Exchange Reviews

Bitfinex cryptocurrency exchange in 7 points

Bitfinex Professional Trading Exchange commonly known as Bitfinex is a cryptocurrency exchange with a global footprint. With high profitability margins projected by operating a virtual currency exchange, the crypto exchange market is welcoming new entrants at a supersonic speed.

This makes it harder to separate the chaff from the wheat. Today, let’s take a trip to the land of Bitfinex.

1. Security

Bitfinex

Of late Bitfinex has not experienced any security breaches. However, in the past, the exchange has suffered major security breaches. At first, more than 1000 Bitcoins were siphoned from a wallet the exchange had control. The hacker came back later and took off with 119,756 Bitcoins. The second hack was blamed on a flaw on the multi-signature mechanism employed by the exchange and Bitgo, a wallet service provider.

Unlike other exchanges where being refunded depends on the legal outcome, Bitfinex voluntarily refunded the lost coins through the Bitfinex Right Recovery Token (RRT).

To reduce the chances of such an event reoccurring, the exchange has been tight-lipped on its security system. Additionally, they have embraced cold wallets with hot wallets only holding approximately 0.5 percent of funds. For individual account security, Bitfinex advises its users to use the two-factor authentication method to access their accounts.

Bitfinex relies on behavioral patterns to monitor suspicious withdrawals. Additionally, users can define a default withdrawal address.

2. Bitfinex: Supported currencies and countries

The exchange supports both fiat and crypto currencies. For cryptos, the exchange supports both well known (BTC, ETH, LTC, TRX, NEO, QTUM, DASH, etc.) and not-so-well-known (CNN, BOX, GOT, ELF, SPANK, SNGLS, etc.) coins. It uses U.S dollar (USD), the EURO (EUR), Ether (ETH) and Bitcoin (BTC) as base currencies. The exchange roughly has 72 active market pairs. Bitfinex allows the use of the USD (United States dollar), EUR (EURO), GBP (British Pound Sterling), and JPY (Japanese Yen) fiat currencies.

The exchange has a global presence except in Yemen, Uganda, Iraq, the U.S, Ethiopia, North Korea, Iran, Syria, Bosnia, and Vanuatu.

3. Fees charged

Bitfinex doesn’t charge a fixed fee. Instead, the fee charged is determined by the volume involved in a transaction. Makers fee stand at 0.1 percent while takers’ fee is calibrated between 0.2 to 0.1 percent. The higher the trading volume in a month, the lower the fees and vice versa.

Bitfinex

Note that deposits involving cryptocurrencies are not subject to any fees while withdrawal fees are charged depending on the cryptocurrency being withdrawn. Fiat deposits conducted through wire transfer attract a fee of 0.1 percent.

Bitfinex will charge an inactivity fee if an account stays dormant for long. Although the fee may be negligible, you deserve to have your wealth in full. That’s why it is important to withdraw your funds if you decide to take a break from trading on Bitfinex.

4. Bitfinex margin trading

Bitfinex

Margin trading is considered to be the riskiest waters in the cryptocurrency trading ocean. These waters are only reserved to be explored by professional traders. To qualify to sail through margin trading waters, you must have an insatiable appetite for profits and comfortable with losses. Bitfinex’s leverage on margin trading reaches a maximum of 3.33 times. Bitcoin or the U.S dollar can be borrowed to participate in margin trading.

5. Bitfinex customer support

The exchange has an active customer support department. Unfortunately, it can only be reached via E-mail. Feedback on queries is provided within 12 hours, but it can take longer depending on the number of queries logged. The exchange maintains an informative FAQs section to answer some of the basic questions from users.

6. Bitfinex mobile application

Bitfinex

To cater to the mobile lifestyle of its users, Bitfinex has a mobile app which is available on Android and iOS. Most, if not all, functionalities of the web version can be accessed from the mobile application. This has given Bitfinex a competitive edge over its competitors.

7. Relationship between Bitfinex and Tether

The relationship between the two has almost always received a scornful welcome in the cryptocurrency circles. One controversy surrounding Bitfinex and Tether is that the former had been using the latter to inflate and deflate the price of Bitcoin.

Bitfinex

Another controversy is why the entities, although depicted as independent, share some of its top team members. For example, Phil Potter, the exchnage’s CSO is among Tether’s directors. Also, Bitfinex and Tether share Giancarlo Devasini in the capacity of a director.

Final words

Bitfinex, with a mobile app, vibrant customer support, a variety of supported currencies, and learning from past mistakes (from the hack) to improve security, shows its commitment to be a leader in the cryptocurrency exchange business.

While no cryptocurrency exchange lacks a negative side, Bitfinex has maintained a slightly above average performance.

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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