CategoriesForex Trading

Bitfinex Review: Legit Or A Risk?

There are few exchanges in the cryptocurrency space that have held court since the early days of the crypto scene. Often, older exchanges begin to see fading trading volumes as new exchanges hit the scene. Fortunately, for Bitfinex, the exchange has been able to maintain a relevant position in the crypto space, with an average of over 2.5 million visits per day.

And with $10,000 or more in LEO, you can get a larger percentage discount, depending on your balance. Bitfinex requires verification for Tether usage and expedited cryptocurrency withdrawals. However, the exchange remains perfectly usable for those who only wish to provide an email address. While some of the top cryptocurrency exchanges are, indeed, based in the United States (i.e. KuCoin or Kraken), there are other very well-known industry leaders that are located all over the world. For example, Binance is based in Tokyo, Japan, while Bittrex is located in Liechtenstein. If you’re just starting out, though, and haven’t got the vaguest idea of how crypto trading works, admittedly, there are going to be better options for you out there.

is bitfinex trustworthy

As you can probably imagine, cryptocurrency exchanges are under some tremendous pressure. As a trading platform for cryptocurrencies, Bitfinex charges trading fees. These vary according to the amounts being traded and whether the user is the “maker” or “taker” of trade (i.e., according to whether they trade by making a new order or by taking an existing order). The maker fees range from 0.1% to 0.0%, while the taker fees vary from 0.2% to 0.055% based on the executed trade volume in the last 30 days. Bitfinex has been around since 2012 and is one of the largest cryptocurrency exchanges based on volume of trades. Although they had some high-profile hacks they did make good on customers losses and are a legitimate cryptocurrency exchange.

Bitfinex Fees

Bitfinex used to have a necessary equity limit of minimum of $10,000, but it no longer exists. You can make a deposit via bank transfer/wire or a cryptocurrency transfer from an external wallet. Once deposited, users can move funds between the exchange or margin trading and funding accounts. That way, you can have different accounts for different Bitfinex services (e.g., margin lending/trading, over-the-counter trades).

is bitfinex trustworthy

Bitfinex is a cryptocurrency trading platform with advanced features where you can buy, sell and trade over 160 different cryptocurrencies. Consistently has the highest or second-highest daily trading volume out of any cryptocurrency exchange, and there’s good reason why. The platform offers a wide coin selection with numerous trading pairings, low fees, and a robust interface. However, there are some key differences which will influence which platform you ultimately choose. Whilst Binance provides access to the widest range of digital currencies, Bitfinex supports both fiat-to-crypto and crypto-to-crypto trading.

Some traders choose to avoid Bitfinex as a result of its troubled history. The current security measures in place are some of the strongest in the industry, meaning that Bitfinex is one of the most secure platforms. However, this does not erase the past history of the platform, which many traders will find difficult to forget. In April 2016, a far more significant hack hit Bitfinex, with almost 120,000 Bitcoins stolen. As a result, Bitfinex cut all user accounts by 36% to distribute the loss between users.

How to use Bitfinex?

But as a consequence, Bitfinex no longer accepted US dollars and no longer offered services to US traders. As high volume is a key factor for traders because it assures low spreads, clients prefer to trade in a platform that offers these conditions. It has an advanced platform with various features that attract many investors. However, the exchange also has a fair share of controversies of hacks and other allegations. Depending on the trading volume over the past 30 days and whether you’re paying maker fees or taker fees, the trading fees range from zero to 0.2%. The Bitfinex supported currency list has over 35 cryptocurrencies.

is bitfinex trustworthy

There have been many exchanges that have seen the attacks that Bitfinex has, yet out of all of those exchanges, very few remain. Security policies in place to protect both your account and your funds. Though we do not know so much concerning the security or encryption technology the exchange currently uses, it has apparently tightened its security measures. In terms of trading a few, BitFinex offers a more friendly rate than Binance’s. For more details on BitFinex’s transaction charges, see our review of it below. Note that the caliber of investors hereto referred keep as much as $100,000 worth of cryptos in their portfolio.

While some are more straightforward and beginner-friendly than others, you shouldn’t encounter any difficulties with either of the top-rated exchanges. That said, many users believe that KuCoin is one of the simpler exchanges on the current market. One of the more annoying aspects that many people bring up even in Bitfinex reviews is the fact that some exchanges out there require you to make deposits via a cryptocurrency transfer. In the world of crypto exchanges, you’ll often come across a term called “trading pairs”. This term refers to the “asset-to-asset” trading options that you’ll have on the platform of your choice.

Bitfinex LEO token

It also acts as an encouragement to new traders by showing them that you can, in fact, make significant amounts of money trading cryptocurrency on Bitfinex also offers a complete mobile app for those that want to trade on the go. I personally prefer trading crypto on an app since it means that you can take action when an opportunity presents itself like some news or similar price action triggers. I was impressed with the look and feel of the Bitfinex app and I would rank it up there with the other big players in the crypto exchange industry. It’s free to download from the IOS Apple App Store and the Android Google Play Store. For traders who don’t want to go through public order books, Bitfinex offers an over the counter trading facility.

  • A single look at the features available on the site will tell you that you should have some knowledge about financial markets and investments in order to utilize the full potential of Bitfinex.
  • All a user needs to do is deposit USDT into a special account designated for derivatives trading.
  • However, in all the hullabaloo, some exchanges have left a positive mark on the crypto space.
  • Bitfinex only accepts bank wire fiat deposits in EUR, JPY, GBP, and USD.
  • It is so because deposits via bank transfers are for verified accounts only.
  • The exchange’s score on TrustPilot proves that it has a good reputation with the public and prioritizes customer satisfaction above anything else.

For investors looking to trade large amounts of cryptocurrency exceeding $100,000 of worth, the platform offers the over-the-counter trading facility where clients can execute the trade privately. Additionally, cryptocurrency owners have the option to lend their crypto to other traders and gain interest from it. They can provide funding to various assets and currencies while setting the rate and duration to their preference. Ever since Bitfinex was hacked in 2016 and users collectively lost a total of about $72.0 million, it’s not surprising that “Is Bitfinex Safe? Since the hack, site security has been upgraded and trading volumes are increasing, meaning that people are again beginning to trust the site.

These two break-ins were notable at the time, since a lot of funds were lost. The hacks were also of a high profile – they echoed through the crypto communities worldwide, and sent a clear message to other exchanges. It’s also not something that you’d need to worry about with Bitfinex. The exchange in question allows you to make deposits with 5 different fiat currencies – USD, EUR, GBP,JPY, and CNH.

On May 29, 2019, the Attorney-General for New York accused BitFinex of moving $850 million of Tether reserves as an attempt to atone the loss of the payment gateway, Crypto Capital. According to the allegation documents, the act was BitFinex’s attempt to seek an alternate solution, as it was unable to secure custodial services with a bank. The attorney -James – also said BitFinex had no signed agreement with Crypto Capital, nor was it aware that Crypto Capital had run away with the funds. Also, in the same year, the accounts of users were compromised – with the total recorded losses amounting to $400,000. Read our Bitfinex review and learn why we recommend this exchange for online trading and why it is not a scam, learn all you need to know in this Bitfinex review before you sign up with the exchange. If you have been a victim of any type of fraud and unfortunately lost your hard-working money, we might have some good news.

Is _ Legit?

If you choose to deposit funds into your Bitfinex account via a bank transfer, then you will pay a fixed fee of 0.1%. For example, if you deposit $10,000, you will pay a fee of $10. If you instead deposit by cryptocurrency, then you’ll pay a small fee, which is dependant on the specific coin you find your account with.

Is Bitfinex Safe?

This allows users to trade large sums of cryptocurrency privately, matching traders together and helping them to secure private deals. Through Bitfinex, cryptocurrency owners can also earn interest by lending funds securely to other traders. Funding can be offered across a wide range of cryptocurrencies, with the lender choosing the rate and duration. The 24h volume statistics on Bitfinex signifies how much cryptocurrencies have been traded over the last 24 hours. This information is able to show the direction of currency movements as well as predict future prices and demand, so it plays a very important role as an indicator to help traders plan decisions.

Bitfinex supplies its users with an extensive knowledge base and a ticket based support center. Its average TrustPilot score shows that it’s doing a relatively good job in maintaining user satisfaction (most exchanges receive a “poor” rating). As for the more advanced levels, a deeper KYC process including a ‘proof of address’ is required. However, since the list of available countries is nowhere to be found on their site, you’ll only be able to tell whether you’re eligible or not once you’ll go through their verification process. Cryptocurrency deposits are generally free of charge while withdrawals include a small fee, depending on the currency withdrawn. Bank wires have a 0.1% deposit and withdrawal fee, which can reach up to 1% if you’re looking for an expedited withdrawal.

Note that you won’t be able to withdraw currencies if you haven’t secured your account with 2FA and/or whitelisted addresses. Also, you must have your account verified first to withdraw fiat currencies. Making a deposit is simple, yet it takes time in case of bank transfer. It is so because deposits via bank transfers are for verified accounts only. At the time of writing, Bitfinex takes approximately six to eight weeks to verify your account.

Creating an account on Bitfinex

The exchange has a detailed list on its website where they show every coin they have listed and their withdrawal fee; some of them are free, but the vast majority are not. On the other hand, if you’re transferring digital assets internally—ie. To another Bitfinex user’s address, these withdrawals are free of charge and come with other benefits. If you’re a seasoned crypto trader, you’ll most likely know that crypto exchanges make the majority of their revenue by charging trading fees. This is essentially a commission which you pay to the exchange for their service.

Users can offer funding across a wide range of currencies & assets, at the rate and duration of their choice. Bitfinex users are able to borrow and trade with up to 3.3x leverage through the site’s P2P margin trading platform. Borrowing terms can either be determined by the user himself or automatically through Bitfinex. Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use.

Bitfinex’s active trading platform includes standard features like advanced charting tools, an order depth chart and order book view, and quick access to buy and sell supported currencies. Bitfinex is one of the older cryptocurrency exchanges, founded in 2012. Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. . Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. On the other hand, cryptocurrency owners are able to lend their funds securely to traders in order to earn interest on it.