What is Bitfinex?
In this article, we will give you an overview of Bitfinex and explain to you how bitfinex fees work.
Bitfinex is a full-featured cryptocurrency exchange which emerged in 2014 as one of the world’s leading bitcoin exchanges. It was first introduced in Hong Kong in 2012 and has been popular in the market ever since. Later in this article we will also discuss everything about Bitfinex Fees.
Bitfnex allows leveraged trading of up to 3.3 times and a related margin funding market for lenders. It is now known for being one of the world’s biggest and most advanced cryptocurrency exchanges. Bitfinex offers a customizable interface that lets you personalize your workstation. The platform is equipped with margin trading and 10 different order types that give you the opportunity to trade the market without any limitation.
Bitfinex has 3 core features:
a. Margin Trading
It allows its users to trade with up to 3.3 times leverage receiving financing with the help of margin funding and peer to peer financing platform. Users will be able to enter a funding order to receive the desired amount o financing, at the rate and duration of their preference. Traders will also be able to open a financed trading position and Bitfinex will automatically link them with peer to peer financing at the current exchange rate.
b. Margin Funding
The Peer to Peer financing market provides its users a great way to earn interest on digital assets by lending out their funds to other users who want to trade with leverage.
c. Exchange Trading
Bitfinex basically allows its users to deposit, trade, and withdraw digital tokens – more commonly known as crypto coins.
Creating an account in Bitfinex is relatively easy. What is tricky is how you will optimize your security settings. Users are provided with an advanced range of security features that will enable them to increase their account security and protect their currencies.
Just like any other personal accounts, users are advised to use a unique password that contains numbers, letters, and special characters. By doing this, there is less probability that your account will be hacked.
Bitfinex Transaction Fees
So, how much will it cost you to use Bitfinex?
Bitfinex Fees are low, as is standard for large transactions which are focused on trading exchanges. If you wish to familiarize yourself more on Bitfinex, create an account and then check on the “Support” tab. Click on the “Tours & Guides” option and follow the interactive guides thereafter.
Generally, all deposits are transaction fee (Tx Fee) free except bank wires which are charged at the greater of either 0.1% of the deposit amount. Withdrawals, on the other hand, are also subject to a fee depending on the currency or transfer type being withdrawn. There is no withdrawal limit for verified users.
List of withdrawal fees:
Unlike other cryptocurrencies, Bitfinex has a tiered fee structure. Trading fees range from 0% to 0.2% depending on your trade volume over the previous 30 days. Regardless if you are paying maker fees (charged for placing a buy limit order under the thicker price) or taker fees (charged for placing an order that is executed against a listing in the order book), such trading rate applies. If you place a hidden order, you will always pay the taker fee. If you place a limit order that hits a hidden order, you will pay the maker fee.
For a complete guide on fees schedule, Bitfinex is regularly updating their website. (https://www.bitfinex.com/fees) for traders.
Bitfinex Funds and Withdrawal Options
There is only one way to deposit fiat Dollars and that is through SWIFT, or what is also known as “bank wire transfer”. This is, however, a slow and expensive option that requires identity verification, those who wish to buy bitcoins would most likely opt to buy them from a local trader.
Bitfinex charges 0.1% fee on all its bank wire deposits, with a minimum fee of $20. If you want to use Bitfinex for trading purposes, it would be wise to acquire Bitcoin or some other cryptocurrency locally and then transfer such funds relatively quickly and cheaply to Bitfinex. You don’t need to verify your identity when transferring cryptocurrency to Bitfinex.
The deposited cryptocurrency can then be changed for US Dollars or some other crypto. With proper timing, and with your crypto at its price peak, you will definitely be able to get all your crypto’s worth.
Bitfinex offers a wide selection of order types, affording flexibility to professional traders. It also provides an API with features suitable for automated trading. Security wise, Bitfinex has a reliable safety feature such as the Multi-Factor Authentication.
Aside from this, Bitfinex also has a 24/7 customer support that can be accessed through emails and through the FAQ section on their website.
Here is a list of cryptocurrency pairs that work well on Bitfinex:
If you are really dedicated to cryptocurrency trading, it is best to consider Bitfinex as your trading platform. It has deep liquidity, advanced trading features and order types, competitive fees and supported by a mobile app.
Just be sure that you have a vast knowledge on cryptos because Bitfinex works well with professional traders. Beginners may have to study further on the twist and turns of handling transactions before delving deeper into a more advanced platform like this one.
Best of luck traders!