cryptocurrency exchange bitfinex

Cryptocurrency Exchange Bitfinex Introduces Sub-Account Feature

Cryptocurrency exchange Bitfinex releases a new feature on its platform. Institutional traders worldwide can now create up to 100 trading accounts within one master account. According to the announcement, the ‘Sub-Account’ feature in Bitfinex is enabled in response to the flowing customer demand. It will allow users in the first place to deploy various trading strategies – said Bitfinex.

Sub-Account Feature by the Cryptocurrency Exchange Bitfinex

Introducing the Sub-Account feature, Bitfinex says it will allow users to create multiple trading accounts within a single organization and offer control access on an account level. Also, the new feature will provide several benefits to its users.

Some of the benefits are:

  • Bitfinex will use the combined trading volume of all linked accounts, offering a shared volume with fee discounts across all accounts based on the cumulative fee tier.
  • The feature will facilitate users with the capacity to experiment with many trading strategies at the same time. This will enable traders to track their strategies more accurately.
  • If a user’s account is verified, the customer can decide which sub-account to share verification data, enabling the chosen account to benefit from all the advantages of verification status. Alternatively, each sub-account can be verified individually.
  • A user taking advantage of this service will be able to transfer cryptocurrency funds between the master account into the wallet of a chosen sub-account.

When Paolo Ardoino, the CTO at Bitfinex, was questioned regarding the new feature, he said the media that a trading fund can divide trading accounts between different traders. And reconcile profit and loss across each trading account. As a result, this will create transparency as the performance of each individual trader is available.

Bitfinex: Not the Only Crypto Exchange to Offer this Feature

Indeed, Bitfinex isn’t the only crypto exchange that offers this feature. Binance has been offering up to 200 sub-accounts creation facility since December 2018. Recently, Gemini comes into this offering list by introducing the feature with an unlimited number of sub-accounts.

In general, crypto exchanges appear to be attracting institutional investors. Huobi Group just yesterday launched a brokerage platform targeted at corporates and high net worth individuals. Huobi Brokerage aims to offer the best order execution by routing clients’ orders to several crypto exchanges and over-the-counter trading desks. It also supports block trading, customized financing, and other solutions that appeal to institutional traders.

When a sub-account is created it links to a user’s primary account, which will become the customer’s master account. A master account has exclusive authority to set up sub-accounts with a cap of 100 different accounts. A master account can perform a variety of functions including:

  • Switch access to view and make changes to the various sub-accounts
  • Set security restrictions on sub-accounts
  • Set the desired verification status on each sub-account

So, what you think regarding this new release by Bitfinex? Do let us know in the comment section