Ethfinex cryptocurrency exchange – review

What is Ethfinex?

Currently in its beta testing phase (as of May 2018), Ethfinex is an Ethereum-based subsidiary of Bitfinex. Bitfinex was founded in 2013 and is one of the world’s largest crypto exchanges by trade volume.

Ethfinex was launched to Bitfinex users in December 2017, and opened to new users in January 2018. While Bitfinex is located in Hong Kong and operated by iFinex Inc., Ethfinex Inc. is registered offshore in the British Virgin Islands.

Described as a hybrid decentralised exchange, Ethfinex allows users to buy and sell dozens of ERC20 tokens. Users also have the option to access the Ethfinex order book through decentralised exchange portals, which allows them to access high liquidity without having to actually entrust any of their funds to Ethfinex.

Other features include access to a peer-to-peer financing market, margin trading with leverage of up to 3.3:1, discussion boards and access to ICO token sales.

Available countries

Ethfinex is available to users in a wide range of countries, including Australia. However, users in the following countries are prohibited from accessing the platform:

• Bosnia and Herzegovina
• Democratic People’s Republic of Korea (North Korea)
• Ethiopia
• Iran
• Iraq
• Syria
• Uganda
• Vanuatu
• Yemen
• United States

Which payment methods are accepted?

You can deposit funds into your Ethfinex account using the following payment methods:

• Bank wire transfer
• Cryptocurrency transfer

How much will it cost me to use Ethfinex?

There are three main types of fees you need to be aware of when using Ethfinex: deposit fees, trading fees and withdrawal fees. While crypto deposits worth US$1,000 or more are free, amounts less than this figure attract a “small deposit fee”. The fee that applies to some popular currencies is outlined in the table below:

Trading fees vary depend on the volume of trades you place every 30 days. Discounted maker fees are also available through Ethfinex’s Maker Loyalty Program.

* Maker fee quoted doesn’t include any loyalty fee rebate that may apply.

Finally, withdrawal fees also apply and vary depending on the currency chosen.

How fast will my funds be available?

When depositing funds to your account, all ERC20 tokens are credited to your balance after a minimum of 20 confirmations. This will usually take at least 5 minutes, but confirmation times vary substantially based on network congestion and the gas price used to send the deposit.

Ethfinex says that withdrawals can take up to 12 hours to be completed.

Is it safe to use Ethfinex?

Bitfinex, Ethfinex’s parent company, was established in 2013 and is one of the oldest cryptocurrency exchanges going around. However, it was famously hacked in 2016, resulting in the theft of 120,000 BTC (worth US$72 million at the time).

When you sign up for an account with Ethfinex, you’ll need to provide your email address and create a username and password. You’ll need to deposit at least US$1,000 of cryptocurrency before you can start trading, and if you want to access features such as fiat deposits and withdrawals, you’ll need to submit proof of ID.

Ethfinex also implements a range of security measures, some standard and some optional, to provide protection for user accounts and funds. These include:

• The majority of funds stored in offline wallets. Only approximately 0.5% of crypto assets are accessible in “hot” wallets for day-to-day platform operations. The cold wallets are also not available from Ethfinex or the platform servers
• 2-factor authentication (2FA)
• Verification tools to monitor suspicious behaviour and the integrity of customer accounts
• Withdrawal protection
• Email encryption with OpenPGP

The ultimate aim is for Ethfinex to one day become a fully decentralised exchange. If you’re looking for the trustless trading experience decentralised platforms offer, you may want to consider using the Ethfinex Portal. Based on the 0x Protocol, this allows you to access Ethfinex’s order book without handing control of your funds over to the platform.

Customer support

If you have a question about your account, you’ll find the answers to a range of FAQs in the online Knowledge Base. If you can’t find the assistance you need, you can ask a question or submit a ticket through the platform’s support centre.

Pros and cons

Next steps

If you already have a Bitfinex account, you’ll be able to use those same details to log into Ethfinex. However, if you’re a new customer, compare a range of platforms before deciding whether or not Ethfinex is the right exchange for you.

If it is, click on one of the “Go to site” links on this page to be taken to the Ethfinex sign-up page. You’ll then be able to register by providing your email address and creating a username and password. Don’t forget to also enable 2-factor authentication on your account for added protection.

FAQs

• What order types does Ethfinex offer?

  Ethfinex offers traders the choice of market, limit, stop, trailing stop, fill or kill, one cancels other, post only and hidden orders. It also supports two types of algorithmic orders – iceberg orders and TWAP (time weighted average price) orders.

• Does Ethfinex have a minimum deposit?

  Yes. New accounts cannot start trading or perform any functions on the platform until they have deposited enough cryptocurrency into their account to represent US$1,000 worth of equity.

• What are Nectar Tokens?

  Nectar Tokens (NEC) are distributed for free to token market makers on Ethfinex in proportion to the volume of trades they participate in. These tokens can then be used to claim loyalty rewards from the total monthly exchange fees the platform receives, and also to have a say on the future governance of Ethfinex.

• Is there any limit to the amount of cryptocurrency I can withdraw from my Ethfinex account?

  No. Ethfinex doesn’t impose any limits on cryptocurrency withdrawals.