Bitfinex Review 2024: Pros, Cons and How it Compares

Unrealized profits, total profits, or volume in US Dollars rank traders that agree to be shown on the leaderboard. Hedge With Crypto is an independent publisher that provides objective and free content. However, our editorial content remains unbiased, reflecting our own opinions or the general information available. For more information on our company policies, read the Affiliate Disclosure, Privacy Policy, and Terms & Conditions. IFinex, a company based in the Virgin Islands, owns the majority stake in both Tether and the Bitfinex exchange.

• For those looking to hedge against the rollercoaster ride of digital token volatility, Bitfinex’s derivatives platform is your go-to.
• You’re also able to trade on margin, although I highly recommend against doing so unless you’re an experienced trader.
• Overall, Bitfinex receives mixed feedback from users and its history of regulatory issues is concerning.
• Ultimately, the choice to use Bitfinex will depend on each individual’s trading needs, risk tolerance, and comfort with the platform’s complexity and security history.
• The exchange caters to more intermediate and advanced traders as well as institutions and offers a wide selection of coins, trading pairings and trading options.

Open Account at Bitfinex

Given the rigorous registration and verification process, it’s reasonable to expect a user-friendly interface to complement it. Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed. The Bitfinex maker fees range from 0.0% to 0.1% while the taker fees range from 0.1% to 0.2%. Tapping on the “Deposit” button in the upper right-hand corner brings you to the deposit page.

All Crypto Exchanges may look similar to you but they’re NOT all the same!

Bitfinex is a well-known name in the crypto community, but seeing as it has had its fair share of controversy, is this exchange still safe to use? In our review, we will help you understand how this cryptocurrency exchange works, analyzing its features, security, pros, and cons. Bitfinex is also one of the few exchanges offering OTC services where traders can complete a deal between them directly without the exchange being involved.

Bitfinex Difficulties

However, if you’re a LEO currency holder, you’re in for some savings. When we talk about margin trading, Bitfinex puts the power in your hands, allowing you to trade with up to a tenfold leverage, thanks to the funding from its peer-to-peer margin platform. You can either place an order to borrow your desired funding amount, setting your preferred rate and duration, or sit back and let Bitfinex do the legwork, securing the best available rate for you. Bitfinex’s margin funding market is a safe bet for earning interest on both fiat and digital assets by providing funding to those eager to trade with leverage. You can offer funding in a plethora of currencies and assets, setting your own rate and duration.

As previously mentioned, It paid $18.5 million in fines to the New York Attorney General after using $850 million to a Panamanian trade processor without telling clients. Following the 2017 settlement, Bitfinex was forced to halt trading in the United States.Today, the company is working to comply with legislation across the world (including country and zone-specific laws). However, the company still does not Bitfinex Review support U.S. residents, including those using VPN or APIs that come from outside of the United States. And for comparison, Bitfinex’s withdrawals are generally cheaper than those of two similarly advanced exchanges, Kraken and HitBTC. Bitfinex charges a fee of 0.100% to withdraw dollars, with a minimum fee of 60 USD or Euro. Withdrawals to another bank account or Bitfinex user’s address are free of charge.

has a great platform, tons of options for trading

If that’s not possible, Bitfinex may schedule a Skype call with you for compliance purposes. Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels. Bitfinex is a key player in the crypto world, but if you’re interested in trading cryptocurrency, there are other major exchanges to consider too. Here’s a look at how Bitfinex compares to Coinbase, another popular trading platform for cryptocurrency investors. Bitfinex’s account dashboards and menus are easy to navigate and follow if you have experience with online financial accounts.

Supports 5 Different Fiat Currencies

The earnable APR changes based on the asset but range between 0.001% to 27% daily. However, earning interest through funding is contingent on another user accepting the offer, meaning a specific rate is not guaranteed. Bitfinex also has live data on open interest for its platform, which combined with funding rates, can be a useful metric for advanced derivatives traders on the platform. Those who are newer to cryptocurrency investing may prefer an easier-to-use platform such as Coinbase.

• Additionally, the interface is dated and doesn’t feature a central dashboard, which could confuse beginners.
• However, our editorial content remains unbiased, reflecting our own opinions or the general information available.
• Bitfinex is also related to Tether (USDT), the largest stablecoin in the world.
• CoinSutra writers are not certified financial advisors or brokers.
• Bitfinex has been fined by U.S. federal and state government agencies several times for violations, including misleading customers.
• 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.
• Stay up to date with our latest exchange reviews, promotions, how-to guides and educational articles on Bitcoin, cryptocurrency & more.

Pros and Cons of Bitfinex: An In-Depth Look

The exchange also allows fiat deposits and houses a variety of cryptocurrencies with approximately 72 market pairs active on the platform. Bitfinex is a Hong Kong based trading platform that was founded in 2012 by Raphael Nicolle. The exchange is both owned and operated by iFinex, Inc. and has managed to work its way to the top of the charts in terms of trading volumes and user activity on the platform. In addition to the aforementioned services, users can also lend their virtual currencies. This will provide margin traders with some funds in exchange for a small interest. Lenders can offer their funds for any period they want and for the interest rate they desire.

I see a potential in this exchange, but slow verification process

Bitfinex was founded in the British Virgin Islands in 2012 by iFinex inc and it is headquartered in Hong Kong. The company initially started out as a P2P margin lending platform for Bitcoin only. Some of the founders and management of iFinex inc. are also related to Tether, the US pegged Stablecoin. Finally, to achieve the Full verification level, you https://www.tokenexus.com/crypto-taxes-in-the-united-kingdom/ should provide a bank statement and all the information required for the Intermediate level. Fast forward to today, Bitfinex is proudly serving a diverse range of trading services to its vast user base scattered across regions like the UK, Japan, and Europe. But oh, don’t get too excited if you’re in the US — Bitfinex closed its doors to you long ago.