Bitfinex Consistently, Bitfinex stands out as one of the top-rated exchanges in terms of daily trading volume, securing its place as a leading cryptocurrency trading platform in the current landscape.
The platform caters mostly to seasoned and advanced traders, including institutions, offering an extensive variety of coins, trading pairs, and trading mechanisms. Bitfinex strives to be the go-to hub for experienced cryptocurrency traders around the world.
Launched in 2012 by Raphael Nicolle, Bitfinex, a Hong Kong-based trading platform, is wholly owned and operated by iFinex, Inc. It has successfully climbed the ranks as a top contender in trading volumes and user activity.
Bitfinex is among the largest cryptocurrency trading platforms in the world, generally favored by global traders. Nonetheless, the team recently opted to cease their services in specific regions and concentrate on customers elsewhere. U.S. customers This change allows Bitfinex to better serve its global user base by focusing efforts on areas with the highest demand.
On a daily basis, Bitfinex handles around $2 billion worth of trades with a 24-hour trading volume around $600 million for the BTC/USD pair. This reflects about 6.27% of the total market.
Such significant trading volumes are driven by the exchange's emphasis on offering a broad range of coins, competitive fees, and an interactive interface tailored for traders.
The platform not only permits fiat deposits but also supports a wide array of cryptocurrencies with approximately 72 active market pairings.
Bitfinex's appeal extends to institutional investors, featuring an OTC desk for substantial over-the-counter trades. Despite its achievements, Bitfinex has faced its share of controversies, notably involving hacks and its connection to the Tether stablecoin.
Bitfinex Key Features
- Platform Features – Bitfinex boasts an advanced, feature-rich interface that's highly adaptable, modern, and well-constructed, tailored more towards seasoned users. The primary dashboard offers various tabs and options, alongside sophisticated charting tools. The platform integrates Trading View charts and offers a mobile application accessible to both Android and iOS users.
- Security Measures – Learning from past hacking incidents, Bitfinex places a strong emphasis on security, implementing many of the safeguards utilized by today’s top exchanges. The majority of assets are securely stored in cold storage with only about 0.5% of cryptocurrency accessible in hot wallets. The site also employs database encryption, duplication, and DDoS protection to thwart external disruptions. Customer accounts benefit from 2FA, PGP encryption, and other advanced verification tools for monitoring account activity.
- Customer Assistance – A 24/7 email-based support team is at users’ disposal. Although the team aims to respond within 12 hours, response times can vary. Additionally, there's a dedicated help section covering common issues with various FAQs available on-site. knowledge base Trading Options – Bitfinex provides a vast array of trading options, including margin trading with a leverage of up to 3.3x through its peer-to-peer margin funding facility. Traders can also access various order types, such as limit, market, stop orders, trailing stop, fill or kill, iceberg, OCO, and post only orders.
- Trading Options Liquidity Rates – Bitfinex consistently ranks high in BTC/USD trading markets, currently representing about 6% of all daily transactions with a daily trading volume around $600 million. Combined trading endeavors on the platform amount to roughly $2 billion in trades per day, providing users the confidence of stable coin prices on the platform.
- Approximately 72 market pairs linked with four base currencies—USD, EUR, BTC, and ETH—are presently available.
Supported Currencies
In addition to fiat transactions involving the leading cryptocurrencies, a variety of other digital assets are also tradeable, including Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Dash (DASH), Ripple (XRP), Monero (XMR), EOS (EOS), OmiseGO (OMG), NEO (NEO), Zcash (ZEC), and 0x (ZRX).
USDT Tether is accessible on the platform, and Bitfinex stands out as one of the few exchanges where users can acquire IOTA (MIOTA).
The Bitfinex team is continually working to expand the list of available coins on the platform, with new additions frequently appearing.
The information on every coin listed is readily available, and it's wise to regularly check the site for updates regarding new listings.
As a result, an overview Before setting up an account, the Bitfinex team advises potential users that their platform is designed primarily for experienced traders with specific prerequisites.
Bitfinex Signup and Login
New users are thus required to review the pop-up box outlining the service terms and accept them. Currently, this includes a temporary minimum account equity of $10,000, with new accounts unable to engage in trading activities until this amount is attained.
Moreover, to facilitate fiat transactions, users must undergo a verification procedure, which might take 6-8 weeks to complete.
Once all the conditions are met, you can proceed to setting up your account.
Opening an account entails following the signup instructions and providing a username, email, password, time zone, and completing a captcha challenge.
Creating Your Account
Subsequently, you should locate the “Deposit” button at the top right corner to start funding your account.
Making a Deposit
By clicking the button, you're redirected to the deposit page where you can opt to deposit in USD, Tether, or choose from various cryptocurrencies.
Upon funding your account, hit the ‘Trading’ button to choose your preferred trading pair.
Making a Trade
From this point, you can define the amount, price, and order type for your transaction.
As one of the veteran exchanges functioning today, Bitfinex has been subjected to several breaches, the first major one occurring in May 2015.
Bitfinex Security
This breach involved a hacker retrieving 1500 Bitcoin from a hot wallet managed by the exchange. The funds were promptly compensated, but a subsequent attack proved more severe as a hacker exploited the platform's defenses, accessing up to 119,756 Bitcoin, valued around $72 million at the time.
The vulnerability exploited lay in Bitfinex’s implementation of a multi-signature system along with Bitcoin wallet provider Bitgo. In response to the breach, Bitfinex issued BFX tokens to recompense affected clients.
Each BFX token had a $1 value matching the amount each investor lost. Since then, Bitfinex has repurchased all issued tokens, fulfilling their reimbursement obligations.
Following these incidents, Bitfinex significantly enhanced its security measures. Presently, 99.5% of client funds are secured offline in a cold storage system that employs a geographically distributed multi-signature setup. April, 2017 .
User accounts are fortified with 2FA and U2F, plus PGP email encryption. Account monitoring and security are further enhanced with a suite of advanced verification tools monitoring account activity.
These include analyzing saved login data to identify unusual activities, employing an intelligent system for IP address changes to prevent session hijacking, and sending email alerts about logins that also provide a link to immediately freeze your account if suspicious activity is suspected.
- There's the option to restrict account access by IP address.
- In addition, Bitfinex diligently oversees withdrawal activities to preclude malicious interference; their system examines withdrawals based on IP address and other behavioral patterns, triggering an inspection for any unusual withdrawal action.
- Users can whitelist addresses to ensure withdrawals are only directed to specified locations. Besides, Bitfinex claims to use a withdrawal confirmation system that is impervious to malicious browser malware.
- Verified users on the platform benefit from the “Tether” funding option alongside “Cryptocurrencies” and “Wire Transfer” on the Deposit and Withdraw pages.
Tether is a stablecoin running on the Bitcoin blockchain, with each USDT backed by a U.S. Dollar stored in Tether Limited reserves.
Tether tokens can be deposited and exchanged for other tokens on Bitfinex and any platform supporting Tether. Funds managed in Tether can also be transferred and stored in any Bitcoin wallet where users control the private key.
Tether Cryptocurrency
Bitfinex utilizes the Tether (USDT) stablecoin USDT is uniquely linked or “tethered” to the US Dollar’s value and functions as a stable digital currency, allowing traders to pivot to a more stable currency amidst market volatility.
While Tether has been a significant asset to traders since its inception, the stablecoin is attracting increasing scrutiny.
A Fresh Perspective on the 2023 Bitfinex Review - Is It Secure for Newbies?
Considering diving into the world of Bitfinex for your crypto trading needs? Before you do, take a look at our In-Depth Beginner's Guide to understand key aspects of this exchange.
An All-Encompassing Guide for New Starters at Bitfinex
Known for consistently ranking at the top in terms of daily trade volumes, Bitfinex is a heavyweight in the cryptocurrency trading arena.
Primarily, the platform caters to those with a bit more trading experience—it's a playground for both individual savvy traders and institutions, offering a vast array of digital coins, pairings, and various trading options. Bitfinex strives to be at the forefront as the go-to spot for adept crypto aficionados worldwide.
Bitfinex Fees
Based in Hong Kong and established by Raphael Nicolle in 2012, Bitfinex is a powerhouse run by iFinex, Inc., ascending the ladder with its impressive trading volume and active user engagement. fee schedule Standing as a giant in the digital currency exchange space, Bitfinex has earned a wide following globally, yet recently, a strategic shift has seen them phasing out services in specific regions to refocus on other international users.
- Around $2 billion swaps hands daily on the platform, with a significant chunk—about $600 million—stemming from the BTC/USD pairing, capturing 6.27% of overall market engagements.
- These bustling trade activities are fueled by Bitfinex’s commitment to providing exceptional trader support, boasting a diverse coin lineup, competitive fees, and an intuitive platform.
- Able to host fiat transitions and a plethora of crypto options, the platform supports around 72 active market pairings right now.
- Attracting the interest of institutional investors, Bitfinex also hosts an OTC desk designed for off-the-books sizable exchanges. Despite boasting a flourishing repertoire, the platform has courted controversy due to past breaches and its links to Tether.
Platform Capability – Bitfinex features a dynamic and customizable interface, crafted for veeteran traders. Users are welcomed with a layout rich in possibilities, armed with advanced charting tools and integration with Trading View. For those on the go, a mobile app caters to both Android and iOS enthusiasts.
Trading Options
Security Measures – Due to previous security incidents, Bitfinex places a premium on safeguarding assets, embedding many industry-standard precautions. With the majority of assets secured in cold storage and only a fraction in hot wallets, the platform utilizes encryption, redundancy, and DDoS protection to preserve trading continuity. Accounts are bolstered with 2FA, PGP encryption, and heightened verification measures to track account modifications.
- Market
- Limit
- Stop
- Trailing stop
- Fill or kill
- One cancels other (OCO)
- Post-only limit order
- Hidden order
Customer Support – Our support crew mans the email lines around the clock, eager to resolve inquiries ideally within 12 hours, though it might take longer at times. Additionally, a resourceful knowledge base addresses high-priority topics alongside Q&A pages.
Conclusion
Trading Offers – Bitfinex users can exploit a host of trading possibilities, including margin trading with leverage up to 3.3x backed by peer-to-peer funding. Furthermore, they enjoy flexibility with numerous order types, inclusive of limit, market, stop orders, and more advanced choices like trailing stop, iceberg, or post only orders.
Liquidity Excellence – Still holding a firm grip atop the BTC/USD markets, Bitfinex accounts for about 6% of total daily trading, pushing 24-hour volume figures near $600 million. The robust trade activity infiltrates to upwards of $2 billion daily, providing users with ample opportunity amidst steady market conditions.
Expect about 72 market pairings across mainstays like USD, EUR, BTC, and ETH available for exploration.
Beyond facilitating fiat currency exchanges for major cryptos, traders can delve into an array of alternatives such as Litecoin, Bitcoin Cash, Ethereum Classic, Dash, Ripple, Monero, EOS, OmiseGO, NEO, Zcash, and 0x. to your own wallet USDT Tether also finds its place on Bitfinex, expanding options further with the ability to purchase IOTA.
Continuously aiming to broaden its offering, the Bitfinex team remains committed to integrating new coins onto its platform periodically.
Bitfinex
Pros
- Low Fees
- High Volume Exchange
- Lots of Trading Options
- Good Trading Interface
- Good for Advanced Traders
Cons
- Concerns about Transparency
- Past Hackings
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Upon fulfilling these stipulations, users can embark on setting up their account.
Embark on account creation by progressing through the signup procedure, entering essential details like username, email, and password, and filling in your timezone alongside a captcha.
Once signed up, navigate to the 'Deposit' button at the upper-right corner to fund your account.
This leads to a deposit page where you can choose from USD, Tether, or various listed cryptocurrencies to deposit funds into your account.
Upon funding your account, head over to 'Trading' and opt for your desired crypto pairing.
There, you can set the quantity, designate the price, and choose the style of order you aim to accomplish.
Standing as a veteran in the exchange field, Bitfinex has navigated past breaches, with its first notable incident in May 2015.
That breach resulted in a loss of 1500 Bitcoin from its hot wallets, quickly compensated by the platform. However, a later, larger-scale breach witnessed 119,756 Bitcoin, then valued at roughly $72 million, being illicitly accessed.
In response, the exchange issued BFX tokens, meant for later redemption by customers as a remedial step during the crisis.
Each BFX token mirrored $1, compensating users equivalently. Since then, Bitfinex re-acquired those tokens and fulfilled its promises by purchasing back users' lost funds.
Spurred by these past incidents, Bitfinex elevated its safety protocols, with 99.5% of client assets sequestered offline in secure, globally dispersed multisignature-enabled cold storage systems.