What is Bitfinex?
Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
Founded in 2012, Bitfinex was one of the first professional platforms set up to accommodate for the booming interest in cryptocurrency trading. Since then, the team has gained invaluable experience whilst cementing their spot as the go-to platform for digital asset traders and institutions.
In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to Exchange Trading, Margin Trading & Funding (P2P Financing) Over the Counter (OTC) and Derivatives* for a wide selection of digital assets.
Bitfinex’s strategy focuses on providing unparalleled support, tools, and innovation for professional traders and liquidity providers around the world.
Why Should You Use Bitfinex
Here are some of the Bitfinex core features:
- Exchange Trading. Central limit order books where users can deposit, trade, and withdraw digital tokens.
- Margin Trading. Qualified users can trade with up to 3.3x leverage by receiving funding the margin funding platform.
- Margin Funding. The P2P financing market which allows users to earn interest by lending funds to other users who trade with leverage.
- OTC Desk. Bitfinex allows traders to deal directly with each other without having to go through public order books.
- Ability to buy cryptocurrencies using credit or debit cards. Bitfinex allows traders to buy cryptocurrencies using third-party payment processors OWNR and Mercuryo.
Besides the core features, Bitfinex is known for:
High Liquidity. Bitfinex is one of the top exchanges in terms of BTC/USD daily trading volume, which guarantees price stability and confidence for every trader.
Trading pairs. The platform offers over 100 market pairs, including both leading coins such as Bitcoin, Ethereum, Ripple, and EOS, and popular altcoins like TRON, Stellar, NEO, 0x, QTUM, and many others.
Comprehensive trading options. Besides margin trading and funding, traders can take advantage of limit, market, stop, trailing stop, fill or kill, iceberg, OCO, hidden, and post-only limit orders.
Security. Due to a few hacks in the past, Bitfinex takes extra precautions to secure its platform. These include storing 99.5% of user funds in cold storage, DDoS protection, database encryption, and regular backups. User accounts can whitelist withdrawal addresses and IP’s, set up 2FA and U2F, suspicious activity analysis, session hijacking prevention, and more.
Customer support. Bitfinex users can reach support 24/7 via email. All queries are answered within 12 hours, except for periods of high activity. Apart from that, users can use an extensive knowledge base to answer most of their basic inquiries
Despite its centralized nature, security is a top priority at Bitfinex, as it offers more security protections for the user and takes more security precautions than most exchanges. Not only is there the aforementioned two-factor authentication, but users can also make use of Universal 2nd Factor (U2F) authentication, which requires them to log in using an additional physical device such as a USB stick. Also, 99.5% of client funds are stored in cold storage using a geographically distributed multisignature system. Added to this, Bitfinex monitors user accounts in the following ways:
- Saves login data and analyzes it for any unusual activity
- Detects IP address changes in case of sessions hijacks
- Sends notifications and permits account freezes in case of suspicious activity
- Can limit account access and withdrawals to selected IP addresses
- Tracks behavioral patterns and trigger manual inspections on unusual withdrawals
- Uses PGP email encryption for malware immune withdrawal confirmation process
As for the security measures it has in place to protect its system, Bitfinex does the following:
- Uses protection against distributed denial of service (DDoS) attacks
- Automatically backs up databases daily
- Automatically encrypts and duplicates backup data
- Updates software and Linux systems regularly
The measures mentioned above reduce Bitfinex’s vulnerabilities. Although the exchange doesn’t insure user funds, it had taken responsibility to compensate users when assets were lost due to security breaches.