Cryptocurrency exchanges exist in the market in large numbers. Each exchange has its own features that make it an option for trading.
Bitfinex is one of the crypto exchanges that provides a complex platform that is geared toward experienced traders. Beginners may find the exchange interface and features overwhelming.
Let us learn more about Bitfinex through this article.
About Bitfinex
Launched in 2012, Bitfinex is one of the leading cryptocurrency exchanges operated by iFinex Inc. that serves experienced traders and institutions offering a wide variety of features.
The exchange was launched by Raphael Nicolle, an IT technician from Paris, following a previous project called Bitcoinica and he worked as a developer for the exchange until the beginning of 2017. Bitfinex was one of the first professional platforms built for cryptocurrency trading.
The exchange can be utilized to buy and sell cryptocurrencies at present market prices or invest in their future value with derivative contracts.
The platform also supports margin trading which allows traders to borrow funds from Bitfinex users to amplify your potential returns and losses and you can also lend your crypto holdings to other traders and earn interest.
The Bitfinex exchange also provides OTC trading which allows large investors who want to buy or sell large amounts of crypto without impacting the market price.
Since its launch, Bitfinex has advanced its platforms with the latest technologies and features which have attracted many individual investors and institutional investors.
Bitfinex stays ahead of other exchanges by constantly making its platform more secure to protect user funds and new cryptocurrencies to their trading options.
The company also actively explores decentralized finance (DeFi) to provide users with the latest crypto tools and products.
Bitfinex also provides a low-fee transaction. Compared to other exchanges, Bitfinex charges only 0.1% of the transaction from the users to make the trading. In a trade that exceeds $7.5 million, it will be less than that.
Also, Read: Is Binance Safe? A Closer Look At Security Measures!
Bitfinex Trust Score
Trust Score is a rating algorithm developed by CoinGecko to analyze the legitimacy of an exchange’s trading volume and It is calculated on a range of metrics such as liquidity, scale of operations, cybersecurity score, and more.
The trust score of Bitfinex is 9/10 where the breakdown presents as Liquidity 3.0, Scale 1.0, Cybersecurity 2.0, API Coverage 0.5, Team 0.5, Incident 1.0, and PoR 1.0
Cryptocurrencies Supported By Bitfinex
Bitfinex supports a large number of cryptocurrencies, including altcoins like Bitcoin, Ethereum, Litecoin, Aventus, BTG, Dash, Eidoo, EOS, ETP, IOTA, Monero, NEO, OmiseGO, QASH, Qtum, Ripple, Santiment, Streamr, TetherUSD, YOYOW, and Zcash. The exchange also offers trading using fiat currencies like USD, EUR, GBP, and JPY
Bitfinex Supported Countries
Bitfinex exchange is available for trading in every country except Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Iran, North Korea, Cuba, Syria, and Crimea.
The exchange recently received a license to operate in El Salvador and launched a P2P trading platform in Venezuela, Argentina, and Colombia.
Bitfinex Controversies
Bitfinex witnessed a major security breach In August 2016 which caused Bitcoin’s trading price to pitch by 20%.
Bitfinex halted all Bitcoin withdrawals and trading when the breach was noticed. That hack led to the second biggest breach of the Bitcoin exchange platform where 119,756 units of Bitcoin, worth about $72 million at the time were stolen.
Later in February 2022, The United States Department of Justice recovered the stolen Bitcoin from a New York couple, Ilya Lichtenstein and his wife, Heather R. Morgan who were federally charged with conspiring to breach the Bitcoin, which was then worth $3.6 billion.
Conclusion
Bitfinex has proved its stand as a leading cryptocurrency exchange for experienced traders and institutions. It offers a vast array of features, including margin trading, lending, and OTC desks.
The exchange also continuously innovates, prioritizing security, integrating new technologies, and expanding its crypto offerings.
Bitfinex has its complexities as well, the platform interface may be overwhelming for beginners and the company has faced past controversies.
If you are an experienced trader looking for seasonal trading then Bitfinex may suit you finely. Just be sure to thoroughly research the platform and understand the regulatory landscape before making any trades on the exchange.
