Bitfinex Currently, the company Bitfinex (and also iFinex Inc.) is located in the British Virgin Islands (and not as some websites point out, it is located in Hong Kong.
However, it is true that the company has stated its intention to move its registered office to Switzerland.
The company started in 2014 and soon became one of the most popular stock exchanges for trading Bitcoin, and still is. It is known that at least 10% of transactions with Bitcoin are made through Bitfinex.
Little by little, the platform has been expanding its offer, being able to work with the main cryptographic currencies of the moment: Bitcoin, Ethereum, EOS, Ripple, Litecoin, NEO, Monero, IOTA ….. and so on until completing more than 70.
The trading of cryptographic currencies of the platform is done by currency pair: BTC USD or BTC EUR, etc., being the BTC USD the most traded pair.
When it comes to the security of a stock market, the first thing we think is, is the first thing we think, is my money safe with Bitfinex?
It seems so, at least that’s what I discovered after reading all the information on the Exchange website.
The first thing to say is that Bitfinex was the result of a robbery in 2015. By attacking the platform, 1,500 bitcoins were stolen, which cost 72 million dollars at that time.
Bitfinex did not abandon its customers, but created BFX coins, in order to protect the money of customers, who received as many BFX coins as the value of the stolen Bitcoins. The face value of each BFX token was $1.
In April 2017, Bitfinex announced that it had repurchased all of its customers’ BFX tokens and compensated them for the theft.
Currently, most of the funds managed by Bitfinex remain in cold stores and can only be accessed through the network by 0.5% to ensure their daily operation.
Does that mean it can’t happen again? No, that’s impossible to predict. However, Bitfinex’s security measures are high.
These are Bitfinex protocols for the protection of customer funds:
Many platforms start using authentication in two ways. It’s about logging in with keys generated from a single use, next to our primary key.
For example, we would have one access key to the platform, and a second key is generated externally and is for a single use.
There are several platforms that can be used, such as Google Authenticator, Twilio or U2F security keys, made with USB or NFC slides, in our possession.
Account Integrity Verification
Although for security reasons, Exchange does not reveal exactly what protocols and protection measures they use, when they tell us they have tools to detect unusual account activity or if changes are made to an IP during an open session.
Each time an account is logged in, the user receives an email, so if they don’t, they receive a link to freeze their account immediately.
Other controls refer to restricting access to an account to prevent it from being hacked.
Although these security protocols are based on the study of our behavior, they are designed to prevent anyone from accessing our funds.
The same applies to withdrawals. The program registers the IPs from where they were created and if they do not match the usual behavior, they can be paralyzed.
After analyzing all the data, I have the impression that Bitfinex is working well in terms of security measures, but it is impossible to prevent someone from trying to get hold of funds that do not belong to them.
To start trading with Bitfinex, you must first register by creating an account. I will guide you through this process, although first I will tell you that I do not have an account with Bitfinex, nor do I have any kind of business relationship with them.
If you open a Bitfinex account, it is because you will find a suitable exchange for you.
Bitfinex registration process:
The first is to access the web. Once inside, in the top right corner, we have the REGISTER button, if you use Chrome and you have the automatic translation, it would be to register you.
Clicking on it opens a pop-up window with a form. We need to fill in the usual information: username, email and a password, which will give you access to your user space.
You will then receive an email to the email address you have provided as your contact person, confirming all details and accessing the account.