money will be returned to the creditor taking into account all the interest.
The exchange supports different types of orders and all of them are available to traders. They allow you to trade more effectively. Currently, Bitfinex offers the following order types:
- Limit order allows you to purchase and sell currency at a selected cost or at more advantageous one, if there is any in the order book.
- Market order is the simplest solution for beginners and allows buying or selling a crypt at the current price on the stock exchange.
- Stop order automatically makes a deal when the exchange rate chosen by the trader is reached.
- Trailing Stop is a stop order that can be set to execute once the market goes against you by a defined price, called the price difference. Trailing–stop sell orders are used to maximize and protect profit as a stock’s price rises and limit losses when its price falls.
- One Cancels Other (OCO) is both a stop order and a limit order. If one of them is executed, the other one will be immediately canceled.
- “Fill or Kill” order is the same limit order, but with the cancellation function, if trade is not executed over a selected period of time.
- Post Only limit orders are orders that allow you to be sure to always pay the maker fee. When placed, a “Post Only” limit order is either inserted into the order book or cancelled (only for limit orders).
- A Hidden Order is an order which does not appear in the order book and thus doesn’t influence other market participants.
The system of commissions on Bitfinex encourages traders with a large volume of trades. Its increase leads to a reduction in the payment for transactions. With a minimum currency turnover for a month, the transaction fee is 0.1% for the maker and 0.2% of the order amount for the taker. A zero commission of the maker can be reached with a volume of 7.5 million dollars, and a minimum commission for the taker can be reached at $ 30 million per month and it will be 0.1%.
Privacy and Security
The security problem is an urgent issue for developers of Bitfinex which has been subjected to hacker attacks more than once. This has led to the fact that the developers carefully worked out the security system and continue to modify it to this day. To ensure the reliability of saving money on the exchange, it is suggested that certain measures be followed. For example, it is better to activate two-factor authentication, use a code phrase for transaction verification, disable the open session function, and limit the access to the session section.
Moreover, the exchange has the ability to block the attempt to withdraw funds when someone enters from a new IP address and it is required to prove that you are not a bot.
All these features have been added to reduce the risk of hacking users’ trading accounts. After all, even if the attackers manage to gain access to the account, it is impossible to transfer funds.
The trading platform provides a 24/7 email support service, an extensive FAQ section, and a forum where you can interact with others in the community.
Thanks to the split of the support into different-themed sections, users are provided with faster and more specialized assist. According to users’ feedback, there is no difficulty in getting technical support, but sometimes you have to wait too long for an answer.
Bitfinex is available to users from most countries worldwide, although there are some exceptions. Since April 2017, US-based users are not allowed to use the Bitfinex platform. The exchange is also not available for users from Bangladesh, Kyrgyzstan, Bolivia, and Ecuador.