- Traders who seek privacy and anonymity can trade using their OTC desks
- 2FA for all accounts
- Wide variety of coins available
- Trade volumes and liquidity is high
|Support Types||Help Center, email, Phone|
|Main Feature||Most Liquidity|
|Trading Currency||BTC, ETH, LTC+16 other|
|Free Demo Account||Open Demo|
|Fee Info||Trading Fees: 0.1% to 0.2% Small Deposit , Fees Bank Transfer Fees-0.1% Margin, Funding Fees-15%|
|Account Types||Individual, Corporate|
|Deposit Methods||Cryptocurrency, Fiat|
|Withdrawal Methods||Cryptocurrency, Fiat|
|Types of Assets||Hacked in the past, Good Security|
|Trading Currency||Bitcoin, Ethereum, Litecoin, 16 more coin|
|Account Currency||USD, EUR|
|US Traders Allowed|
- Wide variety of coins available
- Verification is easy
- Fees are low
- Withdrawals and deposits are unlimited
- Trade volumes and liquidity is high
- Simple to use and intuitive trading platform
- Advanced trading features
- Deposit in fiat is limited
- Not for beginners
BITFINEX REVIEW: THE WORLD’S LARGEST MOST LIQUID CRYPTOCURRENCY EXCHANGE
Given the number of alt coins availed on this exchange, the accompanying trading volumes makes BitFinex the largest cryptocurrency exchange site in the world. It’s toe to toe with Kraken and Bittrex. Just how large is their average daily trading volumes? Well, let’s put in some hard numbers here. In the last six months alone, more than 9.34M Bitcoins were traded with 143 BTC derived trades per minute.
BitFinex is a 4 year old Hong Kong based company owned by iFinex INC. They always positioned themselves as a go-to platform for ambitious traders hungry for variety, desirous of a robust trading interface and who want to make the best out of their trading by taking advantage of cheap fees.
BitFinex provides all these features conveniently and securely despite the recent hacks where close to $70M of user funds were stolen. Even though funds were stolen, the company took responsibility reimbursing most of affected customers to the last penny using BFX tokens.
Creating an Account
Interest individuals whose countries are supported by BitFinex are free to create an account. All they have to do is visit www.bitfinex.com, click on “Open Account” and fill in all the details requested on the sign up form. Always remember to usea strong password.
Figure 2: Create an Account
Note: BitFinex is restricted in Ecuador, Bolivia, Bangladesh and Kyrgyzstan. USA retail traders couldn’t open accounts with BitFinex from April 2017 to mid-November 2017 because of stringent US laws making it hard for USD deposits and account verification. Otherwise, it is available worldwide.
After keying in all the details, click on the “open account” button and confirm a link sent to your email address.
You will be re-directed to BitFinex login page and this is where you will login using the email and password details you used during signing up.
It is important to secure your account before depositing funds. Head to Account>Settings and enable:
Two-Factor Account Authentication
Figure 3: 2FA
This is by far the recommended option. The exchange avails three options: Google Authenticator, Twilio 2FA or Fidio Universal 2nd Factor applications. Each application has its own set up procedure and I recommend setting up your account’s 2FA using the time tested Google Authenticator.
PGP to Secure Email Communications
PGP-called Pretty Good Privacy is a privacy encryption and decryption program that secures your email communications through a public key system. To set up this security measure, all you need is your BitFinex PGP public key and the PGP application.
Account Verification and Account Types
Before depositing funds, you need to verify your account. Verification procedure varies depending on the account type.
Figure 5: Account verification
First, there is a questionnaire to be filledbefore uploading several supporting documents as may be needed.
Accompanying these is a Declaration Form to be download, manually filled, signed and uploaded. The Declaration Form is needed as the platform cannot verify any of your submitted information without your approval.
Two kinds of accounts are available:
Figure 6: Account Types
To verify one you will need or have to do the following:
- Fill an online form
- You must be 18 years and older
- Must have at least two forms of government issued IDs
- Upload your bank statement which clearly shows your name
- Upload a utility bill which is not more than 3 months old as a proof of address
This is an account opened on behalf of a corporate, trust or any partnership.
This is what should be done for verification:
- Filling of the corporate verification online form
- Submit all corporate documents.
- All director information details
- Individual forms of all directors, partners, major shareholders or any controlling offices.
Please note that all uploads must be either in PDF, MS Word, PNG, JPEG or Text. No other format is allowed.
When all documents have been submitted, you have to be patient and wait for atleast 5 working days or more before your account gets verified. Afterwards, you can proceed and deposit funds.
It’s recommended that you verify your account because BitFinex often delete or even block all unverified accounts without notice.
Figure 7: Funding your BitFinex Account
You can only fund your BitFinex account in Euros, USD or supported cryptocurrency tokens deposited from an external wallet or exchange.
Figure 8: Coins supported
To begin, visit www.bitfinex.com/deposit and choose a token you would like to deposit in and select your preferred wallet.
Figure 9: Fund with BTC
Figure 10: BitFinex wallets
There are three wallets present:
- Exchange wallet-used for trading BitFinex supported coins
- Margin wallet-if you want to trade using leverage
- Funding Wallet used predominantly for funding margin traders.
Irrespective of your preferred wallet, funding iseasy. Simply copy the exchange’s coin wallet address and send funds from your external wallet like Jaxx or Mycelium or from a coin exchange like CoinBase.
If you wish to deposit in Euro and USD, then make sure that your account is verified as required. BitFinex complies with all AML, CDF and KYC rules and regulations.
It’s only after depositing fund to your preferred account that you can begin trading.
Figure 11: Interface
BitFinex’s customizable interface is incredible for experience traders but at the same time not too complex for beginners to navigate. The general design has the mind of a trader and is slick. From a technical trader perspective, BitFinex’s interface checks all the right boxes.
On the dashboard, several analytical tools are available. Users get access candlestick charts, order books and related trading data.
There are options for margin trading and funding where you can leverageup-to 3.3 times but that is probably not a good idea as it’s a double edge sword. To execute trades, you chose to use limit, stop or market orders and other advanced market entries like fill or kill orders.
Novice traders would find it easy to trade on BitFinex by providing a simple over-view of all coins available. Of course, not all coins in existence are listed but the exchange does a good job of vetting and adding most high cap alt coins. For trading, most alt coins are paired against the USD, BTC and ETH. These are the coins you can trade: Bitcoin, Ethereum, Litecoin, +16 more coins
Like most cryptocurrency exchanges, the script is the same.
Fees charged depends on your monthly trading volumes and if you are a maker or a taker. Makers are traders who add the much needed liquidity by placing market buy or sell limits below or above prevailing exchange rates while takers fill orders already listed in the order books. Takers removes liquidity therefore applicable fees are high.
Maker fees range from 0.1% to 0.02% while taker fees vary from 0.1% to 0.2% and fluctuates depending on the amount traded.
Figure 12: Maker and Taker fees
Supported cryptocurrency deposits don’t attract any charges while those from a bank wire transfer costs 0.1% with a floor set at $20. That’s the minimum fees charged. However, for any deposit below $1000, Small Deposit Fees applies.
Figure 13: Deposit Fee schedule
Besides, a 15% margin funding fees is charged on margin providers for all generated fees while an 18% charge applies for margin providers when fees are opened by a hidden offer.
On the other hand, cryptocurrency withdrawal fees vary. For example, to withdraw BTC, you will be charged 0.0008BTC while depositing in NEO and Status is free.
Withdrawing fiat-USD or Euro costs 0.1% for bank wire transfers and 1% for Express wire transfers with the minimum amount placed at $/€20.
Withdrawals periods vary with express bank wire transfer being processed within 24 hours on any business working days. Process time for cryptocurrency withdrawal can take up to 12 hours but they are faster if your account is verified and secured.
Figure 14: Withdrawal Fees
BitFinex place no withdrawal or deposit limits on your trading account.
BitFinex Unique Features
- BitFinex allows use of algorithm for automated trading through special and attractive API.
- Traders who seek privacy and anonymity can trade using their OTC desks.
- There is margin lending available for traders who prefer to trade using leverage. This way, funds that are left on the platform can bear interest for the benefit of the account holder. In fact there are tools can be used to calculate interest rates on different timeframes making it possible for traders to know exactly what’s in for them if they leave their funds on the platform.
- BitFinex has their own mobile apps available in both Android and iOS.
In Q1 2017, BitFinex was hacked and more than $70M of user funds were stolen. Even if they took responsibility and reimbursed affected clients by issuing BFX tokens at $1 each which they slowly bought back, they have since implemented several security measures to avert similar happenings. Security is their top priority.
For user account protection this is what is in place:
- Email encryption and decryption using PGP software
- 2FA for all accounts. When enabled, a special generated code will be needed for sensitive and account specific things like login, withdrawal or API keys generation.
- Account monitoring and verification is present. Details like IP addresses are monitored and user alerted when logged in from unauthorized addresses.
- Withdrawal protection systems implemented and there are certain withdrawal steps that are immune against malware. Furthermore, account holders can define a given set of address white list ensuring all withdrawn funds are not diverted and goes to only one account.
BitFinex system is protected as follows:
- BitFinex is protected against DDoS attacks
- Database back up is done every day.
- All data is backed up, automatically duplicated and stored in several locations.
- BitFinex platform and systems run on Linux and is updated on a regular basis.
Besides these, user funds are stored in offline, cold storages requiring multi-sig access. Only 0.5% of funds are online.
Customer Care Support
As cryptocurrencies get adopted, exchanges can sometimes be overwhelmed. All in all, BitFinex’s exchange is not that bad. For beginners, they avail the “Help Center” dedicated to answering details like trading, fees, security, creating accounts, order types, currency overviews and other topics.
Figure 15: Support Center
They use a ticketing system and users who have problems with their trading accounts can always submit a ticket and get attended to.
You can also reach them using their official phone numbers at 1_800_691_2567 or email at: email@example.com. The email service is available 24/7.
BitFinex is undoubtedly a favorite for professional traders and even though the platform was hacked once, traders are streaming back as shown by the increasing trading volumes and liquidity across their range of alt coins.
What is attractive is their low fees, secure platform, mobile integration and of course their intuitive simple to use platform. The obvious influx put a strain on customer care but then again the more they work to build their capacity through infrastructure expansion, the more we expect their services to be excellent.