BITFINEX- A RUNDOWN
This cryptocurrency exchange did not aim its popularity through credibility. It has a long history of security issues and allegations. This highly caters to professional traders as it also renders margin trading and lending options. What’s interesting about this is that it does not entertain United States-based clients.
The statements mentioned above highly stood for Bitfinex. If one wishes to have a deeper assessment of this exchange, opt-in reading the following,
- Bitfinex Overview
- Bitfinex Services
- Bitfinex Difficulties
- Currencies and Payment Methods
- Bitfinex Fees
- Supported Countries
- Customer Support and Reviews
- Bitfinex vs. Binance
- Conclusion – Is Bitfinex Legit?
Bitfinex is a cryptocurrency exchange that was established in the British Virgin Islands way back in 2012 by the company called iFinex inc. It was later transferred to a new location and is now situated in Hong Kong. Its initial purpose is to provide a peer-to-peer method of margin lending for Bitcoin. Note that founders and internals of iFinex inc are closely linked to Tether, the US version of Stablecoin.
Under Bitfinex are numerous solutions, including:
ADVANCED TRADING PLATFORM- This exchange is considered as the most liquefied order platform across the globe. As a high level of volume is crucial for trading, it guarantees a low spread ratio, which is technically the difference between the bid and asks.
Bitfinex is advanced and wired in a way that provides a high-tier, and personalized graphic user interface equipped with 50 trading pairs and various order types, including limit, trailing stop, fill or kill, and scaled transactions.
Its system is ready for personalization that is highly beneficial for traders for them to organize their preferred tools and instruments. Access to professional charting functions and API are also granted. With its revolutionary wirings and optimum science, it caters to a more comprehensive operation for traders.
MARGIN TRADING AND FUNDING- Bitfinex allows users to a 3.3x leverage through peer-to-peer margin funding platform. Borrowing conditions in terms of amount, tenure, and interest are identified by the client or through the platform.
In line, crypto owners can let traders hold their finances for interest, all while funding in various currencies and assets, at their preferred rate and duration. Note that margin trading has its advantages and setbacks and is not ideal for novice traders.
OVER THE COUNTER SERVICES– This exchange offers a solution for traders who want to place large amounts in private terms. It automatically matches and secures private transactions.
It is known to everyone that Bitfinex had encountered several system difficulties in the past. Back in 2015, it was ravaged by financial hackers and had 1500 bitcoins stolen. Following this was the April 2016 robbery of an estimated 120,000 bitcoins. This holds the record as one of the most controversial crypto-crime in history, not far from the 750,000 bitcoin robbed from Mt. Gox.
To compensate, Bitfinex provided payments. Though not all accounts got wiped out, Bitcoin decided to make amends to all of its clients. All users acquired 36% of haircuts to their accounts. After a year, Bitfinex recuperated from loss, and all clients were adequately compensated.
Another incident was reported in 2017 when Wells Fargo invalidated clients’ accounts. Such ran for weeks, and as a result, clients filed complaints. While services were quickly fixed, it has tainted US customers’ reputation due to these anomalies.
CURRENCIES AND PAYMENT METHODS
Bitfinex approves the use of fiat currencies, including EUR, JPY, GBP, and USD. Such is available through wire transferal as it also supports the use of Tether. It practices a charge-free deposit and friendly rate withdrawal for Bitcoin, Litecoin, Ethereum, Zcash, Monero, Dash, Ripple, iota, EOS, and other assets.
This employs a taker-maker framework wherein users who accomplished orders are considered takers, all while traders who chose to set limits are identified as makers. For takers, fees usually begin at 0.2% and can potentially hit 0%. Note that there are no trading charges for big placements made possible by the OTC desk.
In terms of bank wires, an initial 0.1% charge will be deducted, but this can reach up to 1% if one wants to resort to an expedited transaction. Note that all of the transactions are free of charge only if the deposit is lower than $1000. Once it exceeds, a parallel fee will be required.
Bitfinex’s service and solutions are made available across all zones, but it opts out from offering its services to countries including Bangladesh, Bolivia, Ecuador, Kyrgyzstan, and the USA.
CUSTOMER SUPPORT AND FEEDBACKS
Most exchanges fail to acquire a respectable rating. However, Bitfinex has an acceptable level of rating when it comes to user satisfaction evident in several polls and surveys. Despite this, it still faces doubts about credibility and transparency issues. Various criticisms surfaced, but the exchange had denied these allegations by consistently sending explanations to its clients, highlighting errors in verdicts.
BITFINEX VS. BINANCE
These two exchanges filed quite many cryptocurrencies under its arsenal. However, Bitfinex’s system is more developed compared to Binance’s interface.
In terms of credibility, Binance has a long, illustrious history of a reputation as it was only introduced to the public back in 2017. In line, its marginally lower charges enabled its more excellent market traction. As opposed to this, Bitfinex’s records of hacking and anomalies have created a dent on its name, and its taker-maker framework competes against Binance’s scheme.
The viability of this exchange is situational in a way that it is only ideal for advanced traders. Novice traders should opt out of using this exchange since it is wired with advanced features and settings. With its technicality, newbie traders will have difficulty using such. Thus, simpler exchanges are recommended. If, for one, you are a professional trader, it is guaranteed that Bitfinex will favor your trading venture. High liquidity, together with prime solutions, is enough reason for one to utilize and subscribe to Bitfinex.