What is Bitfinex?
Bitfinex has grown since it went into operation in 2014 to one of the largest fully featured cryptocurrency exchanges and is trusted by millions of traders around the globe.
The company actually began in 2012 and has since seen its massive growth to what it has become today.
Current daily trading volumes are way above $1 billion per day. For traders who are looking for a one-stop-shop for their crypto needs, Bitfinex can fill this role because it is both practical and convenient.
Bitfinex is also closely affiliated with Tether and makes extensive use of Tether’s USDT (Tethers), and as we know, these are pegged to the dollar.
Where is Bitfinex Located?
The Bitfinex location of their crypto exchange was up until very recently in Hong Kong. Bitfinex is operated by a company called iFinex Inc.
It might appear to be a little misleading that a crypto exchange changes location, but iFinex does have some history in dealing with the CFTC (Commodity Futures Trading Commission in America).
Now you might be wondering where Bitfinex is located? Because being operated by a US inc. company, it would lead you to believe it is based in the USA.
Bitfinex is now actually located in the British Virgin Isles, so they aren’t under any governing jurisdiction.
How Bitfinex Works?
Bitfinex is quite fair compared to a lot of the competition. Bitfinex fees are based on the total volume of any transaction, and on top of this, you can pay a different rate depending on if you are a taker or a maker.
- Takers 0.20%
- Makers 0.10%
If you are short selling, there will be additional fees. These are based on the Bitfinex internal platform P2P financing function. If you are selling short, you can’t borrow above 70% of your position.
All deposits are free of any fee aside from a bank transfer, these are charged at $20 or 0.1% of the
deposit amount depending which is the highest.
Withdrawal fees are imposed and are in the cryptocurrency which is being withdrawn, two coins which have free withdrawals are Iota and Bitcoin Gold.
For verified users, there are no Bitfinex withdrawal limits. These can take up to 12 hours before completion, but they can be quicker if there are specific security measures which are met.
With both 2-factor authentication and making sure your withdrawal addresses have been locked for 5 days as a minimum. Generally, most of the automatic withdrawals are available within a few minutes.
Accepted Payment Methods
Things changed at the back end of last year when the Bitfinex exchange stopped taking FIAT currency for deposits. All deposits can be made in any of the cryptocurrencies that the exchange supports.
It should be highlighted that US-based crypto traders cannot use Bitfinex.
When you decide to start using Bitfinex, you complete the initial sign-up form which is a username, email address, and password along with a couple of other bits of information. Once you have your account, you can start the verification process.
The first thing is Account type and the country of residence, after this check all the reasons why you are seeking verification for your account.
Individual account verification steps and requirements are as follows:
- Age must be at least 18 years old.
- Personal Information: telephone number, email address, residential address.
- Personal Identification: Two forms of valid government ID with the picture: passport, national ID card, driving license, etc. If you don’t have 2 types of ID, you can submit one and contact email@example.com and arrange a Skype call.
- Personal bank statement: This should clearly highlight your name as account holder (the first deposit to Bitfinex needs to be made from this account).
- Proof of Address: Any statement which is not older than 3 months, this should come from utility service company, licensed corporation or government authority. This should clearly indicate your name and residential address.
Currently, Bitfinex verification is taking 6-8 weeks to complete depending on public interest.
As Bitfinex is one of the largest crypto exchanges in the world, you would expect them to support a high number of coins.
They do offer plenty of cryptocurrencies to trade in, but when you compare Bitfinex Vs. Bittrex, they don’t support anywhere near as many.
They currently support over 75 cryptocurrencies but this will continue to rise and should be more than enough for most traders. BTC, BCH, LTC, ETH, XMR, and LTC are included as are numerous ERC20 tokens.
Although the exchange was hacked in 2016, they did pay back all of the traders who lost. But aside from this, Bitfinex does have tight security measures in place to protect client’s funds. Hence the reason they paid investors back within 12 months.
At any time, over 99% of client funds are held in cold storage offline. And with 2-factor authentication for login and all withdrawals along with email encryption, as well as any new IP withdrawal address being locked for a 24-hour period.
Being at the top of the best crypto exchange charts, you would expect any in this position to have good customer support. Bitfinex doesn’t disappoint and has 24/7 email support and an extensive FAQ’s section along with a highly active forum where users can resolve most problems or queries.
Any ticket can be submitted to the support team once you have logged into your account.
Is Bitfinex Safe?
With the hacks that happened previously, many users could as is Bitfinex safe? The way they handled the 2016 hack (valued at $72 million), it appears they are safe.
They openly compensated any losses and did so without trying to hide anything. With the security measures in place, it can be a secure place in which to trade.
With this being said, no coins should be left on the exchange for an extended period, users should have their own hardware wallet where to keep their currencies.
Bitfinex shows no signs of slowing down, and it can only grow to the top couple of positions from where they currently sit. The exchange has very high liquidity as well as supporting their API use and mobile apps for on the go trading.
The only two downsides are it’s not suitable for beginners, and they aren’t accepting FIAT deposits/ No US traders allowed.
This aside, for any trader who is into margin trading, it really does cover all the angles.