- Cold wallets are provided for traders.
- Multi-approach security protocols in place for users.
- 2-factor authentication is supported.
- Withdrawals are locked for 24 hours if a new IP address is used to trigger a withdrawal request.
- Demo trading is available.
- Crypto-denominated withdrawals are free.
- Easy verification process.
- 2016 hack incident reduced investor confidence which has not fully returned.
- Geographical restrictions exist.
- Withdrawals take more time than before.
- No longer possible to deposit fiat currencies.
The Bitfinex cryptocurrency trading platform opened shop in 2012. It is owned by Ifinex Inc, a Hong Kong based company. At some point in its history, it had the distinction of being the world’s largest Bitcoin exchange, but has lost that position to other exchanges. This occurred after a 2016 hack attack that saw the loss of $70million worth of cryptocurrencies to hackers.
Bitfinex offers its clients the opportunity to buy and sell actual cryptocurrencies. This is possible using its advanced trading platform which enables traders to fund their wallets using cryptocurrencies, buy and sell same and also withdraw in cryptocurrencies. Due to regulatory restrictions and issues related to account funding and withdrawals on the banking side, all US traders have been dropped from its client base.
Bitfinex offers its users the opportunity to trade using a web-based platform as well as a mobile app. When it comes to the exchange platform, Bitfinex offers the following features:
- A customizable Interface where colour themes can be changed and charts can be adjusted to the trader’s taste.
- Saving preferences.
- Sorting of Order Book columns.
- Set up desktop or browser notifications as well as custom sounds alerts.
Users of the Bitfinex platform are able to use market and limit orders to buy or sell their cryptocurrencies. In addition, specialized orders can be used to control how trade entries and exits are managed. Orders such as the trailing stop, “fill or kill” orders, post-only orders, hidden orders as well as Order-Cancels-the-Other (OCO) orders are available.
Algorithmic trading is also possible on Bitfinex, as well as robot trading using the API.
The browser-based Bitfinex platform is accessible on the trading webpage of the Bitfinex website. It only requires login with the registered username and password to gain access. The web-based platform supports both demo and live trading.
For those who love to trade without being tied down to a spot, Bitfinex also comes with a mobile app for iOS and Android users. These can be downloaded from the respective app stores. However, it is advised that when downloading the apps, use the links on Bitfinex website to direct you to the app stores to ensure that you download the authentic versions of these apps. Also, confirm that you are on the Bitfinex secure site before you do this.
What markets does Bitfinex offer its users for trading?
Bitfinex provides its users the opportunity to buy and sell the following assets on an exchange basis:
- Bitcoin Cash
- Ethereum Classic
- Time New Bank
- Basic Attention Token
These cryptocurrencies can all be exchanged against either Bitcoin or US Dollars.
Margin Funding Market
Margin lending by cryptocurrency owners allows them to earn interest in fiat currency or selected cryptocurrencies. Traders who want to trade using leverage can borrow these crypto assets and pay an interest (FRR or Flash Return Rate).
Deposit and Withdrawals
Deposits and withdrawals in fiat currencies were suspended in 2017, as a consequence of efforts to recover from the hack attack as well as increasing difficulties in getting banks to perform transfers from Hong Kong to the US on behalf of cryptocurrency holders. Cryptocurrency investments are considered illegal in many countries and it did not help the situation.
Presently, deposits and withdrawals can be made in selected cryptocurrencies (BTC, BHC, Etheruem, etc) using wallet to wallet transfers. Withdrawals tend to take up to 12 hours.
Help and Support
In order to get customer support or help from the Bitfinex team, you can contact them using the details that are shown below:
- Email: [email protected]
- Support ticket
Bitfinex also offers traders the opportunity to connect with the company on social media channels:
- Facebook (www.facebook.com/bitfinex1)
- Twitter (www.twitter.com/bitfinex)
Security and Fairness
Bitfinex has in place the following security features and policies:
- Two-factor authentication (2FA): This allows for a secondary login process when transactions such as logins, API key generation and withdrawals are performed by a user. Google Authenticator, U2F Security Keys and Twilio are 2FA clients compatible with Bitfinex.
- Universal 2nd Factor (U2F): This is a physical Security Key that enables the ultra-secure FIDO Universal 2nd Factor (U2F) open authentication standard.
- Analysis of login data for unusual activity.
- IP Address changes are subjected to verification.
- All login attempts are sent to the user’s email for prompt identification of unauthorized login attempts.
- Withdrawals protection using IP address match and manual admin inspections on suspicious-looking withdrawal requests.
- Specific address whitelists can be defined.
- OpenPGP email encryption.
- Majority of funds are stored in cold wallets, with less than 1% of crypto holdings stored in hot wallets.
- Enhanced protection from DDoS attacks, with protocols that were created following the 2016 hack.
Bitfinex was one of the leading companies to emerge in the cryptocurrency exchange space after the collapse of Mt.Gox. However, it suffered a crippling hack in 2016 which almost bankrupted the firm. However it has bounced back but has lost its market leadership position. Many traders jumped ship when the company had problems and a lot of them have not come back.
Despite the drawbacks, Bitfinex has managed to continue to fulfil its obligations to clients. Bitfinex is hereby declared a legit cryptocurrency broker. However, it must continue to innovate and attract new customers with exciting product offerings if it is to compete with the leading brands in the market.