Bitfinex Review - Professional Exchange (2022)

Bitfinex is a leading destination for seasoned traders worldwide and one of the best exchanges in terms of trading volume. It serves everyone except a few countries in the world and supports fiat-to-crypto and crypto-to-crypto stores. Other notable features include margin trading, limit and stop orders, over-the-counter (OTC) trades and more. Although many options are available, everything is arranged in an impressively intuitive way with easy-to-use control panels and menus. Despite robust security measures, Bitfinex was attacked twice (in 2015 and 2016). Since then, the stock exchange has significantly improved its security and compensated lost funds for each user.

Basic information

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Bitfinex reviews

On the stock exchange, which takes care almost exclusively of professional traders, Bitfinex is remarkably user-friendly. The taskbar is clear, intuitive and logical and also has a mobile application that you can use (Android and iOS).

Founded in 2012 and registered in the British Virgin Islands, Bitfinex has become the largest cryptocurrency exchange in the world in terms of trading volume with BTC. It focuses more on professional traders than on the general public and offers users the opportunity to engage in margin loans, margin financing, pair trading and derivatives trading.

While the Exchange offers users a wide range of security measures, from two-factor authentication (2FA) to IP address monitoring, Bitfinex suffered from several high-profile hacks in May 2015 and then in August 2016. safety.

Here are some of the basic features of Bitfinex:

• Stock trading. Central limit order books where users can insert, trade and withdraw digital tokens.
• Margin trading. Qualified users can trade up to 10 times the leverage by receiving funding from the margin financing platform.
• Margin financing. A P2P financing market that allows users to earn interest by lending funds to other users who trade with leverage.
• OTC Desk. Bitfinex allows traders to negotiate directly with each other without having to go through procurement books.
• Possibility to buy cryptocurrencies using credit or debit cards. Bitfinex allows merchants to purchase cryptocurrencies using third-party OWNR and Mercuryo payment processors.

In addition to basic functions, Bitfinex is known for:

• High liquidity. Bitfinex is one of the best exchanges in terms of the daily volume of BTC / USD trades, which guarantees price stability and confidence for every trader.
• Business couples. The platform offers more than 300 market pairs, including leading coins such as Bitcoin, Ethereum, Ripple and EOS, and popular altcoins such as TRON, Stellar, NEO, 0x, QTUM and many more.
• Comprehensive trading options. In addition to margin trading and financing, traders can use limit, market, stop, trailing stop, fill or kill, iceberg, OCO, hidden and post-only limit orders.
• Safety. Due to several hacks in the past, Bitfinex is taking additional steps to secure its platform. These include storing 99.5 % user resources in cold storage, protection against DDoS attacks, database encryption and regular backups. User accounts can add selection addresses and IP addresses to the whitelist, set up 2FA and U2F, the exchange also performs analysis of suspicious activity, prevention of session theft and more.
• Customer support. Bitfinex users can contact 24/7 support via email. All questions are answered within 12 hours, except during periods of high activity. In addition, users can use an extensive knowledge base to answer most of their basic questions

Bitfinex fees

Like any cryptocurrency trading platform, Bitfinex charges trading fees. These vary depending on the amounts traded and whether the user is the "creator" or "recipient" of the trade (ie whether he is trading by creating a new order or accepting an existing order). Fees for creators range from 0.1 % to 0.0 %, while fees for recipients range from 0.2 % to 0.055 % based on the volume of trade executed in the last 30 days.

To put it in perspective, Poloniex - which also charges "maker" and "taker" fees - imposes a 0.25% taker and a 0.15% maker fee on all trades below 600 BTC. This makes Bitfinex one of the cheaper advanced trading platforms. Another thing to note is that Bitfinex has special rules in place for hidden orders: you always pay a fee to the recipient when entering hidden orders, and if you enter a limit order that is executed against a hidden order, you pay a creation fee.

And when it comes to deposits, cryptocurrency and stablecoin deposits are completely free, while bank transfers charge 0.1 % of an amount with a flat minimum of $ 60.

As for withdrawals, they are always charged by Bitfinex. A bank transfer in euros or US dollars is charged at 0.1 % of the amount transferred, while an express bank transfer (within 24 hours) is charged at 1 %.

The fee for the selection of cryptocurrencies varies according to the currency chosen. The stock exchange has on its website detailed list, showing each coin they indicated and the withdrawal fee; some of them are free, but the vast majority are not. On the other hand, if you transfer digital assets internally - ie. to another Bitfinex user address, these selections are free.

And by comparison, Bitfinex withdrawals are generally cheaper than selections from two similarly advanced exchanges, Kraken and HitBTC.

Bitfinex instructions

If you are on your way to becoming a serious trader or you are already one, the Bitfinex exchange is the right place for you. Although the exchange is aimed at professional traders, its simple layout and interface make it easy to use.

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Registration

Opening an account on Bitfinex is as easy and straightforward as it can be, but before you create an account, be aware of the following requirements.

• Before a user can use the Fiat Deposit and Withdrawal features, they must go through the KYC process and it can take 6 to 8 weeks to verify their identity.
• The Exchange charges a fee for inactivity: if you have not traded or engaged in any financing activity for an uninterrupted period of one year, the Exchange will charge you $ 5 per month.

To get started, go to the stock exchange and press "Sign Up“. Alternatively, you can imagine the platform by clicking on "View Demo"And explore its interface. A login window will pop up.

Enter your username, email address and password. It is also necessary to enter the country in which you are located. Then you need to use Google Authenticator, scan the QR code and write the number combination. Then verify your email and you can sign in.

When you do this for the first time, you will also need to read and agree to the Bitfinex Terms of Service.

You also want to secure your account. Just go to the upper right corner and next to the bell and question mark icons you will see the "account" button. If you hover over it, a menu with different account options will appear. The fourth is security. Clicking on it will take you to the account security window, where you can set all required security measures, including 2FA.

Last but not least, you need to verify your account if you want to deposit or withdraw USD, Euro or other fiat currencies. Simply go to "account" and select "Verification“. You will be able to choose between registering as an individual or a company, and the requirements will vary slightly between them.

Bitfinex takes the verification process very seriously. You will need to provide documents confirming your name and contact, address, identity, bank information, KYC form and more. The same requirements apply to company accounts.

Transfer money to the stock exchange account

Go to the "Wallet"In the upper right corner, below which you will find the option"Deposit“. Clicking on it will take you to the deposit page, where you can choose your preferred method of financing. Bitfinex supports a wide range of deposit options, including fiat currencies (USD, EUR, JPY, CNH and GBP), a wide selection of cryptocurrencies and payment cards.

Trading on Bitfinex

You can start trading by pressing the "Trading“. Previously, the stock exchange had a minimum account capital of $ 10,000, but this was removed and the stock exchange was opened to lower-level traders. Select the market in which you want to trade, and from there you are free to determine the price, quantity and type of orders you want to execute.

Bitfinex offers a wide range of trading options to cover the needs of intermediate to advanced users. In addition to leverage trading, you also have the following to choose from:

• market,
• limit,
• Stop,
• stop-limit
• trailin stop,
• fill or kill,
• Immediate or Cancel order,
• Scaled order
• Post-only limit order,
• hidden order.

What is a limit order
The limit order allows you to specify the amount and price at which you are able and willing to buy or sell. For example, if the best selling price is 250 and I want to buy less than 249, I would place a limit purchase order at 249. If the seller is willing to accept my offer, my limit order will be paired and executed at 249.

What is the market command
A market order is a type of order that is executed immediately at the best available price. Market sales will match the best available offers in the order book, while market buying will match the best available requests.

What is the Stop command
The Stop order is used to trigger a market sale when the market drops to your trigger price, or is used to trigger a market purchase when the market rises to your trigger price. A stop order is often used as a stop-loss order if the market is moving in an unfavorable direction.

For example, if the current market price is 250, the trader is in a long position, he may want to sell if the price drops to 245 to avoid further losses. In this case, a stop sell of 245 can be used.

What is a Stop-Limit command
The Stop-limit command executes a limit command. When setting the Stop-limit, the trader enters the stop price at which the order can be executed and the limit price for the order can be met. Therefore, as soon as the stop limit of the order is started, the limit order is created automatically.

What is the Trailing Stop command
The Trailing Stop order provides flexibility over the stop order by executing it only when the market goes against you for a defined price distance. Therefore, you can use the trailing stop command to protect your profit.

For example, if you are in a long position and the current best bid price is 250 after a rapid increase from 225. You can then set a Trailing stop sell with a distance of 5, which will create a sell stop order at 245. And suppose the best bid price continues to rise to 275. In this case, the Trailing Stop will increase accordingly, always remaining five at the highest best bid price (or remaining above the lowest short position demand and trailing stop buy).

What is the Fill or Kill (FOK) command
Fill or Kill (FOK) is an order that must be filled in immediately, at a specific price or better, or is canceled.

For example, if the best asking price for BTC / USD is $ 10,000 and 1 BTC is sold at that price. Then, with a Fill or Kill purchase order of $ 1 BTC for $ 10,000, your order will be placed. On the other hand, if you place a Fill or Kill purchase order of BTC 1.1 for $ 10,000, your order will be fully canceled immediately and will not be executed at all.

What is Immediate or Cancel order
The Immediate or Cancel order (IOC) requires that all or part of the order be executed immediately and all blank parts of the order be canceled. This type of order can be partially filled, unlike a fill-or-kill order, which must be filled immediately.

For example, if the best asking price for BTC / USD is $ 10,000 and 1 BTC is sold at that price. Then, with an Instant or Cancel Purchase order of BTC 1.1 for $ 10,000, your order will execute 1 BTC and cancel the remaining order of BTC 0.1.

What is a scaled order
Scaled Order is an algorithm designed to allow you to spend less time entering orders and more time focusing on your strategy. The algorithm automatically creates multiple limit orders within a user-specified price range. This tool also provides control over the diversity and distribution of orders within a price range.

What is the Post-Only Limit option
The Post-Only Limit Order option ensures that the limit order is added to the order book and does not match an existing order. If your order matches an existing order, the engine will cancel your limit order only after shipment.

What is a hidden order
The Hidden Order option ensures that the order does not appear in the order book; it does not affect other market participants.

Derivatives trading

Derivatives trading allows traders to speculate on the future price of an asset by buying or selling derivative contracts in order to obtain a higher return than if they bought the underlying asset directly. Derivatives trading on Bitfinex is only available to authenticated intermediate or higher level users in approved eligible jurisdictions.

To trade derivatives, you must have Bitcoin (BTC) or TETHER (USDt) derivatives in your wallet.

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Bitfinex staking

Bitfinex offers a soft staking program that allows users to earn rewards by holding certain digital tokens.

Weekly rewards can be earned by stacking tokens supported on the platform. Users can trade, offer margin financing and continue to use tokens within the platform and receive their rewards.

Bitfinex securities

Bitfinex Securities aims to modernize securities trading by offering a platform with best-in-class trading technology and superior liquidity. It provides a trading experience for those who want to access and trade in tokenized securities.

Bitfinex Funding

Margin Funding at Bitfinex goes hand in hand with margin trading. Through Margin Funding, users with a Basic Plus verification level and higher can provide funding through a Peer To Peer (P2P) funding platform for traders who can use it in margin trading to earn the generated interest. If you are not a trader and prefer a safer investment, this feature is for you.

Bitfinex allows you to provide financing in any of the various currencies that are available for margin trading. Once you have these funds in your funding wallet, you can choose your own chosen terms (funding rate, duration, and amount) and create a funding offer that will be executed like any order in the order book as soon as it matches the offer. Until the recipient returns the funds to you, you will be paid interest at the rate you set.

Other options at Bitfinex funding include Bitfinex Borrow, which is a peer-to-peer (P2P) financial platform that allows you to borrow funds from other users using your cryptocurrency or fiat assets as collateral. The system will automatically renew any loan for financing when the period ends at the best available rate within a certain time frame. Nevertheless, the stock exchange recommends adjusting the rates according to your needs and circumstances to better suit your business goals.

And finally Lending Pro is a highly customizable tool that utilizes automated technology and advanced loan management features based on user specifications and market conditions. It includes charts and tools that allow you to easily track your balance, understand performance, and potentially increase your earnings by automating cryptofinance management on the peer-to-peer lending portal.

Again, both of these options can only be used by users with a Basic Plus verification level and higher.

Overview of other stock exchanges and exchange offices you will find here

Deposits and withdrawals

You can make a deposit by bank transfer (in the case of fiat currencies) or by transferring cryptocurrencies from an external wallet. Once saved, users can transfer funds between the exchange or margin and funding accounts. In this way, you can have different accounts for different Bitfinex services (eg margin lending / trading, over-the-counter trades).

Making a deposit is easy, but it takes a long time for a bank transfer. Deposits via bank transfer are for verified accounts only.

Withdrawals work in a similar way: users can send fiat currencies back to their bank account via transfer. Standard fiat withdrawals take 5-10 business days, while express fiat withdrawals are shipped within 24 hours. Alternatively, you can pick up cryptocurrencies back into your external wallet. The selection of cryptocurrencies takes approx. 12 hours for processing. The speed of progress also depends on your activated safety measures. The rule here is, the more secure your account, the faster Bitfinex will process your request.

You will not be able to withdraw currencies unless you have a secure account with 2FA.

Safety

Security is a top priority for Bitfinex because it offers more security protection for users and takes more security measures than most exchanges. Not only is two-factor authentication mentioned here, but users can also take advantage of Universal 2nd Factor (U2F) authentication, which requires logging in using another physical element, such as a dedicated USB or NFC device, based on similar security technology to smart cards. Also, 99.5 % client funds are stored in offline wallets using a geographically distributed multi-signature system. In addition, Bitfinex monitors user accounts in the following ways:

- Stores credentials and analyzes them for any unusual activity
- Detects IP address changes in case of session theft
- Sends alerts and allows account freezes in case of suspicious activity
- Can restrict account access and withdrawals to selected IP addresses
- Monitors patterns of behavior and runs manual checks on unusual subscriptions
- Uses PGP email encryption for the malware immunity download confirmation process

As for the security measures that the Exchange has to protect its system, Bitfinex does the following:

- Uses protection against DDos attacks
- Automatically backs up databases daily
- Automatically encrypts and duplicates backed up data
- Regularly updates Linux software and systems

The above measures reduce Bitfinex vulnerability. Although the Exchange does not insure user funds, it has assumed responsibility for compensating users when assets have been lost due to security breaches.

FAQ

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.