On top of that, Bitfinex also lets traders make use of margin trading, margin funding as well as Derivative products.
Even though the platform has experienced some security breach in the past, the exchange’s overall security reputation has been on par with industry standards and there was no incident of hacking in the past few months. Besides top notch security, the platform also features advanced charting functionality and API access. These features make the platform one of the most popular exchanges in the world.
In this exchange review, we’ll look closely at Bitfinex exchange and its features. We’ll be looking at what makes Bitfinex one of the most popular exchanges in the world.
What’s Different about Bitfinex?
Bitfinex exchange is a straightforward platform for advanced traders who want to start trading different cryptocurrencies. Bitfinex is a platform that supports; crypto to crypto and fiat to crypto trading. It also comes with features like; limit and stop orders, margin trading and funding, over the counter (OTC) trading, etc.
With margin trading, the platform allows the traders to make use of higher leverage to book profit even with a smaller capital. The margin funding, on the other hand, makes way for traders to earn interest on their fiat and crypto assets by providing funding to traders looking for higher leverage. The platform also allows users to mitigate the risks using Derivative products.
How to Sign Up on Bitfinex?
- First of all, follow this link.
- You will see two things; the sign-up and “view demo.” Unlike other exchanges, Bitfinex allows users to create a demo account. With the demo account, users can try different trading strategies before committing their funds in the exchange.
- Now, click on “Sign Up.”
- Fill in your details and click “open account.”
- A confirmation code will be sent to your registered email. Check your email and confirm your account.
- Once you confirm your email, you will be taken to the Bitfinex home page. The system will run a few security checks before taking you to the trading page where you can deposit funds which you can use to buy different cryptocurrencies.
Verification of Bitfinex Account
Although users can start trading on the platform without verifying their account; verification is for users who want to deposit fiat currencies like USD/EUR for a selected utility or stable coin, like ETH. To get verified, log in to your Bitfinex account and navigate to your verification section under account in the top right corner of the Bitfinex exchange platform. Here are the stages of verification of the Bitfinex individual account.
Stage 1: Users must be 21 years or above and must complete the online form. However, users between the ages of 18 and 21 can trade on the platform if they have permission from their parents.
Stage 2: Verification of email address and phone number. You will be required to select your country and input your phone number. A verification code will be sent to your phone number, which you will input to verify your phone number.
Stage 3: Identity verification, which involves submitting your government-issued ID cards such as passport, national identity card, proof of age card, or drivers’ license. However, the requested document will vary depending on your country of origin.
Stage 4: Bank statement highlighting your account name as your name.
Stage 5: Proof of residence like a utility bill.
How to Buy on Bitfinex and the Supported Payment Methods?
Accounts can be funded in Bitfinex via multiple ways. Users have the option to deposit through fiat money via bank wire transfer or credit card. Or they can choose to deposit cryptocurrencies from a wallet or another exchange account. Depositing the crypto assets from another wallet or exchange doesn’t require any form of account verification. However, users will need to verify their account prior to using the fiat deposit option. Here’s how you can deposit crypto assets in your Bitfinex account:
1. Log in to your account.
2. Navigate to the top and click on the “Deposit” tab.
3. After that, you will be redirected to a page where you can pick any of your deposit options.
4. Click on the currency you wish to deposit under “Bank wire.” Example: US Dollar under “Bank Wire.”
5. Then follow the instructions and deposit your fund.
After depositing, the amount will appear on your balance section located on the left side of the screen. That’s it; you have successfully funded your account. As mentioned earlier, Bitfinex supports payment via Cryptocurrency, Credit/Debit cards, wire transfer, and bank transfer.
Bitfinex Trading Fees & Charges
Before trading, it is imperative to ascertain the trading fees of the exchange. There are two sets of parties involved in trading. The first is the takers, while the second is the makers. The taker places the order that matches the maker’s order while the maker order exists on the order book before the trade. The maker makes the market’s liquidity, whereas the taker removes this liquidity by matching the makers’ orders.
Bitfinex charges takers around 0.20%, which can hover around 0.25% at times. The exchange also offers discount fees of 0.10% to makers, which advertises the liquidity at the exchange. Although it also offers additional discounts to frequent traders on the platform. To be eligible for this discount, users must trade a certain amount within the last 30 days. Check out the discount table for the last 30 days below.
How Secure is Bitfinex?
Although no exchange can offer 100% safety of your funds when it comes to cryptocurrency exchanges. Bitfinex remains one of the safest web wallets that you can use. Almost 99.5% of Bitfinex assets are kept in an offline multi-signature wallet that cannot be accessed. Funds when kept in cold storage, there is almost no possibility of getting accessed by malicious software or getting hacked.
Additionally, the private keys used for authorization of cold storage transactions are kept in fragments between offline hard drives requiring 4 of 7 hardware security modules (HSMs) in possession by globally distributed management team members to approve all transactions. However, in a situation where there is an issue with one of the admins, a single HSM will not be capable of initiating the transfer of funds. And the possibility of bypassing any of these devices to access the cold storage is close to nil.
To offer an additional layer of security to its users, the exchange also facilitates two-factor authentication for logins and withdrawals. The exchange also recommends its users to following guidelines
- Use a strong password (a combination of a long, lower, and upper case with symbols).
- Utilize the strongest form of 2 step verification offered by the exchange.
- Keep email secured.
- Lockdown mobile account with a password.
- Keep their device clean and continuously updated.
- Protect their cloud storage accounts.
- Stay alert for phishing.
Pros & Cons of Bitfinex
|Pros of bitfinex||Cons of bitfinex|
|• User friendly and advanced interface.||• No presence in US due to legal and regulatory issues.|
|• More than 100 cryptocurrency options.||• Deep connection with Tether company (USDT)|
|• Good liquidity available overall|
Bitfinex is a known name in the crypto industry and a good place to start your trading journey with its feature-rich exchange and an intuitive user interface. The platform is the right choice if you are a beginner trying to learn how to trade. The simple user interface and the easy to use deposit methods will make it a trouble-free trading experience for a beginner.
If you are an experienced crypto trader, Bitfinex has everything you’ll need to have a successful crypto trading. Their advanced features like the leverage, margin funding, and multiple order types make it easier to trade on the platform.