Bitfinex Comprehensive Cryptocurrency Review 2022

Avatar

Published

on

When talking about the list of leading crypto exchanges, you cannot miss out on Bitfinex! One of the most popular crypto exchange platforms, having a meager fee rate and more than 100+ cryptocurrencies. Based on the British Virgin Island, its platform successfully operates worldwide, except for the US citizens.  The platform has a vast ecosystem of cryptocurrencies and has many trading options, like margin, spot, paper, and many more. It offers almost everything a trader needs, all power packs in its platform itself; however, it has a history of having regulatory charges, including multiple finds from the Commodity Futures Trading Commission.  But is Bitfinex the right platform for you to get started? Let’s find out in this comprehensive review about the platform.

Pros And Cons of Bitfinex

Pros

  • Bitfinex has over 100+ cryptocurrencies available to store and trade
  • The platform has additional sources to allow users to earn multiple incomes from their crypto holdings
  • Comes with an intuitive trading platform available in multiple languages
  • Competitive fee structure allows users to make the most of their investments.
  • Bitfinex offers leverage with future trading, multiple trade orders, and even spot trading.
  • It also provides 24×7 customer service, making it more reliable and trustworthy.

Cons

  • Bitfinex is not available to the residents of the US and many other countries well.
  • The platform has a history of regulatory missteps and past government fines for delusive practices.
  • The suspicious engagement of Tether stablecoin and Bitfinex in a cautious transaction between them.

Bitfinex At A Glance

Official Website https://www.bitfinex.com
Headquarters  Taipei, TW
Founded In  2012
Native Token UNUS SED LEO 
Number of Listed Cryptocurrencies 150+
Trading Pairs 100+
Minimum Deposit Depends on the currency chosen
Trading Fee Fees charged depend on the basis of trade
Withdrawal Fees Depends on the currency chosen
Customer Support Help Page, Ticket
Industry Financial Software
Parent Company iFimex Inc. 
Supported Fiat Currencies 42 

What Is Bitfinex Exchange: Company Overview

Bitfinex is one of the oldest cryptocurrency exchange platforms and was founded in 2012 by Giancarlo Devasini and Raphael Nicolle. Ever since its foundation, the platform has been in the 9th position, ranked among the largest cryptocurrency exchange platforms in the world.  With years of working experience and over 5 million active users across 52 countries, the platform stands out with its high liquidity. In addition, several trading tools and advanced charting options are available across the different trading levels for the users.  Overall, the company behind the platform has done a great job at developing an exchange with global solid support and hosts over 170+ crypto tokens to get started with. Not to forget, Bitfinex also offers relatively low trading fees compared to many platforms. It costs about 0.20 % or less and is suited for traders without prior experience.  However, although the platform stands out with its excellent features and offerings, it comes with a catch. Bitfinex has had a shady past, revolving around many fines and accusations concerning market manipulation.  bitfinex

Cryptocurrencies Supported In Bitfinex  

Bitfinex is an active crypto trading platform where you can easily trade via Spot trading or any other trading process. It has over 100+ currency assets and tokens to trade for its users. Some of the most popular cryptocurrencies available on the platform are Bitcoin (BTC), Ethereum (ETH), TRON (TRX), and emerging currencies like Shibu Inu (SHIB), Dogecoin (DOGE), Polkadot (DOT), and many more including its own token Bitfinex Token (UNUS SED LEO).

Polkadot (DOT) Cosmos (ATOM) Avalanche (AVAX) Solana (SOL) 
Shiba Inu (SHIB) Cardano ( ADA ) Dogecoin (DOGE) Ripple ( XRP )
Bitcoin (BTC ) Ethereum (ETC) Litecoin (LTC) TRON ( TRX )

Besides, the platform is also open to accepting new and promising token projects on its exchange. Therefore, if you’re one of those investors who look forward to new and updated projects, Bitfinex might be the perfect platform for you.

Key Features Of Bitfinex

Bitfinex is one of the largest crypto trading platforms in the world. Ranking among the top 20 crypto exchange platforms, it introduces its users to unique features. To give you an idea, we have listed some features that helped the platform get the limelight it currently enjoys.  

Seamless Compatibility 

The seamless compatibility of the Bitfinex platform is one of its core features. Unlike other trading platforms that are limited in creating an ecosystem, Bitfinex introduces its users to seamless connectivity across all its platforms. Whether you’re using web trading or have installed Android, iOS, Windows, Linux, or macOS, the platform presents you with a simple and easy-to-function platform. The console is detailed and keeps up with its simplicity and user-friendly approach, making the portal easy to surf and functional for almost everyone. 

Trade with Bitfinex

High Liquidity

High liquidity is one of the most appealing features of any given crypto exchange. After all, the higher the liquidity, the better the chances users make the most of their trades and cash out in real-time. This is where Bitfinex stands out with its high rate of liquidity. It offers to order books that offer high liquidity, allowing its traders to exchange their digital assets with very low slippage easily, and offers different types of trading, like Thanks to the high trading volumes and active users' wallets over the platform, users can make the most of their BTC/USD trading volumes. This way, users signing up for the platform also have a guarantee of price stability, helping them avoid additional transaction fees. 

Numerous Trading Assets On Offer

The multiple trading assets on offer by Bitfinex are another primary reason you should consider the platform. As an industry leader, the platform has a global connection with numerous markets, allowing users to trade numerous crypto assets and diversify their portfolios.  Once signed up, you can easily access any of the following trading assets: 

  1. Margin Trading: Bitfinex allows users to access up to 10x leverage on their trades via the P2P margin funding process.. 
  2. Margin Trading Funding:The platform provides a secure and easy way to earn interest on digital assets and fiat currencies by poviding funds to traders who want to trade with leverage and can renew the offers automatically once they they expire. 
  3. Derivatives: A trading class limited to advanced users, Bitfinex allows its traders to get started with Derivatives to reduce the risks during the high volatility of digital assets. 

Besides, users over the platform can also leverage trailing stop, limit, fill or kill, market, stop, hidden, iceberg, OCO, and post-only limit orders.  

Referral Affiliate Programs: 

Like many of its competitors, Bitfinex also provides its users access to multiple rewards via its affiliate program. However, the rewarding programs make the platform a reliable experience. Bitfinex lets you earn extra rewards and money with the help of its Affiliate programs.  The affiliate program allows traders to earn an extra commission-based income with 3 degrees of connections; all you have to do is generate your invite links on the Affiliate dashboard. Then, anyone who joins in via that link becomes your referral, where you earn up to 18% on the 1st degree, 6% on the 2nd degree, and 2% on the 3rd degree. 

Additional Features Of The Platform

Listed above are some of the core features of the Bitfinex platform. However, that’s not all! There’s more to the platform that makes it reliable and secure. Therefore, to give you an idea, we’ve also explored some additional features of the platform in the section ahead. 

  1. Bitfinex Terminal: The Bitfinex Terminal is a designed console unit, keeping in mind the advanced users signing up over the platform. It allows the users to enhance their market research, develop algorithmic trading strategies and view historical price action. Besides, it also makes up an excellent research tool for beginners. 
  2. Reliable Customer support: Next up, the dedicated customer support over the Bitfinex platform makes it reliable and supportive for traders of every type. Users over the Bitfinex platform can contact customer support 24/7 via their official email address. Once queried, the platform resolves the grievances within 12 hours.
  3. Corporate Accounts: Bitfinex is designed to keep users of every shape and size in mind. The platform has introduced multiple tiers of accounts. One is the corporate account that offers tailored support systems to the institutional and professional traders to meet their needs. These accounts offer several possibilities, ranging from sub-accounts to expedited verification.  
  4. Seamless API: Bitfinex’s API is designed around speed & to facilitate access to all the platform features and allow the users to integrate with the trader’s platform and products. 
  5. Enhanced Reporting Framework: Bitfinex has an enhanced reporting framework that benefits the traders and the developers; Bitfinex has provided many features, can create comprehensive reports, and makes it easier to measure the trading performances.
  6. Additional Security Via Passcodes: Even after providing a very secure platform, Bitfinex still asks its users or traders to create unique and secure passcodes to prevent their accounts. These codes act as security measures against being hacked or threatened during any malware attack and store its user's passwords in hashed form, making them more encrypted and secure. 

Trading Experience On Bitfinex

Bitfinex offers a very user-friendly trading experience, where experienced traders, as well as beginners, can access the platform with ease. And professional traders will appreciate the features and options offered by the platform. The modes of trading Bitfinex offers are:

Paper Trading With Bitfinex

Paper trading was introduced in response to high customer demand. It is a unique feature available for newly created sub-accounts to help them test new strategies & help them in trading Bitcoins in the market in a simulated environment without depositing real funds.  Paper trading is available for Margin Trading and Exchange, OTC, and Funding Derivatives Trading; it is also available for unverified accounts allowing the new users to understand the platform properly without depositing any funds. 

Bitfinex Honey

Bitfinex trading platform has a unique set of platforms accessible for their traders, one of which is the Bitfinex Honey. Users accessing the platform have the option to create any custom order and have event-driven automated trading strategies.  All the strategies are accessible via Bitfinex Honey, an integration of Bitfinex where their latest development makes it easier to use the strategy without any coding knowledge or developer. An option limited to advanced users, this feature allows users to delve into a seamless trading experience. Overall, the platform seems to be a good start for every type of user, primarily for its user-friendly trading experience. 

Trade with Bitfinex

Fees Structure

Bitfinex charges a meager fee compared to any industry, which helps it to stand out from other platforms. It works on the maker-taker fee model and charges about 0.10% maker fee and 0.20% taker fee and is applied across everything, be it crypto, fiat coins, or stablecoin. This way, the platform allows its users to lower the overall fee based on the volume of their monthly trade. Here’s an overview of the charges based on varying trading volumes. 

Trade Value Maker Fee Taker Fee
Trade value above $0 0.10% 0.20%
Trade value below $500,000 0.08% 0.20%
Trade value below $1 million 0.06% 0.20%
Trade value below $2.5 million 0.04% 0.20%
Trade value below $5 million 0.02% 0.20%
Trade value below $7.5 million 0.00% 0.20%
Trade value below $10 million 0.00% 0.18%
Trade value below $15 million 0.00% 0.16%
Trade value below $20 million 0.00% 0.14%
Trade value below $25 million 0.00% 0.12%
Trade value below $30 million 0.00% 0.10%
Trade value below $300 million 0.00% 0.09%
Trade value below $1 billion 0.00% 0.085%
Trade value below $3 billion 0.00% 0.075%
Trade value below $10 billion 0.00% 0.06%
Trade value below $30 billion 0.00% 0.055%

However, the platform charges some specific fees based on the mode of payment used. Here’s a detailed overview of the different methods:  

Mode of Payment Bitfinex Fee
Wire Transfer 0.10% 
Debit /Credit Card Depends on the currency  ( fee varies ) 
ACH Transfer NA

  Also, according to sources, getting a hold of LEO currency is the native token of Bitfinex, which can give you about 15% off on taker fees. 

How Secure Is Bitfinex?

Bitfinex has one of the most secure trading platforms in the crypto world. The Bitfinex security team continues to improve the end-to-end security measures, improving its auditing process and reducing the attack surface for its infrastructure.  In addition to all of it, the platform also provides many more security measures to protect traders' funds and other malicious attacks.

  1. Cold Wallet: A cold wallet is an offline wallet that is not linked to the internet and has a much lower risk of being compromised. Bitfinex cold storage stores about 99.5% of its user funds and approves transactions via different hardware security modules (HSMs).
  2. Hot Wallet: A hot wallet is a virtual currency wallet accessible through the internet and facilitates cryptocurrency transactions. The hot wallet of Bitfinex keeps only the amount required to complete withdrawals in the queue, which is about 0.5% of its total funds. 
  3. DDoS Protection: Distributed denial-of-service or DDoS attack is a means to disrupt regular traffic at a targeted network, server, or service, by drowning its platform with traffic.

Bitfinex allows DDoS prevention via:

  • Automatic inline mitigation 
  • Intelligent failover and load balance
  • Real-time detections
  • Leading performance and privacy via encrypted connections.

Besides, the platform also offers a vigorous suite of user-defined security measures needed to ensure the security of the funds. Therefore, its users have but keep aside all the security processes the platform provides. Besides, the users can also do the bare minimum from their end to safeguard their accounts. By doing these measures, the trader not only increases their account security but also reduces the number of confirmations required during making any cryptocurrency deposits, prioritizing withdrawals via automatic processing and at the time of login. 

Opening a Bitfinex Account 

Besides, the platform also offers a vigorous suite of user-defined security measures needed to ensure the security of the funds. Therefore, its users have but keep aside all the security processes the platform provides. Besides, the users can also do the bare minimum from their end to safeguard their accounts. Step 1: Search for the Bitfinex website or download it on your device.  Step 2: Once you download Bitfinex’s application or come to their main landing site, you’ll be able to see a Sign-Up portal on the left side of the screen.  Step 3: Complete the registration process, where you need to add your details, your valid-id proof to verify your details, and a selfie as well to match your identity with the ID you have provided.  bitfinex - sign-up Once your account is verified, you can add your payment method, supply funds to your account per your limit, and start trading your favorite currencies without any issue.

Customer Satisfaction

Bitfimex has over 1000+ reviews, is flooded with mixed reviews from its users, and has a rating of 3.3 out of five-star. Among all those review sections, the positive feedback was specifically for the security offered by the platform and its fast & advanced features. However, among all those positive reviews, some were negative, making us realize that the platform still has some parts to be updated. The shortcomings of  Bitfinex are that the customer support section was based on self-service. Besides, the verification process ensured high security but made it very complicated. 

Bitfinex Vs. Competition 

Bitfinex is one of the leading crypto trading platforms in the world, with a wide range of accessible services provided for its traders. However, besides being the main and global platform for its users, it may still not be enough for many new traders who want to start trading.  However, similar to all the features and functionalities, the platform also has certain drawbacks concerning hacks. So if you feel that Bitfinex isn’t the ideal solution for you, let’s check out its overall performance against one of its primary competitors, Coinbase. 

Bitfinex Vs. Coinbase

In terms of active traders and volatility, Bitfinex and Coinbase continue to be the largest crypto exchange platform in the world, with many common factors. But both platforms still have many differences. A detailed comparison is given below.

  • Supported Cryptocurrencies: Coinbase supports about 100+ cryptocurrencies; however, Bitfinex supports more currencies than Coinbase and takes the leadregarding the supply of currencies. 
  • Trading Fee: The trading fee for Coinbase is .60% for most low-volume trades, where the taker fee is 2.00%, and the maker fee is 2.00%, whereas Bitfinex has a standard trading fee of 0.10% as the maker fee and 0.20 % taker fee.
  • Affiliated Programs: Bitfinex offers affiliate earning and referral earning each time a new user joins in using the link provided, whereas Coinbase offers its used rewards for staking their cryptos. This means that Bitfinex has more user-oriented portals where the user can earn extra income. 

Our short but comprehensive overview shows that Bitfinex dominates Coinbase with its exceptional features.

Trade with Bitfinex

Final Approach 

Should You Consider Using Bitfinex?

Although Bitfinex has faced several allegations and fines, it still does not stop the platform from being one of the top trading platforms in the 9th ranking. Below are a few pointers on why you should consider Bitfinex as your exchange platform. 

  1. Low Trading Fee: One of the primary reasons a beginner or an advanced trader would like to trade is its low trading fee. Bitfinex offers a relatively low or approximately equal trading fee to any crypto trading platform. 
  2. Access To Advance Trading Tools: Bitfinex offers a great range of trading tools, which make the whole trading process very simple and smooth, especially if you are an advanced trader. It also offers paper trading and spot trading. 
  3. Updated Security Measures: Bitfinex offers a very secure, smooth, and user-friendly experience. It has several levels of security system, and the security team ensures to develop and growth continuously. It is a great prospect for a crypto trader as it certifies that your funds are stored in a secure and reliable platform. 
  • Multiple Options To Diversify Portfolio: Since the platform is open for users to access new and in-demand crypto projects, they’re at a better chance of making the most of their portfolios. 

Shortcomings Of Bitfinex

Positive reviews and many features do not mean the platform won't have any shortcomings. Some of these notable shortcomings of Bitfinex are stated below: 

  1. Regulatory Complications: Bitfinex had made a headline many times and paid multiple fines for different reasons. The most severe charge was from the New York Attorney General’s Office, which included Bitfinex misleading investors.
  2. Unreliable Customer Service: Bitfinex, at the moment, could use an excellent customer service system where you interact with real customer executives instead of referring to the FAQs section or the automated chat section. The low customer support may have been a significant reason why Bitfinex got a negative review. 

This brings us to the end of our comprehensive overview of the Bitfinex review! Looking at this detailed overview of the platform, it’s evident that it is innovative, has several features, and is safe to get started. However, similar to its perks, the platform also has drawbacks. Therefore, if you’re one of those users who wants to sign up with a safer crypto exchange, you might want to look elsewhere. But while you’re on it, you might want to consider this blog as a reference. All the best!  

FAQs

How to transfer funds to a third-party wallet?

The users can move their funds from their Bitfinex wallet to a third-party wallet via the withdrawal method; it is to be noted that once the withdrawal is done from Bitfinex and successfully processed in the blockchain, Bitfinex takes no responsibility.

Can Bitfinex be hacked?

There’s no assurity of the statement as you never know when a platform is under attack. However, considering its multiple tools and features, it’s safe to say that the platform offers maximum security to prevent such situations.

Can I trade stocks in Bitfines?

Currently, there’s no way you could be trading stocks on the Bitfinex platform. However, given its popularity, the platform might allow users to trade in the future.

Crypto Prices Today:

Trending