Traders and investors are not limited to the normal stock exchanges and other investing schemes anymore. With the cryptocurrency revolution taking over the investment market. It has completely changed the way how people invest.
Resulting in new cryptocurrency exchange platforms launching in the market. People are learning about cryptocurrencies and how to start trading them with a decent amount of profit margin. But choosing the right platform for trading their preferred digital assets is confusing sometimes.
With a ton of reviews circulating on the internet, choosing the wrong platform can even lead you to loss. Therefore, using a platform with more trusted users is always a wise choice. So today we are going to review the Bitfinex cryptocurrency exchange platform.
What is Bitfinex?
Bitfinex is one of the revolutionary platforms in the cryptocurrency industry. A hong-kong based cryptocurrency exchange providing its trustworthy services since 2012. Bitfinex is one of the fundamental platforms that provided Bitcoin trading services approx a decade ago.
Starting as a small platform that used to provide only peer-to-peer Bitcoin transactions, Bitfinex has grown into one of the best cryptocurrency exchanges in the market at the moment.
Is Bitfinex worth choosing in 2021?
It was not easy for Bitfinex to reach here, as it had to deal with multiple cases of Bitcoin theft costing them approx 1500 and 120k Bitcoins in the first and second case respectively. After getting enough information related to the platform, we suggest going through the services and workings that Bitfinex offers to its users.
Unlike other trading platforms available in the market security is the top priority for Bitfinex. As it provides an extra layer of security with a U2F (universal two-factor authentication) system. Therefore, users need to log in with a physical device such as a USB stick.
Another safety precaution Bitfinex is considering is storing your assets in cold storage. Which decreases the risk of online theft a lot. While upgrading their systems and using the latest ant-hack methods for better security.
When it comes to cryptocurrency trading, the fees you need to pay for completing the transactions matter a lot. It may not seem like an important element in the beginning but as the number of transactions increases your overall fees will get added to your expenses.
Thankfully you don’t have to pay higher trading fees with Bitfinex. A minimum of 0.2% fees on each transaction is applicable. However, it will decrease as your transaction amount is higher.
One of the major concerns for most people is the liquidity of the trading platform. Because if you are not able to buy or sell whenever you want, the chances of making a better profit margin when the price hikes are very low.
With Bitfinex you don’t need to worry about liquidity as it provides a decent liquidity rate overall. Providing the most liquid order book in the world, won’t disappoint you.
Staking & earning
Staking is a great option for users with various cryptocurrencies in their portfolios. Because the users can stake their assets on projects already running on Bitfinex to earn a good amount of income.
No doubt the assets will be locked during the stacking process, making you unable to withdraw or invest it somewhere else. However, you need to have particular digital tokens for staking and gaining profit regularly. Your profit can range between 2% to 8% depending on the token you are staking.
Choosing Bitfinex is a decision that also depends on the currency that you generally use for buying digital assets. As Bitfinex does not support the Fiat currency USD you may have to find better alternatives for carrying out the transactions with lover fees.
Another difficulty is country support because Bitfinex is not providing its services in
Ecuador, Kyrgyzstan, United States, Bangladesh, Bolivia. So in case if you live in any of these countries you can not use the service. Do share this amazing platform with future crypto traders and feel free to ask any questions if you have any.