Bitfinex Overview
Bitfinex was launched in 2012 – making it one of the oldest cryptocurrency exchanges in the top 10 in terms of volume.
It features support for more than 170 cryptocurrencies and has fees that are typically just 0.20% or lower. Bitfinex also has a user-friendly trading platform with enough advanced tools to keep experienced investors happy.
However, Bitfinex has been fined several times for violating U.S. federal and state regulations. The New York Attorney General found that Bitfinex and Tether misled clients by overstating Tether reserves and hiding losses.
The company has also faced fines for illegal transactions and for operating an unlicensed exchange. It’s no longer available in the United States because of violations like these.
Is it safe to buy on Bitfinex?
Bitfinex uses standard security practices to keep its users' funds safe. These include two-factor authentication, withdrawal protection, and cold storage.
However, Bitfinex has been hacked multiple times – including a major hack in 2016 that ended up being worth about $4.5 billion in the current market.
There hasn’t been a major hack of Bitfinex in recent years. But you’ll have to decide for yourself whether the exchange’s current security practices outweigh its previous hacks and issues with regulatory agencies.
Fees
Bitfinex’s fees are quite good. Most trades on the site have either a 0.10% fee for maker transactions or a 0.20% for taker ones.
You can also reduce your fees by holding LEO – the company’s native cryptocurrency token. The exact discount that you get for this depends on the cash value of the LEO that you hold.
High-volume traders may also be able to get discounted fees. But you need to trade at least $500,000 monthly to qualify.
Features
- More than 170 cryptocurrency assets
- Intuitive trading platform
- Advanced trading tools
- Paper trading for new cryptocurrency traders
- Low trading fees
- Margin and derivative trading available
- Mobile app for both iOS and Android
Bitfinex has a long list of cryptocurrency assets, which users can invest in through various strategies and order types. The exchange offers a really nice blend of a user-friendly interface with powerful trading tools.
Do they offer a wallet?
When you first create an account on Bitfinex, you’ll automatically have three wallets. You get one for each of the site’s core features, such as spot trading, margin trading, and funding.
These are all for internal site use only. So you can’t take your funds on Bitfinex and use them directly on web 3.0 apps like Uniswap. For that, you would need to first take your funds off of Bitfinex and put them on a self-custody wallet like MetaMask.
Mobile app
Bitfinex has a mobile app available for download on both Apple and Android devices. The app is, generally, easy to use and gives users access to the same trading and investing features they can utilize on the main Bitfinex website.
Bitfinex’s app currently has a 4.0 rating on the iOS store and a 3.4 rating on Google Play. The reviews feature a mixture of complaints and compliments, which conform to the types of reviews that most other cryptocurrency mobile apps receive.
Customer support and reviews
Bitfinex doesn’t offer much in the way of customer support. The exchange has an online FAQ and several other self-help resources. It also offers email support via a ticketing system.
But you won’t find any live chat or phone support options from Bitfinex. That means, if you do end up having a problem with the site, you will need to send them an email and wait to hear back.
When it comes to customer satisfaction, Bitfinex performs averagely. The site has a 3.3 rating on Trustpilot’s five-star scale.
People seem to like Bitfinex’s automated trading framework. But they dislike its slow customer service. Some users have also complained about issues with delayed withdrawals.
That being said, Bitfinex performs better than some of its competitors in customer satisfaction, which means something – especially in light of its regulatory issues and previous hacks.
Bitfinex and Tether
It’s worth taking a moment to familiarize yourself with Bitfinex’s involvement in Tether as well. If you’re not familiar with it, Tether (USDT) is the largest stablecoin in all of crypto. It’s issued by a Hong Kong company called Tether Limited, which the owners of Bitfinex control.
That means, technically speaking, Bitfinex owns Tether. The company has previously lied to investigators about the number of funds that back Tether, and there have been some questionable transactions with it.
It’s worth keeping this in mind as you consider whether Bitfinex is the right platform for your investing goals.
Compare Bitfinex before you invest
Bitfinex is a solid platform with a lot to like. It has one of the best combinations of a user-friendly interface with advanced trading tools. And it gives investors access to a long list of cryptocurrency assets.
However, the company’s previous shady dealings and its history of hacks are a cause for concern. If you’re worried about Bitfinex doing something similar in the future, there are plenty of other exchanges that can help you achieve similar goals.
We’ve put together our comparison tool to make it easier for you to evaluate those other options against exchanges like Bitfinex.
No matter your cryptocurrency investing goals, you can use our comparison tool to get the information you need to make the right decision about the platform you’re going to use to reach them.
So why wait? Try our tool and compare crypto exchanges today to get started.
