Bitfinex is a large centralized cryptocurrency exchange founded in 2012 in Hong Kong. It offers a wide range of services, including spot market trading, margin trading, derivatives and margin financing opportunities. Bitfinex serves both private traders and institutional investors, so they have two types of accounts: individual and corporate, each of which undergoes its own verification procedure (KYC).

When registering on Bitfinex, it is mandatory to set up two-factor authentication (2FA) to increase security. Users can use various types of orders, including standard limit and market orders, as well as stop orders, trailing stops and Fill or Kill orders.

Bitfinex is integrated with the popular technical analysis platform TradingView, which makes it easier for traders to analyze the market. It also provides a margin financing market where users can finance traders using leverage and receive a percentage of profit for it.

There are almost 200 different tokens available on the exchange, 400 cryptocurrency pairs on the spot market and 60 futures contracts, which provides traders with extensive opportunities for diversification and trading.

Types of markets on Bitfinex

Spot trading

The Bitfinex spot market provides a trading opportunity for more than 300 cryptocurrencies forming more than 400 cryptocurrency pairs. The list of available cryptocurrencies can be found on the "Trading" page, in the "Tickers" subsection. Users have the ability to sort coins by altcoin type, and the list contains data on price, volume and price changes over the past 24 hours.

Margin trading is available to verified users who can switch to opening margin positions through the "Order Form" window. The leverage depends on the chosen cryptocurrency pair, and the maximum leverage is 10x. Margin trading funds are provided through the margin financing platform.

Margin financing

Bitfinex users, verified to the "Intermediate" level, have the opportunity to lend funds to other traders through the margin financing platform and earn money from it. This allows traders to borrow funds not from the exchange, but from other traders, paying them a reward for this.

To create an order for margin financing, you need to go to the "Financing" section and select the pair of interest for which you want to provide liquidity. When placing an order, you can specify various details such as the financing rate, the period and the number of coins that you are willing to lend.

The derivatives market

Perpetual futures trading is available on Bitfinex, which allows traders to speculate on price changes in various cryptocurrencies. The exchange supports trading in perpetual futures on assets such as BTC, ETH, XAUT, BTCDOM and other cryptocurrencies. In total, there are about 60 contracts on the derivatives market.

The maximum leverage for trading perpetual futures on Bitfinex is 100x, which provides traders with the opportunity to increase their positions with relatively small initial capital.

Perpetual contracts on Bitfinex are denominated in several currencies, including USDT, EURT and BTC. The available contracts are displayed in the left window of the trading interface. To find the right contract, a trader can use the search or sort contracts by quote currency.

In the same part of the trading interface there is a window for placing an order, where traders can specify their preferences in terms of volume, price and other parameters of the transaction.

Types of orders

We have already mentioned that the Bitfinex exchange offers one of the most convenient and advanced trading terminals. It supports 7 types of orders:

• Market (market order)

• Stop market

• Limit (limit order)

• Stop limit

• Trailing stop

• IOC (execute immediately or cancel)

• FOK (execute or cancel)

An order is an order placed on the market to buy or sell cryptocurrency. Beginners are recommended to start learning from the basic orders — market, limit and stop. Let's look at them in more detail.

 Market Order

A market, or market order, is an order to buy or sell digital assets at the current market price. This type of order is the simplest and is executed instantly without additional actions. The main disadvantage of a market order is that the trader cannot independently specify the transaction price.

Market orders are usually used in situations where it is urgently necessary to sell or buy cryptocurrency. However, due to the high volatility of the market, there is a risk of getting less profit, since the price may change in an unfavorable direction at the time of placing the order.

 Limit Order

A limit order is an order to buy or sell cryptocurrency at a price set by a trader. This type of order allows you to make a deal on the trader's terms. When placing an order, the trader indicates the price at which the transaction should be closed. The order will be executed as soon as the market value reaches the specified level.

The disadvantage of limit orders is that they are not always executed immediately. Sometimes you can wait several months before the market price reaches the limit. There is a risk that the order will not be executed at all if the market abruptly changes direction.

 Stop orders on Bitfinex

There are two types of stop orders available on the Bitfinex exchange, designed to protect against possible losses and slippage, that is, situations where the actual execution price of an order differs from the stated one due to high market volatility.

Stop market

A stop market order is executed at the best market price determined by the trader. The trader sets a trigger price in the order, at which the market order is placed and immediately executed. Such an order helps to save time and minimize risks, allowing the trader to continuously monitor the market.

Stop limit

A stop limit order is launched at the trigger price and executed at the limit price specified in the order. For example, a trader wants to sell or buy an asset at the price of X. In the order, Y is set as the trigger price, and X is set as the execution price. The order remains inactive until the price reaches Y.

Thus, stop orders are deferred orders that are automatically executed when the specified conditions are met.

Mobile application

The Bitfinex crypto exchange has introduced its mobile application, available for devices based on Android and iOS operating systems. The application can be downloaded from the corresponding app store by simply using the search by name.

The Bitfinex mobile application supports almost all the functions of the exchange's official website, including an advanced trading interface. Users can register directly in the app, but they will still need to use the full version of the platform to complete verification.

There are two versions in the application: Pro and Lite. Users can quickly switch between them. The professional version has all advanced features, including OTC trading, whereas the lite version features simplified trading charts and lacks OTC functionality. Overall, the Lite version is designed for those who focus on spot trading, presenting a basic set of features specifically designed for beginners. Switching between versions is carried out in the "Account" section.

Commissions and fees

Various trading commissions are applied on Bitfinex, which depend on the role of the participant in the transaction: maker or taker.

Commission for takers: 0.20%. This is slightly below the industry average, which is about 0.25%.

Commission for makers: A preferential commission of 0.10%. This encourages makers to create liquidity in the market.

Discounts for active traders: Users who frequently trade on the platform can receive discounts on trading commissions. To get even the first discount, a trader must trade for a total amount of more than 0.5 million US dollars in the last 30 days.

Commission when withdrawing BTC: The commission is 0.0004 BTC when withdrawing BTC. This is significantly less than the industry average, which makes the exchange competitive in this aspect.

Safety

Maintaining security is a key priority for the management of the exchange, and various methods are used to do this:

Secure Server Network: The Exchange uses a secure server network to prevent unauthorized access to traders' data and transactions.

Regular Database Backup: Daily database backup helps in data recovery in case of failures or attacks.

Storing backups in different parts of the world on encrypted media: This method provides an additional level of security and guarantees the availability of data even in emergency circumstances.

DDoS protection: The Exchange applies measures to protect against DDoS attacks to ensure the continuous operation of the platform and protect it from interruptions in operation.

PGP Email Encryption: Using PGP encryption for email helps protect confidential information and communication between the exchange and its customers.

Despite these security measures, the exchange faced hacks in 2015 and 2016, as a result of which a significant number of bitcoins were stolen. In response, the exchange transferred the vast majority of users' assets to cold wallets, which increased the security of funds.

Additional measures are also applied to ensure the security of user accounts and personal data, including two-factor authentication, confirmation of login from a new device, SMS notification and setting up access to the account by IP address.

Support Service

You can contact the support service on the official Bitfinex website via the feedback form. To do this, click on the image of the dialog with a question mark next to the account login button and select "Support". On the page that opens, select the subject of the request and leave your request in the form. Please note that the support responds only in English.

The Bitfinex support service is not very quick to respond. According to user reviews, the chances of a quick response are minimal, and feedback will probably have to wait several hours.

Reviews

The reviews about Bitfinex are mostly positive. The exchange is very popular among users all over the world, including Ukraine. Customers note several key strengths of the platform:

Optional verification: Many users consider this an important advantage, since not all exchanges allow trading without passing full verification.

Fast Transactions: Users rate the speed of transactions on Bitfinex highly.

Advanced P2P lending system: Experienced traders especially note the convenience of using P2P lending to quickly obtain the required amount of assets.

Convenient withdrawal of funds: Bitfinex takes minimum withdrawal fees and does not set limits, which distinguishes it from many other exchanges.

However, the platform has its drawbacks:

Localization: Bitfinex is not always displayed correctly in Russian, and the Ukrainian language is not provided at all, which makes it difficult for Ukrainian users to use the exchange.

Relations with fiat: The Exchange does not accept payments in hryvnia, and conversion at the bank rate may be unprofitable. This creates additional difficulties for users from Ukraine.

Verification problems: Although the basic level of verification does not cause difficulties, full verification requires documents such as bank statements and proof of residence translated into English, which may be inconvenient for Ukrainian users.

In general, despite some disadvantages, Bitfinex remains one of the preferred platforms for trading cryptocurrencies due to its advantages and high popularity among traders.

Conclusion

The strengths of Bitfinex include high liquidity in the spot and futures markets, the possibility of crypto loans, a wide range of trading instruments, as well as commissions for futures transactions corresponding to market averages. However, the platform also has disadvantages, such as strict KYC standards and lack of P2P trading. Bitfinex is suitable for swing trading and medium-term trading, but for more active trading, for example, scalping, there may not be enough liquidity for some instruments.