Bitfinex, a state-of-the-art digital asset trading platform, is delivering a robust, high-performance trading experience while leading cryptocurrency exchanges continue to suffer downtime when experiencing spikes in website traffic, according to data from Statuspage.
Data from Statuspage, a website monitoring service tracking incidents of downtime, shows that Bitfinex has had no major incidents of downtime in 2020, as a result of being overloaded by genuine requests from traders seeking to obtain access to the platform. Meanwhile, rival leading cryptocurrency exchanges have been afflicted by downtime and connectivity issues.
Cryptocurrency Exchanges & 5x Traffic Spike in Bitcoin Trading Volume
For example, the go-to fiat onramp cryptocurrency exchange earlier this month failed to keep up with a 5x traffic spike experienced during a Bitcoin price surge when the world’s biggest cryptocurrency surpassed US$10,000. This left many users unable to log-in to the platform.
Bitfinex’s performance in 2020 contrasts with a worrying pattern among leading rival exchanges of shutting down when Bitcoin gets volatile. This has led to speculation in crypto twitter relating to the correlation between downtime among leading cryptocurrency exchanges and incidents of volatility in the Bitcoin price.
“The high-level performance of the Bitfinex platform is a reflection of both the dedication of our technology team and the integrity of the exchange,”
said Paolo Ardoino, CTO at Bitfinex.
“We always strive to deliver an optimal trading performance regardless of market conditions. In fact, providing an impeccable service in times of extreme volatility is what we live for.”
The nascent cryptocurrency space is yet to replicate the robust scalable trading architecture of the mainstream financial markets. Still, Bitfinex, which is serving a growing client base of hedge funds and institutional investors, consistently delivers a service that professional traders can rely upon. This may explain why professional traders remain loyal to Bitfinex, while newcomers to the space are targeted by exchanges that levy expensive fees and deploy mass marketing campaigns to promote token offerings.
“We have an obsessive interest in technical improvement,”
“This is the reason why professional traders are trading with us. Our obsession with technology and performance while being the smoothest platform to trade makes us a natural fit for high-level traders who are concerned about latency. These traders appreciate not only the technical aspects but also the platform’s design.”
Traders on Bitfinex are using algorithmic trading programs to deploy High-Frequency Trading (HFT) strategies such as statistical arbitrage and volatility arbitrage. These traders are exchanging ideas and strategies on Bitfinex Pulse, a social network tailored to meet the needs of professional crypto traders.
Traders are deploying algorithms on the exchange’s Honey Framework to exploit rapid price fluctuations in Bitcoin, Ethereum, and other leading cryptocurrencies. The Honey Framework functions as a powerful tool that spans across the programming languages NodeJS and Python, enabling users to create custom order types or event driven automated trading strategies. The framework, which integrates natively into the Bitfinex trading platform, also enables traders to backtest market data in order to better inform algorithmic trading strategies.
Bitfinex, Bitcoin, and Ethereum Liquidity
Bitfinex has the most liquidity in Bitcoin and Ethereum, according to research by The Block. Bitfinex’s underlying strength and depth of liquidity was most evident over a 24-hour period on March 12/13 when the price of Bitcoin plummeted by 50 percent. According to CryptoCompare’s March Exchange Review, Bitfinex represented the majority of top-tier exchange trading volume across Bitcoin/US Dollar (BTC/USD) and Bitcoin/Tether (BTC/USDT) markets during the period of Bitcoin’s precipitous price drop.