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Bitfinex is one of the main cryptocurrency exchanges available on the market. It is also very popular with online traders. The platform is often accustomed to some of the highest daily trading volumes in the industry. In most cases, Bitfinex is better suited to more experienced traders, due to its advanced trading tools. So, reliable or not to buy cryptocurrencies? Check out Bitfinex reviews.
Since 2012, Bitfinex has been among the first professional platforms created to meet the growing interest in cryptocurrency trading . Since then, his team has gained invaluable experience while solidifying its place as the go-to platform for digital asset traders and institutions.
Introducing the Founder of Bitfinex
Raphaël Nicolle is the founder of Bitfinex. Before that, he had an interesting journey.
A technician in a help desk by day, Raphaël became active under the “unclescrooge” account on BitcoinTalk during his spare time. From this account, he posted some interesting messages, including sometimes denouncing climate change.
Soon after, he decided to start his own over-the-counter office and loan program. People will lend him bitcoins and he will guarantee them a return of 2% per week. To earn this money, he says he will do arbitrage, which he describes as “ buying low and selling high ”.
After that, Bitfinex was launched! The unique feature of Bitfinex that made it appealing was the fact that margining and lending were integrated into the platform. However, the fact that it was built on stolen code led to a host of problems in the first few months.
History and evolution of Bitfinex
Bitfinex was founded in December 2012 as a peer-to-peer bitcoin marketplace, offering digital asset transactions to customers around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.
May 2015: Platform hacked resulting in loss of 1,500 bitcoins of customer assets October 2018: Bitfinex serious difficulties with its banking relationshipsHow to create a Bitfinex account?
Like any platform offering online services, you must register to take advantage of the offers and tools that Bitfinex makes available to you. Here are the steps for creating an account on Bitfinex.
Step 1: Open an account with Bitfinex
Go to the Bitfinex homepage and click on “Open Account”. Once you have done this, the following pop-up will appear. Choose a username and create a password for your account.
Step 2: KYC Approvals on Bitfinex
Go to the settings to perform the KYC verification. Only after this verification process will you be able to get the most out of the Bitfinex trading platform by unlocking all the features. These can include withdrawals, deposits, and buying crypto with fiat.
Step 3: Configuring security features on your BitFinex account
As a bare minimum, it is recommended to have at least 2 FA configured on your account. To do this, select Two-Factor Authentication from the menu and choose Google Authentication Setup.
Step 4: Fund your BitFinex account
To fund your account, hover over the deposit button in the top menu bar of the Bitfinex homepage. Thus, before adding funds using a bank transfer, it is mandatory to have completed your verification process both by the user and by Bitfinex.
Step 5: Start trading on Bitfinex
Bitfinex allows its users to place a Limit order for crypto trading . It basically means that you can set a limit to buy or sell the particular coin when the price hits a certain price. In this case, you can set a limit for a price at which you want to buy XRP.
How does Bitfinex work to buy cryptocurrencies?
Bitfinex is a third-party cryptocurrency exchange and as such connects buyers and sellers. To gain access to the platform, you must open an account and deposit funds. Once your account is funded, you can buy over 100 coins, which is ideal for those who want a diversified portfolio.
If you want to keep your cryptocurrencies as a long-term investment, you have the option of storing the coins in your Bitfinex account online. You can also withdraw them to a private Bitcoin wallet .
Why choose Bitfinex?
Now find out why Bitfinex could be a smart option for advanced and experienced traders. However, it has strengths, but also weaknesses.
The strengths of Bitfinex
- Advanced Trading Platform : Bitfinex gives users access to the most liquid order book. Higher volume is essential for traders because it guarantees a lower spread, which is the difference between the best offers and the asking prices.
- Margin Funding and Trading: Bitfinex users can borrow and trade with up to 3.3x leverage through the site's Peer to Peer (P2P) margin funding platform. The loan conditions are systematically defined by the Internet user or by the platform itself.
- Payment methods and currencies : Fiat deposits in USD, GBP, JPY and EUR are now allowed by Bitfinex. Currently, Bitfinex supports USDT (Tether) the quasi-fiat token which is unofficially pegged to the US dollar price.
Bitfinex Weaknesses
- Security of Bitfinex : Bitfinex happens to be a very old exchange, which is still operational till now. Although this is true, this company has suffered hacks, which have been described above.
- High trading fees compared to other platforms: Although very popular, the platform has a serious disadvantage in terms of fees which are quite high given the competition present in the sector of activity.
- Serious problem of transparency: Despite the importance of its trading volumes and its high liquidity, the broker is not very reliable in terms of transparency. A drawback to be taken seriously.
Bitfinex is a very old platform which remains operational until now. It offers various services and offers many advantages to its users. However, the fact that it is more suitable for experienced traders can quickly become a handicap. In addition, many other problems are added to it, thus casting doubt on the reliability of the platform.
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