Bitfinex Reviews – Is Bitfinex safe?

0 8
  • Country: Hong Kong
  • Regulation: –
  • Markets: cryptocurrencies
  • Deposit methods: transfer and cryptocurrencies
  • Minimum deposit: 0
  • Platform: based on Trading View technology
  • Leverage: 3.3: 1
  • Spread: variable
  • Commissions: from 0.2%

What is Bitfinex?

This is one of the most important brokers in the world in cryptocurrency trading.

Just as Bitstamp is the leader in Bitcoin Bitcoin trading, Bitfinex is the leader in Bitcoin dollar trading.

This is a broker operating from Asia, initially from Taiwan and later from Hong Kong as a subsidiary of iFinex Inc.

Is Bitfinex a scam?

As of today (end of 2017) it is not a fully regulated broker as are the world’s futures, stocks or Forex brokers. This is because the cryptocurrency market is still in the making and there is a loophole in it, but this does not mean that Bitfinex is a scam or anything like that. On the contrary, it is a broker with a fairly good reputation in the market.

Is Bitfinex safe?

This broker, like the rest of cryptocurrencies, is making a huge effort to make cryptocurrency trading as safe as possible, with all the difficulties that this entails since, as with the issue of regulation, there is a series of online security issues that seem difficult to control.

In fact, in 2016 this broker was hacked and $ 72 million was lost. However, this served for the American CFTC to intervene and in the end everything was legally covered.

Invest in the world’s leading social trading platform

Risk warning!

Not only that, but Bitfinex ended up paying all the money that some customers lost in the hack.

As we see, we are facing a quite wild market, which is not only subject to extreme volatility but also there are several cases of major hacks, as shown by this case or Bitstamp at the time.

As in the rest of the important brokers in the sector, Bitfinex has several security systems implemented, such as:

  • Universal Factor 2nd.
  • Advanced account verification factors.
  • Withdrawal protection
  • Advanced API permitting systems.
  • Email encryption with OpenPGP.
  • Most of the funds are kept in cold wallets, with only 0.5% of the funds being accessible in hot wallets, corresponding to daily operations. Funds in “cold wallets” require the intervention of several staff members in order to be transferred.
  • The hosting systems are based on Linux technology
  • Backups are made on a daily basis.
  • Protection against DDoS attacks.

Open account with Bitfinex

Since November 2017 Bitfinex has not accepted clients from the United States, something that surely has to do with the issue of regulation in the American market by the SEC.

The minimum deposit to trade with Bitfinex is not specified. In this way it is understood that it is enough to deposit the minimum amount to be able to trade with any cryptocurrency, which is not much since we already know that we can operate fractions of them.

The only way to deposit funds is by SWIFT transfer. This is a process that is not the fastest but at least we will have an extra guarantee for being operating by the banking system directly.

Bitfinex has a 0.1% commission on deposits with a minimum of 20 USD, so we see that it is not worth depositing a very small amount, for example $ 40.

The best option to trade with Bitfinex is by transferring cryptocurrencies from other means, which does not require verification or a commission like that of standard currency bank transfers.

Like deposits, withdrawals will have to be made by bank transfer. Likewise, this will only affect the national currencies type USD, but you can also do as with the deposit and withdraw cryptocurrency to sell it locally.

The maximum time that Bitfinex promises for the withdrawal of cryptocurrencies is 12 hours, which although it is not much, with the volatility of these markets it can mean winning or losing a lot.

Trading with Bitfinex

Cryptocurrency trading is the specialty of this exchange house.

The first thing that catches your attention is the possibility of trading with leverage , in this case 3.3 to 1, which is something not very common today in the incredibly volatile world of cryptocurrency.

Discover which are the best brokers on the market

However, the possibility is there, and the most daring traders can try advanced trading.

Bitfinex offers trading in practically all cryptocurrencies in the market and stands out above all in Bitcoin trading with respect to the dollar, where it is one of the brokers with the best market conditions since it is the one with the most volume moving in that market.

That means that the liquidity that we can find in it is very good, maintaining a very good stability in the trading spread, with a much more stable spread than in most of the competing houses, which in most of the time is around 1 at $ 3, which is great for trading. However, and as in the rest of the houses, spread increases up to 10 or 15 dollars are not uncommon and in this sense, you must apply trading strategies with advanced monetary management.

Unlike Bitstamp , for example, the trading offered is in dollars, both for Bitcoin, as well as Ethereum, Litecoin, Ripple, Dash and most of the cryptocurrencies offered.

To be able to trade efficiently Bitfinex offers us the possibility of establishing stop orders and limit several with which we can eliminate the risk of being hunted by a catastrophic event.

In addition to all this, one of the most notable characteristics of this broker is that we can see its platform in demo mode, with which we can simulate some operations on our own without risk.

Bitfinex Commissions

The commissions of this broker are 0.2% of each operation.

However, those who market, will only have to pay 0.1%.

In the case of negotiating a lot of volume, the commissions will drop significantly.

The trading platform is quite efficient and is based on the interface of the well-known trading chart system Trading View, one of the world leaders in the provision of charts for finance.

The trading platform is simple and powerful

Another service of cryptocurrency trading with Bitfinex is the possibility of earning interest by lending the funds on Bitfinex.

This is provided through the bfxdata service and that we can see in the swaps section.

Bitfinex review

As we have seen we are talking about a fairly advanced broker to trade Bitcoin and cryptocurrencies.

In particular, it is a broker that differs from others due to the great liquidity in the negotiation with the pairs in dollars, as well as in the possibility of negotiating with margin.

This trading on margin, as we should know, is very delicate, and much more in a market as volatile as this.

For most people approaching this world, the best they could do is stay out of the way and not even try to use leverage .

Visit our recommended stock broker

Visit our recommended scalping broker

Visit our recommended broker for Spain

Risk warning

It should only be used by traders with a lot of experience in the markets and who know what they are doing.

On the other hand, regarding the spread, it offers quite good conditions, but again, we have to count on it and the commissions, we are going to have to negotiate with a trading cost of not less than 0.4% of the price, which makes things complicated for efficient trading.

However, as long as you follow the bullish direction of Bitcoin and the cryptocurrency market, you can always make money with a good bullish trading strategy.

The issue of swaps and being able to invest money to receive interest is a delicate one.

Although you can earn enough money, for example more than 25% a year, we must bear in mind that we will have to take risks, not only from hacking, but from bankruptcy of the broker or the cryptocurrency market itself. However, the return, especially if we make it composite, is very attractive and quite tempting.

As for the deposit options it will always be better to make them through the same cryptocurrencies, with which this broker we have to see it more like that: a broker to carry out cryptocurrency trading, rather than one with which to acquire them.

In any case, it is not that bank fees are prohibitive.

In general, a good broker to trade in the dynamic and complicated world of cryptocurrencies.

For more information, visit the website.

Leave A Reply

Your email address will not be published.