Bitfinex Review – Crypto Exchange | Bitcoin Trading

8 minutes

Bitfinex is a cryptocurrency exchange. It was established in 2012 and registered on the island of the British virgin. It is more focused on the professional trader than on retail traders. Moreover, It gives its users the ability to engage in paired trading, margin lending, limit and stop orders( along with other order types), and margin funding. Although it is geared towards expert traders, its simple interface and layout make it very easy to use.

What do they offer?

Bitfinex is a digital asset exchange that offers state-of-the-art services for global liquidity providers and digital currency trading. Moreover it includes features such as, margin and funding markets. In addition, wholly customizable applications across desktop, android, and IOS, spot, and a suite of an advanced type of orders. Bitfinex offers its users to trade over 160 assets. You can trade on crypto-asset such as Ethereum, chainlink, Yearn.finance, bitcoin, Cardano, Tether USDT with lower slippage, and Polkadot. With professional tools and order types, Bitfinex encourages traders to match their expert strategies to every situation involving algorithmic order management.

How to open an account at Bitfinex?

To get started with Bitfinex, you need to sign-up by using your email address and other personal details. You are required to accept all the conditions conferred by the exchange.

Further, you need to provide valid ID evidence for the KYC and this process can take up to 6-8 weeks to get approved. That’s why you should plan accordingly if you wish to use Bitfinex.

Bitfinex features:

Following are the features offered by Bitfinex:

Margin trading:

Margin trading on Bitfinex enables investors to sell and buy bitcoins at the rate they want to limit. There are numerous options available for margin trading:

Short position: it is a typical margin sell and buys function as the system matches with sell and buy margin orders. It starts with selling and then ends with buying position. 

Long position: it is exactly similar to the short position except it starts with the buy position and then ends with the selling position. 

• You must be sure about your ability to put 30% of funds in the margin orders as a maximum value by the system. if the total value of your account reaches 15% as the beginning balance, the system will call your order forcefully, resulting in losses from your trade. 
• These types of limitations can hinder the trading process especially when the trade market plays weird, leaving a great chance for you to lose money. Traders are trying to implement that smaller balance limitations are caused as losing 30% of your balance is quite a high number. 

Margin Funding Market

It is an interesting feature of Bitfinex that you should check out. If you have some unused funds and incurred losses, you can take a short-term loan facility in the form of money or coins through margin funding.  

On the other hand, if you need funds, you can get a loan by posting an order through margin funding. It is a very secure way to earn money even if the gains are less. You can get as many funds as you need and this feature is a rare gem to be found in other exchanges. 

You can lend money in different currencies either fiat or digital currencies. An interest of 15% is charged over lending money and the commission can be 1% to 15% depending on the market. 

Derivatives:

Users who cannot take many risks related to the volatility of digital tokens can trade on derivative products in the derivative section. Some derivative products are under development while some products such as perpetual contracts are available already. 

You can trade over derivative products using a derivative wallet that is accredited with USDT, which is a digital token obtained by converting USDt.

Paper trading (demo account):

This feature enables users to test their trading strategies in the replicated market environment without requiring depositing real funds. It functions on sub-accounts, which follow the trading strategies of the master account.

Honey framework:

A honey framework is an excellent tool for creating customized order types or automated trading strategies. It spans both Python and NodeJS. It has the following features:

• Live trading terminal: it allows executing algorithmic and atomic orders from a directly in-built terminal. 
• Market overwatch: you can design your market data layout for increasing efficiency by selecting from a vast range of widgets that includes trade tables, charts, order books, and more.
• Build your strategy: it allows you to code your own strategies and algorithmic orders by using an in-built code editor for a customized experience. 

Professional trading:

Bitfinex has expert offerings to meet the demands of institutional and professional traders. Below are some benefits offered by Bitfinex: 

Cross connectivity and co-location:

A professional trader can take benefit of the fastest trading speeds through co-location and institutional-grade connectivity services. Additionally, a professional trader can get direct access to the digital asset gateway of the exchange. 

Sub-accounts:

A professional trader has the facility to make sub-accounts that give benefits like separate withdrawal and deposit permissions.

Expedition verification:

Professional traders and corporate accounts can get the benefit of expedited verification time, know your customer (KYC), counter-terrorism financing (CTF) regulations. 

Dedicated customer support:

Professional traders get tier-one customer support, which has top-level customer support available only to special traders. The tier one support team handles all the technical issues and corporate account tickets from advanced to completion with 24/7 support. 

Bitfinex staking:

Crypto stalking is an act of holding supported tokens of a specific number for a while to earn rewards as well as contributing to the governance of tokens. Staking only applies to the tokens that imply the Pos consensus algorithm i.e. Tezos, Tron, Algorand, Cardano, Polkadot, ETH2 , KSM, EOS, and Cosmos. It is a way to increase a person’s crypto holdings. Nonetheless, the most pleasing thing about crypto staking is the fact that it enables you to grow your holdings passively.

Bitfinex tutorial

Bitfinex Order Types:

Order types are the tools that assist traders to execute their order at the platform of Bitfinex, them being:

• Market – execution of the order instantly;
• Trailing Stop – tells the price when a trade starts to experience loss;
• Limit – specifying the price level;
• Fill or Kill – order should be filled completely or be canceled;
• Stop – instant closing of order;
• Post Only – posted only when the trader is ready to pay maker fees. It is posted and    waits for the system's response whether to post or cancel. 
• Hidden order– an order which a trader cannot see;
• Iceberg order– a part of an order is shown while a part is hidden from traders. 
• One cancels Other (OCO) – it is pair order type, in which if one gets canceled other                will also be canceled.
• TWAP– It is a time-weighted average price order divisible by various orders consisting of the period and specific value of trade.

Bitfinex leverage

Bitfinex offers leveraged trading to give more exposure to an asset that you have in the funds. It provides the advantage of money-making through “borrowed funds”. You can earn even the asset price drops. 

They are offering a leverage of 1:100.

Payment method:

Bitfinex receives deposits in the form of fiat currencies and cryptocurrencies. Bitfinex users can withdraw and deposit EURO, GBP, JPY, and USD directly to and from their specific bank accounts. Additionally, users can deposit via debit cards, Mastercard, and UnionPay.

Supported currencies:

Bitfinex supports the following currencies: USD, GBP, JPY, and EURO. In addition to these currencies, users can deposit in several other cryptocurrencies.

Minimum fiat deposit and withdrawal:

In fiat currency, the minimum amount of deposit and withdrawal is 10,000 USD/EUR/GBP, 75,000 CNH, and 1,000,000 JPY.

Security:

At Bitfinex, security is a top priority and it offers more precautionary measures than other exchanges. In addition to two-factor authentication, it also has Universal 2nd Factor authentication (U2F) which requires users to log in through an additional physical device like a USB stick. 99.5% of funds stored in cold storage. Bitfinex uses the following ways to monitor user account:

• It saves login data and evaluates it for any unusual activity. 
• In case of session hijacking, it identifies IP address changes. 
• Permit account freezing and send notifications in the event of suspicious activity. 
• It can limit withdrawals and account access to selected IP addresses. 
• Uses PGP email encryption 
• Update Linux and software systems regularly.

Bitfinex Fees

Bitfinex charges the following fees:

• Maker fees: Users are charged 0.1% to 0.0% maker fees. 
• Taker fees: 0.2% to 0.1% taker fee is charged when a customer removes liquidity from the order book by placing an order that is in the order book already. 

Cryptocurrency deposits are free while withdrawals are not, there is a range of different charges based on specific cryptocurrencies you want to withdraw. If you deposit bank wire, you would be charged a 0.1% fee.

Who is it best suited for?

 Bitfinex is not for newbies or beginners. It is for intermediate and professional traders who can fulfill specific criteria. The exchange has a certain barrier at the entry that makes it challenging for newcomers to start. 

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Final thoughts:

Although it has a controversial connection to prior exchange hacks and Tether, Bitfinex is in the market for a very long time and has recovered its client's trust over time and even after serious conditions. Advanced order types and high liquidity as well as lending and margin trading options, help customers take benefit of what cryptocurrency trading offers.