What is Bitfinex
Bitfinex is a cryptocurrency exchange focused on attracting novice traders, as well as satisfying the needs of more experienced traders and investors and large companies holding assets in crypto. For beginners, a simple interface with clear mechanisms is implemented. In the course of adaptation in the service, new, more complex tools for making a profit are opened. Any issues are resolved by competent support.
Bitfinex was founded in 2012 in Hong Kong. Over time, the company was taken over by the iFinex conglomerate, which operates under the laws of the British Virgin Islands. Bitfinex is recommended by many experts and reviews for both beginners in crypto trading and more experienced market participants. A number of key points that are mentioned in summing up the results of surveys and cross-analysis of why customers choose certain crypto exchanges.
- Versatility. The Bitfinex platform is ready to work with any level of trader experience. For beginners, there is the possibility of a classic purchase or exchange of cryptocurrencies among themselves. For more advanced speculators and investors, our own offers have been developed, including new markets, as well as low taker / maker commissions;
- Working with fiat. Most beginner traders deposit fiat money on cryptocurrency exchanges, exchanging it for cryptocurrencies or stablecoins. Exchanges where fiat deposits/withdrawals are too expensive or impossible repel such users. Bitfinex took a bet on this and implemented many options for depositing and withdrawing fiat money from the system;
- Crypto exchanges have long ceased to be a place for the exchange of assets in order to make a profit. The expansion of blockchain capabilities has also transformed the concept of trading cryptocurrencies. Bitfinex offers crypto lending, staking, cloud mining, and more.
A turnoff for potential Bitfinex users is the 2016 hack. But, in addition to the fact that common storage technologies made hacking crypto exchanges useless, the owners of the company completely rebuilt the security systems of the platform and user accounts in order to prevent any penetrations in the future.
How does Bitfinex work?
Traditionally, it is necessary to mention the main criteria for which users choose the Bitfinex cryptocurrency exchange:
- Easy access to the crypto market and purchase in a couple of clicks;
- Convenient procedure for exchanging and transferring accounts;
- Fully functional mobile application;
- 150+ cryptocurrencies in Bitfinex listings;
- The possibility of reducing the commission fee for transactions;
- Passive income on staking;
- Live chat support;
- Options for depositing and withdrawing fiat;
- Crypto lending and crypto loans;
- Variations of trading markets and working with crypto options;
- The possibility of unlimited earnings on the affiliate program;
- Bitfinex Pay for easy and fast cryptocurrency payments.
Cons and disadvantages of Bitfinex
Some features push customers away from the platform. Everyone makes a decision, our task is to highlight all the facts, benefits and risk factors:
- The fact of hacking in 2016. Despite the fact that technologies have stepped far ahead and a lot of attention has been paid to security issues, the very fact that there was a hack and the money was withdrawn makes many people refuse to work with the platform or make it an additional field for work;
- Inability to work with Bitfinex for US residents.
What services does Bitfinex offer?
Let’s look at the main services that Bitfinex offers to its customers and those who consider this platform as their main operational field.
Easy to buy cryptocurrency
Buying crypto assets on Bitfinex is very easy. To complete a transaction, it is tedious to select the payment option for fiat money and the currency for which you want to buy assets. To buy crypto for crypto, it is better to first fund your account on Bitfinex, and then place an order to buy or exchange at an exchange machine.
The simplicity and versatility of this option allows those who are just getting acquainted with the industry, as well as novice investors who buy cryptocurrencies for growth or for staking.
Convenient exchanges and transfers of accounts
There are situations when some asset starts to bring more profit than the one you are currently holding. Bitfinex allows you to quickly exchange assets between each other to get the maximum profit from every minute of working with the platform. To do this, an exchange machine process has been introduced into the interface of the platform, so that the transaction takes place instantly at a clearly marked rate and for any amount of cryptocurrency that the user needs.
Between accounts within the Bitfinex exchange, the transfer of any assets occurs instantly and without additional fees. This allows you to conclude transactions outside the exchange, but carry out mutual settlements in its accounts without risk and additional commissions.
Professional mobile application
Profitable cryptocurrency trading is impossible without the ability to quickly respond to changes in the market situation. Not always traders can stay near the PC for a long time. You cannot do without a high-quality mobile application for a cryptocurrency exchange. Bitfinex has implemented this issue with the utmost practicality. Both popular operating systems Android and iOS have their own versions. Downloading from app stores is fast and completely free. Synchronization with the desktop version is made in a few clicks, and the information offered by the application allows you to conduct a full-fledged market analysis and make informed and clear decisions in any situation.
Over 150 cryptocurrencies supported
The Bitfinex cryptocurrency listing has over 150 coins and tokens. This is a relatively small amount compared to some companies where the listing is 1000+ coins. But Bitfinex approach the process from a practical point of view, focused on long-term trading without unnecessary risk. Each coin in the listing is a time-tested asset that is in demand by the market, providing sufficient volatility and liquidity to work with any trading volume.
Periodically, the company adds new coins to the listing if they pass a series of complex checks and have sufficient potential for growth and stabilization.
Staking available for a number of cryptocurrencies
The classic deposit in foreign currency is already in the past. Even the most conservative investors invest in mutual funds and large trusts, since the meager percentages of bank deposits do not cover inflation. Cryptocurrency deposits or staking are analogous to classic banking investment instruments, with the only difference being that interest charges can reach up to 50% per annum. Bitfinex offers clients a number of cryptocurrencies as investment assets, where interest is charged for holding them in the account. The interest rate varies depending on the chosen coin and the market situation, but there are two undeniable benefits of such an investment:
- Interest is accrued in the selected asset and added to the deposit, which increases the amount of savings and payments in the future;
- The value of an asset can grow many times over time, which will bring a disproportionately greater profit than all interest savings.
Multiple deposit and withdrawal methods available
Due to complex legislative conflicts in a number of key countries that crypto exchanges are guided by in attracting customers, the ability to deposit and withdraw funds in fiat money is often not available to some or all customers. Some companies resort to using the services of intermediaries, but the commission fees then go off scale beyond any reasonable limits. Bitfinex has implemented its own algorithms for depositing funds into fiat money accounts, as they work according to the laws of the countries where they offer services. Cryptocurrency exchange Bitfinex accepts a number of key fiat currencies to its accounts:
In addition to a bank transfer, there is also the possibility of replenishing directly from a Mastercard or Visa card. Replenishment with cryptocurrencies occurs in the usual way, to the corresponding wallet from the exchange account.
Cryptocurrency lending and borrowing
Borrowing tokens and coins for growth or as an alternative to deposits is an increasingly popular way to diversify your sources of income. Bitfinex has brought together those who are willing to borrow their funds at interest and those who are looking for inexpensive additional capital for more active trading.
You can borrow most of the cryptocurrencies listed on the exchange, including USDT. There are several loan options:
- With a fixed interest rate;
- With a variable interest rate;
- With different loan duration.
All variables can vary among themselves, which affects the result in terms of the size of the interest rate. The maximum limit is 30% per annum, so carefully study the terms of the deal before making a final decision. The moment that the loan itself can be extended automatically on the original conditions deserves special attention. The borrower repays the interest for the selected period and continues to use the funds to make a profit.
Various trading markets and options
The relatively small number of cryptocurrencies present on the Bitfinex market may seem insufficient to some.
Not all traders want to wait for the market in the hope of entering trades in time and are looking for more directions for activity. Bitfinex took this into account and implemented a number of additional markets. Which are popular with both crypto traders and those who have moved into the industry from classic trading. Here are the markets Bitfinex offers:
- derivatives market;
- Margin trading;
- OTC transactions.
Unlimited affiliate rewards
For those who are active in social networks, own popular channels, or participate in any community that accepts the topic of cryptocurrency, there is a great opportunity to receive additional income from Bitfinex.
The platform offers to receive up to 18% of the amount that the attracted partners pay Bitfinex as a trading commission. The unique system includes a multi-level structure of referral formation, which allows you to earn a little and on those who were attracted by your partners and even partners attracted by them. With active work with each partner in the sense of disseminating information among their contacts, the reward can reach very impressive amounts.
Bitfinex Pay for fast and easy crypto payments
Online shopping has become commonplace for everyone. Not a small number of companies selling something online and making a profit through electronic transfers and payments. Bitfinex Pay integration will solve many problems with one widget. The wallet linked to the account is used as a regular card, allowing you to safely and quickly pay any bills on the Internet.
The setting also works for receiving payments from any sources, immediately to a cryptocurrency account. Bitfinex does not impose any additional fees for processing such payments.
Being able to resolve issues quickly is essential to the digital trading industry when seconds count. The fact that the company has implemented real-time support has significantly strengthened its position in the field of competition for the client.
What you don’t like about Bitfinex
The decision to use any company in our reviews is entirely up to you. Therefore, we only cover facts related to the company, whether they are good or bad. A few points worth paying attention to.
In 2016, the attackers withdrew almost 120,000 BTC from Bitfinex. The cryptocurrency price drawdown amounted to 18% of the market value. Despite the fact that the administration managed to “return” most of the assets, and compensate for what they could not return from insurance funds, the company’s reputation suffered irrevocably. Technology has gone ahead and modern methods of storing crypto outside the exchange, protection against penetration and other aspects make hacking impractical in terms of benefits. Crypto exchanges have become digital banks, not trading terminals. The probability of new penetrations tends to zero, but the past still makes itself felt.
Not available in the US
Due to the fact that the legislation in the United States is very complex and confusing, and the cryptocurrency industry has not yet been fully developed, and state laws dictate their own conditions, it is very difficult for a cryptocurrency exchange to break through them. Its citizens cannot trade on the platform without a US license, because Bitfinex explicitly prohibits US citizens from creating accounts. Any circumvention of this prohibition can lead to serious legal problems, so carefully weigh the pros and cons.
They are the company’s main source of income. But due to the high competition for each user, the commission level is constantly decreasing as companies offer more and more favorable conditions for their customers.
Bitfinex Deposit Fees
Depositing crypto is not subject to additional fees, except for the transaction fee. Fiat replenishment via bank transfer is subject to a commission of 0.1% of the amount, but not less than 60 USD/EUR. For small amounts, this commission is very high. MasterCard/Visa purchases are made through third party services that charge their own fees that are not controlled by Bitfinex.
Bitfinex Transaction Fees
The maximum commission for a new account is 0.1% for a maker and 0.2% for a taker. An increase in trading volume based on the results of 30 days allows you to reduce commission fees to insignificant amounts.
For derivatives trading, there is a separate scale for calculating commission fees. For a taker, the maximum size is 0.065%, for a taker it is 0.02%.
Bitfinex Withdrawal Fees
Withdrawal of fiat money is also subject to a commission of 0.1% of the amount, but not less than 60 USD/EUR. There is also the possibility of express withdrawal on the same terms, but with a minimum commission of 100 USD/EUR. Cryptocurrency withdrawal from Bitfinex does not have a fixed fee, it depends on the type of coin being withdrawn. Transfers between Bitfinex accounts are traditionally free of fees in the industry.
Pros and Cons of Bitfinex
Let’s summarize the main theses with the positive and negative aspects of the Bitfinex cryptocurrency exchange into a list.
- 150+ stable, liquid cryptocurrencies;
- A simple algorithm for buying / selling / exchanging crypto;
- Fully functional mobile application;
- Lending between users in crypto;
- Staking for passive income.
- The minimum commission for deposit and withdrawal is 60USD;
- Does not work with US residents;
- No live chat support.
Bitfinex is a good option for those who are just getting started in the digital asset trading industry. A simple interface allows you to gradually discover new tools and options without getting confused. For passive investing in staking or growth, there are excellent opportunities. For those. Who knows how to attract partners to projects or has developed social networks, a multi-level profitable affiliate program is perfect. There is no opportunity to work for those who live in the United States. High fiat deposit and withdrawal fees, especially for new traders.