The basics of crypto trading
|Founders||Giancarlo Devasint, Raphael Nicolle|
Currently, Bitfinex Exchange remains one of the largest trading platforms by the volume of performed operations. A flexible fee system, availability of credit leverage, and a wide range of trading instruments attract professional players of the market.
Bitfinex is included in the top-5 largest cryptocurrency exchanges in the world. The platform offers its clients numerous tokens, as many as a few fiat currencies and lots of instruments to make trading convenient. The system can be operated in English, Chinese and Russian. The headquarters is located in Hong Kong.
Bitfinex Exchange was established in Hong Kong in 2012. It was initially designed as a platform for professional traders. This is the way it still presents itself now.
The cryptocurrency exchange was designed as a tool for professional trading. It appeared during the global excitement over cryptocurrencies. The key elements of its success are security and safety of assets. In 2014, the platform was acknowledged as the largest cryptocurrency exchange with its share exceeding 10% of the total traded volume.
However, throughout its history the platform was the target of hacking attack several times. The largest incident took place in spring 2016 with 120,000 Bitcoins being stolen from the platform users’ accounts. The company undertook the reimbursement of funds and issued BFX tokens for aggrieved users. They were a proof of financial commitments of the exchange. Within a certain period of time, the tokens were repaid.
In spring 2017, Wells Fargo Bank withdrew its service due to a prior attack. During this time period, users faced certain problems with withdrawing funds.
Due to these difficulties, sign up to the platform was temporarily closed. In 2018, the restriction was removed. However, new users have to deposit 10,000 dollars and more to their account to activate it.
Today, Bitfinex is one of the most popular cryptocurrency exchanges. The daily traded volume exceeds 700 million dollars. More than 100 currency pairs and fiat money of several states are available to users, which is extremely convenient in terms of funds depositing and withdrawing.
The exchange still remains one of the globally largest cryptocurrency exchanges. However, its closed nature makes beginning traders less interested in using the platform. The service has been designed mostly to meet the requirements of professional individual and corporate traders.
At present, it’s difficult to forecast the platform’s future as it has already made great progress. Despite the fact that doesn’t dominate the market now, it is included in the top-5 largest platforms. There are the following positive signals for its further development:
However, many specialist believe the platform’s requirements to be slightly too high, which prevents it from more rapid increase of the traded volume. However, representatives of the cryptocurrency exchange claim that they are not going to introduce any exemptions for their users.
The official website of the exchange https://www.bitfinex.com/ is available for users from many countries of the world. The platform offers 3 languages to choose from: English, Russian and Chinese. To start trading on the platform, a user needs to sign up.
To create a new account, a user needs to click the “Sign up” or “Open account” button.
A window with the operating terms will appear. Each of them should be ticked, which confirms that a user accepts the terms.
From the very first step, a user is warned that the platform is aimed at professional traders and not suitable for beginners. There are other important peculiarities:
Then, the system will redirect a user to the account creation page and will ask to type in a login, password, email address, time zone and captcha.
Then, all a user needs to do is to confirm the email address by following a link from the received letter (it may be redirected to Spam folder).
To start trading, it is required to verify your account or deposit not less than 10,000 dollars.
To proceed to the personal verification page, a user should click the button from the menu with a man sign in the top right corner. Verification implies:
Bitfinex verification procedure is quite a complicated and long one; therefore, it’s recommended to check accuracy of the documents beforehand in order to avoid waiting for 6-8 more weeks.
A special attention of the service is paid to security of its users and their funds. Therefore, a set of measures is used to provide security:
The platform as a whole is also covered by security measures including automatic protection against distributed attacks (DDOS).
Bitfinex Exchange offers quite an uncommon system of fee deduction. Each operation type implies its own fees. For example, there is no fee for deposits exceeding 1,000 dollars this is with the exception of bank transfers with the fee of 0.1% of an operation amount but not less than 20 dollars/euros. Smaller deposits are subject to fees (assessed individually); thus, developers try to cut down the number of small-scale operations so that the system won’t be overloaded.
Withdrawal of funds implies fee deduction as well. There is only a limited list of cryptocurrencies that can be withdrawn to a user’s wallet free of charge (for example, Eos, Neo, Bitcoin Gold).
Trading operations are also subject to fee deduction. Its amount depends on the operation type (selling or buying) and volume of transactions completed within the last 30 days.
For buyers, the fee amount varies from 0 to 0.1%, for a seller – from 0.055 to 2%. The higher the traded amount, the lower is the fee. Buyers don’t pay any fees subject to the condition that the monthly wolume of operations exceeds 7.5 million dollars.
New users of the platform want to make it immediately clear how to trade on it. Bitfinex features pleasant and user-friendly interface. If necessary, a user can change configurations, such as, for example, a page theme. A demo version can be used to get acquainted with the interface and trading peculiarities even without registration.
In the single window mode, a user can see an exchange rate of a currency pair, its dynamics, visual changes on the graph, and the order book. Sell and buy orders are opened here as well.
The platform offers several order types, including limit, market, stop, stop-limit and trailing stop orders.
Additionally, a marginal trade with the leverage up to 3.3 is available for users. The exchange participants can provide other users with financial funds or receive funds from them. Trading can become even more convenient due to API service.
The majority of feedback about the trading platform on the Web are positive ones. It has its own advantages and disadvantages being at the same time one of the largest players on the market. Its advantages include:
In this review, it’s impossible to omit disadvantages of the exchange. The major one is a long and complicated verification procedure that can be avoided if a user wants to withdraw funds and perform trading operations. For small-scale traders, disadvantages are as follows: charges for an inactive account, fees for depositing less than 1,000 dollars, the first-time deposit of 10,000 dollars and perform trading operations. For small-scale traders, disadvantages are as follows: charges for an inactive account, fees for depositing less than 1,000 dollars, the first-time deposit of 10,000 dollars and more.
Despite the legal restrictions from the local government, a NY-based holder of Bitfinex account has stressed out that it is still possible to transact through Bitfinex as the USA user. Taking into account the purported ban of stateside traders, this functionality should be disabled for all the users from North America.
The user who pointed out the platform accessibility has asked to remain anonymous. He created an account and called it ImaNYresident. Surprisingly, the page was easy to access from within the borders of the New York State. The only thing the US users need to do to continue using the exchange without being banned is to select an option saying they are not the USA residents.
The NY Attorney General’s office and Bitfinex have been involved in a dispute over jurisdiction. It was Bitfinex who claimed that since it bans the users from New York since it is not within NYAG jurisdiction.
On the 21st of June 2019, Bitfinex Exchange announced the planned update, which is going to happen on June 26 and will also affect its sister platform Ethfinex. On this day, both exchanges will suspend customer service for up to 7 hours. The company explains the need for updating with the desire to improve the experience of user interaction with the platform in the trading process. This will be a distinctive milestone in creating the foundation for launching derivative tools on Bitfinex, among other things,.
The company notes that June 26 is only an indicative date. It can be transferred to a later date if the market level of volatility increases. During the process of the upgrade, traders will not be able to enter into transactions. The company also pays attention to the need to take into account possible market fluctuations and their impact on active margins and their positions.
In addition, today Bitfinex announced the launch of the third round of a campaign to reduce the size of commissions for holders of LEO tokens issued by it. During this round, a special procedure for calculating commissions for large traders is introduced, the LEO balance on accounts of which exceeds the equivalent of 1 million USD.