Trusted Bitfinex review & test – How good is the cryptocurrency exchange?
|Review:||Demo account:||Fees:||Margin trading:||Fiat deposits & withdrawals:|
|(5 / 5)||Yes||0.0% – 0.2%||Yes||Yes|
The advancement of technology has put us ahead of a future that depends on digital assets. Cryptocurrency is one such asset. Various cryptocurrency exchanges have emerged since the concept of digital assets came into existence. Bitfinex is one of the most renowned companies when it comes to P2P margin financing. It has extended its areas of investment ever since.
In this article, we want to find out if Bitfinex is a reliable cryptocurrency exchange or not. We have tested the platform with real money. We will show you the functions and details you have to know before starting trading. Is it really worth investing your money there? – Find out in our Bitfinex review.
What Is Bitfinex? – The platform presented
Bitfinex is one of the top cryptocurrency exchanges. It was started in December 2012, and, since then, it has catered to the requirements of its clients to the best.
Initially, it began as a platform for peer-to-peer margin lending for Bitcoin alone. With time, it added more support for cryptocurrencies by allowing to exchange EOS, Ethereum, Ripple, Litecoin, NEO, Bitcoin, and various other digital assets with the least slippage. With the most liquidity, it is of the longest-running platforms.
The company is registered in the British Virgin Islands and operates in Hong Kong.
It is a veteran company best for advanced traders who wish to create their customized space with superior features. Its developed trading tools give you the option of margin lending and trading.
Bitcoin, the digital currency used by Bitfinex, had hit a massive loss due to a security breach a few years back. Since then, the technology of this company has strengthened, and the security has advanced.
Bitfinex has been built specifically for traders who are institutionally functional and professional. There are certain benefits that Bitfinex provides, which are quite efficient but are often overlooked by the users while operating. Some of which are:
- Professional traders and corporate accounts can work efficiently with the help of the fastest trading speeds. The co-location services and institutional-grade connectivity have escalated. This gives you direct access to Bitfinex’s digital asset gateway.
- The option to create sub-accounts is another boon for professional traders. Corporate accounts can create these sub-accounts, too. They can create a group wherein they can trade in volume, make separate deposits, and withdraw permissions in separate fee tiers.
(Risk Warning: Your capital can be at risk)
Regulation and safety of Bitfinex for customers
Bitfinex supports fiat-to-crypto, and crypto-to-crypto trades. It has other features along with margin trading like OTC (over the counter) trades, stop and limit orders, and easy navigation of menus and dashboards.
Fiat deposits in ECR, JPY, GBP, and USD are accepted by Bitfinex. You can make the fiat deposits only through wire transfer. It supports Tether (USDT), which is the quasi-fiat token. It is unofficially hooked to the USD rate. Litecoin, Monero, Ethereum, Iota, Ripple, Dash, Zcash, and a few other additional assets have also been provided. It allows the users to easily exchange these assets with the maximum liquidity in the order books.
Bitfinex asks for verification for Tether usage and expedited currency withdrawals only. If you wish to provide only your email ID (for basic verification), you are qualified to trade. Through a Tor hidden service, they also offer direct access to the site.
Despite the considerable loss due to the security breach, Bitfinex compensated the lost funds to its users. Bitfinex, with its efficient trading system, sufficed all the losses, and the customers received their compensation soon. They have increased the security grip to restrain any security breach or malignity in the future.
Bitfinex is not a regulated trading platform because it serves cryptocurrencies but there is high security on the trading accounts. The following security features are included:
- Email Encryption
- Two-factor authentication
- Withdrawal address whitelist
- Withdrawal settings
We strongly recommend using the two-factor authentication method with Bitfinex. It can be done with your smartphone and google authenticator. In addition, you will be noticed if there is a new login in your account. For withdrawals, there is also a double check and high security. It is only possible to withdraw money to your own bank account.
From our experience, Bitfinex is one of the safest crypto exchanges now. You should definitely activate the security features.
Trading conditions and fees for Bitfinex traders
Bitfinex follows a taker-maker fee model. Those traders who fulfill the existing orders are known as Takers. Those accounts or traders who place the new orders are known as Makers. The fees charged for takers commence at 0.2%. For Makers who place big orders, the fees can go as low as 0%. Bank wires charge a deposit and withdrawal fees of 0.1%. This might reach up to 1% if an expedited withdrawal is made.
Although cryptocurrency is charge exempted, withdrawals charge a small fee depending on the amount of money being extracted. See here this overview of the trading conditions and fees:
|Fee model:||Maker and Taker|
|Fees:||Depending on the order volume|
|Maker fee:||From 0.0% – 0.1%|
|Taker fee:||From 0.55% – 0.2%|
|Bitfinex borrow:||15% – 18%|
|Margin funding:||15% -18%|
|Deposit:||Crypto: Free, Bank wire 0.1% min 60 USD/EUR|
|Withdrawal:||Depending on the method|
You are allowed to give funding in any of the issued currencies to the traders. You can do that with the help of your Funding wallet. You can also set the terms like duration, return date, and amount. The trader will use the money in your funding wallet to buy or sell bitcoins. This will happen only when a trader or a funding taker takes an offer.
There are several conditions which the traders must fit in if they want an account in this company. First of all, the terms of service state that there is a risk named Derivative Products Risk.
This risk states that there might be certain uncertainties because of the fluidity of the market price of commodities. Derivative products are new products with little history of their own. There is always an unpredictability regarding the market price of those products.
The following products are available with Bitfinex:
- Margin trading
- Margin funding
- Paper trading (demo account)
The Reference Assets also have risks attached to themselves. They are riskier in the sense that these assets have no history in the market. Tether Gold-Based market risks are when the prices get fluctuated according to the price of gold in the market.
The Anti-Spam policy states that the users must give their permission or consent to Bitfinex to communicate electronically. This will be done only to understand the issues and requirements of the users.
The law enforcement asks the users to provide their proper identification with no malignity.
- Employment permit document
- Residency card
- Driving license
- National ID card
Leverage of 5x is allowed to the users through a peer-to-peer funding platform while receiving funding. The trading conditions, leverages, offers, and clarity of the risks make it apt for any investor or trader.
(Risk Warning: Your capital can be at risk)
Test of The Bitfinex Trading Platform
Bitfinex accommodates secure platforms to ensure the security of your data. It is always recommended to use the native website or originate an updated version of Bitfinex to avoid any security malignity breach.
Android, iOS, Windows, OSX, and Linux are the operating systems that Bitfinex supports. Bitfinex suggests using the updated version of browsers to ensure that the data is end-to-end encrypted, and there is no interference of a third party.
Many people also don’t know that Bitfinex is the first to offer a dedicated low-latency connectivity solution. However, the following solutions are supported round the clock assistance.
- The Co-Location Device– This allows Bitfinex to provide the fastest trading speed.
- Private Servers– They direct you straight into the dedicated high-security center.
- VPS– It connects within the co-location space. This service offers a tremendously sensible combination of SSD storage, RAM, and CPUs.
- Charting and Analysis – The live chart shows the analysis of the ongoing fluctuations in the market. This chart allows you to analyze the situation of the market and invest as per your convenience. You can track the market fluctuation pretty easily.
- Mobile Trading – The native mobile applications on iOS and Android devices must be used for the best experience and security. This allows you to fund and trade across several cryptocurrencies available on Bitfinex.
How to trade on Bitfinex?
To trade in Bitfinex, you can create your account with all the required details that the company asks, and then, you are good to go. It allows you to trade with Bitcoins because they are decentralized, and the fund remains in the market. Thus, it is apt for those who have a plan to invest or trade digitally.
To buy Bitcoins in Bitfinex, you need to follow a sequence of easy steps.
- You need to make deposits. It can be either fiat or digital tokens. Your Bitfinex account must have deposited as per the allowance given to them.
- You must choose the wallets you wish to use – Funding, Margin, or Exchange; if you want to invest in BTC, select Exchange.
- You can now choose the best-suited trading pair and make the order.
You can make the first trade in a few easy steps.
- The funding must be stored in the wallet.
- Select the trading you wish to trade, followed by the Exchange tab in the order form.
- Specify the price, order size, and order type. You can choose a market order to make things easier and simpler.
- Click on Exchange Sell or Exchange Buy to trade.
To get the best ticker prices for selling or buying, you can add liquidity to the trade book. The maker fees are paid under the ticker price for sell or buy if the liquidity is removed.
If you reach a trailing 30-day trading volume, you are exempted from any charge, given the condition paid on the Tether/US Dollar.
To open a trade you have to use the order mask on the left side. Choose the asset you want to trade. Bitfinex will show you the chart and order book for your favorable asset. There are different order types that can be used:
- Stop limit
- Trailing stop
- Fill or kill
- Immediate or cancel
- Limit (order book)
The order book will show you the liquidity of the exchange in the BID and ASK offers. Also, the actual trades are shown on the right side. On the first look, the order book is very fast and not easy to interpret because the prices are shown in a small range. But there is a solution to this. You can zoom out and see the offers on bigger price ranges.
Our Bitfinex review shows that a professional trading platform is offered. You can use this platform for scalping, swing trading, or just buying and selling cryptocurrencies. Technical analysis is also possible by using indicators and drawing tools. Overall, we can recommend using the Bitfiniex platform for your trading.
How to open your Bitfinex trading account
Initially, to open an account on Bitfinex, you must fill in the necessary details like name, email ID, and time zone. After the account is created, you must optimize the security settings.
Bitfinex advises you to set a unique, strong password to avoid any chances of cheating or breaching. The password must have one uppercase letter, one number, and a unique character. You must combine your account with Google 2FA.
You get access to the 2FA key that must be noted down for future references. It should be made visible only during the setup process or if you lose the password.
You can do it in the given ways:
- Two-factor authentication must be enabled so that the transactions are without any glitch.
- While using a new IP address, you must always lock the withdrawals.
- You must set up a withdrawal confirmation phrase.
- For all the currencies, the withdrawal addresses must be locked or disabled. This ensures that no transactions can take place without your permission.
- You should stop the “Keep session alive” option.
- You must secure the IP address as well. You must avoid using any VPN services or any other method that reduces the security of your IP address. This is important to track down the history if any mishap takes place.
- You must enable PGP email encryption for better security. This will secure the communication that takes place through your email.
The process of verification for Bitfinex is a standardized compliance measure to function against CTF (Counter-Terrorism Financing), KYC (Knowing Your Customer), and AML (Anti-Money Laundering) laws and regulations. You require to submit a signed declaration to confirm the accuracy of the submitted application. Your documents get verified in 2-3 working days. The application process of the account starts after the verification. When the process succeeds, you get notified through email.
Bitfinex offers four levels of verification for all the accounts- Full, Intermediate, Basic Plus, and Basic.
When the first level of verification is completed, your account level is set to Basic. You can now withdraw, trade, or deposit any cryptocurrency through your wallet.
Whether you belong to an institution or an individual, you can upgrade your account to the advanced level. You can access a better offer of digital assets and products and trading features. It is essential to reach the topmost level of verification (Full) if you have to make fiat withdrawals or deposits.
However, you don’t need to be verified to trade through your account. Verification is necessary only if you wish to withdraw or deposit fiat currencies for stable coins of selected utilities.
Demo account (paper trading)
In recent years, Bitfinex has launched a demo account service. This allows you to save your funds from risk in a live account. You can practice strategies to tackle the risks on this site. You can trade Bitcoin in a simulated market with the paper trading fund. It allows you to trade without actually depositing real funds. In comparison to this, at leverage, it is quite risky to trade. Therefore, this service comes out as a boon for you.
To open a demo account you have to navigate to the sub-account area where you are creating a new sub-account. Tick the box “paper trading account”. See the picture below:
Recently, a partnership has developed between Market Synergy and cryptocurrency. This connectivity provider allows firms to take an ISP or a FIX feed to Bitfinex’s digital asset gateway.
Market synergy, along with the institutional connectivity offering and cloud-based VPS, offers every Bitfinex institutional client a co-location service. It is highly beneficial for you, especially if you are a professional trader or a broker. You can connect well through this service in the Bitfinex trading platform.
Bitfinex provides you some other significant benefits. In fewer stages, it provides you with faster withdrawals. The servers of Bitfinex are bare-metal, self-designed, and dedicated for high volume trading with premium hardware. The newly enhanced security features are one of its most significant perks. The dedicated servers allow you to improve the software updates and ensures the future of the hardware.
Banking has also been made easy through the fast verification of the fiat banking deposits and withdrawals and USDT (Tether) withdrawals and deposits. Capital efficiency has increased.
Koine, a London based company, has collaborated with Bitfinex. Koine has custody and assures the settlement of digital assets. It aims to deliver an efficient online trading environment that fits institutional investors.
Is there a Negative Balance Protection?
In the settlement provided by Bitfinex, if the users’ wallet has negative funding, Bitfinex exchanges the negative with the positive currency.
This means the older negative currencies will be preferred over the new ones to be exchanged. The tokens with higher risks and losses tend to lose the opportunity of settlement. Those where the haircut is applied tends to get settled quickly. You can check the haircut applied anytime.
Deposit and withdrawals
Depositing is the most crucial step while working with Bitfinex. You can use any supported cryptocurrency, fiat currency, or stable coin to make the deposit (EUR, CNH, JPY, GBO, USD).
See the picture below for the depositing mask:
While depositing fiat currencies, you must have a fully verified account. A fully verified account will speed up the withdrawal and deposit process. This will also allow you to withdraw and deposit fiat currencies.
You need to follow the given steps to make an account:
- Fill up the online form.
- The age must be 18 years of age.
- You must provide information like email address, telephone number, and residential address.
- You must provide the bank statement.
- You must provide proof of a residential address.
To provide proof of residential address, you can give a statement of utility services that is not older than three months. You can also give a government-issued statement issued within the same time frame.
On the other hand, corporations have to provide their name and contact information, location, identity, financial proofs, and KYC.
After this, you can go to the verification button, found in the platform’s top right corner.
The exchange wallet is used to sell or buy cryptocurrencies, whereas, for margin trading, a margin wallet is used. While providing financing for other margin traders, the funding wallet is used.
The most common among these is the exchange wallet used while selling or buying any of the cryptocurrencies of Bitfinex.
Support and service
While providing financing for other margin traders, a funding wallet is used. The most common among these are the exchange wallet. While selling or buying any of the cryptocurrencies of Bitfinex, this wallet is used.
The support provided by Bitfinex is quite efficient. The support page of Bitfinex is divided into various sections like Token Sales, Token Deposits, Token Withdrawals, Bank Wires, Account Access, Account Settings, Verification, Trading and Funding, API, Mobile Application, Bug Reporting, Security Concern, Partnership, Forks and Airdrops, and Other issues.
So, it’s pretty simple. Anytime you feel like approaching them regarding any issue, you will be assisted without any delay. They help you through the mail and knowledge-based information.
The knowledge-based section is further divided into basics, account, trading, and lending, and more. These options on the dashboard clarify any doubt in your mind while operating on this website or application. It provides expedited verification. The professional traders or corporate accounts get verified faster. It maintains the standard compliance measures to avoid money laundering and other maligned happenings.
The customer support system is exceptionally dedicated to users. They are provided Tier One support. Tickets are assigned to every customer, and the issues are resolved accordingly. The support system stands as a ray of hope 24/7 in case you find yourself in any problem.
- Very fast e-mail and ticket support
Conclusion on our Bitfinex review – Is it a scam or not?
With the given features and advantages, Bitfinex can be considered an ideal trading platform available digitally. Bitfinex is definitely not a scam. We already did a lot of deposits and withdrawals with this platform. It works correctly and the exchange got a growing customer base day by day. This website is the best for advanced traders who look for advanced trading tools to complete their tasks efficiently and safely. The advancement in security also assures your privacy and security of investments.
Bitfinex is one of the largest trading/investment companies. Bitfinex’s regulations are pretty necessary must be followed for best security. The technological advancement has enhanced the safety/security of the users. You can get access to a Bitfinex trading platform using a personal computer or the verified mobile application.
Trading on this platform is more comfortable in comparison to other sites with 24/7 support and services. Bitfinex extends the hand to help you out in any situation your investment goes wrong.
With its services being provided to most countries, Bitfinex stands out as one of the fastest and most efficient trading platforms.
Advantages of Bitfinex:
- High security
- Leverage x5
- Supports the most cryptocurrencies
- Derivates and margin trading
- Professional trading platform
- Low trading fees
- Fast execution
- High liquidity
- 24/7 support
(Risk Warning: Your capital can be at risk)