Bitfinex Crypto Derivatives - How to trade Bitfinex Derivatives in India
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What is Bitfinex? 

Bitfinex is a Hong Kong exchange founded in 2012 and owned by iFinex Inc. According to LinkedIn and Crunchbase, its founder is Raphael Nicolle and its co-founder and IT professional is Patricia Durand. However, the only representative of the exchange who personally interacts with users remains Zane Tackett.

In 2014, the Bitfinex exchange became the most popular crypto exchange in the world, with more than 10% of world transactions (if you look at the statistics for the last month, it’s 17.10%). Later, the platform lost its dominance, but to this day it remains in the top 5 largest trading platforms in the digital money market.

It is surprising that the platform has survived after several large-scale and successful attacks by hackers.

In 2016, the exchange was hacked, as a result of which $72 million worth of bitcoins (119,756 coins in total) were stolen from users' accounts. Immediately after that, all bitcoin transactions were suspended, and on August 2, the company announced the incident and that it was tracking down the source of the attack.

It is noteworthy that most of the stolen bitcoins were skipped by the system, although the necessary security protocol was not followed. That is, somehow two-factor authentication and the multi-signature mechanism were bypassed. There is an opinion on cryptocurrency forums that the management of the site was involved in the hack, but no one has been able to prove this.

The incident was the second largest in the history of cryptocurrencies, after the hack of Mt Gox, the most popular cryptocurrency exchange until 2014, which resulted in the theft of 744,408 bitcoins, worth a total of $350 million at the time, and which forced the exchange to file for liquidation in the Tokyo court.

It should be noted that Bitfinex acted quite wisely and released a BFX virtual currency, similar in price to Bitcoin at the time of the hack, which it distributed to all affected users, promising to buy them all out soon. In April 2017, the last BFX were bought back. Thus, Bitfinex was able to get out of this difficult situation.

Bitfinex provides fast and safe transactions
Bitfinex provides fast and safe transactions

What are crypto derivatives? 

A derivative is financial collateral whose value depends on the underlying asset or group of assets.

The derivative financial instrument itself is a contract between two or more parties, and the price of the derivative is determined by fluctuations in the underlying asset.

The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, cryptocurrencies, interest rates, and market indices. These assets are usually bought through exchanges or brokerage companies.

The most common derivatives are:

  • futures
  • swaps
  • options
  • CFD
Bitfinex's mission is to give users the ultimate cryptocurrency trading experience
Bitfinex's mission is to give users the ultimate cryptocurrency trading experience

How to trade Bitfinex derivatives in India? 

Getting started trading on Bitfinex derivatives in India is easy. You need to register on the platform and replenish your account. We will discuss these two processes in more detail later.

In general, it is worth noting that the platform is focused on working with users around the world. It has been translated into 8 most popular languages. The platform also has not bad mobile applications for iOS and Android. Thanks to this, you can trade on Bitfinex derivatives in India or any other country in the world. The trading terminal will be in your mobile phone wherever you are.

Bitfinex cryptocurrency derivatives trading platform
Bitfinex cryptocurrency derivatives trading platform

How to register? 

The registration process on the exchange is no different from other platforms. You will be prompted to fill out a short form and you must agree to the user agreement. Everything.

As you can see, if you decide to trade on Bitfinex crypto futures in India, the registration process will take you no more than 5 minutes. Right after that, you will be able to fund your account and start on Bitfinex crypto futures trading.

The first thing you need to do after creating an account with Bitfinex is to optimize your security settings. Bitfinex provides many features that users can install to enhance the security of an account and protect the funds it holds.

The Bitfinex cryptocurrency derivatives trading platform highly recommends, at a minimum, setting up a strong and unique password and setting up Google two-factor authentication to log into your Bitfinex account.

It is extremely important that you write down the 2FA key that you receive during setup and keep it in a safe place and not in electronic form. If you don't, in the worst case scenario, you could lose access to your account for a few days.

Bitfinex derivatives trading platform also provide a number of additional recommendations for users who want to increase the security of their account:

  • Set up two-factor authentication
  • Block withdrawals when logging in from a new IP address
  • Set a passphrase to confirm the withdrawal of funds
  • Block or cancel addresses to which funds can be withdrawn
  • Cancel the “Session Activity Detection” function
  • Restrict account access based on IP address
  • Enable email encryption with OpenPGP

As you can see, Bitfinex learned from the 2016 hack attacks and took good care of the security of users who are on the Bitfinex derivatives trading platform. 

The registration on Bitfinex platform
The registration on Bitfinex platform

How to open a demo account? 

It is possible to open a demo account on Bitfinex, but you can only do this after registering a main account. Only registered users can open a demo account with Bitfinex.

How to deposit funds on Bitfinex? 

You can fund your Bitfinex account in the following ways:

  • fiat money (USD, EUR, GBP, JPY, CNH)
  • via tether (USDT, EURT)
  • bitcoin, ethereum and three dozen altcoins

As you can see, you can quickly and easily fund your account and start trading on Bitfinex future cryptos in India.

The convenience of the Bitfinex exchange is that both secured and unsecured transactions are allowed here. For the latter, the functions of attracting credit funds are available, which means getting even more profit.

The mechanism is very convenient and allows you not only to borrow cryptocurrencies, but also to borrow yourself, receiving a small but guaranteed profit on interest.

Bitfinex Pay is a widget that allows you to accept crypto payments
Bitfinex Pay is a widget that allows you to accept crypto payments

Minimum deposit amount 

Currently, the minimum deposit amount is only $5.

How to withdraw money? 

Withdrawing money from the platform is easy. In your personal account, you must select the cryptocurrency in which you will withdraw and specify the withdrawal address.

Bitfinex derivatives list 

The platform provides a wide range of derivatives for trading. New tools are added regularly, so it is best to get acquainted with the current list of tools on the official website.

Crypto derivatives on Bitfinex
Crypto derivatives on Bitfinex

How does Bitfinex crypto derivatives trading work? 

How is Bitfinex cryptocurrency derivatives trading? In fact, everything is very simple. The exchange offers a very convenient and functional terminal.

When trading on the exchange, Bitfinex is essentially a centralized order book where users can exchange bitcoin and some other leading cryptocurrencies for US dollars and bitcoins. There are also cross-rates, when one altcoin can be exchanged for another.

Trading Bitfinex cryptocurrency derivatives is available with trading leverage through receiving funding from other users of the platform (peer-to-peer system). The client can place an order specifying the desired volume, interest rate, and funding duration, or open a position with Bitfinex, which will automatically redirect them to available offers. Funds are taken against the security of the balance.

Accordingly, any user has the opportunity to earn interest on lending their funds. You can offer funding at a rate and for as long as seems reasonable, or you can lend at an auto-adjusting interest rate called the Flash Return Rate.

On Bitfinex derivatives trading is available with a maximum leverage of 10x.

How to trade crypto derivatives with Bitfinex?
How to trade crypto derivatives with Bitfinex?

Alternatives to Bitfinex cryptocurrency derivatives 

Cryptocurrency exchange Bitfinex has a fairly strong position in the market, despite several stories of security and withdrawal issues.

The fact that the project managed to hold on speaks of a fairly powerful potential and active development. The platform offers powerful functionality, API support, a large list of supported cryptocurrencies - the technical side is not satisfactory.

However, the platform is not without flaws, as ideal platforms do not exist. All traders and investors have their own requirements, goals and opportunities. Therefore, it is quite logical to assume that someone may not like Bitfinex. In this case, you can easily find an alternative. Now there are hundreds of different exchanges on the market.

Binance remains the most popular exchange. Also, such platforms as Okex, Huobi, KuCoin, Probit, Poloniex and others are in demand. 

But do not rush to immediately refuse Bitfinex, the platform has been one of the market leaders for a reason. In recent years, the platform has become more open to traders around the world, including beginners. The minimum deposit is only $5.

Crypto exchange Bitfinex has been successfully operating for many years. The platform is popular among skilled crypto traders. She is respected by most novice speculators. Basically, it is a well-deserved result of the unceasing work of the development team and technical specialists. They are gradually improving the interface, expanding the functionality, introducing new crypto assets and improving the conditions for traders.

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