Introduction to DigiFinex
Founded in 2018 and already boasting 4+ million users, DigiFinex is one of the fastest-growing cryptocurrency exchanges across the entire industry. More experienced users are attracted to its next generation trading interface and its relatively large selection of Margin and Derivatives trading options. Newer users will appreciate their Buy Now option which makes it easy to purchase BTC and other coins directly using a fiat payment option or credit card. Though they are not totally without negative reports and security incidents, DigiFinex is largely considered to be a very safe and upstanding exchange.
Why use DigiFinex?
With an easy and open-minded registration process, DigiFinex features over 360 trading pairs, supporting many smaller coins and tokens that aren’t available on other major cryptocurrency exchanges. DigiFinex sees over $350 million worth of trades every day, placing them regularly in the top 10 of all exchanges by trading volume. Although DigiFinex does not support fiat-backed trading pairs, there are 5 different ways to purchase crypto using national currency supported by the “Buy Now” option.
Registering an account at DigiFinex
Creating an account on DigiFinex is very simple: you need only enter in an email address and password, and after confirming your email address by entering a code sent by DigiFinex to it, your account will be ready to use.
Although not immediately requested from new customers, DigiFinex does take KYC pretty seriously and will likely end up requesting it at some point, so be prepared to have to undergo the identity verification process, which can take up to 3 business days to complete. As far as user eligibility is concerned, DigiFinex does not restrict customers by country, taking the approach that it is up to the customer to make sure they are acting in accordance with their local laws regarding cryptocurrency trading.
How to make a deposit at DigiFinex
To make a deposit, hover over the “Balance” menu tab and select “Deposit”. Note that DigiFinex does not support fiat deposit options, and most major pairs are backed by USDT. Click on the coin you wish to deposit in the left column and then the “Generate deposit address” button to create your exchange-specific address.
The only way to purchase crypto using fiat currency is via debit or credit card. This option can be found under the “Buy Crypto” menu tab. The purchase process is handled through Simplex which adds a fee by increasing the dollar rate at which coins are purchased. 15 coins and tokens are offered via credit card purchase, with 36 fiat currencies supported in the conversion process. After purchasing cryptocurrency through Simplex, coins will be available in the user’s trading account, which can then be traded on the exchange for other coins.
How to trade on DigiFinex
There are 2 basic trading options on DigiFinex: Spot and Margin. For those who are looking to make a quick trade and get coins in and out of the exchange, Spot trading is the selection you are looking for. For those who want to open a position and take on a little bit of extra risk, Margin trading is the option for you. DigiFinex currently offers 11 different Margin trade pairings, all of which can be trade with up to 5x leverage.
Both Spot and Margin trading options come in Basic and Pro settings. The main difference between the two is that Basic reveals more extraneous settings not essential to trading, and Pro puts more emphasis on the chart area and fluctuations of the orderbook.
For those looking to make a quick trade, select “Spot – Basic” as your option, find your coin pair to be traded by searching for it in the left middle column, and select what type of an order you wish to place. Market orders are for buying / selling coins at current market price, and are executed in their entirety. Limit orders are for placing an order at a price away from market price. These orders will remain in the orderbook until the market moves in the direction toward your Limit order price.
DigiFinex trading fees
DigiFinex has a flat, across-the-board fee for Spot trades, which is 0.2%. This makes trading here a bit more expensive than many other crypto-only exchanges; however, this fee can be reduced by holding the exchange’s utility token, DFT. By keeping a small balance of DFT in your account, trades will be reduced by 25%, with the fee amount being taken in the form of DFT. Fees can additionally be reduced by joining DigiFinex’s VIP club (must perform at least 100,000 USDT worth of trades per month).
How to make a withdrawal on DigiFinex
Similar to making a deposit, hover over the “Balance” menu tab and then select “Withdraw”. Next, select the coin you wish to withdraw by locating it in the left hand column, also known as the Main Board. Note that you must have 2-FA activated before you can make a withdrawal (found by hovering over the user icon in the upper-right corner of the screen and clicking “2 Factor Authentication). After finding the coin you want to withdrawal, copy and paste your external coin address into the withdraw screen.
DigiFinex has a very fair Bitcoin withdrawal fee of 0.0003 BTC, which is a bit lower than most exchanges of its size. The withdrawal fee for Ethereum is 0.006 ETH and for Tether is 5 USDT.
Benefits of DigiFinex (over competitors)
- Easy registration process.
- Hundreds of different coins and tokens.
- Good amount of liquidity.
- User-friendly, easy to navigate between sections.
Limitations of DigiFinex
- Limited amount of leverage available (5x max).
- Limited number of Futures options and other trading products.
- Ambiguity when it comes to enforcing KYC requirements.
- Limited number of fiat purchasing options for crypto purchases.
Wrapping it up
In summary, DigiFinex is a great exchange for anybody looking to trade some smaller coins that may not be available, especially on other exchanges of the same magnitude or with similar reputations. Their trading fee is a bit high for an exchange that doesn’t deal with fiat-to-crypto trading, and their number of order options is a bit limited. In spite of this, DigiFinex offers a fine product with a gentle learning curve, perfect for traders anywhere in the world, both big and small.