Bitfinex is a digital currency trading platform owned and operated by iFinex Inc. Headquartered in Hong Kong, Bitfinex is registered in the British Virgin Islands. Bitfinex was once one of the top three exchanges in the world, surpassing the three major Chinese exchanges OKEX, Binance, and Huobi in 2017. However, Bitfinex has consistently ranked among the top 10 in terms of trading volume. Established in 2012 as a peer-to-peer Bitcoin exchange, Bitfinex later expanded to support a wider range of digital currencies. As one of the earliest digital currency trading platforms, Bitfinex has been embroiled in numerous controversies due to multiple Bitcoin thefts by hackers.

Beyond being an exchange, Bitfinex also offers a margin trading market and margin financing market. While Bitfinex may no longer be among the global top three exchanges, it provides a highly professional suite of features.

Bitfinex Exchange Advantages

Supports USD trading

Multiple trading forms and functionalities

Bitfinex Exchange Disadvantages

The platforms page layout is not aligned with the usage habits of domestic users, particularly for newcomers. It can be challenging to navigate, and certain operational errors can lead to irreversible consequences, wasting both time and capital.

However, Bitfinex remains appealing to experienced digital currency investors. In addition to the high popularity of Bitcoin and Ethereum, Bitfinex supports margin financing (leveraged trading) and diverse order types. However, it remains to be seen whether Bitfinex can retain its competitive edge if other exchanges begin offering similar services.

Bitfinex Exchange Features

1. Offers over-the-counter (OTC) trading, but OTC is only available for large transactions exceeding $100,000. A 0.1% trading fee is charged for both buyers and sellers in OTC transactions.

2. Provides margin trading. Bitfinex offers peer-to-peer margin financing, allowing users to lend their Bitcoin (USD, EUR, or other digital currencies) to others on the Bitfinex platform for interest. Users can also borrow Bitcoin (USD, EUR, or other digital currencies) from the platform for leveraged trading. Borrowers can place orders to borrow the desired amount at their chosen interest rate and duration, or they can initiate positions, and Bitfinex will finance them at the best available rate. Lenders can offer financing at their preferred interest rate and duration, or they can lend funds according to the Flash Rate Return (FRR).

3. Offers diverse order types, such as limit orders, market orders, stop orders, trailing stop orders, one cancels the other (OCO), post-only orders, hidden orders, fill or kill orders, algorithmic orders, iceberg orders, time-weighted average price orders (TWAP).

4. Supports bank wire transfers, accepting USD deposits and withdrawals.

Bitfinex Exchange Security

Registering on Bitfinex only requires an email address, and the registered account is solely used for digital currency trading. However, users need to undergo identity verification to deposit or withdraw fiat currency. Identity verification is also required for fast withdrawals.

To ensure account security, users can enable two-factor authentication (2FA) using Google Authenticator, Twilio, or U2F security keys.

Regarding the security of funds storage, Bitfinex states that the vast majority of platform funds are stored in offline "cold wallets." Only about 0.5% of crypto assets are stored in "hot wallets" for daily platform operations. Offline "cold wallets" require manual intervention by several members of our management team to access, and they cannot be accessed from the platform or platform servers.

However, Bitfinex does not provide any further information about website and fund security on its official website.

According to Bitfinexs privacy policy, the website tracks user IP addresses, collecting relevant data for internal use. Additionally, Bitfinex reserves the right to block access to all users who access its site through proxy servers, often used to conceal identity addresses.

Bitfinex Exchange Fees

Order execution fees: Maker fees, up to 0.1%; taker fees, up to 0.2%.

OTC market fees: No fees for OTC market brokers. A 0.1% fee is charged to both buyers and sellers for other OTC traders.

Deposit fees: No fees for depositing digital currencies. A 0.1% fee is charged for depositing fiat currency (EUR or USD), with a minimum charge of $20 or EUR. There are minimum deposit limits for each deposit.

Withdrawal fees: The withdrawal fee varies depending on the digital currency. For withdrawing fiat currency through bank wire transfer, the fee is 0.1%, with a minimum of $20. For expedited bank wire transfers (arriving within 24 hours on weekdays), the fee is 1%, with a minimum of $20.

Margin financing fees: A 15% fee of the effective margin contract fee is charged to lenders. When offering hidden financing (not displayed in the order book), an 18% fee is charged.

Other Related Information

Bitfinexs biggest issues lie in its experiences with hacking attacks and scandals.

Bitfinex faced its first hacking attack in May 2015, when 1,500 Bitcoin were stolen. In April 2016, 120,000 Bitcoin (worth $72 million at the time) were stolen from Bitfinex. Bitfinex then distributed the stolen Bitcoin losses among all users. However, the exchange ultimately compensated users for their losses.

In April 2017, iFinex, the operating company of Bitfinex, filed a lawsuit against Wells Fargo for stopping USD withdrawals. In late March, Wells Fargo decided to discontinue providing withdrawal (fiat currency) services for Bitfinexs account. However, Wells Fargo did not offer any explanation to Bitfinex. During this period, some users suffered losses due to frozen accounts preventing withdrawals. Bitfinex temporarily suspended fiat currency wire transfer support but resumed operations in November.

In November 2017, Tether Company announced that approximately $31 million worth of USDT (Tether) project tokens were stolen. Tether Company and Bitfinex have close ties, with both controlled by Phil Potter and Giancarlo Devasini.

In 2015, Bitfinex was investigated by the US Commodity Futures Trading Commission (CFTC). Bitfinex was accused of illegally holding user margin and paid a fine of $75,000. Due to regulatory pressure, Bitfinex withdrew from the US market.

Furthermore, Bitfinex has been criticized for its banking issues and failure to disclose financial audit information. Some have also accused Bitfinex of having a mystery individual manipulating market prices internally.

Bitfinex has experienced numerous system failures due to various reasons, including data center issues, API problems, and data corruption.

Bitfinex Team Introduction

CEO: JL van der Velde. JL joined Bitfinex as CEO in 2013. As a technical expert, he has been dedicated to developing a robust compliance system and collaborating with banks, regulators, and law enforcement agencies to lead innovation in the field.

CFO: Giancarlo Devasini. Since 2012, Giancarlo has played a significant role in Bitfinexs development, establishing banking relationships, attracting key talent, and relocating the exchange.

Shareholder: Zhao Dong. A major figure in the crypto world, founder of DGroup and RenrenBit. In 2016, Bitfinex experienced a loss of 120,000 Bitcoin. During this crypto theft dispute, Zhao Dong became a major shareholder of Bitfinex.

Legal Counsel: Stuart Hoegner. Stuart is an international cryptocurrency lawyer and accountant, providing services to leading companies in this dynamic field. Stuart earned his law degree from the University of Toronto in 1996 and worked at Ernst & Young for eight years before joining Bitfinex.