Bifinex Review 2021: A Complete Guide for Beginners

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Bifinex Review 2021: A Complete Guide for Beginners

Bitfinex is a cryptocurrency exchange majorly used and suitable for professional cryptocurrency traders. The company also has its own token known as LEO, which serves as the utility token for the exchange. The platform does not only serve as a platform for buying and selling cryptocurrency; it also allows its users to borrow cryptocurrencies.

Bitfinex also offers some features such as an affiliate program, a mobile app, cryptocurrency wallets, a blog, and so much more.

History

Bitfinex was founded by Giancario Devasini and Raphael Nicolle in the British Virgin Islands. The company has its head office in Hong Kong. Initially, the company was a P2P lending platform that supported only Bitcoin, but now it has expanded over the years and now supports other cryptocurrencies.

The company is well known for past hacking experiences and attempts. The platform was hacked for the first time in 2015, in which 1500BTC was stolen. Another theft from the platform occurred in April 2016 where about 120,000BTC was stolen from the exchange. These are just a few of the problems bitfinex has experienced from the time it was launched to now.

Services offered by Bitfinex

  • Exchange

You can trade different cryptocurrencies such as Bitcoin, EOS, ripple, etc., and you can place orders with the order books and trade cryptocurrency pairs supported by the platform.

  • Margin trading and funding

With margin trading and funding, you can make profits trading on digital assets with up to 5X leverage, and you can also get funds by borrowing from the P2P margin funding platform.

  • Staking and lending

You can make profits by staking your crypto on the platform by leaving it on your account wallet and providing lending services to its users.

  • Over the counter services (OTC)

With this service, you can carry out a large number of transactions privately.

  • Derivatives

You can trade on derivatives by guessing the price of an asset without having to own it.

  • Borrow

Users can borrow or lend cryptocurrencies from or to other bitfinex users through the P2P borrowing platform.

How does Bitfinex Work

  • Registration

Create an account by visiting bitfinex.com and click on sign up. Fill the form shown with all the required information and select an open account. You can also use the platform’s mobile app to register.

  • Supported currencies

It supports the use of numerous cryptocurrencies such as Bitcoin, Litecoin, Ripple, Cardano, etc. Fiat currencies supported are USD, EUR, GBP, CNH, and JPY.

  • Supported countries

Bitfinex can be used in all countries except the US, Bolivia, Ecuador, Bangladesh, and Kyrgyzstan.

  • Payment method

The payment methods available on the platform are the use of credit cards, cryptocurrency, bank wire, and Stablecoins (e.g., tether, TUSD, DGX).

  • Verification 

To be able to deposit or withdraw fiat currencies on Bitfinex you need to verify your account. The following steps and documents are required to verify your account.

  1. Complete KYC form provided to you.
  2. Upload 2 types of a valid government issued ID with a picture.
  3. Upload a selfie.
  4. Upload your Bank statement.
  5. Upload a proof of Residential address.

It usually takes 2-3 days for a verification request to be processed.

  • Transaction fee

Bitfinex applies the taker and maker model of charging transaction fees. The different types of fees that can be charged on Bitfinex include the following. Trading fees are charged based on the trading volume of a trader in the last 30 days. When using the borrowing service, a fee of 15-18% of fees generated from the loan is charged. No fee is charged for a deposit except the 0.1% fee charged when using the bank wire payment method. The withdrawal fee depends on the crypto you are withdrawing. 

  • Customer support

The platform has a knowledge base where you can have access to information on the different services provided. Their customer support can also be contacted through their email support@bitfinex.com and through their social media handles on Linkedin, Reddit, Facebook, Instagram, Twitter, and telegram.

Final Thoughts

While bitfinex might be one of the oldest cryptocurrency exchanges out there, it does not really have a good reputation due to its history of hacking, thefts, and controversies. Also, if you are new to the world of cryptocurrency trading, you might find it challenging to understand and use this exchange as it is more suited for professionals. However, overall the Bitfinex has good customer support and a low transaction fee compared to other exchanges.

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