I like Bitfinex a lot, but miffed at what looks like a blatant rip off, dishonest dealing, as follows:
I opened an account, designated a 'trader' account, with US$5k, and proceeded to buy BTC and LTC in the amount of around US$5200.
Now any reasonable person would think that my margin loan requirement was only US$200 ... but I find that Bitfinex automatically finances all positions in a 'Trader' wallet ... I ended up paying near 1%/day for US$5.2k loans that I didn't even need. Their software is automatically set up to do this.
Even when I re-designate my account as 'Exchange' and sell some of my position, there is no way to move my existing positions from the 'Trader' wallet to the 'Exchange' wallet, I'm stuck watching their software continue to fund this fully-funded position with usurious loans.
That is not sloppy programming, poor webdesign, or some casual oversight. It is a pretty crummy way to conduct business. Bitfinex gonna make some money off of unwitting and/or inattentive traders this way ... likely funding these loans directly ... shame.
You must use the exchange wallet, not the trading wallet for your purchase. The trading wallet is purely for margin trading. What you would then do is transfer the bitcoins to your trading wallet and then take a $200 loan.
https://bitfinex.com/pages/howitworksI actually love their system and admire how it was conceived.
Yeah it's kind of a hassle to move funds back and forth between wallets, but I tolerate this. I rarely bother to use Exchange for my long positions, even though I really should and save the swap cost.
Bitfinex has it's drawbacks and I've lost thousands of $s from site outtages in the past, but it's still the best exchange out there that I've used and I like the site, despite its faults. And seems like they are always trying to tweak and improve it, unlike Bitstamp which became very stale.
