Bitfinex review: Pros, cons and more

Our Verdict

Our Verdict

Bitfinex is a cryptocurrency exchange platform that provides trading services for a variety of cryptocurrencies. It offers advanced trading features, including margin trading, derivatives trading, and lending services. Founded in 2012, Bitfinex has grown to become one of the largest and most reputable exchanges in the cryptocurrency market.

Pros

• API support
• High liquidity
• Advanced trading features
• Wide range of cryptocurrencies

Cons

• Customer support
• Controversies and hacks
• Limited fiat currency support

4.9

Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Price

$25

Cryptocurrency trading platform

Yes

Liquidity provider

Bitfinex serves as a liquidity provider in the cryptocurrency market

Introduction

 Bitfinex, a prominent cryptocurrency exchange, offers a wide array of cryptocurrency products and trading features, catering to both novice and experienced users. While it provides a comprehensive platform for managing cryptocurrencies, it's essential to note its regulatory issues, including fines from regulatory authorities such as the Commodity Futures Trading Commission. One significant allegation involves misleading investors regarding the backing of the Tether stablecoin by reserves, raising concerns among potential investors due to the exchange's history and ongoing allegations of misconduct.

Company overview

Bitfinex, established in 2012, stands as one of the older players in the cryptocurrency exchange realm. It has maintained its position as a frontrunner in crypto trading and currently ranks 19th among the largest exchanges globally by trading volume. Offering competitive trading fees, typically at 0.20% or lower, Bitfinex appears appealing to a broad spectrum of users. However, beneath its surface allure lies a checkered past marred by regulatory penalties and allegations of manipulating the cryptocurrency market. The New York Attorney General's investigation uncovered instances where Bitfinex and Tether misled both clients and the market by exaggerating Tether reserves and concealing losses. Additionally, Bitfinex has faced fines for operating without proper licenses and enabling unlawful off-exchange transactions. These incidents cast doubts on the trustworthiness of this cryptocurrency exchange.

Crypto assets offered by Bitfinex

Bitfinex offers a wide selection of over 170 cryptocurrencies for trading, including popular ones like Bitcoin, Ethereum, Terra, Tether, Solana, Litecoin, and Ripple, among others. While it's difficult to list them all here, Bitfinex generally covers a diverse range of in-demand assets.

However, it's essential to note Bitfinex's close association with the Tether stablecoin, which maintains a value of $1. Despite Tether's claims of full backing, past controversies over reserve transparency may lead users to reconsider holding significant amounts of Tether in their accounts, if at all.

Trading experience

Bitfinex provides a user-friendly trading experience, catering to both novice and seasoned traders. For those looking to test their strategies before committing real funds, the platform offers a free paper trading account. This feature allows users to simulate trades with virtual funds, akin to participating in a stock market game.

Bitfinex's active trading platform offers typical features such as advanced charting tools, an order depth chart, and an order book view, along with convenient access to buying and selling supported cryptocurrencies.

For newcomers to active trading, using the mobile app might be preferable. Nevertheless, even the app provides a range of advanced tools, including support for intricate order types.

Bitfinex offers a range of additional options and features, including automated algorithmic trading, a strong API for developers, access to historical pricing data via Bitfinex Terminal, margin trading, and derivatives trading.

When it comes to fees, Bitfinex stands out with competitive rates. Most trades incur either a 0.10% maker fee or a 0.20% taker fee, applicable to crypto, stablecoin, and fiat transactions.

By holding LEO currency in your account, you can enjoy reduced fees. Having the equivalent of $1 in LEO grants a 15% discount on taker fees for crypto-to-crypto and crypto-to-stablecoin transactions. With a minimum of $5,000 in LEO, the discount increases to 25% for crypto and stablecoin trades and 10% for fiat transactions. For balances exceeding $10,000 in LEO, the discount percentage varies based on the balance.

Additionally, high-volume traders with monthly activity surpassing $500,000 may be eligible for further fee reductions.

Security

Bitfinex employs typical security measures prevalent in the cryptocurrency industry to safeguard user accounts and funds. These include two-factor authentication, advanced APIs for third-party integration, withdrawal protection mechanisms, and cold storage of customer assets.

However, Bitfinex's security track record hasn't always been stellar. Alongside the regulatory issues mentioned earlier, the platform has experienced multiple hacking incidents, resulting in the loss of customer funds and eroding trust in the platform.

Creating a Bitfinex account

To begin with Bitfinex, you'll undergo a registration procedure akin to other crypto exchanges. It's worth noting that Bitfinex is presently inaccessible to individuals residing in the United States.

If you're situated outside the U.S., the initial step in the account setup involves generating a username and password. Bitfinex mandates personal details and two legitimate forms of government-issued identification to adhere to anti-money laundering and Know Your Customer (KYC) standards. Additionally, you'll be required to provide a selfie to confirm your identity aligns with the provided identification.

Customer service

Similar to many other cryptocurrency exchanges, managing your Bitfinex account is primarily a self-service process. For assistance, users can refer to the exchange’s FAQ and help sections to address queries. Bitfinex employs a support ticket system for email assistance, as there is no provision for phone or live chat support, meaning immediate help isn't available for issues.

Customer satisfaction

Bitfinex has garnered mixed reviews from previous customers on third-party review platforms. Positive feedback highlights the platform's features and automated trading capabilities. Complaints typically revolve around slow customer service responses and delayed withdrawal processes. While Bitfinex's reviews may fare better than some competitors, the overall sentiment reflects the common trend of cryptocurrency companies not receiving high ratings on customer review platforms.

Account management

Users have the ability to manage their accounts via the Bitfinex website or mobile app. Nearly all account settings are self-managed, akin to online banking platforms. The account dashboards and menus on Bitfinex are designed to be user-friendly and intuitive, particularly for individuals familiar with active stock market trading platforms or forex trading applications.

How Bitfinex stacks up against other cryptocurrency firms?

Bitfinex holds a significant position in the cryptocurrency realm, but for those considering crypto trading, there are other prominent exchanges to explore. Let's compare Bitfinex with Coinbase, a popular trading platform among cryptocurrency investors.

• While Coinbase caters to U.S. users, Bitfinex is accessible only to individuals located outside the U.S.
• Bitfinex typically charges trading fees ranging from 0.10% to 0.20%, whereas Coinbase Pro imposes fees of 0.60% for most low-volume traders.
• Both platforms offer basic, active, and mobile trading interfaces for cryptocurrency transactions.
• Coinbase has a close association with the USD Coin (USDC) stablecoin, while Bitfinex is closely tied to Tether (USDT).
• Both Coinbase and Bitfinex have faced regulatory fines from the U.S. government.