Cryptocurrency exchanges, sometimes referred to digital currency exchanges, are platforms that enable the trading of one cryptocurrency for other digital currencies. There are a lot of them around, so it can be difficult of new and experienced traders to know which one to head towards. One that will undoubtedly reappear in their research is Bitfinex due to its amount of current users. That is why we have compiled everything you need to know in this snapshot bitfinex review.
The Basics: A Bitcoin Exchange Helpdesk Bitfinex
In regards to volume, Bitfinex is the biggest player on the market with nearly double the amount of users than their nearest rivals, Coinbase and Kraken. Although not so lucrative to new traders in many respects, they also offer margin trading within their platform. Altcoins including Ethereum, EOS, OmiseGO, Litecoin, Ethereum Classic, Iota, Ripple, Dash, Zcash, Monero, and Sentiment are all operating on the Bitfinex site, as well as Bitcoin. One issue Bitfinex seems to be self-imposing is the inability for customers to pay via conventional methods; their platform does not support credit card, debit card, Skrill, or PayPal payments which may build obstacles for newcomers to cryptocurrency trading. Their workaround appears to be allowing bank transfers as a replacement which may be a little daunting to the more skeptical newbie trader.
A Credible Company
To say Bitfinex have had a turbulent existence would be an understatement to say the least, but they have responded to some trying times in a way which may have won back some credibility in their customers’ eyes.
Bitfinex and their customers were victims of one of the biggest cryptocurrency hacks of all time. Towards the end of 2016, an approximate $72 million was taken from their traders. Bitfinex reacted by spreading the damage between all of their customers and issuing BFX tokens which represent a type of I-owe-you promise. They pledged to return the money when it was possible for them to do so without going bankrupt.
An interesting twist of fate then occurred as these I-owe-you type tokens became a source of interest for many traders which resulted in a secondary market for them. At this stage, their worth was very debatable as people did not know how Bitfinex was going to respond to this security setback. Were they going to recuperate the money or were they about to go under? In the end, Bitfinex managed to pay back every Bitcoin stolen and peacock a slight show of customer service as a result.
Unfortunately, this was not the end of the Bitfinex tragicomedy as within a year they then had their bank accounts locked down for a number of weeks resulting in disgruntled customers. After usual service was resumed Bitfinex rejected USA dollars and customers on their platform.
Even though their response to the hack was commendable and they clearly did their best to make things right as fast as possible, it does question how reliable and robust their security and attention to detail is. Credible but unreliable comes to mind and Bitfinex customers may be sitting under a tree waiting for lightning to strike for the third time.
The experienced trader will benefit from Bitfinex’s range of features. They run more than 50 trading pairs and a wide-range of order types, including stop-limit, stop, trailing stop, limit, scaled, and fill or kill orders. They also offer a private service for those who are trading cryptocurrencies with considerably high sums of money. Using the platform is relatively easy and in most scenarios, you will only need to provide an email address. However, if you are withdrawing certain expedited cryptocurrencies and/or trading Tether, verification will likely be required.
There is no deposit fee in place and withdrawals can be made for a very fair price for users of Bitcoin and most altcoins, including Bitcoin Gold. Although this market is predominantly cryptocurrency based, they do support Tether – due to being their major shareholder – which is a token that is frequently coupled with the price of the US dollar.
Some of the more complex features include margin funding. This enables customers to gain daily interest through lending margin traders liquidity. Yet, we highly discourage any newcomers to cryptocurrency trading from entering into this business as it locks in your funds and is a complex procedure to make profitable.
The Final Verdict
This bitfinex review aimed to give you a detailed overview of the company, their errors and response to those errors, and an overview of their features. To recommend this market to new cryptocurrency traders after reviewing these details would be unrealistic. Even though Bitfinex appears to run a solid market with genuinely attractive features, they are not very accessible to newbies. The lacking methods to enter into the market without already a wallet of digital currency make it difficult for new traders to ‘’get involved’’. Not to mention the complex interface that you will be greeted by if you do manage to fund your account. On the other hand, Bitfinex offers experienced traders a real opportunity to advance their trading game and potentially become a profitable source.