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Bitfinex Review: Discovering the Crypto Juggernaut

Bitfinex Review: Discovering the Crypto Juggernaut

Buckle up, because we're about to dive headfirst into a comprehensive review of the Bitfinex exchange!

Bitfinex, with its smorgasbord of services, high liquidity, and lower fees is a darling among professional traders. Now, let's delve deeper, because it's review time!

Let's take a trip down memory lane to 2012, when Bitfinex boldly stepped onto the scene during the wild, early days of cryptocurrency. Starting as a humble peer-to-peer margin lending platform with eyes only for bitcoin, Bitfinex has since spread its wings and morphed into one of the leading cryptocurrency exchanges in the world.

Fast forward to today, Bitfinex is proudly serving a diverse range of trading services to its vast user base scattered across regions like the UK, Japan, and Europe. But oh, don't get too excited if you're in the US — Bitfinex closed its doors to you long ago.

Bitfinex's services now span beyond margin trading, offering a sophisticated trading platform, over-the-counter services, margin funding, derivatives trading, staking, and lending. The platform's advanced trading interface is a beacon for seasoned traders who crave diverse options and functionalities. But hold on, newbies! You might find this complex playground a bit overwhelming at first.

A rollercoaster ride for many exchanges with daily fluctuations in trading volumes and rankings, Bitfinex has managed to keep its cool, consistently maintaining high liquidity. This has lured millions of users worldwide, because let's face it, who doesn't love lower spreads when buying or selling crypto assets?

However, Bitfinex has had its share of controversy. Remember 2019? When the New York Attorney General alleged that Bitfinex used Tether's reserves to cover a $850 million loss? Bitfinex vehemently denied it, but it's worth keeping these episodes in mind for a well-rounded perspective.

Now, let's plunge into an exhaustive review to uncover what Bitfinex has in store for you.

Bitfinex's Trading Volumes

Trading volume is essentially the heartbeat of an exchange, reflecting the pace and intensity of trading activities by its users. Of course, an exchange's allure and ability to draw in the crowds depends largely on how its features resonate with investors and traders. Based on data from CoinMarketCap, Bitfinex flexes its muscles with a daily trading volume that averages a cool $73 million, with Bitcoin strutting its stuff, contributing around 37% of all the action.

Among the bigwigs of the exchange world, Bitfinex proudly claims the 8th spot. This makes it a prime candidate for automated trading, even when dealing with hefty volumes. Traders can breathe easy, knowing that liquidity won't play hard to get when they let their trading bots loose.

Bitfinex's Trading Pairs

Bitfinex is like a bustling bazaar, boasting 460 trading pairs and 175 coins, including the who's who of crypto like Bitcoin, Ethereum, and Solana, to name just a few. Suffice to say, Bitfinex knows how to keep up with the Joneses, supporting the hottest currencies on its platform.

When it comes to fiat options, Bitfinex is a bit of a minimalist. It only supports US Dollar (USD), Euro (EUR), Pound Sterling (GBP), Japanese Yen (JPY), and offshore Chinese Yuan (CNH). But don't worry, if you're fully verified on Bitfinex, you can deposit and withdraw fiat with ease. Your deposit options include credit/debit cards, cryptocurrencies, bank transfers, or Tether tokens. Just keep in mind that the minimum deposit and withdrawal for various fiat currencies can be quite hefty, like 10,000 USD or 10,000 GBP. And here's the kicker: even though Bitfinex accepts USD deposits, if you're in the US, you're out of luck – no Bitfinex for you!

Bitfinex's Trading Interface

Step right up and marvel at the smorgasbord of features that Bitfinex has to offer, including a high-tech trading interface.

Pic. 1. Bitfinex interface.
Pic. 1. Bitfinex interface.

With a whopping 460 crypto trading pairs up for grabs and an impressive menu of order types like:

  • Limit;
  • Limit (Order Book);
  • Market;
  • Stop;
  • Stop-Limit;
  • Trailing Stop;
  • Fill or Kill (FOK);
  • Immediate or Cancel;
  • Scaled order;

You can mix and match these order types with a variety of Order Options like:

  • One Cancels Other (OCO);
  • Hidden;
  • Visible on Hit;
  • Post-Only Limit;
  • Reduce-only;
  • Time in force (TIF).

Most other exchanges only offer a paltry three to four of these order types, so Bitfinex really sets itself apart by giving traders a veritable buffet of options.

👉 For a deep dive into Bitfinex's sophisticated order types, check out this link.

For those who like to keep their finger on the pulse, you can flip between Bitfinex's charts and real-time data charts on TradingView, akin to those found on Bitsgap Trading bots.

Bitfinex's Tradable Products

Bitfinex pulls out all the stops, offering spot, margin, and derivatives trading across the entire asset spectrum on its platform.

When we talk about margin trading, Bitfinex puts the power in your hands, allowing you to trade with up to a tenfold leverage, thanks to the funding from its peer-to-peer margin platform. You can either place an order to borrow your desired funding amount, setting your preferred rate and duration, or sit back and let Bitfinex do the legwork, securing the best available rate for you. Bitfinex's margin funding market is a safe bet for earning interest on both fiat and digital assets by providing funding to those eager to trade with leverage. You can offer funding in a plethora of currencies and assets, setting your own rate and duration. And the cherry on top? The Auto-Renew feature lets your offers renew automatically once they expire.

For those looking to hedge against the rollercoaster ride of digital token volatility, Bitfinex's derivatives platform is your go-to. Perpetual contracts are already on the table, and more derivative products are cooking in the kitchen.

And did we mention Bitfinex's API access for connecting trading bots like Bitsgap? There's no boundary to where you can employ Bitfinex's trading automation. The world is your oyster!

Bitfinex's Trading Fees

Bitfinex has made a name for itself with its distinctive trading fees. The typical trade is accompanied by either a 0.10% maker fee or a 0.20% taker fee, applicable to crypto, stablecoin, and fiat trades. However, if you're a LEO currency holder, you're in for some savings.

Having LEO worth just $1 in your account entitles you to a 15% reduction on taker fees for crypto-to-crypto and crypto-to-stablecoin trades. If you have $5,000 or more in LEO, you'll enjoy 25% off taker fees for crypto and stablecoin trades, and a 10% discount on fiat trades. If you're a high roller with $10,000 or more in LEO, expect even heftier discounts, the percentage of which depends on your balance.

And let's not forget the high-volume traders. If your monthly trading activity exceeds $500,000, you might just qualify for reduced fees. Quite the incentive, wouldn't you say?

KYC on Bitfinex

Bitfinex approaches the pressing issues of money laundering and terrorism financing with a robust Know Your Customer (KYC) policy, a common practice among many exchanges.

Bitfinex's KYC verification process is neatly organized into four tiers, each with its own set of prerequisites:

  • Basic Access;
  • Basic Plus;
  • Intermediate;
  • Full.

Elevating your verification level unlocks advanced trading features and a broader array of products and digital assets. You can effortlessly upgrade your account verification by submitting pertinent information based on your current and desired verification levels. For example, to ascend to the Basic Plus verification level, you'll need to provide:

  • An official photo ID;
  • A biometric photo (selfie);
  • Your phone number;
  • Your residence address

To reach the Intermediate verification level, in addition to all the information required for Basic Plus, you'll need to submit:

  • A second official photo identification;
  • Proof of address;
  • A financial questionnaire;
  • A KYC Declaration.

Finally, to achieve the Full verification level, you should provide a bank statement and all the information required for the Intermediate level.

Bitfinex's Jurisdiction: Restricted Countries

Bitfinex's services are unavailable to users in the United States, Canada, British Virgin Islands, Venezuela, Austria, Italy, Iran, North Korea, Cuba, Syria, Crimea, Donetsk People's Republic, and Luhansk People's Republic due to regulatory restrictions. Residents of these restricted jurisdictions cannot open or access Bitfinex accounts.

Automated Trading on Bitfinex

Manual trading isn't everyone's cup of tea, given the effort it demands. While Bitfinex doesn't come equipped with in-built trading automation like grid trading bots, it does offer a robust API key management system that opens the door to a variety of third-party trading software.

One such option is Bitsgap's trading bots, which, when linked with your Bitfinex account, grant full access to automated trading services. But that's not all – Bitsgap sprinkles in a host of other opportunities like demo trading and portfolio management across 17 supported crypto exchanges, Bitfinex included.

You won't find any extra fees for automated trading on Bitsgap via Bitfinex. The only charge you might incur is the standard trading fee, which hinges on whether you're a maker or a taker. Bitsgap holds its line on not levying any additional commissions, apart from the monthly subscription fee for its services. For those not ready to subscribe, Bitsgap offers a demo account to hone trading skills and test out its trading bots.

How to Connect Bitsgap Trading Bots to Bitfinex?

  • Access your Bitfinex account by logging in, or set up a new one if you're a first-time user.
  • Click on your profile icon (located at the top-right corner) and proceed to the API Keys tab. Then select [Create New Key].
  • Adjust your permissions as illustrated below. These permissions enable Bitsgap to view your history, current balance, and execute trades on your exchange account.
Pic. 2. Permissions.
Pic. 2. Permissions.
  • Label your API key with a name of your choosing. This will help you recognize that this key is linked to your Bitsgap account. Once done, click [Generate API key].
  • Input your 2FA code, then click the [Authenticate] button.
  • You'll receive an email from Bitfinex. Open it and click on the [Create API key] button.
Pic. 3. Click on [Create API Key]
Pic. 3. Click on [Create API Key]
  • Your Bitfinex trading key is now created and ready to be linked to our platform! Make sure to safely store your API key and Secret key before adding them to Bitsgap.
  • Sign in to your Bitsgap account and navigate to the [My Exchanges] page. Then click [Add new exchange].
  • A pop-up window will appear, asking you to choose Bitfinex. Upon selection, you'll be prompted to enter your API key and Secret key. Once done, click [Connect].
Pic. 4. Select [Bitfinex], paste your keys, and hit [Connect].
Pic. 4. Select [Bitfinex], paste your keys, and hit [Connect].
  • If all steps have been followed correctly, you'll see Bitfinex added to your list of connected exchanges. It will show a 'Connected' status and display the trading balance available on your account.

If you happen to bump into any hiccups while crafting your Bitfinex API keys or linking them to Bitsgap, fret not! Don't hesitate to drop a line to our ever-ready Customer Care team at support@bitsgap.com.

Bottom Line

On the whole, Bitfinex garners fairly positive reviews from users, although its past regulatory troubles can be a bit disconcerting. For those in the United States, Bitfinex is off the table, making alternatives like Coinbase or Kraken more suitable. If you're located outside the U.S., you face a decision of weighing up the advantages of a solid platform and competitive fees against a history that's had its fair share of bumps. It's all about striking the right balance!

FAQs

What Is Bitfinex API Trading?

Bitfinex API trading encapsulates the utilization of an Application Programming Interface (API) supplied by Bitfinex, enabling a programmatic interaction with the platform. This facilitates traders and developers in crafting tailored tools, bots, or systems that automate trading and account management, bypassing the need for manual engagement with the Bitfinex website or app. For instance, setting up a connection between Bitsgap trading bots and Bitfinex using secure API keys allows you to take advantage of fantastic trading tools and bots at a reasonably affordable monthly rate.

Is There Automated Crypto Trading on Bitfinex?

Absolutely, Bitfinex does support automated crypto trading, albeit in a roundabout way via their Application Programming Interface (API). Bitfinex might not have its own in-house trading bots or automation functionalities, but it compensates with its robust API. This lets users hook up external trading software, like Bitsgap, proficient in executing automated trades.

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