Bitfinex is one of the world’s largest bitcoin trading platforms. Find out everything you need to know about this popular exchange today in our review.
What Is Bitfinex?
Bitfinex is a bitcoin and cryptocurrency exchange that offers three main functions. It offers cryptocurrency and fiat trading, offers margin trading, and provides liquidity. Using Bitfinex, you can do things you won’t find on other exchanges – like short bitcoin via margin trading.
The exchange is incorporated in the British Virgin Islands, but maintains offices in Taiwan, London, and Hong Kong. The executive team is based around the world.
In August 2016, the exchange was hacked, leading to the loss of 120,000 BTC. In response, Bitfinex moved from a hot wallet to a cold storage system.
Despite suffering the second largest hack in bitcoin history (after Mt. Gox), Bitfinex continues to be one of the world’s most highest-volume exchanges to this day. As of April 2017, Bitfinex had paid customers back for every dollar stolen during the heist.
Today, Bitfinex is known for offering some of the lowest fees in the cryptocurrency world. Traders who trade less than $500,000 have a maker fee of 0.1% and a taker fee of 0.2%. Fees drop to as little as 0% (maker fee) on 30 day volume over $7.5 million.
Bitfinex is a feature-rich trading platform that lets you trade in bitcoin and all major cryptocurrencies. Here’s an overview of the major features of the platform:
Trade In Multiple Currencies
Bitfinex offers spot trading for all major cryptocurrencies, including bitcoin, Ethereum, Ethereum Classic, Zcash, Monero, Litecoin, Dash, Iota, and Ripple. Overall, Bitfinex offers some of the most liquid trading in the cryptocurrency world.
Bitfinex lets you trade with up to 3.3x leverage by providing traders with access to the peer-to-peer funding market. Traders can enter an order to borrow the desired amount of funding at the rate and duration of their choice, or they can open a position and Bitfinex will take out funding for the trader at the best available rate at that time.
Liquidity providers can earn interest by providing funding to traders wanting to trade with leverage. Funding is traded on an order book at various rates and periods.
Using the Bitfinex margin funding system, you can earn interest on both fiat currencies and cryptocurrencies, including the US Dollar, bitcoin, Ethereum, Ethereum Classic, Zcash, Monero, Litecoin, and Dash.
Users can also customize the rate and duration of the loan, or choose to lend at the “Flash Return Rate” (FRR). Users can also renew offers automatically upon expiry using the Auto-Renew feature.
Multiple Order Types
Bitfinex offers a suite of order types, giving traders the tools they need for every scenario. Order types include all of the following:
- Trailing Stop
- Fill or Kill
- One Cancels Other (OCO)
- Post Only
- Hidden Order
- Iceberg Orders (Algorithmic Order)
- Time Weighted Average Price, or TWAP (Algorithmic Order)
Traders can customize Bitfinex more intensely than you typically can with other trading platforms. You can change your layout, choose different themes, and setup notifications or data preferences, for example.
You can also compose the trading sidebar and choose whether it’s one the left or right side, manage tickers navigation, set table preferences, and organize and sort the order book columns.
Bitfinex has mobile apps available for iOS and Android. The mobile apps let you trade, engage in margin funding, access your wallet, transfer funds, and setup access via API keys.
Here are some of the most important Bitfinex fees you need to be aware of:
- Maker Fee (Volume Under $500,000 in 30 Day Period): 0.100%
- Taker Fee (Volume Under $500,000 in 30 Day Period): 0.200%
Maker and taker fees drop on volume over $500,000 in a 30 day period, and continue dropping through 10+ levels, all the way up to the lowest fees, which are available to traders who make more than $30 million of trades in a 30 day period.
- Deposits via Cryptocurrency: Free (available deposit methods include bitcoin, Ether, Ether Classic, Zcash, Monero, Litecoin, Dash, IOTA, Ripple, and TetherUSD)
- Deposits via Bank Transfer: 0.100% (minimum fee of $20)
- Bitcoin Withdrawals: 0.0004 BTC
- Ether Withdrawals: 0.01 ETH
- Ether Classic Withdrawals: 0.01 ETC
- Zcash Withdrawals: 0.001 ZEC
- Monero Withdrawals: 0.01 XMR
- Litecoin Withdrawals: 0.001 LTC
- Dash Withdrawals: 0.01 DSH
- Iota Withdrawals: Free
- Ripple Withdrawals: 0.01 XRP
- Tether USD Withdrawals: 2.0 USD
- Bank Wire Withdrawals: 0.100% of the withdrawal amount (minimum fee of $20)
- Express Bank Wire Withdrawal (Within 24 Hours on Business Days): 1.000% (minimum fee of $20)
Meanwhile, margin funding comes with the following fees:
- Charge on Fees Collected by Margin Funding Providers: 15.0% (of the fees generated by active margin funding contracts)
- Charge on Fees Collected by Margin Funding Providers, When Opened by a Hidden Offer: 18.0%
- Charge on Funding that is Borrowed and Subsequently Returned Without Being Used in a Margin Position: Up to one full day’s interest
Bitfinex continues to be one of the world’s largest cryptocurrency exchanges – even after suffering from one of history’s largest bitcoin heists in August 2016. The exchange has been open since 2014, and is considered by many to be the world’s largest bitcoin exchange platform.
Bitfinex made headlines for the August 2016 hack, when 120,000 bitcoins ($72 million USD at the time) were stolen from the platform. The price of bitcoin plunged 20% after the hack, and Bitfinex immediately halted all bitcoin withdrawals and trading. It was the second-biggest breach of a bitcoin exchange platform in history.
After the hack, Bitfinex created BFX tokens and gave them to customers to represent their stolen equity. Each token represented $1. By April 2017, Bitfinex had bought back all of the BFX tokens from customers, which means customers were effectively paid back for all of their lost funds.
However, many customers complained because the price of bitcoin had nearly doubled between August and April.
Despite these challenges, Bitfinex continues to remain strong as one of the world’s largest bitcoin and cryptocurrency exchanges.
You can contact Bitfinex by email at firstname.lastname@example.org. The exchange’s executive team isn’t based in a single location: they work from the US, Europe, and Asia. However, Bitfinex’s parent company, iFinex Inc., is incorporated in the British Virgin Islands. Offices are also found in Taiwan, London, and Hong Kong.
Bitfinex is a giant in the cryptocurrency industry. In August 2016, the exchange was hacked, leading to the loss of 120,000 BTC. Since then, Bitfinex has been working to improve its reputation. The exchange uses a cold storage system today instead of hot wallets.
The exchange also offers extremely competitive trading fees, priced at 0.10% (maker fee) and 0.20% (taker fee) for traders with volume under $500,000 in a 30 day period, and dropping even lower from there.
You can start trading on Bitfinex today by visiting Bitfinex.com.