Bitfinex

Bitfinex has expanded its service availability and mainstream adoption to provide trading traders and users with a digital asset trading experience. Let us look at the services Bitfinex offers, what you need to set up an account, fees and security features, and the pros and cons of Bitfinex.

Bitfinex Overview

Bitfinex is a cryptocurrency platform owned and managed by Ifinex, Inc. Based in Hong Kong, Bitfinex has expanded its service availability and mainstream adoption to provide trading traders and users with a digital asset trading experience. Bitfinex, one of the leading cryptocurrency exchanges to trade, and is counted in the top 10 exchanges. With Bitfinex you can trade over 100 digital assets such as Bitcoin, Tron, Ether, Tether, etc.

Types of Trading & Order Types

Bitfinex focuses on professional traders and the general public and offers users the opportunity to participate in several different types of trading

Paper Trading allows users to monitor their buying/selling decisions instead of placing actual orders in a simulated market environment. This helps to improve user insight and experience in trading. Other types of trades available on Bitfinex are: 

  • Margin trading & Margin funding Margin Trading allows you to initiate a position as per your desired funds, rate, and duration. Margin Funding allows the user community to earn interest by lending their funds to others. 
  • Exchange trading – This allows you to buy/sell other funds using existing funds. 
  • OTC (Over The Counter) Market trading – Allows dealing with a counterparty without public orders. 
  • Derivatives trading – Allows users to earn returns by guessing the future price of an asset already bought using derivative contracts. 
Bitfinex also supports various types of orders for traders to handle a transaction in many different ways. These include: 
  • Limit & Limit (Order Book) Orders – Limit Orders allow you to limit your buy. You can set a limit for a price lower than the seller’s price, and they can accept or reject it. It works like a bid. A Limit (Order Book) allows you to input an amount and put out a sell/ buy order with a limit. 
  • Market Order – These orders work with the market and compare all buy/sell orders to execute the best possible profitable transaction. 
  • Stop Order & Stop-Limit Order – A stop order allows you to set a limit to prevent losses on investment should its price drop to a specific trigger value or buy a certain asset at a trigger value. It is a combination of both where you can initiate a buy at a trigger value for the best possible value and put a limit on it so it does not go past a certain amount. 
  • Trailing Stop Order – You can add a trailing value to a stop order to add some breathing room for the buy/sell transaction. For example, If you want to sell an asset at 100, but the market is not reaching that, you can put a trail on it for 95 so a bid offering that amount or more will be accepted. 
  • Fill or Kill (FOK) Order – This order immediately carries out a transaction at a stop value or a value better than it as soon as possible. 
  • Immediate or Cancel Order – This order executes part of the order and cancels unfilled parts of the order to buy/sell. 
  • Scaled Order – It is an algorithm that places orders for you within a specified price range so that you can focus on your strategy. 

Details about all order types and additional options provided by Bitfinex can be found here. 

Is Verification Required – Verification Levels & Fees

Because of the number of applicants on the Bitfinex crypto exchange, it takes a long time (up to 2 weeks) for new users to complete the verification process. Bitfinex account needs email verification, personal details, scanned government-issued ID, and proof of residence. All the details and steps can be found at Bitfinex support. Users can start trading without filling in personal details but are required to exchange fiat currencies. Some accounts might need to show bank statements as well.

A deposit fee of 0.1% is charged to all users. Trading fees may vary depending on how many trades a user makes. Users are termed as the Maker or the Taker on Bitfinex. Takers are the ones who take existing orders, and makers are the ones who make a new order. Manufacturer fees vary between $0.1 and $0.00, while taker fees vary between 0.2% and 0.05%, based on the trading volume executed over the last 30 days. 

Bitfinex Security Features

Bitfinex suffered a security breach in 2016, which is why it implemented advanced security policy with features such as:

  • Universal 2FA monitors logins for unusual login activities, advanced API keys, safelisting withdrawals, etc.
  • IP Address monitoring, behavior tracking, and PGP (Pretty Good Privacy) email encryption.
  • Cold storage of 99.5% of customer assets.
  • Protection against denial of service (DDoS) attacks, automatic encryption, updates, and backups.

Bitfinex Pros and Cons

Following are the pros and cons of the Bitfinex crypto exchange –

Pros:

  • High Liquidity
  • Vast Trading Options
  • Extra tight Security protocols
  • Easy to use interface
  • Low fee structure

Cons:

  • Long account verification period
  • No support in the US
  • History of hack

Final Words

The Bitfinex cryptocurrency exchange has a well-supported set of advanced order types and world-class liquidity, allowing users to exchange crypto, Ethereum, Litecoin, Rix, EOS, NEO, and various other digital currencies with minimal loss of value. These features make the Bitfinex crypto trading platform a popular exchange for experienced and sophisticated cryptocurrency traders. The system offers a customizable, advanced interface and attracts high trading volumes with high liquidity, and processes the number of orders in real-time, giving members more flexibility in choosing the best order timing. Bitfinex also offers excellent customer service 24*7 via email and responds to all queries within 12 hours. Bitfinex is one of the best exchanges due to the wide variety of trading options and features. The platform is easy to use, but it is more suited for experienced traders than beginners. 

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