Bitfinex Review 2024

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Written By
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Written By
Christian Harris
Christian is a seasoned journalist with decades of experience. He transitioned from tech journalism to finance to follow his interest in investing. He has been trading stocks, futures, forex, and cryptocurrencies for more than 5 years, becoming an eToro Popular Investor. With hands-on expertise across various assets, he offers valuable trading insights.
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Edited By
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James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
Updated

3.9 / 5
Bitfinex is #33 in our crypto broker rankings.
$0
Web Platform
Cryptocurrencies
USD, EUR, GBP, JPY, TRY
Wire Transfer, Bitcoin Payments, Credit Card, Debit Card, UnionPay, Visa, Mastercard, Simplex, Ethereum Payments, Volet, Payoneer, PayPal, Perfect Money, Skrill, Western Union, TransferWise

Pros

  • Bitfinex boasts excellent liquidity across its crypto trading pairs, reducing the likelihood of slippage and ensuring efficient order execution, particularly for large volume trades, making it reliable for frequent traders.
  • After bolstering its roster, Bitfinex now offers access to over 180 cryptocurrencies, from Bitcoin and Ethereum to emerging altcoins with high levels of volatility that may appeal to day traders.
  • Despite a steep learning curve, the Bitfinex trading platform delivers for experienced traders, featuring a comprehensive charting package with 12 timeframes, plus margin trading and various order types.

Cons

  • Although Bitfinex has removed its $10,000 minimum deposit, making it more accessible to newer traders, the fee system remains complicated, with various factors such as trading volume and token holdings influencing fees, potentially leading to confusion.
  • Despite enhancing its security measures with two-factor authentication, Bitfinex still hasn’t escaped its dogged history of major security breaches and regulatory fines.
  • Like many crypto exchanges, Bitfinex operates in a regulatory grey area, which may pose risks for traders, especially compared to trusted crypto trading platforms like eToro.

Bitfinex Review

This Bitfinex review evaluates the trading environment following direct tests and comparisons with suitable alternatives from our 500-strong directory of crypto exchanges and online brokers.

Regulation & Trust

2.5 / 5

Bitfinex emerged as a pioneer among crypto exchanges, however recent regulatory issues have taken away some of its shine.

Having experienced a significant security breach in August 2016, where 119,756 Bitcoin (BTC) valued at approximately $72 million at the time were stolen, Bitfinex has faced various regulatory fines, including those from the Commodity Futures Trading Commission (CFTC), as reported by JD Supra.

More recently, it’s encountered serious allegations from the New York Attorney General’s Office, accusing the exchange of misleading investors regarding its Tether stablecoin. It has also been accused of engaging in cryptocurrency market manipulation.

In addition to its trading services, Bitfinex facilitates peer-to-peer (P2P) financing, operating offshore in the British Virgin Islands.

Nevertheless, like many crypto exchanges, Bitfinex operates as an unregulated entity. This implies that it functions without oversight or supervision from any governmental authority and may not adhere to the same standards and safeguards required of regulated entities.

Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Regulation & Trust Rating
Regulators NYDFS, MAS, FCA FCA, ASIC, CySEC, FSA, FSRA, MFSA, CNMV, AMF
Proof of Reserves Yes Yes No
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Review Review Review Review

Accounts & Banking

3.8 / 5

Live Accounts

Bitfinex offers several account types to cater to the diverse needs of traders:

While Bitfinex doesn’t offer distinct account types for retail traders, it does provide multiple verification levels aligned with KYC, AML, and CTF regulations, impacting platform activity.

These verification tiers ranged from Basic Access to Full. Basic Access affords view-only account privileges, while Basic Plus enables exchange and OTC trading, crypto transfers, and Tether token withdrawals.

Intermediate verification encompasses all investment, lending, and borrowing activities, with most deposit and withdrawal methods accessible, barring international bank transfers.

Upon achieving Full verification, I gained access to all deposit and withdrawal methods, as well as full trading, lending, and borrowing capabilities.

The processing time for Intermediate and Full verification typically took 2-3 working days.

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Christian Harris
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Bitfinex also provides a non-expiring demo account for paper trading, offering a risk-free environment that allows you to practice buying, selling, and developing strategies in simulated live markets.

Deposits & Withdrawals

There are three primary wallets:

You just need to remember that funds are allocated appropriately before executing orders or offers.

Additionally, Bitfinex offers two supplementary wallets:

However, using these wallets may involve specific requirements or limitations based on your verification levels and jurisdiction.

Transferring funds between wallets is swift and straightforward using Bitfinex’s Quick Transfer feature or the Balances box on the Trading page.

When purchasing cryptocurrencies, Bitfinex provides three options:

Each option varies in terms of available cryptocurrencies (new additions regularly), identity verification requirements, fees, and processing times. For example, credit/debit card purchases are typically instantaneous, while purchases through happyCOINS require a minimum of €50.

Making a deposit to Bitfinex platform

Withdrawals can be made in both crypto and fiat currencies, with transaction fees for crypto withdrawals. Bitcoin withdrawals, for example, require a minimum wait time of 12 hours, though in my experience, it’s typically around 2 hours.

Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Accounts & Banking Rating
Payment Methods Bitcoin Payments, Credit Card, Debit Card, Ethereum Payments, Mastercard, Payoneer, PayPal, Perfect Money, Simplex, Skrill, TransferWise, UnionPay, Visa, Volet, Western Union, Wire Transfer ACH Transfer, Bitcoin Payments, Credit Card, Etana, Ethereum Payments, Mastercard, PayPal, Silvergate Bank Transfer, Visa, Wire Transfer Debit Card, iDeal, Klarna, Neteller, Przelewy24, Rapid Transfer, Skrill, Sofort, Swift, Trustly, Visa, Wire Transfer
Minimum Deposit $0 $0 $10
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Review Review Review Review

Assets & Markets

4 / 5

Bitfinex provides access to over 180 digital currency pairs, with a surge of new tokens in 2024, encompassing a wide array of leading cryptocurrencies including Bitcoin, Ethereum, Tether, and Ripple.

This range provides more opportunities than alternatives like Gemini with around 120 pairs, but trails firms like OKX with its 500+ pairs.

Bitfinex is closely associated with the Tether stablecoin, which aims to maintain a value of $1. However, concerns over transparency regarding reserves may prompt caution when holding significant amounts of Tether in your account. While Tether claims full backing of the currency, ultimately, it’s up to you to decide whether to trust this assertion.

Traders enjoy the flexibility to trade crypto-only pairs as well as tokens paired with traditional currencies such as USD, GBP, EUR, and JPY, notable examples include BTC/USD, ETH/USD, and XRP/USD. Additionally, altcoins like Tron, Stellar, and NEOGAS are available for trading.

However, while Bitfinex provides leverage up to 1:10 for crypto margin trading, for higher leverage options like 1:100 or more, alternative exchanges like Binance are preferable.

Moreover, the exchange offers clients the opportunity to generate passive income from their cryptocurrency holdings through its staking and lending programs.

With staking, I deposited my chosen cryptocurrencies (currently supporting 10 coins) into my Bitfinex account. Bitfinex securely held the majority of staked tokens in cold storage and staked only a fraction of assets to minimize risks. In return, I received weekly interest payments, the amount of which varied depending on the asset.

Staking incurred no fees, and there was no requirement to lock in crypto for month-long periods, making it convenient if I decided to sell spontaneously.

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Christian Harris
Author
Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Assets & Markets Rating
Trading Instruments Cryptocurrencies Cryptos Stocks, ETFs, Options, Crypto
Margin Trading Yes No Yes
Crypto Mining No No No
Crypto Staking Yes Yes No
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Review Review Review Review

Fees & Costs

3.5 / 5

While Bitfinex’s fees slightly surpass those of Binance, they still align with industry standards. However, it’s important to distinguish crypto exchange fees from those of traditional brokers.

In crypto exchanges like Bitfinex, fees hinge on the trade’s nature. Buyers typically face higher fees as they’re perceived to remove liquidity from the market, while sellers, contributing liquidity, encounter lower fees. Notably, no trading fees apply to large orders processed through the OTC desk.

Still, my experience with Bitfinex unveiled a somewhat intricate fee setup influenced by factors such as my 30-day trading volume and holdings of Bitfinex’s proprietary cryptocurrency, LEO. Thankfully, their fee calculator eased the process.

Typically, transactions involving cryptocurrencies, stablecoins, and fiat currencies incur a maker fee of 0.10%, and a taker fee of 0.20%. For derivative transactions, the maker fee drops to 0.02%, with the taker fee at 0.065%. These fees replace the traditional broker’s standard commission.

💡
Holdings of LEO currency may qualify you for fee discounts, depending on the quantity held and transaction type. For instance, holding $1 in LEO could secure a 15% discount on taker fees for crypto-to-crypto and crypto-to-stablecoin trades.

Maintaining a minimum of $5,000 worth of LEO coins garners a 25% discount on taker fees for cryptocurrency and stablecoin trades, along with a 10% discount on fiat trades. Additionally, balances exceeding $10,000 in LEO tokens unlock further percentage discounts, personalized to account balance.

Borrowing funds on Bitfinex incurs a maker fee twice – upon loan initiation and repayment. Interest rates and lending fees vary based on the involved asset or coin.

Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Fees & Costs Rating
Crypto Spread Taker (0.2% to 0.055%) and maker (0.1% to 0.0%) Transaction fee from $0.99 BTC 1%
Inactivity Fee $5 $10
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Platforms & Tools

3.3 / 5

The proprietary web platform provides essential tools for technical analysis – ideal for day trading. However, for those new to cryptocurrency trading, the experience might initially seem daunting compared to platforms like eToro or Kraken.

Bitfinex’s platform impresses with an array of advanced features, including drawing tools, order book data, a rolling news bar, and high liquidity to minimize slippage.

During testing, I utilized 12 timeframes ranging from one minute to one month, diverse chart types such as line and candlesticks, and an array of indicators like moving averages and stochastic oscillators.

Additionally, Bitfinex caters to various trading strategies with multiple order types including limit, stop, and trailing stop orders.

Bitfinex charting platform

Bitfinex Honey also proves to be a valuable tool, allowing you to execute numerous algorithmic orders directly from web browsers, streamlining the trading process.

Moreover, the Bitfinex Terminal facilitated strategy backtesting using historical market data, offering invaluable insights. Through APIs, clients can integrate with platforms like 3Commas and QuantConnect to deploy bots to help enhance their trading capabilities.

Comparing Bitfinex to leading exchanges like Binance and Kraken, each platform has its own strengths: Kraken’s platform is often favored by less experienced traders, while Binance boasts a broader range of assets with added complexities.

Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Platforms & Tools Rating
Platforms Web Platform ActiveTrader, AlgoTrader, TradingView eToro Web, CopyTrader, TradingCentral
Mobile App iOS & Android iOS & Android
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Review Review Review Review

Research

2.8 / 5

Bitfinex Pulse is an excellent resource for staying informed about the crypto market. This social investing platform delivers news and analysis directly to your device, covering a wide range of topics from NFT games to price predictions for various cryptocurrencies like XRP.

Moreover, Bitfinex Alpha provides insightful articles with market analysis and commentary. Navigating through the platform’s blog, I discovered educational content aimed at expanding users’ knowledge base, alongside tutorial videos and articles guiding traders on effectively utilizing the platform.

Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Research Rating
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Review Review Review Review

Education

3 / 5

Bitfinex’s educational resources are a valuable aid, especially for beginner crypto traders. These resources encompass tutorials, articles, and guides covering a wide array of topics, including cryptocurrency basics, trading strategies, market analysis, risk management, and platform navigation.

One particularly beneficial learning tool I’ve really enjoyed is Bitfinex’s active YouTube channel, which delves into intriguing topics such as Bitcoin halving events.

That said, I’ve noted that while the content is informative, there isn’t much hand-holding, and most of it may prove challenging for novice traders to grasp fully.

Bitfinex channels on YouTube

Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Education Rating
Visit Visit Visit Visit
Review Review Review Review

Customer Support

2.8 / 5

Similar to many cryptocurrency exchanges we’ve tested, Bitfinex operates on a self-service model for account management.

Assistance primarily comes from the exchange’s FAQ and help sections, offering a wealth of information covering various subjects, from beginner’s guidance to trading and lending insights, API documentation, account management, verification procedures, and deposit/withdrawal processes.

For additional support, email communication through a support ticket system is available, albeit without phone support. Based on my experience, I typically receive an email reply within up to 12 hours, which is relatively slow.

I’ve also encountered some inconvenience having to leave the trading platform and navigate to the exchange’s main website for live chat support for more urgent issues – not ideal if you’re day trading crypto.

To accommodate its diverse user base, the website offers support in five languages, including English, Spanish, and Mandarin.

There is also additional assistance through Bitfinex’s active presence on social media platforms like Twitter, Telegram, YouTube, Discord, and LinkedIn.

Comparison of suitable alternatives 2024
Bitfinex Gemini eToro
Customer Support Rating
Visit Visit Visit Visit
Review Review Review Review

FAQ

Is Bitfinex A Good Broker For Day Trading?

Bitfinex offers a range of features suitable for day trading, including a powerful trading platform complete with advanced charting tools and deep liquidity.

However, traders should be aware of the platform’s history of security breaches and legal challenges, which may affect their decision to use it for day trading.

Is Bitfinex Legit Or A Scam?

Bitfinex is a legitimate cryptocurrency exchange with a long-standing presence in the industry.

While it has faced security challenges and controversies in the past, it continues to operate as a prominent platform for trading digital assets, offering advanced features and a wide range of cryptocurrencies.

Is Bitfinex A Regulated Broker?

Bitfinex is not regulated by any financial authority, as it operates in the cryptocurrency market, which generally lacks extensive regulatory oversight.

Traders should be aware of the risks associated with trading on unregulated platforms and conduct thorough research before engaging with Bitfinex or any similar exchange.

Is Bitfinex Suitable For Beginners?

Bitfinex is not the best choice for beginners due to its complex trading interface and advanced features, which can be overwhelming for those new to cryptocurrency trading.

Beginners might find platforms with simpler interfaces and more educational resources – such as eToro – more suitable for their needs.

Does Bitfinex Offer Low Fees?

Bitfinex’s fee structure is competitive, however fees vary based on factors like trading volume and token holdings.

While some fees may be lower compared to other exchanges, especially for active traders, prospective users should understand and calculate their specific costs before trading on the platform, making use of Bitfinex’s fee calculator.

Top 3 Alternatives to Bitfinex

Compare Bitfinex with the top 3 similar brokers that accept traders from your location.

  1. IG – Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

  2. Interactive Brokers – Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

  3. Kraken – Kraken is a leading cryptocurrency exchange with a proprietary trading terminal and a list of 220+ tradeable crypto tokens. Up to 1:5 leverage is available with stable rollover fees on spot crypto trading and up to 1:50 on futures. The exchange also supports crypto staking and has an interactive NFT marketplace.

Bitfinex Comparison Table

Compare Bitfinex With Similar Brokers
Bitfinex IG Interactive Brokers Kraken
Rating 3.9 4.7 4.3 3.9
Markets Cryptocurrencies CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies Cryptos
Demo Account Yes Yes Yes Yes
Minimum Deposit $0 $0 $0 $10
Minimum Trade $10 0.01 Lots $100 Variable
Regulators FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM FCA, FinCEN, FINTRAC, AUSTRAC, FSA
Bonus Referral Codes Lower fees when trading volume exceeds $50,000 in 30 days
Education No Yes Yes Yes
Platforms Web Platform Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral AlgoTrader
Leverage 1:30 (Retail), 1:250 (Pro) 1:50
Payment Methods 16 6 6 6
Visit Visit Visit Visit
Review IG
Review
Interactive Brokers
Review
Kraken
Review

Compare Trading Instruments

Compare the markets and instruments offered by Bitfinex and its competitors. Please note, some markets may only be available via CFDs or other derivatives.

Compare Bitfinex Trading Instruments
Bitfinex IG Interactive Brokers Kraken
CFD No Yes Yes No
Forex No Yes Yes No
Stocks No Yes Yes No
Commodities No Yes Yes No
Oil No Yes No No
Gold No Yes Yes No
Copper No Yes No No
Silver No Yes No No
Corn No No No No
Crypto Yes Yes Yes Yes
Futures No Yes Yes Yes
Options No Yes Yes No
ETFs No Yes Yes No
Bonds No Yes Yes No
Warrants No Yes Yes No
Spreadbetting No Yes No No
Volatility Index No Yes No No

Bitfinex vs Other Brokers

Compare Bitfinex with any other broker by selecting the other broker below.

 

The most popular Bitfinex comparisons:

  1. Kraken vs Bitfinex
  2. Bybit vs Bitfinex

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