What is Bitfinex?
Bitfinex is one of the oldest crypto exchanges. Founded in 2012, Bitfinex had soon become famous among most crypto traders back then, especially the professional ones. At the time of writing (July 3rd, 2022), Bitfinex has an Exchange Score of 7.1, ranking #8, rated by Coinmarketcap.
Where is Bitfinex based?
Bitfinex is a Hong Kong-based exchange, owned and operated by iFinex Inc.
How does Bitfinex work?
As a cryptocurrency exchange, Bitfinex works in a similar way to any other CEX. The main flywheel of Bitfinex can be seen as:
Step 1: Bitfinex was released with some initial markets and assets.
Step 2: Bitfinex incentivized users to trade on their platforms. This can be done in multiple ways (Advertisement, Marketing, Incentive Program,…).
Step 3: Bitfinex gains more users and trading volume.
Step 4: As a result, Bitfinex receives more revenue.
Step 5: Bitfinex grows in value, and continues to attract more users and trading volume by introducing more markets and assets.
Bitfinex Review (2022)
- One of the earliest CEX to exist, gaining the advantage of a first-mover.
- A lot of trading tools for advanced traders.
- Relatively low fees.
- Attached to numerous dramas: price manipulation, relationship with Tether, 2 hacks,…
- Small liquidity compared to other major CEXs.
- Only a few Fiats are supported.
- Not available in the U.S.
- Not ideal for crypto beginners.
- Limited options for derivatives trading.
- Lengthy verification process.
Bitfinex supported countries
Bitfinex is supported by the majority of the world, excluding Cuba, the Democratic People’s Republic of Korea (North Korea), Iran, Syria, Crimea (a region of Ukraine annexed by the Russian Federation), Donetsk People’s Republic (a region of Ukraine annexed by the Russian Federation), or Luhansk People’s Republic (a region of Ukraine annexed by the Russian Federation), the U.S and Ontario.
Key products of Bitfinex exchange
- Spot Trading: Spot Trading is the most basic function that every exchange must have. It is simply the direct buying and selling of different currencies, like BTC or ETH.
- Margin Trading: Margin Trading is closely similar to Spot Trading. The only difference is that Margin Trading allows you to borrow more capital to leverage your position while Spot Trading does not.
- Derivatives Trading: Derivatives are financial contracts between two or more entities that have their values based on the performance of an underlying asset. Derivatives Trading on Bitfinex comprises mostly Perpetual Swaps.
- Funding: Lend your assets for margin traders to earn interests.
- Lending Pro: Automate your lending strategies.
- Borrow: Users can borrow cryptocurrencies directly from Bitfinex by using another cryptocurrency as collateral.
- Securities: Offers traders and issuers a regulated, efficient and global solution to raise capital through tokenized company shares and have them publicly admitted to trading.
- OTC (Over The Counter) Market: Through the OTC desk, customers will be able to make larger trades directly with a counterparty without having to go through the public order books, therefore not affecting the exchange market price.
- Shopping (Bitrefill): Bitrefill is a third-party provider that allows Bitfinex users to buy digital products and services using cryptocurrencies.
- Lightning Network: Users can connect to the Bitfinex Lightning Node.
- Staking Rewards: Deposit cryptocurrencies to earn yields.
- Bitfinex Honey: Users can run algorithmic orders directly on Bitfinex.
- Bitfinex Pay: A widget that allows users to carry out crypto payments.
- Bitfinex Terminal: A terminal offering real-time historical Bitfinex market data.
- Bitfinex Pulse: A blog-like platform made by Bitfinex.
- Third-party Services: Integrated third-parties on Bitfinex that provides additional services for users.
Bitfinex charges fees for every spot and derivatives order.
For spot orders:
For derivatives orders:
Deposit and withdrawal fees
Similar to the majority of CEXs on the market, Bitfinex does not charge any deposit fees. On the other hand, withdrawal fees vary between each asset.
Bitfinex also charges fees for some other services.
For crypto borrowing:
For margin funding:
At the same time, trades on Bitfinex’s OTC Market also incur a fee of 0.1% on both sides.
Bitfinex App Download
Bitfinex has a mobile application for both iOS and Android on mobile. You can download the app using the links below, or by directly visiting their website here.
Download Gate.io App on Mobile:
How to open an account on Bitfinex
In this part, Coin98 Insights will guide you on how to open an account on Bitfinex and activate its full features.
Step 1: Set up an account
First, go to their website: www.bitfinex.com
On the main page, click on “Sign up”.
Here you are required to enter some information about:
- Country of residence.
- Referral code (Optional).
After you have finished filling in all the information, click on “Sign up”.
Note that your password has to be at least 8 characters long with at least 1 uppercase letter, 1 lowercase letter, 1 number, and 1 special character.
Step 2: Enable 2FA (Two-factor authentication)
2FA, also known as Two-factor authentication, adds another security layer to your account. Bitfinex uses Google Authenticator for 2FA. It is considered one of the most popular and secure methods for 2FA at the moment.
Follow the instructions to set up your Google Authenticator. You can also use Coin98’s article as a reference.
Read more: How to set up Google Authenticator
A confirmation message will be sent to your email address. Click on the link in your email (and double-check that it is an authentic one) to verify your account.
Step 3: Complete identity verification (Basic Plus)
You have successfully created a Bitfinex account. To go to further steps, first sign into Bitfinex with your account.
On the main page, click on “Login” at the top right corner.
Enter your account, then click on “Log in”.
Enter your 2FA code, and click on “Authenticate”.
On the top right corner, point to the human icon and click on “Verification”.
You will have two options to verify your identity, either as an individual or an organization. If you are not using Bitfinex under the name of your enterprise, which most of us do not, you would want to verify as an individual. Coin98 Insights will also take the first option as an example.
There are 4 levels of individual verification: Basic, Basic Plus, Intermediate, and Full. Coin98 Insights will verify for level 2, which is Basic Plus, for beginners that want to unlock the basic features on the exchange.
Click on “Start verification”.
Enter your country of residence, select the type of document you want to use as verification, then click on “Scan document”.
You will have to go through a KYC process using your mobile phone. Afterwards, your submission will be reviewed by Bitfinex before it can be approved.
Step 4: Complete Intermediate Verification
On the top right corner, point to the human icon and click on “Verification”.
To unlock most of the features on Bitfinex, including the advanced tools, you need to pass the intermediate verification. To upgrade from Basic Plus to Intermediate, you need to complete 2 more verification steps: Address and Identity Documentation.
First, let’s go through the proof of address. Click on “Address”.
Here you need to provide proof of address – a statement such as a utility bill, letter from a government debt, or tax statement outside of your banking information no older than 90 days – clearly indicating your name and residential address. The document must be in Roman Lettering, or a certified English translation should be uploaded in addition to the original document.
When you are done, get back to the previous page and click on “Identity Documentation”.
You have provided 1 identity document from step 3, which upgraded your account to Basic Plus. To achieve Intermediate, you need to provide an additional identity document.
Afterwards, you will also have to provide a selfie with the identity document in one picture in order to confirm your identity.
How to use Bitfinex basically
How to deposit into Bitfinex exchange
On the main page, point to “Wallet” and click on “Deposit”.
There are numerous options to deposit into Bitfinex: Payment cards, bank wire, stablecoins, or cryptocurrencies. Coin98 Insights will take a random cryptocurrency as an example. Click on “Algorand”.
You will have several options to deposit into: the exchange wallet, margin wallet, or funding wallet. Coin98 Insights will deposit into the exchange wallet as an example. You can always swap your assets back and forth between these wallets later.
Click on “Click to generate address”.
The deposit address will now show up. Send the chosen token from the correct blockchain network to this address. When your transaction is finalized, your assets will appear on Bitfinex.
How to withdraw from Bitfinex exchange
The process of withdrawing is pretty similar to that of depositing. On the main page, point to “Wallet” and click on “Withdraw”.
There are numerous options to withdraw from Bitfinex: Bank wire, Fiat, or cryptocurrencies. The process of withdrawing will be similar to depositing: Choose a withdrawal method and withdraw your cryptocurrencies from Bitfinex.
Unfortunately, as our account is still under consideration for the Intermediate level, Coin98 Insights cannot withdraw assets from Bitfinex yet. Therefore, we cannot guide you further in the process.
How to buy/sell crypto on Bitfinex exchange
There are various ways to buy and sell cryptocurrencies on Bitfinex. For example, you can use payment cards to buy certain cryptocurrencies on Bitfinex, the service of which is provided by third parties.
On the main page, point to “Third-party services” (the handshake icon) and click on “Payment Cards”.
You will have a few options, and more to appear once you upgrade your verification level. Coin98 Insights will select a random third-party provider. Click on “Select”.
Choose the cryptocurrency you want to buy, enter the amount and click on “Proceed to Payment”.
How to trade on Bitfinex
The spot trading interface will show up on the main page, or you can click on “Trading”.
On the left side, you can choose the token you want to trade. On the right side, you can see its chart so that you can make better trading decisions.
To change from spot trading to margin trading, click on “Margin” on the bottom left.
On the main page, click on “Derivatives”.
For derivatives trading, you can adjust the level of leverage at the bottom left of the page. Bitfinex supports leverage from 1x to 100x.
Before actually getting started with derivatives trading, here are some tips on how to use leverage in Crypto in general and in futures particularly:
- Adjust leverage according to the risk/reward.
- Use stop-loss and take-profit to minimize loss and maximize returns.
- Use leverage with technical analysis to take advantage of a small rally/sell-off rather than building a long-term position.
Types of orders on Bitfinex
There are 4 types of orders on Bitfinex:
- OCO (One-Cancels-The-Other) Order: The combination of Stop Order and Limit Order. Allows you to place a pair of orders stipulating that if one order is executed fully or partially, then the other order is automatically canceled.
- Hidden: Allows you to place an order into the orderbook without displaying it to other traders.
- Post-Only: A type of Limit Order that ensures you always pay the maker fee.
- TIF (Time-In-Force): Specify datetime for automatic order cancellation.
How to earn on Bitfinex exchange
You can offer or receive funding in any of the currencies used for Margin Trading. By offering funding to margin traders you can earn interest at a rate and duration of your choice. Likewise, you can request to receive funding that will be available for your margin trading.
To open Funding: on the main page, point to “Funding” and select “Funding”.
The interface for funding will show up. You can select the token on the left side, and offer funding for the token to earn interest rates.
Lending Pro allows you to automate your lending strategies. On the main page, point to “Funding” and select “Lending Pro”.
Click on “Click here”.
Tick on the checkbox “I understand and agree”, then click on “Submit”.
Select the token that you want to enable lending pro from the list on the left. Afterwards, click on the switch to enable lending pro, then click on “Save Changes”.
You can stake your cryptocurrencies on Bitfinex to earn yields. On the main page, point to “More” and select “Staking Rewards”.
There are currently 10 assets that you can stake on Bitfinex: Tron (TRX), EOS (EOS), Tezos (XTZ), Cosmos (ATOM), Solana (SOL), Polygon (MATIC), Cardano (ADA), Polkadot (DOT), Ethereum (ETH), and Kusama (KSM).
In fact. Bitfinex will automatically stake these cryptocurrencies on a weekly basis, should they be in your Bitfinex wallet.
How Bitfinex compares to other exchanges
Bitfinex vs. Kraken
Bitfinex vs. Coinbase
Bitfinex vs. Binance
Bitfinex vs. Bittrex
FAQs about Bitfinex exchange
Does Bitfinex have its own token?
Bitfinex has its native token called UNUS SED LEO (LEO). You can find the information about this token on Coingecko or Coinmarketcap.
Learn more: What is CoinMarketCap and how to use?
Is Bitfinex safe and legit?
As mentioned above, Bitfinex is one of the oldest crypto exchanges. After 10 years of operation with numerous dramas and suspicions, Bitfinex still comes out of them and solves all of its problems.
Even though a lot of users are still questioning the safety of the exchange, Bitfinex is considered safe and legit for now.
How did Bitfinex get hacked?
In 2016, Bitfinex got hacked. The exchange lost control of over 119,756 Bitcoin (BTC) from its customers.
According to Coindesk, “The source of the vulnerability appears to lie in how Bitfinex structured its accounts and its use of bitcoin wallet provider BitGo as an additional layer of security on customer transactions.”
Is Bitfinex available in the U.S?
At the moment, Bitfinex is not available in the U.S.
How to use Bitfinex API key
You can use the API key from Bitfinex to access Bitfinex account information as well as wallets from other applications.
To get or create an API key on Bitfinex: on the main page, point to the human icon and click on “API Keys”.
Click on “Create New Key” to create a new API key.
Here you can manage what permissions your API keys allow. After you have customized it, click on “Generate API key”.
Enter your Google Authenticator code to finish creating an API key.
How to close a Bitfinex account
On the main page, point to the human icon and click on “Account”.
Click on “Deactivate”.
Click on “Permanently Deactivate Account”. Remember that this action is irreversible, meaning you cannot undo it once it is confirmed. Therefore, you should think and consider carefully before closing a Bitfinex account.
Bitfinex is one of the oldest crypto exchanges. Founded in 2012, Bitfinex had soon become famous among most crypto traders back then, especially the professional ones. Bitfinex provides a lot of trading tools for advanced traders with relatively low fees.
Nevertheless, it has small liquidity compared to other major CEXs, and only a few Fiat currencies are supported. At the same time, Bitfinex offers limited options for derivatives trading, as well as imposing a lengthy and complicated verification process.
Last, Atccoin.net sent you details about the topic “What Is Bitfinex? How To Use Bitfinex Exchange❤️️”.Hope with useful information that the article “What Is Bitfinex? How To Use Bitfinex Exchange” It will help readers to be more interested in “What Is Bitfinex? How To Use Bitfinex Exchange [ ❤️️❤️️ ]”.
Posts “What Is Bitfinex? How To Use Bitfinex Exchange” posted by on 2023-09-30 19:17:43. Thank you for reading the article at www.atccoin.net