Bitfinex Crypto Trading Platform Review – Is It Worth It?
Team of STO Investment Platforms Reviewers
Bitfinex is a popular and large exchange offering a variety of digital coins and trading options such as paper trading, margin accounts, and spot trading. The platform is said to be suitable for all kinds of investors and is easy to use, but is it worth it? Let’s find out in this Bitfinex review:
What is Bitfinex?
This Bitfinex review cannot be complete until we mention the dark side of Bitfinex. The crypto trading platform has been a part of several controversies and is known for having a shady past. According to reports, it has been involved in market manipulation and has had to pay a variety of fines for facilitating illegal off-exchange transactions and operating an unlicensed exchange. This is also why the platform does not currently cater to users in the US. It is only catering to users abroad.
Despite all these controversies, the platform claims to have more than 500,000 concurrent users.
Bitfinex crypto exchange review: pros and cons
Here are some of the main pros and cons of choosing Bitfinex:
The platform is very cheap with low trading fees
Supports a large number of order types, including margin trading
The mobile app makes it possible to trade on the go
A huge number of assets to choose from – over 180 coins
Is not available in the US
The interface is a little complicated
Bitfinex crypto trading platform review: how to use
Like any other exchange, Bitfinex requires users to first sign up for an account. The process is easy. You’ll be asked to provide personal details and verify your identity. Also, for your safety, it will ask you to get an authenticator app. Do it and use the QR code to complete the process.
Log in, go to ‘Wallet’, and choose ‘Deposit’ to add money to your account. Choose your preferred deposit method from bank transfers, digital coins, and cards. Some deposits are instant but some may take a while. Also, you may have to verify your account before you can add money to it, so keep your documents ready. The process can take about 48 hours.
Also, not all users may get the option to directly add cash, and adding crypto may be the only choice. Hence, scroll down to find Bitcoin on the Deposit page and choose your preferred wallet account from the available options: Funding, Margin, and Exchange.
You will find the option to generate an address under ‘Exchange’. Click it, copy your deposit address, and send funds to it.
Wait for the money to show up in your account and start trading. The dashboard can be a little complicated, especially for new users. You’ll see tickers in the upper-left section. Choose the pair you wish to trade then select the Order Form in the lower-left section to place an order.
Consider starting with a demo account first so you can understand how the platform works.
Bitfinex fees: is it expensive?
One of the biggest benefits of Bitfinex is the low fee. Most trades, including cryptos, fiat currencies, and stablecoins, come with either a 0.20 percent taker fee or a 0.10% maker fee, which is among the lowest in the market.
Consider holding the LEO currency if you want to save fees. According to the platform, $1 in LEO can help you get up to 15 percent off taker fees for crypto-to-stablecoin and crypto-to-crypto and trades. This means that holding $5,000 in LEO can help you save 25 percent taker fees for crypto and stablecoin trades and 10 percent for fiat trades. The more LEO you hold, the more money you can save. Also, the company offers special discounts to users who trade more than $500,000 per month.
In addition, there may be other charges, including a deposit fee going as high as 0.100 percent or a minimum $60 for wire transfers. Crypto, stablecoin, and securities, however, are free to deposit. On the other hand, withdrawal charges depend on the asset. For example, Anchor and Aptos are free but Ethereum withdrawals cost 0.0016695 ETH per withdrawal.
What crypto can you buy on Bitfinex?
Bitfinex crypto trading platform offers over 180 coins. Here’s a list of some of the most popular names on the platform:
You will find more crypto on Bitfinex, check the official site for a full list.
Is Bitfinex crypto safe?
Bitfinex uses advanced APIs, 2FA, cold storage, and withdrawal protection features to protect customer assets. However, it is not considered the safest option out there as Bitfinex has been hacked a number of times. Also, the exchange does not offer insurance but it has, in the past, taken responsibility to compensate victims of hacks and breaches.
Bitfinex Crypto Review: Frequently Asked Questions
Here are some of the most commonly asked questions about Bitfinex:
How was Bitfinex hacked?
Bitfinex has been hacked a number of times, with the 2016 hack being the most popular one where hackers stole BTC worth about US$72 million at the time. It is still not clear how the hack happened, but experts believe that hackers used private keys to broadcast instructions to transfer BTC to their desired addresses.
Who hacked Bitfinex?
Though not yet confirmed, it is believed that Lichtenstein and his wife, Heather R. Morgan, were behind the hack or at least linked to the theft.
How to buy on Bitfinex?
The first step is to sign up for an account and add money to your Bitfinex crypto wallet. Once done, go to the dashboard and exchange it for your desired currency.
Where is Bitfinex based?
Owned and operated by iFinex Inc, the exchange is based in the British Virgin Islands.
What is Bitfinex exchange and what is Bitfinex crypto?
Bitfinex is a large cryptocurrency exchange offering over 180 digital coins for users to trade. It supports a variety of trading options and is known for being a very affordable exchange. Similarly, Bitfinex crypto is a crypto platform that allows users to exchange cryptocurrencies.
Can I make a profit through Bitcoin trading on Bitfinex?
Merely trading on Bitfinex is not profitable but users can make a profit if they bet right and the prices move upward. For example, if you buy 1 BTC worth $20,000 today and it jumps to $40,000 tomorrow, you will have the option to sell it and make a profit of $20,000 minus fees.
Bitfinex crypto review: conclusion
Bitfinex crypto exchange is a large exchange but not the best option out there. It is out of reach for Americans and isn’t considered reliable due to a lack of licenses and repute. The huge number of assets and low fees are two of its main pros but the cons seem to overpower the pros in this case. We suggest that you look at names like Robinhood and eToro.
Start investing now with reliable crypto exchange: Binance