What Is BitFinex?
BitFinex exchange was established in 2012. It is headquartered in Hong Kong and operates worldwide with a few exceptions. It is an online portal for trading in cryptocurrencies. It lets users buy, sell, and trade in a wide range of digital currencies.
It started as a P2P Bitcoin exchange involved in margin lending but later expanded by adding more cryptocurrencies under its fold. It accepts both fiat-to-crypto and crypto-to-crypto exchanges. Other prominent services include limit and stop orders, over the counter trades, margin trading, etc.
It is more popular in intermediate and advanced level traders. Its website is creatively designed to facilitate the user with easy-to-navigate menu options and dashboards. It is one of the most popular cryptocurrency exchange platforms and handles a whopping USD 2 billion worth of trade in a day.
Top Rated Bitcoin Exchange 2020
Regulated PlatformVariety of CoinsAvailable via App
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Who Created the BitFinex Exchange?
BitFinex was created by one Mr. Raphael Nicolle in Hong Kong in 2012. It is also based there but has its affiliate offices in other countries too. It is owned and operated by iFinex Inc. which is registered in the British Virgin Islands.
Is BitFinex Safe?
BitFinex was an unfortunate victim of a hacking incident back in 2016. Resultantly it lost 120,000 BTCs. Since then BitFinex has upgraded its security apparatus and there has been no repeat incident as such.
BitFinex takes security matters very seriously now. Almost 99.5% of customers’ funds are stored in cold storage by using a geographically dispersed multi-signature system. Users can also employ Universal second authentication (U2F) which asks for an additional physical device like a USB to log in.
Additionally, it does the following to protect its system from vicious attacks:
- Updates software regularly and automatically backs up data daily.
- Encrypts and duplicates the backup data automatically.
- Updates the Linux system regularly.
- Uses protection against distributed denial of service (DDoS) attacks.
- It protects its users in the following ways.
- Saves login information and monitors any suspicious information.
- In case of sessions hijacks it catches the IP address.
- It notifies the users and requests account freeze in case of any untoward activity.
- It can restrict account access as well as withdrawals to specific IP addresses only.
- Keeps a check on the user’s account pattern and can start manual inspection in case of unusual withdrawals.
- Uses email encryption for protection against malware in the withdrawal confirmation process.
BitFinex Sign-Up Guide
To sign up at BitFinex head over to their site and agree to their terms and conditions. These include temporary minimum account equity of USD10,000. New accounts are not able to buy or sell until they reach this amount.
If you want access to fiat deposits and withdrawals, you have to go through a verification process that takes 6-8 weeks to complete.
As a trading platform for cryptocurrencies, BitFinex charges fees. These vary according to the traded amounts and whether the user is a “make” or “taker”. If you take an existing order you are a taker and if you make a new one you are a maker.
The maker fee varies from 0.1% to 0.0% while the taker fee ranges from 0.2% to 0.055% based on the volume of the executed trade in the last 30 days.
The higher rates are for volumes less than USD500,000 and to qualify for the lower rates users will have to accumulate a volume of 30 million dollars in a month.
The cryptocurrency deposits are free, but withdrawals carry a fee depending on what cryptocurrency you are withdrawing.
Bank wires carry a deposit and withdrawal fee of 0.1% which can go up to 1% if you want a speedy withdrawal.
BitFinex Deposit & Withdrawal Methods
Let’s look at the deposit and withdrawal methods in the domain of BitFinex.
- Deposit: To make a deposit, log in to your account and go to the ‘Deposit’ section. Select the currency and create an address in the wallet you wish to send to and input that addresses as the receiving address. A deposit via bank transfers takes 6-8 weeks.
- Withdrawal: Withdrawal from BitFinex is also simple as a deposit. You have to go to the “withdraw” section after logging in, fill in all the required fields, select the asset you want to withdraw and that’s about it. Your account must be verified to withdraw and secured with 2FA and whitelisted addresses.
Features of BitFinex
Advantages of Joining BitFinex
- It is one of the most popular cryptocurrency trading portals out there.
- It is easy to join and provides an interactive and innovative user interface to which you can follow with ease.
- Due to previous hacking experiences, it now puts security protocols among its top concerns. These include storing 99.5% of user funds in cold storage, protection via DDoS, database and email encryption, and constant backups.
- It has highly competitive and very low fees.
- The procedure for deposits and withdrawals is pretty straight forward.
- It enjoys the trust and support of its users. Combined daily trade activity amounts to around $2 billion.
How Does BitFinex compare to other exchanges?
Let us compare BitFinex with other exchanges on the following factors;
- Funding: You can fund your account with cryptocurrency or with USD, JPY, Pound Sterling via bank wire. Many exchanges do not have wire facilities.
- Website Interface: BitFinex is geared towards an experienced investor. So, if you are a novice you might find its website complicated and confusing. For beginners, BitFinex does not offer a user-friendly experience.
- Fees: BitFinex offers market competitive fees that are on the lower side. It charges you based on your trading history and volume using the maker or taker model.
- Transfer of Cryptocurrency: BitFinex does not impose any limit on the deposit and withdrawal of cryptocurrency which is unlike other exchanges. However, on the transfer of fiat currency, there are some limits.
- Safety and Security: BitFinex has an edge when it comes to ensuring safety and security. Past hacking experiences have made them wary and they take security matters very seriously now.
Pros & Cons of BitFinex
How can I fund my account at BitFinex?
You can fund your account with fiat currencies like JYEN, USD, Pound, etc. and also through cryptocurrencies.
How long it takes to withdraw from BitFinex?
The withdrawal time ranges from 2-12 hours provided your account is verified.
Is BitFinex safe?
Yes, BitFinex is fairly safe. It has employed advanced and extensive security features to protect its database. Almost 95% of clients’ funds are kept in cold storage. Data is kept in state-of-the-art servers with layers of security protocols to ensure its safety.
Is BitFinex a scam?
No, it is not a scam but a legit company that has been in business since 2012.
Who is BitFinex suitable for?
BitFinex is meant for an investor with an intermediate to advanced level of knowledge and experience in cryptocurrency.
BitFinex is one of the most established cryptocurrency exchange companies out there. It provides a comprehensive and fully customizable service to experienced investors and traders. It enjoys very high USD liquidity and offers an array of trading and ordering options, making it one of the largest BTC exchanges by traded volume.
BitFinex has had a chequered history when it comes to security. It was a victim of two high profile hacking attacks that dented its reputation. Since the last incident in 2016, the company has raised the bar of its security protocols very high and paid back all the hacked funds to its investors.
We recommend that anyone using BitFinex should make use of all of its security features and do not keep large funds there. It is better to keep withdrawing to your wallets to be on the safe side of things.