If you are looking for an online trading platform for altcoins, then Bitfinex at bitfinex.com has to be on your list. It is one of the big four of the crypto trading world and was a pioneer in advanced trading and market lending.
Unfortunately, the rise of Bitfinex (sometimes referred to as Bitfinix, Bitifinex, or Bittfinex) has not been without its challenges and controversies. Owned by parent company iFinex, the corporate structure is complex and the company is less than clear about who is in charge. Their main operations are based out of Hong Kong, making them the largest Asian based exchange.
Traders are attracted to the advanced trading tools of Bitfinex.. Their charting and margin lending tools are among the best in the business.
The company was hit hard in the second largest Bitcoin hack ever in 2016. Through quick and decisive action, they were able to keep the exchange afloat and eventually refund affected users. Most people applaud Bitfinex for their response to this unfortunate situation.
Since then, the company has struggled to find a bank to process their payments, with fiat withdrawals frequently impacted by this. Bitfinex is currently working on becoming a registered financial institution much in the same way other exchanges have to solve this problem.
Despite the challenges, this exchange is still one of the best and we are going to show you some of the powerful tools it gives you to trade crypto.
One of the most attractive features of Bitfinex we'll cover in this review is the wide range of cryptocurrencies available. It is for this reason that they can still claim to be the biggest and most advanced platform, despite not always having the most volume. The currencies available for trading include:
Now that is an impressive list of altcoin! This wide range is a traders dream and one of the biggest reasons why Bittfinex is so popular.
To help traders make the most of this wide altcoin range, the platform also features an advanced charting system. It is not beginner friendly by any stretch, but it is very powerful and most importantly, customizable.
In addition to this, margin lending of up to 3.3x is available through Bitfinex's peer to peer financing system. The exchange facilitates these loans and enforces contracts, but does not take a hand itself.
There are notable alternatives to Bitfinix.
Even if you've read multiple reviews, you?ll find there is no disputing Bitfinex's position as a market leader, but that does not mean that it is the best choice of exchange for you and your specific needs.
Is Bitifinex the right place for you to make crypto investments?
To help you decide we will be looking in this review at some of the Bitfinex fees and costs involved, before looking at the main advantages and disadvantages of the service.
The fee structure is very fair and transparent, which is a very positive feature. Their trading fees are among the lowest on the market with the highest volume traders charged 0 to 0.1% per trade.
Bank wires also attract a 0.1% fee with a $20 minimum, which is not the most competitive. Hopefully as they achieve their financial organisation registration, this can be lowered.
The most attractive feature is that any crypto deposit worth over $1000USD is fee free. Smaller amounts can attract a reasonable fixed fee, but even this is waived for small market cap altcoins. Like other exchanges, there is no fee for opening a Bitfinix account.
Now let?s take a look at the advantages of this platform.
The main advantages of Bitfinex include:
The main disadvantages of Bitfinex are:
In this review, we will take a more in depth look at all the important things you need to know before you start using Bitfinex.
Before getting started with any platform where you hard earned money is at stake, it is important to understand it completely. To help you get to grips with how Bittfinex works and what the latest news about the platform is, we have expanded on the main points for you here.
So, I guess the real question that is on all our minds is that "is Bitfinex legit?" Well, let's find out...
The first thing to understand about Bitfinix is the funding options available to you. As we already mentioned in this review, due to regulatory issues these have been limited recently.
The easiest way to fund your account is to transfer digital currency from an existing wallet into your Bitfinex account. If you are new to crypto, this will not be possible. Even with their recent problems, the exchange does still accept USD and EUR deposits via bank transfer.
While you can deposit crypto without verification, to deposit fiat currencies, you will need a verified account. Next, we will cover how to complete this verification process.
The Bitfinex verification process on ?the website is designed to meet the regulations that apply to financial service providers. These all centre around knowing the identity of customers and ensuring the funds are legitimate and not being used for nefarious purposes.
You do not need to verify to trade, deposit and withdraw cryptocurrency. The only reason to get verified is to deposit or withdraw fiat currency. Although verification times have increased due to an influx of new users, the process itself is quite simple:
At this point, you will be prompted to provide certain supporting documentation, which includes:
With the platform holding your crypto and so much information about you, it is right to have concerns about safety and security. Let's take a look at how Bitfinix is protecting you.
Ever since learning a very expensive lesson in security due to a large hack, Bitifinex has led the way in implementing security measures. The first layer of this is the security for individual user accounts.
User security begins with two factor authentication. There is also a hardware option that uses a physical authentication key.
In addition to this, there are many systems that detect suspicious activity and will alert you of it.
Any coins on the platform are protected by the use of offline cold wallets. In fact, only a very small percentage of the exchange funds are in ?hot? wallets necessary to maintain day to day operations.
The latest news from Bittfinex relates to the temporary suspension of new account creation. It seems they have done this in response to an influx of new signups as cryptocoins gain increased mainstream exposure.
Other exchanges (see our list) have done similar things in the past as a way to maintain the performance and integrity of their exchange. Although this is inconvenient, it is likely to be temporary and is for the good of the platform.
To help you get started with Bitfinex, we have outlined how to use some of the platforms basic functions in a simple step by step process.
After you sign up to Bitfinex at bitfinex.com you will quickly notice you have three wallets rather than one. You will need to understand the purpose of each wallet before you start depositing funds. Although you can move crypto and fiat between wallets, it is easier to put it in the first one to begin with!
The three wallets are as follows:
Exchange Wallet: These funds are available to use for buying and selling. Any altcoins you buy on the exchange will also arrive in this wallet.
Margin Wallet: This is a seperate wallet that include the funds backing any margin trades you may be making. When you take a margin loan, these funds can be sequestered and used as collateral to back the loan.
Funding Wallet: The funding wallet is where you put funds you would like to use as funding for margin lending.
Now, let's take a look at how to deposit funds into your wallets.
The first thing you will need to do with your new Bitfinex account is fund it. You can fund the account with digital currency, USD or EUR. To get digital currency into your account is dead easy:
Depositing fiat is currently more difficult, but still possible. To do this, you should use the provided account number and SWIFT code supplied by Bitfinex. Follow their instructions carefully to ensure the deposit is correctly credited to your account.
If trading isn?t for you, you can use margin funding to still make money from the crypto you are holding. With the peer to peer model on Bitfinex, you can make interest by providing margin loans. All you need to do is:
The trader can repay the balance to you at any time before the end of the term. At the end of the loan term Bitifinex automatically credits you with your capital and interest earned. Alternatively, you can set a recurring loan that reinvests for you.
Requesting withdrawals is quite easy, though delays have been reported recently. Wait times have been particularly long for fiat withdrawals. The process is detailed here:
Now you should be ready to get started buying, selling and trading on Bitfinex.