Bitfinex is a cryptocurrency exchange that provides customers with several services, including spot & derivatives trading, cryptocurrency staking, lending features and more. The platform is designed to be tailored for both crypto beginners and traders.
The platform was founded in 2012 and is one of the oldest crypto exchanges globally. Bitfinex is currently the 9th largest crypto exchange in the world by trading volume, according to CoinMarketCap.
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Bitfinex’s trading platform is easy to use and offers several features including:
- A free “paper trading” account that allows newbies to test their trading skills and strategies in the cryptocurrency sector before they can invest real money.
- A web-based active trading platform that offers advanced charting tools, quick access to purchase and sell cryptos, and order book view and order depth chart.
- A platform for P2P (Peer-to-peer) lending where investors can earn yields on tokens for lending them to other users. And a borrowing feature that allows you to give yields to the person/s lending you funds.
- A cryptocurrency staking feature for 10 different cryptocurrencies that earn up to 14% APY (Annual Percentage Yield).
- A robust API for developers that gives access to the Bitfinex platform and date.
- A mobile app that is supported on both iOS and Android devices.
For a cryptocurrency investing platform that has been around for so long, it does not offer many features but offers the basics - derivatives and spot trading plus crypto staking.
Bitfinex supports the trading of more than 180 cryptocurrencies and 340 pairs. Investors can buy cryptocurrencies with 5 fiat currencies including USD, AUD, EUR, JPY and GPB. In addition to cryptocurrencies, users can also trade Bitfinex securities.
The trading fees on Bitfinex are one of the most competitive in the sector. For spot trading, the fees vary between 0.1% - 0.2% which is considerably lower than the industry average of 0.5%. As for derivatives trading, the Maker/Taker is 0.02/0.065% which is also significantly lower than the industry average.
It’s important to note that holders of the cryptocurrency LEO, receive the benefit of discounted trading fees. LEO (UNUS SED LEO) is the utility (native) token of the iFinex ecosystem and Bitfinex incentives users to invest in it in order to receive high trading discounts.
- If you hold a dollar worth of LEO crypto in your account, you’ll qualify for a 15% discount off the taker fee for crypto-to-crypto and crypto-to-stablecoin trades.
- If you hold $5,000 worth of LEO, you’ll be eligible for a 25% discount off taker fees for crypto and stable coin trades and 10% off for fiat trades.
- If you own $10,000 or more of LEO, you’ll receive larger percentage points discounts depending on how many LEO tokens you own.
Deposits are free for cryptocurrencies, stablecoins and securities but fiat currencies are subject to a 0.1% deposit fee. For withdrawals, fiat withdrawals via bank transfer are charged a 0.1% fee and for express withdrawals, it’s 1%. Crypto withdrawals incur a small fee to cover the cost of gas (network transaction cost).
Is Bitfinex safe?
No, Bitfinex is not considered a safe exchange to store your assets. Bitfinex relies on several methods to provide security for users including two-factor authentication, withdrawal protection, and cold storage of customer assets. However, Bitfinex has been hacked several times before, and many clients lost their funds as a result.
Additionally, Bitfinex is infamous for regulatory battles. The platform faced several fines from the Commodity Futures Trading Commission and was also charged by the New York attorney general’s office for allegedly misleading investors. It was fined for claiming that Tether stablecoin was fully backed by reserves, although that claim was false.
Bitfinex has a web-based platform and a mobile app version available on both iOS and Android devices. Traders can log into the app and access advanced features and tools, cryptocurrency staking features and check their portfolios. Bitfinex is currently rated 4.4 stars out of 2K reviews on the Google Play store and 4 stars from 100 reviews on the App store.
Customer support & Online communities
Bitfinex is one of the many cryptocurrency exchanges to offer 24/7 customer support via its Live Chat feature. In addition to live chat, the support team can be contacted via the online ticketing system, email, Reddit, Telegram, Twitter, LinkedIn and Facebook.
According to data from Trust Pilot, 49% of voters rated Bitfinex customer support excellent while 34% rated it bad, which is below average. Bitfinex is rated 3.4 stars from 270 reviews on Trust Pilot.
What is Bitfinexed?
Bitfinexed or ‘Bitfinex’ed’ is a group of people who dedicate their time to “exposing” the cryptocurrency exchange Bitfinex for supposed fraud allegations. They have a Twitter account that is closely tracking the exchange and its accounts and a Medium page with blog posts and videos.
Bitfinex is one of the largest crypto exchanges in the world that offers competitive fees, and advanced trading tools, suitable for both beginners and trading experts. However, Bitfinex has faced several charges and fines for allegedly misleading traders and investors.