Bitfinex stands as one of the most established and well-known cryptocurrency exchanges in the digital asset space. Launched in 2012, it has built a strong reputation, particularly among professional and institutional traders, for its deep liquidity and advanced trading features. This guide provides a detailed overview of the Bitfinex platform, its history, services, and key operational details.
What is Bitfinex?
Bitfinex is a major centralized cryptocurrency exchange (CEX) operated by iFinex Inc., a company based in Hong Kong. Notably, iFinex Inc. is also the entity behind Tether (USDT), the world's largest stablecoin by market capitalization.
The platform is specifically designed to cater to professional traders and institutional clients, offering support for both fiat currencies and a vast array of cryptocurrencies. It is widely recognized as one of the most liquid markets for Bitcoin (BTC) trading pairs and other major altcoins like Ethereum (ETH) and Monero (XMR).
To safeguard user accounts, Bitfinex provides robust security measures, including two-factor authentication (2FA) and IP address monitoring.
Core Services and Offerings
Beyond standard spot trading, Bitfinex offers a sophisticated suite of financial products:
- Margin Trading & Funding: Users can engage in margin trading with leverage and participate in a peer-to-peer (P2P) funding market to lend or borrow funds.
- Over-the-Counter (OTC) Trading: A service for executing large-volume trades with minimal market impact.
- Derivatives Trading: Access to perpetual swaps and other derivative products.
- Additional Products: Bitfinex Borrow (lending service), Bitfinex Pay (payment processor for merchants), Bitfinex Pulse (social trading feed), and a comprehensive API for automated trading strategies.
- The platform also features its own native utility token, UNUS SED LEO (LEO), which provides users with benefits like reduced trading fees.
Who Founded Bitfinex?
Bitfinex was co-founded in 2012 by Raphael Nicolle and Giancarlo Devasini.
- Raphael Nicolle, with a background as a system administrator at Gutenberg Networks, initially focused on the Bitcoin ecosystem. He developed the Bitfinex platform using the open-source codebase from Bitconica.
- Giancarlo Devasini, the current Chief Financial Officer, holds a degree in medicine from the University of Milan. He later shifted his career to the computer hardware industry, founding companies like Point-G Srl and Solo SpA, before joining Nicolle to manage trading and risk operations at Bitfinex.
Where is Bitfinex Located?
iFinex Inc. is registered in the British Virgin Islands, with its operational headquarters situated in Hong Kong.
Which Countries Are Restricted from Using Bitfinex?
Bitfinex restricts access for users from several jurisdictions due to regulatory and legal requirements. The list of restricted countries includes:
- Iran, North Korea, Cuba, Syria, Crimea, the Donetsk People's Republic, and the Luhansk People's Republic.
- The exchange also does not serve citizens or residents of the United States, Canada (Ontario and Quebec), the British Virgin Islands, and Austria.
- Residents of Italy and Venezuela are also restricted from using the platform.
What Cryptocurrencies Does Bitfinex Support?
Bitfinex boasts an extensive selection of digital assets, supporting over 270 different cryptocurrencies and numerous trading pairs. Major supported coins include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Solana (SOL)
- Litecoin (LTC)
- XRP (XRP)
- And many other prominent altcoins and tokens.
This wide selection ensures traders have access to both major and emerging markets. 👉 Explore advanced trading platforms for a diverse range of assets
What Are the Fees on Bitfinex?
Bitfinex employs a maker-taker fee model, which rewards users who provide liquidity to the order book.
Trading Fees (Spot):
- Maker fee: 0.10%
- Taker fee: 0.20%
Trading Fees (Derivatives):
- Maker fee: 0.020%
- Taker fee: 0.065%
- Fee Discounts: Users can receive a significant fee discount of 15% to 25% on all trades by holding and using the exchange's native UNUS SED LEO token.
Deposit/Withdrawal Fees:
- Deposits in cryptocurrency, stablecoin, or securities are generally free.
- Wire transfer deposits incur a 0.10% fee.
- Withdrawal fees vary depending on the specific cryptocurrency.
Is Leverage or Margin Trading Available on Bitfinex?
Yes, Bitfinex is known for its advanced margin trading capabilities. Eligible users (with Basic Plus verification or higher) can access leverage of up to 10x for trading. The platform operates a unique peer-to-peer (P2P) funding market where users can provide capital for margin trading to others, earning interest in return.
Understanding Bitfinex's Liquidity and Market Data
Bitfinex consistently ranks among the top exchanges for trading volume, particularly for BTC and ETH pairs. High liquidity means tighter bid-ask spreads, which is crucial for traders executing large orders without significantly impacting the market price. The platform's deep order books for major pairs make it a preferred choice for high-volume and institutional traders.
Frequently Asked Questions (FAQ)
Q: Is Bitfinex a safe exchange to use?
A: Bitfinex implements industry-standard security protocols, including two-factor authentication (2FA), cold storage for the majority of user assets, and advanced monitoring systems. However, like any online platform, it has experienced security incidents in the past. Users are advised to employ strong security practices, such as using a unique password and enabling all available security features.
Q: How do I reduce my trading fees on Bitfinex?
A: The most effective way to reduce trading fees is to hold and use the UNUS SED LEO (LEO) token. Your fee discount is calculated based on your LEO token balance over a 30-day period, offering savings of up to 25% on both maker and taker fees.
Q: Can US citizens trade on Bitfinex?
A: No. Bitfinex explicitly prohibits access to users who are citizens or residents of the United States. Attempting to bypass these restrictions is a violation of the exchange's terms of service.
Q: What is the minimum deposit required to start trading?
A: Minimum deposit amounts vary by currency. For cryptocurrencies, the minimum is usually the equivalent of a few dollars, but it's best to check the specific requirements for each asset on the Bitfinex website. Fiat currency deposits may have higher minimums.
Q: Does Bitfinex offer staking or earning opportunities?
A: While Bitfinex itself is primarily a trading platform, it has offered various earning opportunities in the past, such as its peer-to-peer funding market. For the most current information on staking or earning programs, you should consult the official Bitfinex website or announcements. 👉 Learn more about earning opportunities in the crypto space
Q: How does Bitfinex's P2P funding market work?
A: The P2P funding market allows users to offer their digital assets for others to use in margin trading. Lenders set the interest rate and duration for their offers. Traders can then use these borrowed funds to open leveraged positions. It's a core feature that provides liquidity for the platform's margin trading ecosystem.