Bitfinex - what is it and how to use it?

2 min reading

Learn everything you should know about cryptocurrency exchange Bitfinex.

cryptocurrency exchange bitfinex logo

Bitfinex - what is it?

Bitfinex is a cryptocurrency exchange that started operating in 2012. The platform is based in Hong Kong, although the company that manages the portal is IFinex, registered in the British Virgin Islands. Bitfinex is a well-known and quite popular platform among traders. Most of the cryptocurrency society, however, associates it mainly with controversial situations.

The very creation of the stock exchange and the connection with Bitcoinica can be considered the first. In short, Bitcoinica is a cryptocurrency exchange that no longer exists and has been the victim of two hacking attacks, from which users have never recovered their funds. In addition, the developer of the platform himself was suspected for one of these attacks. The stock exchange was supposed to revive and give up the funds, unfortunately it never happened, but instead, a new exchange was created on the same engine - Bitfinex, which itself struggled twice with hacker attacks. The stock exchange was robbed twice in 2015 and 2016. One of the attacks is the second largest in the world. 120,000 BTC was then stolen.

Bitfinex, however, has drawn conclusions and it is currently one of the most secure platforms in terms of technology. The stock exchange has SSL encryption, two-step verification, a system that automatically detects abnormal transactions, authorization tools, a list of IP addresses. In addition, the funds deposited with Bitfinex are mostly stored on the so-called cold wallets, i.e. not connected to the network. The platform itself allows you to trade on over 100 cryptocurrency pairs.

In addition to digital currencies, the exchange also supports FIAT currencies. The consequence of this are banking restrictions and regulations that must be followed, which translates into the obligation to verify KYC and slower user service. In addition to the traditional trading method, the platform allows leveraged trading with x3 leverage and the ability to give loans to other players on your own terms.

Bitfinex fees

 Trading fees are variable and dependent on the user's turnover. They range from 0.03% to 0.02% for the maker and from 0.0750% to 0.0625% for the taker. Commissions for trading on leverage are much higher and amount to as much as 15%. The deposit in cryptocurrencies or stablecoins is free, while for a deposit in fiat currencies, you have to pay 0.1% of the value of the deposit, with the amount not less than 60 Euro. The fees for withdrawals are the same. Thus, the exchange is aimed at users with more capital.

Reviews on Bitfinex

Despite the fact that Bitfinex is very popular, opinions are not very favorable. It is accused of lack of transparency, manipulation of the BTC rate and very slow customer service. As the platform itself states on the website, KYC verification can take up to 8 weeks. As the platform itself states, this is due to the restrictions and regulations that must be met in connection with the possibility of trading FIAT currencies. There are also hacker attacks that have not been paid off by the stock exchange. In return, users received Coins, which the exchange is to systematically buy. Nevertheless, the exchange volume is very high and, most importantly, at the moment Bitfinex pays a lot of attention to security, which is certainly important for users.