Review: Bitfinex Exchange
Bitfinex is one of the popular cryptocurrency exchanges that has been adopted by the crypto community. The platform is known to accumulate a large daily trading volume because it offers advanced trading tools at a competitive rate.
In this article, we’ll go through all you need to know about the Bitfinex exchange platform including its fees, regulations, supported cryptocurrencies, security, and other important information. Let’s proceed into the world of Bitfinex.
Bitfinex started its journey when it was launched in 2012 from the British Virgin Islands to the world by its founding fathers Giancarlo Devansini and Raphael Nicolle. It is one of the leading crypto exchanges in the world that offers impressive cryptocurrency investing and trading tools. It is currently headed by CEO, JL Van Der Velde in Hong Kong.
The exchange platform is mostly used by intermediary and expert-level crypto users. It offers an impressive selection of chart analysis tools and the platform is managed by iFinex Inc. Its users can make deposits of fiat currencies like USD, EUR, GBP, JPY, and CNH. And other altcoins such as Aventus, Bitcoin, BitcoinCash, BTG, Dash, Eidoo, EOS, Ethereum, Ethereum Classic, ETPIOTA, Litecoin, Monero, NEO, OmiseGO, QASH, Qtum, Ripple, Santiment, Streamr, TetherUSD, YOYOW, Zcash, etc.
Its users can only deposit and withdraw funds through bank transfers which include Wire Transfer (SEPA), Credit Card, and Debit Card, which is the only payment method supported on the platform, and also, payment can be made by depositing any of the supported cryptocurrencies.
Cryptocurrency traders can carry out margin trading, staking and lending on the platform. It permits its users to buy, sell and trade different digital coins and is one of the few exchanges with an option to cut off cryptocurrencies and implement the new trading technique known as leveraging.
According to reports, the company’s net worth was valued at over $800 million in 2020. But it didn’t stop there, in 2021 the growth margin soared as it got a 300% increment in its number of users.
Bitfinex has remarkable responsiveness in both its web browsers, desktops, and mobile view versions. The exchange platform has some distinct features attached to it:
Easy and understandable signup process:
The steps involved in signing up are quite an easy process although it might seem a bit lengthy. The website and app have a user-friendly interface with good response speed. The app is compatible with both iOS and Android devices. Users who wish to trade with fiat currencies would need to carry out some verification.
Advance order types:
The exchange platform offers its users an advanced order type that allows crypto traders to exchange the supported cryptocurrencies without much slippage. It also has a unique tool known as Scaled Order designed to help hone the trading strategies of its users.
The charting tool gives traders a clear view of the market characteristics such as visualizing orders, price alerts and trade positions. Users can also modify their order properties.
Given its trading nature, professional traders and corporate accounts have partnered with the cryptocurrency exchange. Hence, its trading environment is fast and convenient.
It has customer support that operates 24/7. Although, this support is through email. The average response time is 24 hours. In addition, there is a live Telegram channel where Bitfinex’s admin team provides answers to any form of question regardless of its complexity. On a side note, none of its admin on any of its platforms will require a personal message or inbox. Stay safe.
How to Sign Up and Verify KYC On Bitfinex
How to sign up on Bitfinex (mobile website view)
To open an account on Bitfinex, follow these steps:
Step 1. Visit Bitfinex’s official website page. Then, click [SIGN UP]. You’ll be required to fill in your email address. After, you’ll receive a confirmation mail.
How To Verify KYC On Bitfinex
The trading platform requires its user to undergo a two-level authentication process which is valid for both the login and withdrawals. The two-layer level includes the Two-factor authentication (2FA) layer and Universal 2nd Factor (U2F). After signing in, new users will be directed to the verification page. On this page, there is a verification button. Users are expected to click and follow the instructions.
To complete the verification process, you’ll need to provide some personal details and a scanned copy of some valid government-issued means of identification. Although, this is not compulsory except users want to be able to exchange fiat currencies for cryptocurrencies on the trading platform.
The KYC for corporate accounts might differ from that of individual account types. There might be a requirement for an affidavit to ascertain ownership of the bank details provided. The verification process might take up to two weeks at maximum.
Fee Structure on Bitfinex
There are several fees charged on this platform depending on the type of transaction carried out.
Bitfinex deposit fees:
The exchange platform charges its users on deposits made through bank transfers into their Bitfinex account. The charge is fixed at 0.1% while if it is a deposit made through cryptocurrencies, a nominal fee is charged. The nominal fee is dependent on the type of cryptocurrency deposited.
Bitfinex withdrawal fees:
The withdrawal fee is also at a fixed rate of 0.1% if it’s meant to be withdrawn via bank transfers. If the user wants a swift and immediate processing of withdrawal then, the fee may be more than 1%.
Bitfinex trading fees:
Similar to other cryptocurrency platforms, it operates on the taker-maker fee structure. In this structure, makers are compensated more because they are considered liquidity providers while takers are charged highly because they cause a reduction in the liquidity process. The takers may sometimes be charged as high as 0.2%. Which is quite high compared to other crypto exchange platforms? On the other hand, makers enjoy 0.10% for promoting liquidity at the exchange.
Bitfinex exchange has a lot of trading services rendered on the exchange platform. They are as follows:
Lending and Staking:
It provides an environment where its users can lend or stake their crypto holdings easily. It is also suitable for traders with no knowledge of what lending and staking are because it operates in an automated manner. There is a peer-to-peer option where borrowers can borrow funds by providing their cryptocurrency assets as collateral.
Margin Trading and Margin Funding:
It provides its users with leveraging advantage. Users are in charge of their money and they can control a funding order themselves. Hence traders who are interested in trading with leverage are provided with funds. It has an Auto-Renew feature in case a trader offer expires.
Traders can make predictions on the price of an asset or derivative without participating in the buying or selling of the assets.
This is only available to traders who wish to trade major amounts. For instance, over $100,000 of cryptocurrency, privately.
Ever since Bitfinex got hacked in 2017, the exchange platform, centralized in nature, has made security a priority. It provides its users with security measures that are stricter than other exchanges. There is the common two-factor authentication that most cryptocurrency exchanges use. Then, the use of Universal 2nd Factor (U2F) authentication. This is rarely used by most exchanges. To use this, the crypto user is required to log in by entering an additional physical device e.g., a USB stick.
To ensure the security of its funds, 99.5% of client funds are stored in cold storage by adopting the use of a geographically distributed multi-signature system.
It has so many systems put in place to curb its vulnerabilities. The exchange is known to not insure user funds. In case of a hack or security breach, it is solely responsible for compensating its users.
- Bitfinex is perfect for intermediate and expert cryptocurrency traders.
- There are over 100 different cryptocurrencies available for trading purposes on the crypto exchange.
- Its security is high and strong, reducing its susceptibility to hacks.
- It has a small withdrawal fee attached to it.
- It accepts bank wire and card deposits and withdrawals in fiat currencies.
- Bitfinex’s customer service has a slow response rate if contacted via email.
- Due to the history of hacks, many people are still skeptical of using the exchange platform.
- New users might have issues understanding due to complexities.
- It has a high trading fee attached to some services.