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Bitfinex.com Review – Pros and Cons of Trading on BITFINEX
- unlimited withdrawal
- anonymity possible
- high trading volume
- in-house mobile app
- many payment options
- was hacked in 2016
- payment problems since early 2017
Bitfinex.com was officially opened in 2012 by Bitfinex Limited, a company based in Hong Kong. It became the “world’s largest Bitcoin exchange” (or at least one of the 2 or 3 tops ones) and could hold that state for a while. But in August 2016 it changed, when 70 Million USD worth of coins were stolen from many user wallets. Nonetheless, Bitfinex remained upright and recovered from the hack.
The site offers trade markets for 11 cryptocurrencies such as Dash, Monero and Ethereum among others. It also accepts USD for funding. The broker is quite user-friendly compared to some others. Reddit has a big category page for any kind of questions about Bitfinex.
Current Issues – Changes for US Traders:
Unfortunately Bitfinex is dropping all verified US customers till November 2017. This happens because US laws had been making it more and more difficult for Bitfinex to serve US retail traders, as the banks of individual customers from the US often declined a correlation with Bitfinex. So people from the US won’t be able anymore to get verified accounts in order to make fiat deposits and withdrawals. (Basic accounts with crypto deposits and withdrawals only would still be possible, as those don’t need verification. It might be neccessary to access the platform with VPN in that case.)
Bitfinex.com Trading Volume:
The average daily trading volume of the platform is USD 70 Million, which is relatively low compared to the other Bitcoin trading sites.
Laws regarding cryptocurrencies are different in every country. This means that you may or may not be able to trade them in your country. But of course, anyone can trade cryptocurrency on international platforms, which support anonymous trading, as long as they are able to access the website.
Unfortunately, certain countries ban the use of cryptocurrency and all corresponding sites. If you live in these countries, you may not be able to use Bitfinex:
For China, Europe and the US it’s no problem to trade on Bitfinex. However, in the US, margin trading on Bitfinex has been disabled for unknown reasons. Read their information.
Bitfinex.com Hack 2016
In August 2016, over USD 70 Million worth of coins were stolen from the site. This is the second largest loss of Bitcoin in the history of cryptocurrency. The Mt. Gox incident being the first. Multiple Bitfinex accounts were hacked and most of their coins got stolen. Within only several hours, Bitcoin prices plunged down 20%. After the hack, Bitfinex struggled to recover and many people crossed over to other exchanges.
Fortunately, since 2017 the recovery process from the big hack is finished. That is due to Bitfinex’ smart strategy to give platform tokens to its users to replace the losses with an in-house coin. Those tokens were meant to be bought back by Bitfinex as soon as they had the money. In early 2017 all of those tokens were bought back by Bitfinex, so the users have their money back.
If you compare the market caps of Bitfinex to other sites, you’ll notice that there is a big difference. A sign that the platform couldn’t gain back their old position on the market yet.
Issues in Spring 2017
Bitfinex has paused fiat deposits so users cannot use USD for their funds. Currently, only cryptos are supported, so you must wait for further announcements in the official posts. They also had problems with withdrawals, as there were big transmission delays in April. These issues drove the BTC price up disproportionately to other platforms, as Bitfinex users fled into Bitcoin.
1. Open an Account in the Home Page.
You need to provide:
c. Password (1 Upper-case letter, 8 lower-case letters and at least 1 Special Character)
2. After you sign up, an email will be sent and you need to confirm it.
3. To deposit/withdraw funds to/from your wallet, you will need to verify the account using two-factor authentication located in the security tab. In other words, you can verify the account using Google Authenticator, your phone (by receiving SMS code), or by CLEF.
*Note: CLEF is shutting down so you may not be able to use this method at the time of reading.
4. You may now deposit or withdraw funds to and from your wallet and buy or trade cryptocurrencies.
To transfer funds, press the transfer
button on the upper right corner of the site.
To set orders, you need to fill the order form on the left-hand side.
*Note: You may change the currency by pressing the trading button as you can see on the image.
1. Withdrawal / Deposit
The good thing about this site is that there is no minimum withdrawal or deposit amount for cryptocurrencies BUT for Bank Transfer or Wire Transfer there is a 0.100% fee for both withdrawal and deposit. As stated in the site:
Bank wire: 0.100% of the deposit amount, with a minimum fee of $20.00
Bank wire: 0.100% of the withdrawal amount, with a minimum fee of $20.00
Express bank wire (within 24 hours on business days): 1.000% of the withdrawal amount, with a minimum fee of $20.00
Bitfinex Has Two Modes:
1. Demo Tour
The demo gives a tour of the website without signing up. It also shows how every button works, and explains each function in detail. However, you will still need to sign-up for an account if you want to access the full functionality of the site’s demo.
2. Live Trading
This allows you to deposit and withdraw funds into the site’s wallets using actual currency. At the moment the site only allows USD along with these cryptocurrencies:
- 1. Bitcoin
- 2. Ether
- 3. Ether Classic
- 4. ZCash
- 5. Monero
- 6. Litecoin
- 7. Dash
- 8. Ripple
- 9. Tether
Bitfinex uses the professional Bitcoin chart of tradingview.com, which is embeded in the center of the dashboard. The chart offers all kinds of tools for in-epth technical analysis.
Your positions, orders and order history will be listed below the chart.
Bitfinex allows for users to trade with up to 3.3x leverage by receiving funding from the peer to peer margin funding platform.
Through the Funding Wallet, Bitfinex allows you to provide funding in any of the various funding currencies to traders. So this means that besides actively trading yourself you can use Bitfinex to lend money to other traders for margin trading. By providing margin trading loans to other traders, you can earn Bitcoin passively. When traders using your Bitcoins for margin trading close their positions, they return your loan plus your commission to your Margin Trading Wallet.
For the purpose of margin trading Bitfinex has a separate wallet.
The 3 Different Wallets
Bitfinex offers different wallets for better control of your funds. Usually you only use the margin trading wallet for margin trades. So margin calls and losses will only affect the fund within this wallet. However, you can change the settings so the other wallets would also get involved in your margin trades.
Exchange wallet: for exchanging funds between the supported currencies.
Margin wallet: for trading leveraged long and short positions.
Funding wallet: for providing financing/margin funding other traders.
Bitfinex uses Two-Factor Authentication to protect your account.
Bitfinex.com Account Verification
There are verification requirements before proceeding. It depends if you choose Individual or Corporate Account.
Individual account – an account in the name of an individual
1. Complete online form.
2. Age: at least 18 years old.
3. Information: telephone number, email address, residential address.
4. Identification: two forms of valid government issued identification with picture; i.e., passport, national ID card, driving license, residency card, employment permit card, etc. If you do not have 2 forms of ID, you can provide only one and contact firstname.lastname@example.org to arrange for a Skype or google hangout call.
5. Bank Statement: clearly highlighting your name as the account holder (your first deposit to Bitfinex must come from this account).
6. Proof of Address: a statement not older than 3 months from a utility, service company, licensed corporation or government authority clearly indicating your name and residential address.
Corporate account – an account in the name of a corporation/partnership/trust
Verification Requirements: Corporate account
1. Complete online form.
2. Corporate Documents: please see link here for complete list of required documentation.
3. Director Information: each director, significant shareholder and controlling officer(s) are required to provide identification. Please review the online form for complete details.
4. After completing the corporate verification form, an individual form for each director, significant shareholder(s) and controlling officer(s) will be required to be completed.
Order Types – All Possible Advanced Orders Provided
Here are the 3 most basic order types on the site:
- 1. Limit Order – An order to buy/sell at a specified price or better.
Example: If the current market price is 50 and I want to buy lower than that at 49, then I would place a limit buy order at 49. If the market reaches 49 and a seller’s ask matches with my bid, my limit order will be executed at 49.
- 2. Market Order – Market Orders are used when a trader wants to buy at the best price immediately.
- 3. Stop Order – A stop order is used to trigger a market sell when the market drops to your trigger price, or used to trigger a market buy if the market rises to your trigger price.
Example for beginners: If the current market price is 250, the trader in a long position might want to sell if the price reaches 245. A stop sell at 245 will be used in this case.
But they also offer trailing orders and more.
Bitfinex Mobile App
Bitfinex Mobile App is available on the Apple Store and the Android Play
Pros and Cons
- User Friendly Interface
- Demo Available
- Easy Verification – You only need a phone
- No deposit / withdrawal fees for cryptos
- 11 Cryptocurrencies supported
- Only fiat currency supported is USD
- Recently hacked so a lot of people have doubts about the site. This caused the market cap to fall
- Deposits paused currently
Conclusion about Bitfinex.com
This Bitcoin trading site is recommended to anyone who’s seeking a secure crypto trading platform with professional features. Even though it has been hacked before, the site security has been upgraded over time and it is recovering. The trading volumes are increasing, meaning that people are again beginning to have faith in the site.
Bitfinex has a minimalist style so you won’t have any problem using it. There is also a demo tour explaining every detail about how to use the platform. It’s a good advice to first check out the platform via demo tour. Also, there are even 11 cryptocurrencies available for trading, more than many other Bitcoin trading sites additionally offer. Overall, the site is user friendly, easy to use, and it has a great customer support team and a forum as well.