There are three methods investors can use for digital currency trading on Bitfinex: Changing of coins, which involves direct offers to buy or sell; margin trading, in which investors are responsible for interest accrued in transactions; and liquidity providing, where you provide funding for a more expert trader to use your digital currency or US dollars to make trades on your behalf. The exchange features specific types of wallets for traders to use in each of the methods listed above and all trader holdings are stored in their “cold,” or offline, wallets, for higher security. In the wake of highly-publicized thefts from other exchanges, this security is an important feature to investors, and Bitfinex claims to be the most secure digital currency exchange in the world. The exchange does not feature market charts or statistics, so investors will need to seek that information elsewhere; however, there are community forums and a wiki in the works that investors can use to exchange information and advice.
Bitfinex was founded by French developer Raphael Nicolle, and the exchange went live in January 2013. The company itself is incorporated as a limited liability corporation (LLC) in Hong Kong. As of this writing (April 2014, the Bitfinex website was in beta testing mode. Nonetheless, it is a very heavily-used exchange.