Bitfinex Review 2021: Features, Pros & Cons
It is difficult not to hear about Bitfinex when you are looking for the best cryptocurrency exchanges globally. This veteran exchange is almost as old as Bitcoin and has seen the growth of cryptocurrencies and the DeFi ecosystem. Learn more by reading this Bitfinex review.
- Operating Since 2012
- Currencies Supported 199
- Fees Varied. Read fees section.
- Deposit methods Bank wire transfer and cryptocurrency
- Fiat currencies Yes
- Verification methods KYC
- Margin trading Yes
- Futures trading Yes
You might as well consider Bitfinex as a superb place to buy, sell, and trade Bitcoin and altcoins without a doubt.
However, before you go ahead and start trading, you should know a few things about it. If you have just begun with crypto trading, you may have some doubts about fees, deposit methods, features, etc.
In this review, we will answer all the potential questions you may have about the exchange. We will analyze the past and present of the crypto exchange to understand whether Bitfinex is a suitable choice for most people.
History of Bitfinex
The history of Bitfinex goes back to the early days of Bitcoin itself. It was founded in December 2012. Since then, the company has offered cryptocurrency trading and related financial services to customers from 52 countries.
Since its inception, it had to face several digital threats, including when an attacker stole 1500BTC from the service. However, the company has learned from these attacks and enhanced the security system to a great extent. As a result, it has managed to regain its image as a reliable and trustworthy international crypto exchange.
As of 2021, it offers an immense variety of crypto-based services to customers from different parts of the world. In addition to providing the typical crypto exchange services, it has added trading-based services to its portfolio.
Even though it has its headquarters in Hong Kong, it has been registered in the British Virgin Islands. The parent company behind this exchange is called iFinex Inc. Due to some restrictions, it does not accept customers from the United States.
Therefore, unless you are from the United States, you can have a smooth cryptocurrency trading experience via it.
Is Bitfinex safe?
Along with being a long-running, top-tier exchange that offers liquidity, Bitfinex allows you to trade Bitcoin as well as other popular digital assets. They also provide margin funding, margin trading, and a customizable interface.
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Bitfinex is one of the most popular crypto exchanges in the market right now. Even without allowing customers from the United States, it has managed to create an impressive user base. It has happened even after the exchange faced some attacks in the early years.
However, we think we should look at these attacks and the following actions from Bitfinex from a positive vantage point. The attacks allowed the crypto exchange to understand the problems in the security system and fix them effectively. More importantly, we could say Bitfinex doubled its security guards to stop further attacks of any kind.
It is one reason why Bitfinex has not faced any kind of security problem in the past couple of years.
It has also followed some additional steps to improve overall security. For instance, customers can use two-factor authentication to prevent attacks. Similarly, the exchange can detect the changes in IP address, which will prevent hijacking attempts. The company also takes the best care to fix the issues if any arise during the usage.
The exchange takes the necessary steps to protect your crypto-assets in hot and cold wallets as well. It has also 24/7 customer support.
Long story short, it is one of the safest crypto exchanges in the world. Sure, it does come with a few restrictions.
Bitfinex features at a glance
Many things, other than security, matter when it comes to choosing a crypto exchange. We will look at some of those aspects, such as fees, trading volume, deposit methods, etc.
As we would expect from reliable digital currency exchange, it is straightforward about the fees.
But you may need more time to understand the Taker-Maker fee structure it is following. According to the system, you may have to pay either the Taker’s fee or Maker’s fee based on which side of the trade you are.
As we said, trading fees on the platform are split into two: maker’s fee and taker’s fee. In this model, a taker is someone who accepts the trade for an existing order. On the other hand, a maker will place a new order, which will cause different fees.
Bitfinex is one of the exchanges that provide a rebate to customers for being more active in the market. When the trading volume increases, you can expect the maker’s fee to go down.
As of now, if you have traded less than $500,000 in the last 30 days, you have to pay a maker’s fee of 0.10%. However, if you have traded more than $1,000,000, the maker’s fee comes down to 0.06%.
When it comes to Taker’s fee, the numbers are a bit different. If you have traded less than $7,500,000 in the last 30 months, you have to pay a taker’s fee of 0.200%. When you cross that limit, you can enjoy a rebate.
The exchange offers an additional discount for customers who use UNUS SED LEO, the token designed by the parent company of Bitfinex. You can check the official page of Bitfinex to know the fees in detail.
There are a couple of options you can use to withdraw money from it. The fees and minimum limits are different for each of these methods.
You have to pay a fee of 0.100% for a bank wire transfer. The minimum amount for withdrawal is $60 or €60. The withdrawal process may take up to a few business days.
It charges a 1.00% fee if you want an express bank wire transfer, though. In this case, the limit is $100 or €100. However, you can receive the funds within 24 hours.
In addition to these, it allows withdrawals using many crypto-assets. Some of these transactions are free of cost, while others are not. By the way, the internal transfer of digital assets within Bitfinex is free.
By the way, you can earn some extra discounts by verifying your account to the fullest. You can also enjoy additional trading-based features when you do so.
One of the best things about it is the lack of trading limits. If you have verified your account to the top level, you can enjoy all the trading benefits. Besides, as we mentioned earlier, the platform would charge you cheaper when you trade more.
This characteristic is one of the reasons why experienced traders use it. Therefore, even when it comes to high-value transactions, the platform can scale itself. You may also note that fees are very low when handling a tremendous amount of crypto — even when withdrawing your funds via fiat currencies.
Compared to other crypto exchanges, it supports a broader variety of cryptocurrency assets. It means the platform is suitable for those who want to diversify their crypto portfolio. The prominent coins from the collection are:
- Bitcoin Cash
- Ethereum Classic
- Tether (USDT)
- Ripple (XRP)
This list is not complete, as you can guess. If you want the full list of cryptocurrencies and digital tokens that it supports, you should check out the official support page. However, in most cases, you can find the desired cryptocurrency or token on that list. Therefore, compatibility would not be a big problem when you are dealing with it.
Like most crypto exchanges out there, it also supports most of the countries in the world. Due to regulations, the company has to restrict users from the following countries:
- United States
Yes, the United States is one of the countries not supported by Bitfinex. If you are from the US, you must not use Bitfinex for buying/selling/trading cryptocurrency. Even the indirect use of the platform is prohibited. If you break these regulations, your transactions could be at risk.
You can choose between many methods to deposit funds into your account.
Depositing funds to your account using any of the supported cryptocurrencies is easy. The best part is that you can choose between volatile cryptocurrencies and stablecoins like Tether. In either case, there will not be any deposit charges.
If you want to use fiat currency to make a deposit, you have many options. You can use USD, EUR, GBP, and JPY to deposit the amount to the account. Using a bank wire transfer to deposit the amount is a costly affair, and it charges a 0.100% fee.
Besides, the minimum amount should be equivalent to $60 or €60.
How to buy crypto on Bitfinex in 5 easy steps?
Purchasing the desired cryptocurrency using Bitcoin is an easy task. You have a couple of options to choose from, but you can finish the process in a few minutes. Here are the five steps you can follow to do this.
Step 1: Register for an account
You have to register for an account on Bitfinex. You will have to complete the KYC process before you can start buying and selling crypto-assets via the platform. Depending on the verification level you need, the KYC approval process may take up to a few days.
Step 2: Set up payment processors
Once you have got the account approved, you have to set up the payment processors. The options may vary depending on the verification level. They also rely on the amount of trading you have done in the past.
Step 3: Choose payment methods
Now, you have to go to the Deposits page and choose from the available payment methods. You can choose between payment methods like credit cards, debit cards, and bank transfers. You can deposit funds using cryptocurrency assets as well. The transaction fees may vary based on this.
Step 4: Select an asset to buy
After you have added sufficient funds, you can select the cryptocurrency or digital token you want to buy. As we said, Bitfinex supports an immense variety of tokens, and you can choose any of them.
Step 5: Withdraw to your wallet
In the last step, you have to provide the destination wallet. The next step is processing the payment, which may take up to a few minutes. Once Bitfinex has approved the payment, you can find the coins in your wallet.
As you can see, the process is straightforward and does not require any kind of technical knowledge. Even if you have not bought crypto-assets before, you can complete this process in a few minutes.
Other features of Bitfinex
We will now look at some of the additional features on the Bitfinex exchange/trading platform.
It is another reason why experienced investors choose Bitfinex over other trading platforms in the market. As you know, making a profit from cryptocurrency requires a considerable amount of capital. Not everyone might have this amount of funds ready at their hand.
At such times, you can use the peer-to-peer margin funding platform from Bitfinex to borrow money and trade. Bitfinex has integrated it into the service so that customers can even choose between multiple funding options at times.
Of course, you need to complete extra steps of verifications to enable it for your account. Even when you are approved, there are some restrictions based on the trading pair. For instance, when you want to trade specific pairs, you may need higher collateral.
However, the wallet should have 10% of the value position you want to open. For instance, if you’re going to open a position of 10000USD value, your margin wallet should have 100USD.
As you can guess, Bitfinex will charge interest for the funds you borrow via the platform. There are also options to manually reserve funding. You can know more about it once you have registered for an account on Bitfinex. Bitfinex has a fully-fledged support page for it as well.
Bitfinex also offers one of the best mobile trading experiences in the market. The Bitfinex mobile app is available for Android and iOS and allows advanced trading through a simple User Interface. First of all, the app shows all your portfolio details on a single screen.
You can easily navigate between trading pairs and different assets to make and manage order types. The system updates the app regularly to give you instant updates for executing trades.
The Bitfinex trading app is not plug-and-play, though. Once you have installed the app on your device, you have to create an API key and set it up. After this, you can scan the QR code from the Bitfinex dashboard and keep running the mobile trading app.
You can use the Bitfinex account to engage in lending services as well.
As we said, Bitfinex is a peer-to-peer platform, and it provides funds to users via margin trading. If you have cryptocurrency investments sitting idle, you can check out various lending products from Bitfinex.
You can use BTC, USDT, ZRX, ETH, etc., for lending and the payout options are very easy. As a trader, you will not have trouble navigating around the lending services dashboard either.
Bitfinex also has a crypto loan service called Bitfinex Borrow. This service allows you to borrow crypto and fiat currencies by submitting the coins you have as collateral. For instance, you can borrow 100USD by providing the corresponding amount of BTC as the collateral.
We believe these features make Bitfinex a superior crypto exchange and trading platform by a long shot.
Advantages and disadvantages of Bitfinex
- Bitfinex is an all-in-one trading platform that is 100% scalable. As a crypto exchange, it can catch up with your varying needs as well. First and foremost, there are no trading limits, which means you can take your trades to practically any level.
- Bitfinex also offers a bunch of lending and staking options to its customers. They are an excellent way to earn revenue without involving in risky trading. On the bright side, the service offers flexible payout options as well.
- Even though the User Interface of Bitfinex is a little complex, it provides all the information you need for an informed market decision. Once you have gotten the hang of the UI, managing your assets is an easy task via Bitfinex.
- The margin trading options are beneficial to traders who do not have much capital. The exchange allows you to borrow money from peers and pay back the loan after making some profit. It is superb that the borrowing options are well-integrated into the platform.
- Compared to its competitors like Binance, Bitfinex allows you to buy and trade an immense variety of crypto coins and digital tokens. You can even use a credit card or debit card to purchase the crypto-assets you like on your portfolio.
- While the taker fee system is a little complex to understand, it is very effective. You can save a lot of money by trading more on the platform. In comparison with competitors, the withdrawal fees on Bitfinex are negligible.
- If you are entirely new to cryptocurrencies and trading, you may need a lot of time to get used to the dashboard. Sometimes, we feel Bitfinex presents too much information on the dashboards.
- The verification process for Bitfinex KYC is extensive and time-consuming. At times, the process may take up to a few business days, which is not convenient.
- The platform is not yet available for customers from the United States. However, you can use US Dollar (USD) as a payment/deposit/withdrawal currency.
The bottom line
This is the end of the Bitfinex review, and here is what we think.
Bitfinex may have had a rough beginning as a crypto exchange due to the hacks and everything. But that did not stop the company from growing into a fully-fledged crypto-based service provider.
Today, you can count on Bitfinex for a variety of trading needs. The dashboard offers a pretty advanced overview of the assets. Finally, Bitfinex offers one of the best mobile trading apps we can find in the current market.
The only major problem is that US residents cannot use the platform. Also, you may need some more time to understand all the features of the exchange/trading platform. However, if you can take that effort, Bitfinex is the perfect choice for you.
If you’d like to see how Bitfinex compares against Coinbase, click here.