There are hundreds of exchanges launched monthly since cryptocurrencies became a common phenomenon. However, not all of them are worth your attention because there are many that would not serve your interest or purpose. The experience of one user of Bitinfi should teach use all.
When you want to get involved with cryptocurrencies, you would need to make your first purchase with fiat and the best option you have doing that is an exchange. Nevertheless, there are some exchanges that would cause you losses either intentionally or inadvertently. So the choice of exchange to transact with is very important.
There are exchanges that the entities behind them are malicious or scammers. This means that their intention in setting up the business was not just to make profit legitimately from the transactions that people make on the exchange, but to steal the funds of the investors.
This is why it is important that the investor avoids using random, unknown and unregulated exchanges. Granted, there are some exchanges that are located in jurisdictions that do not recognize cryptocurrencies.
Others are located at places where there are no known laws guiding such exchanges, so there are no licenses needed to set up such exchanges, butut the majority of exchanges that are recommended for investors are backed by some sort of regulation because it is the only way that you could be sure that your funds would be safe.
Dealing with digital currencies bear its own risks. This is especially so with respect to volatility and the possibility of loss due to hacks. There is the possibility of loss of private keys which could result in the loss of assets also. These are amplified if the investor uses an exchange that is lax in security or simply run by dishonest people.
What is Bitinfi?
This is one of the newer exchanges that came on board a few months even though there is no exact date available on its domain’s Whois records. This borders on the suspicious since sites hoping to manage people’s funds generally reveal as much as they can about their operations.
The exchange claims that it is located in Hong Kong but would not provide the address or location of its office. This increased the possibility that you are dealing with an exchange that has something to hide. So why would you want a team like that managing your assets?
Like most exchanges, it claims that it stores most of the investor’s funds offline and protects them because it considers the funds as important as the lives of the team.
Another claim is that the matching engine of the site enables it set up 1 million orders per second. With other guarantees, the site encourages investors to use the exchange even though there is no evidence on ground that it can deliver on its promises.
Who is Behind Bitinfi?
Most legitimate exchanges have known founders and teams. This is especially important since people would want to know those managing the platform where they’re sending their crypto assets for investment or trading. The Bitinfi team seems not eager to be known and this raises some pertinent questions.
Why would an exchange with anonymous owners expect people use the platform? How sure are you that your funds would be safe when you do not know the reputation of the people behind this exchange?
The only information provided about the owners is that they are four individuals from MIT, Yale, Cambridge and HKU. Now why would they name where these people came from while hiding their identities? My guess is that these are no real identifiable people. That is why they are couldn’t name them and link their social profile as seen with many new crypto projects.
Other team members were describes in a similar manner:
“3 traders from Goldman Sachs, JP Morgan and Nomura; 3 Compliance officers are from Deloitte, HSBC and BOCI; 4 CFA holders and 3 CPA holders”
In practice, we cannot say that there is a team that is identifiable. This makes Bitinfi an unreliable platform to send your digital assets to for investment or trading despite its claim that it is
“dedicated in building an open and efficient crypto trading system and community.”
It is surprising that the platform’s Zendesk has not been operational. This means that people who are using the services would have no way of laying complaints if something goes wrong. It is even possible that there are people who have signed up without checking this up.
Who knows why the service shut down its support? Although we do not preempt the situation, the experience of some users would explain why you should avoid sending funds to this exchange.
How would you feel using an exchange for your investment and possibly build your funds on it with the expectation that you would use it later, only to find out that you couldn’t withdraw it when you needed it? This is the likely scenario that an investor would encounter with Bitinfi.
Here’s the experience that a user shares on BTT:
“On July 11, 2019, I requested for withdrawal of my funds from Bitinfi, but since then, the withdrawal has been pending. Also, I couldn’t reach the support because it’s dead. When I tried checking the txid, I realized it wasn’t showing at all.”
Obviously, the exchange has no plans of sending the funds since it is standard practice that every transaction should be monitored on the blockchain. That there is no txid means that the funds were not sent by the exchange. So the system either doesn’t work or they’re intentionally not releasing investors’ funds.
There are legitimate exchanges that are regulated which every Bitcoin investor should consider using. In fact, sending your coins to an unknown exchange is a risk that you shouldn’t take.
Whether you are investing or trading, always use a well-known exchange that has built a reputation such as our top recommendation that would help you increase your assets value through copy trading.
What are your views about Bitinfi? Please share them using the comment box below.