Bitfinex Review 2022
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Bitfinex is a leading cryptocurrency exchange offering advanced trading products and options at competitive rates. This 2022 review will unpack all you need to know about Bitfinex from trading platforms to order books, lawsuits and more. Read on to find out about one of the biggest names in crypto trading.
The founders of Bitfinex, Giancarlo Devansini and Raphael Nicolle, established the exchange in 2012 in the British Virgin Islands. Today, the firm is based in Hong Kong and is run by CEO, JL Van Der Velde. iFinex Inc is the owner and operator of the exchange.
The company’s net worth is valued at over $800 million and its customer base is constantly expanding. Average 30 day trading volumes now regularly exceed $58 billion.
The cryptocurrency exchange has grown into one of the world’s largest, operating globally across the UK (GBP), Europe (EUR), Japan (JPY), and beyond. Importantly, its services are best suited to experienced or professional traders owing to the advanced suite of products available.
Bitfinex offers a seamless trading experience. Order books with top-tier liquidity enable clients who join to exchange and buy popular cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Neo, among others.
Advanced market analysis is available using a long list of technical indicators and pattern recognition tools. Python 3 API and enhanced reporting are also on offer. The quality and range of features supported is part of what makes Bitfinex’s terminal popular amongst seasoned investors.
The exchange also offers 9 order types (including stop limit), perpetual swaps as part of their futures selection, charts with ample historical data, and the possibility to connect to the Bitfinex Lightning Node which enables instant payments.
In addition, clients can access:
- Margin trading – up to 10x leverage is available through the peer-to-peer margin trading platform. This means you can’t use higher rates, for example, 100x or 300x leverage. As part of the same service, users can claim positions by partially or fully settling trades with funds in the margin wallet.
- Margin funding – the funding market offers a way to earn interest on fiat and digital assets by loaning out capital. Clients make a profit each time an investor borrows capital.
People often compare Bitfinex to exchanges such as Binance and Kraken. Whilst they each have merits, the Kraken terminal is better suited to less experienced traders while Binance offers a wider range of assets without any security concerns. Importantly, traders can try potential platforms using demo accounts.
How To Open A Bitfinex Account
Opening an account with Bitfinex is relatively straightforward. Clients can register for an account on the broker’s website. All clients have to submit contact details to comply with the verification process. It is worth noting that KYC checks can take up to 8 weeks.
Make sure you write down and keep safe any 2FA barcodes, as they can easily be misplaced and you will need them to sign back in. With that said, if your 2-factor authentication is lost, contact customer support.
A personal account can be upgraded to a business account by submitting the necessary documentation. And if you have an invitation code, this is the ideal time to use it and make the most of trading fee discounts.
Products & Tokens
Bitfinex offers over 170 market pairs including leading cryptocurrencies: Ethereum, Dogecoin, Bitcoin, Ripple, Ecomi, and EOS. Users can choose between crypto-only pairs plus tokens paired with traditional currencies like USD (ie: BTC/USD), GBP, EUR, and JPY. Altcoins, such as Tron, Stellar and NEOGAS, are also offered.
Note, derivatives trading is available via the Derivative Wallet which is credited with USDTO.
Spreads & Commission
Bifinex cites some of the most competitive rates. It operates a taker-maker fee model. Those that fulfill existing orders are considered takers. Traders that place new limit orders are considered makers.
Taker fees vary between 0.2% and 0.055% whilst Maker fees range from 0.1% to 0.0%. There is no trading fee for large orders conducted through the OTC desk. When comparing Bitfinex fees vs Binance, the former comes in slightly more expensive, but still within the industry standard.
Bank wires have a 0.1% deposit and withdrawal fee. This can increase to 1% for international withdrawals.
The minimum deposit and withdrawal limit is $10,000. A comprehensive breakdown of the fee structure can be found in the Fees page on the Bitfinex website. Prices are quoted in a range of currencies for ease.
The highest leverage offered by the exchange is 10x. This is fairly low, but it provides a good cushioning for beginners who haven’t developed robust risk management strategies. In addition, cryptocurrencies are volatile and a small swing with leverage can wipe clean a position.
Bitfinex offers a complete investing experience on the go via their mobile app. View positions, open orders and access your history in just a few clicks. The app can be set up in three simple steps:
- Download from the App Store or Google Play Store
- Create a new API
- Scan the QR code
Bitfinex Payment Methods
Bitfinex accepts fiat deposits in GBP, EUR, JPY and USD. Fiat deposits can be actioned by wire transfer only. Deposits can also be made free of charge in Bitcoin, Litecoin, Ethereum, Zcash, Monero, Dash, Ripple, Iota, EOS, and other cryptos.
The withdrawal and deposit time depends on the chosen coin, but it usually takes a few minutes. For expedited cryptocurrency deposits made via Tether, additional verification may be required.
Bitfinex offers a demo account. Paper trading is a simulation of live markets that gives investors a risk-free opportunity to learn how to buy and sell crypto and develop strategies. To sign up for a paper trading account, log in to your Bitfinex account and head to the sub-account section.
A demo of Bitfinex’s popular trading interface is also available to view on the broker’s website. Click ‘View demo’ to access it.
Bonuses & Promotions
Bitfinex does not offer any sign-up bonuses or promotional codes, as is expected with established exchanges. The platform does, however, offer competitive rates once you’re an account holder.
Regulation & Licensing
Bitfinex is registered under the jurisdiction of the British Virgin Islands, but is not regulated by any official licensing body. Unregulated exchanges cannot provide the same security assurances. Also, Bitfinex has suffered a number of security breaches, such as the 2016 hack, and there is no guarantee it won’t happen again.
The broker provides a range of additional features in addition to its core offering:
- 3commas – find out all you need to know about connecting trading bots and API keys. Similar integration is available with QuantConnect
- Leaderboard – lists the most profitable traders on Bitfinex. Check it out for tips and possible investment opportunities
- Pulse – a social platform and news feed for investors and media partners to share live trading insights and analysis. Users can also access games
Building your knowledge base is essential. Traders should be clued up on the latest funding and lending rates, relevant stocks and shares prices, interest rates and forecasts to put themselves in the best position for success. Advances in technology have made markets increasingly competitive in recent years.
At Bitfinex, account types are based on verification levels: Basic, Basic Plus, Intermediate and Full. The higher the lever, the more functionality the account provides. For example, Basic and Basic Plus can’t access Celsius (lending products), while Intermediate and Full can make use of this function.
The entire list of benefits can be found on the official website.
Bitfinex has a lot to offer prospective traders:
- Web socket
- Quandl data
- Celsius platform
- API Python 3 key
- Transparent fee structure
- Range of cryptocurrencies
- Advanced platform features
- Low trading and withdrawal fees
- Staking program (ie: ETH staking)
- BitGo instant for zero confirmations on instant Bitcoin transactions
There are some drawbacks to trading with Bitfinex:
- Doesn’t accept US customers
- Best suited to advanced traders
- Previous security breaches and hacking issues
- The verification process is lengthy taking 6-8 weeks
When comparing Bitfinex vs Coinbase, the latter often comes out on top because of its shorter verification times and international availability. However, when analyzing Bitfinex vs BitMEX, the former arguably comes out on top because of its impressive collection of over 170 coins. In comparison, BitMEX only has 18.
Since crypto can be invested 24/7, the Bitmex platform is available around the clock. This means trading and investment opportunities 365 days a year.
If you need help with issues like invalid token errors, zero confirmed messages or not enough exchange balance status, the support team is helpful. Contact details can be found on the broker’s website under the Contact Us tab. You will need to submit your query as a ticket via an online form. Responses are generally prompt.
To ensure the website and help offered are accessible to as many clients as possible, the website can be operated in 5 languages including English, Spanish and Mandarin.
You can also access additional support via the company’s social media and interactive messaging accounts. Bitfinex is active on Twitter, Telegram, YouTube, Discord, and LinkedIn.
So, is it safe? Bitfinex’s history has been plagued by a series of security breaches. In 2015, the exchange was hacked and 1,500 Bitcoins were stolen. In 2016, the firm suffered a second breach, this time 120,000 Bitcoins were taken. The incident was the second largest of its kind and prompted a lawsuit and extensive investigation.
The broker has since made steps to improve its security. It implements the Google Authenticator feature for login and withdrawals. The 2-factor authentication (2FA) process bolsters account security but can be reset if needed, for example, if it’s not working, if your account has been frozen, or if a client gets a new phone.
If investors are looking to withdraw larger sums, they must undergo a more thorough verification process. These are standardized measures for anti-money laundering (AML), know your customer (KYC), and counter-terrorism financing (CTF) checks. Different verification levels exist and processing times vary according to the level of verification required, public interest and the sum withdrawn.
If you’re an experienced crypto investor looking to trade high volumes, Bitfinex is a good option. Its platform hosts a range of advanced features, an extensive suite of crypto coins, plus a transparent fee structure. However, it’s worth noting that the company’s history has been hit with security breaches, not least the Tether lawsuit which stipulates claims of money laundering.
Bitfinex accepts traders from Australia, Thailand, Canada, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries.
Traders can not use Bitfinex from United States, Bosnia And Herzegovina, Korea, Iran, Iraq, Syria, Uganda, Vanuatu, Yemen, Ethiopia.
Compare Bitfinex with similar brokers that accept traders from your location. Among available brokers these are the most similar to Bitfinex:
- Binance – Binance is one of the leading online crypto exchanges offering Bitcoin.
- Kraken – Kraken is a top-rated cryptocurrency trading exchange offering the largest tokens and altcoins by market cap.
- Uphold – Trading in the Uphold environment offers a one-stop-shop for all your crypto requirements.
- Gemini – Gemini is a leading crypto trading exchange with low fees and a long list of altcoins.
Bitfinex Comparison Table
|Markets||Crypto||Crypto||Crypto||Stocks, Commodities, Crypto||Crypto|
|Minimum Trade||$10 – $25||$10||Varies upon the crypto traded||$1||0.00001 BTC|
|Regulators||–||FCA||FCA, FinCEN, FINTRAC, AUSTRAC, FSA||FCA, FinCEN||FCA|
|Bonus||Referral codes||–||Lower fees when trading volume exceeds $50,000 in 30 days||–||–|
|Detailed Comparison||–||Bitfinex vs Binance||Bitfinex vs Kraken||Bitfinex vs Uphold||Bitfinex vs Gemini|
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Bitfinex vs Other Brokers
Compare Bitfinex with any other broker by selecting the other broker below.
Is Bitfinex A Good Exchange?
If you are a professional or experienced trader, Bitfinex has a lot to offer. Its advanced features, intuitive interface and range of tokens make it an attractive option. We do, however have concerns regarding the safety of client funds.
What Are The Minimum Deposit And Withdrawal Sums At Bitfinex?
The minimum deposit and withdrawal limits are set at 10,000 USD/EUR/GBP. The minimum order size ranges from 10 USD to 25 USD.
How Can I Trade With Bitfinex?
To get started with Bitfinex, sign up on the broker’s website where you will be directed to an online form. Fill in your details and click submit. Once verified, you can start investing.
Is Bitfinex A Wallet?
Bitfinex is a cryptocurrency exchange. The broker supports three wallets: an Exchange wallet, a Margin wallet and a Funding wallet. Note that deposit addresses created before August 2016 have been invalidated.
How Can I View My Bitfinex Transaction History?
For an overview of your trading history, head to ‘Manage Account’ and then ‘Reports’. Reports can be downloaded for all trades and orders.
|Bitfinex is among the best crypto exchanges for experienced investors with a free mobile trading application and low fees.|