Whether you are just starting with cryptocurrency trading or if you have been at it for a while, you may have heard about Bitfinex, the famous digital exchange.
Founded prior to 2013, this platform is one of the pioneers in the exchange realm that operates in the international bitcoin and altcoin market. The exchange has had its issues in the past but it continues to provide its services to a wide variety of people in the jurisdictions that it serves.
With over 190 trading pairs, fiat currency deposits and support for leverage, it has been quite easy to attract global customers for the platform especially in territories where alternative options of this scale aren’t present.
That’s why, while Bitfinex doesn’t provide its services to U.S. residents and entities, it still offers the full breadth of its trading solutions to customers all over the world.
If you do not have any other popular trading platform options in your jurisdiction, then you may have thought about using Bitfinex with your trading bot. Naturally, you may also have some questions about the exchange’s support for these services.
To help you understand how Bitfinex works with automated trading and whether the firm may work out for you, here is a beginner’s guide about the platform and its relationship with the trading apparatus.
Why Must You Use a Trading Bot on Bitfinex?
The firm provides a wide range of cryptocurrency and non-crypto currency trading pairs. It also allows fiat currency deposits and withdrawals, along with the support for margin trading. The digital asset exchange is also known for offering newer cryptocurrencies the chance to thrive on its platform.
All of these abilities come together to make it the correct tool for those among you who live outside the U.S., and want to use a feature-rich digital asset trading service.
As mentioned above, Bitfinex has a reputation for being surrounded by controversies. But if you do not have many other cryptocurrency facilitators in the region you live in, then using it for bot trading might be a good idea.
Just make sure that you are operating with vigilance and keeping a close watch on your account, even if you are not actively managing it due to automated trading.
Are You Allowed to Use Bots on Bitfinex?
Like many other reputable exchanges, Bitfinex also allows its users to utilize automated bots against its markets.
The platform has released its application programming interface (short form – API) documentation to allow traders and developers to formulate their custom solutions, which they can use with Bitfinex’s trading engine.
This also allows standalone developers, in addition to, programming firms to form their own trading solutions and offer these options to interested traders for a service fee. This is the exact market where you can find a bot solution to make your own.
Do You Need to Download Special Software?
Bitfinex bot tools can either come in the form of downloadable software that you need to install on your computer, or a cloud-based web application that runs directly through its website.
Whether you choose to run your program through a downloadable software or through a web based application is completely dependent on you.
If you think that the added security of running your bot through a downloadable software is viable for you, then go ahead with it. Otherwise, if you do not want to go down the world of manual updates, setup and upkeep of the bot program every now and then, you will be better off with a cloud based application.
When you end up choosing the right solutions provider, both options will provide an identical level of service to you. Keeping this in mind, make sure that you are making the decision through ample research and your personal preference front and center.
Are Bitfinex Trading Bots Safe?
Even though Bitfinex has had several security and trust issues in the past, any reliable bot solutions that are used with the digital asset exchange are developed with security in mind. With that being said, you should look into every bot program while exercising caution, so you could spot security threats and bad practices right away in order to steer clear of them.
For instance, any bot that asks you to share your withdrawal access through API keys is a big security threat to your funds. It’s because algorithms only require the API access to make on-platform trades with your trading account balance. They do not need to make withdrawals out of your cryptocurrency accounts. In light of this information, stay away from programs that ask for unnecessary permissions.
You should also pay attention to the developer’s credibility and the overall size of the bot’s own community of users. This ensures that you aren’t walking into a shady solution and putting your hard earned funds at risk.
Best Bitfinex Bots
Bitfinex is being supported by all top trading bot platforms:
Are There Any Free Bitfinex Bots?
You can find a few free bots for Bitfinex. But they are not always safe to use. Instead of supplementing your income, they may end up harming you by accessing your sensitive personal or financial information. In other cases, they might just try to trick you out of your funds.
While there are open-source bot scripts available for buying and selling cryptocurrency automatically, not many of such solutions are available. When you do find them, they often leave a lot to be desired as compared to the features offered by their commercial counterparts.
That is why, it is a good idea to use trial offers for paid cryptocurrency bots. This allows you to make use of competitive services and compare them against each other without having to pay an arm and a leg for them. From there, you can buy your preferred bot software or pay for monthly subscription according to the features and services that you like the most.
What Kind Of Money Do I Need to Start?
Remember that you will need a good sum of money to start trading with this facilitator. You must be aware of the exchange and its trading fees. Further, you will also realize that here may be other fees besides the usual.
By default, the said entity charges its customers on the maker-taker mechanism. Remember that the charge for makers begins from 0.100%, while the costs for takers starts from 0.200%. The higher your 30-day trading volume, the lower your trading fees will be.
Along with this, Bitfinex also charges users a 0.100% deposit fee for fiat currencies, with a minimum charge of $60. There are no charges for cryptocurrency deposits, but you will still need to bear the blockchain fee.
Withdrawal costs differs on the currency you will want to move about. A complete list can be found on the Bitfinex official website.
Are There Any Unique Pairs to Trade With the Bot on Bitfinex?
Since Bitfinex offers over 190 trading pairs, it has many unique cryptocurrency pairs available to trade which you cannot find at other popular exchanges.
Remember that it also offers an array of choices for fiat deposits that may not be available with a lot of other providers. The margin trading capabilities offered by Bitfinex only add more value to these offerings.
Overall, Bitfinex can be a good option for you to trade digital assets through an automated bot. But given the exchange’s past issues as well as its questionable reputation among the halls of the cryptocurrency community, it is better if you can find any alternate options first.
If you start trading with Bitfinex, make sure that you don’t put all your funds into the account and start with a low amount of cryptocurrencies. This will help you stay away from massive losses in case the exchange runs into any issues.
Once you have developed your trust in Bitfinex services with firsthand experience, you can go ahead with upgrading these limits.