Bitfinex is one of the largest and most famous cryptocurrency exchanges. Starting to work 5 years ago, Bitfinex managed to become the exchange No. 1 in terms of Bitcoin trading and gaining popularity around the world. However, in recent months, the positive attitude of many traders and experts to Bitfinex has been replaced by total distrust. Some people still say that Bitfinex cryptocurrency exchange is the most reliable and functional platform. Others are confident that the end of the site is near. Let’s try to figure out how objective is the enthusiasm of the first and the suspicion of the second!

Users who have just registered on the exchange are immediately offered to familiarize themselves with the structure of the site and the features of trading. The Bitfinex interface is noticeably different from other exchanges, so this review will definitely not hurt newbies.

If you are going to work only with cryptocurrencies, no additional actions will be required. Just click on the “Deposit” tab and select the cryptocurrency that you want to replenish your balance with.

If you are working with Bitfinex for the first time, an ordinary Exchange wallet will be enough. It is his address you need to specify when you transfer money to the balance.

However, if you want to replenish your account not with a cryptocurrency, but with fiat money (in particular, in dollars, the system does not accept another currency), you will have to go through the verification procedure

The possibilities of most cryptocurrency exchanges are limited only by the cryptocurrency trade. Bitfinex offers three options for earning, which can be combined

You need to go to the “Trade” section and in the “Order Form” field, select the “Exchange” option to start trading. Select the desired currency and fill in the order in the list that opens. In the column with the value, the exchange rate of the currency is automatically set, but, like on other exchanges, the value can be entered manually.

In normal trading, you can only use your own funds. For example, you have 100ETH and you can buy bitcoins only for this amount. When trading with leverage, you borrow money (for example, 50ETH) and buy bitcoins already for 150ETH.

With a profitable investment profit increases in proportion to the size of the loan. However, not all of it is yours – the lender will take a percentage of the profits. You can pay interest gradually or at one time, at the discretion of the trader.

Margin trading is especially prevalent on forex exchanges, but there act only special brokers as lenders. However, on Bitfinex you can borrow money from any user who provides loans.

Funds wallet is used for operations with funds. To become a marginal investor, you need to put on it 50 dollars or an equivalent amount of any cryptocurrency that the exchange accepts.

The creators of Bitfinex argue that this kind of investment does not threaten the investor. If a trader who trades with a shoulder goes into a minus, all losses will be covered from his own wallet. The investor, in any case, loses nothing.

Experts warn that because of the increased risk, operations with margin trading are only suitable for experienced users. Novice traders should restrict themselves to regular cryptocurrency trading and make money on exchange rate changes.

Like other cryptocurrency exchanges, Bitfinex charges a percentage for conducting transactions. However, the trade commission for different users is different. First of all, it depends on the volume of executed orders for the last month and the status of the trader (taker or maker).

In addition, the commission depends on the characteristics of each transaction. First of all, the amount and type of order is taken into account. A special table on the Exchange website https // will help estimate the fee.

The fee for depositing money is not taken, and the withdrawal fee depends on the cryptocurrency in which the assets are withdrawn. These data are also presented in the table at the link above.

The creators of Bitfinex say that the waiting time can be reduced by activating a two-factor account authorization. Otherwise, applications are processed manually, so the withdrawal takes so much time.

Please note these features are not “built into” the new account by default. They need to be activated manually by ticking the appropriate checkboxes in the security section.

The developers claim that stock exchange money is scattered around many cold wallets that only some Bitfinex employees have access to. There is no more than 0.5% of the assets that are needed for daily operations in the system itself.

The exchange once again became a victim of cyber attack and lost bitcoins worth $ 72 million in 2016. To the credit of the owners of the exchange, they immediately released internal Bitfinex tokens (BFX) and distributed them to all users in the equivalent of their losses. Later, the tokens were bought by the exchange, and all the victims returned their savings.

Initially, experts noticed that the November rise in Bitcoin prices coincided with the mass emission of Tether’s “cryptodollars”, which Bitfinex actively promoted.

Later came the sensational report “Paradise Papers”, from which the world learned that the same people were running Bitfinex and Tether Limited. And these people have open offshore accounts in the Virgin Islands.

Many experts (including Charles Lee, who created Litecoin) expressed the view that Tether tokens do not have economic reinforcement. Their developers (and therefore Bitfinex) simply earn on the faith of buyers in the value of a “cryptodollar”.

As a result, almost all partner banks broke up with Bitfinex. In addition, the exchange fell under penalties and lost the right to conduct operations with fiat money.

The situation was aggravated by the frequent claims of traders. Many users could not withdraw their money from the account on the exchange. Most often, applications were simply lost “on the way”. However, there were cases when the application was completed as completed on the site, but users never received their money.

In December, Bitfinex announced a temporary suspension of registration on the exchange. Representatives of the exchange explained this by the fact that, in its current state, the site is not coping with the growing loads and must find its new format.

However,  registration was renewed in January. True, with an interesting innovation. Now, to create an account on Bitfinex, you need to immediately put at least $ 10,000 on your stock exchange account.

According to the owners, this will help weed out small traders and give more opportunities to large players. Curiously, traders themselves say that Bitfinex has had enough opportunities before.

Considering the unceasing scandals around the Tether scam, bank sanctions imposed on the stock exchange, as well as the newly introduced registration threshold, experts do not advise to start a Bitfinex account now.

Despite all the indisputable advantages of Bitfinex (Russian-language interface, wide opportunities for earnings, a large selection of orders, low commissions, etc.), working with the exchange is too risky for now.

Categories: Uncategorised