Bitfinex: For Professional Traders

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency and metaverse ecosystems.

Who Is Bitfinex?

Bitfinex has been around since 2012 and is now one of the largest cryptocurrency exchanges based on volume. The company is registered in the British Virgin Islands and has its main operations in Hong Kong. Even though it is not regulated under any law, it has grown into the eighth-largest exchange in the world. However, it has experienced quite a bumpy ride along the way.

Bitfinex Basic Features

Unfortunately for US-based investors, none of Bitfinex’s services are available in the US. Like most other standard cryptocurrency exchanges, Bitfinex offers exchange or spot trading. This allows its clients to use account funds to buy or sell digital assets, including over 160 cryptocurrencies. The majority of services offered by Bitfinex are targeted toward experienced, professional traders. 

For example, Bitfinex offers margin and funding trading as well as over-the-counter (OTC) services, which generally involve large private trades over $100,000. It also offers derivatives trading.

And finally, the exchange offers multiple staking and lending opportunities. Bitfinex’s staking service allows investors to stake up to nine different types of cryptocurrencies while earning rewards of up to 10%. Earnings are paid out weekly.

Fee Structure

Bitfinex utilizes a maker and taker pricing fee structure. The maker is the trader who makes or creates the order before the trade. They create market liquidity. The taker is the trader who takes or places the maker’s order. It is the takers who remove liquidity from the market. Bitfinex touts to be one of the best liquidity providers of any of the other exchanges. Maker fees start at 0.10% and the taker fees start at 0.20%. High volume, professional traders will be interested to know that they will receive a discounted fee of 0.08% if they make trades worth more than $500,000 USD during a 30-day period.

Account Creation

To open an account, the process steps are straightforward but note that new investors need to pony up at least a $10,000 minimum initial deposit. Initial deposits can be processed by way of a wire transfer but not by a credit or debit card.

Customer Service

Bitfinex does not offer any real-time customer service, or any type of bot or chat support. Rather, all customer inquiries must be handled either through email or via a ticket-based request system.

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity with which Thomas Wettermann has been, is currently, or will be affiliated.

Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk, and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment; therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor.

Thomas Wettermann is not an independent financial advisor. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as a general market commentary of Thomas Wettermann and does not constitute investment advice. Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form.