Bitfinex Review — Is it back on track?
Bitfinex is one of the most well-known cryptocurrency exchange platforms around, as it steadily keeps high positions by trading volume and positive user experience. Based in Hong Kong, it’s been operating since 2012 and has gained the reputation of a trustable and secure tool for traders worldwide, any generic Bitfinex review will likely tell you that. This is all in spite of suffering two major hacks in 2015 and 2016, which did show that like all other exchanges, it’s not impenetrable.
Initially launched as a peer-to-peer margin lending platform with Bitcoin support, it has significantly grown in recent years and now offers a wide range of cryptocurrencies and additional services. Bitfinex has a polished image, there is no doubt about that, but does it stand up to FullyCrypto’s stress test? Check out our Bitfinex review below, as it reveals all!
- Delivers a wide range of pairs, order types, and services
- Low withdrawal and trading fees
- Has impressive mobile trading options
- High profile hacks have blighted its reputation
- Slow payment processing
- Account verification time is lengthy
Can Bitfinex be trusted?
At the time of writing, Bitfinex is can be considered as one of the most secure exchanges with the vast majority of users’ funds kept within the cold storage and only 0.5% of all assets residing on hot wallets. Users have an option to reinforce their accounts with multi-factor authentication. Also, on the website itself, some DDoS protection techniques are implemented to ensure seamless trading.
However, before getting to the current state of security, Bitfinex exchange has walked a really bumpy road. In the past, Bitfinex has experienced a number of hacker attacks. The first successful assault took place in 2015 with 1,500 BTC stolen (~$360,000 USD at that time). The next big hack occurred in April 2016 leaving the platform with a breach as big as 120,000 BTC (~$50 million USD). After Mt.Gox, this was the biggest hack in the history of cryptocurrency exchanges.
The losses at Bitfinex exchange were spread among all users at that time, but the platform compensated them within a year after the event. That being said, Bitcoin from the Bitfinex hack is still being moved around as recently as June 2020.
In addition to all these troubles, in April 2017, Bitfinex’s funds were frozen for several weeks by its bank, the US-based Wells Fargo. The service was restored in a while after that, but Bitfinex US customers were left out in the cold. It was a real body blow at the time as Bitfinex US customers made up a large segment of the company’s userbase.
Another dark spot on the platform’s reputation was an accusation from New York Attorney General for using Tether’s funds to cover money missing since mid-2018. Bitfinex tether trading has also been put under the microscope because of this very reason, to the point where Bitfinex and tether are facing a second major lawsuit.
Look, trust is a tricky subject within the cryptocurrency exchange space, but Bitifinex has thankfully been able to put its patchy past in the rearview mirror.
Is Bitfinex user-friendly?
Bitfinex provides its users with a robust set of features and trading tools that are well designed, but are mostly oriented towards professional traders — newbies reading this Bitfinex review beware. On the main dashboard, you can find a huge variety of different features including margin trading, derivatives, order book, and more. In fact, the diversity of options can really scare off someone that isn’t already familiar with trading terminology.
The platform has a build-in TradingView chart helping traders make their analyses without having to switch to another tab. Also, traders can utilize different order types such as market, limit, and stop orders. Honestly, we can’t really fault Bitifinex UI, as it provides exactly what most experienced traders are looking for. That being said, we must make it clear that Bitfinex exchange features trading tools that suit seasoned traders rather than newbies, so those without pre-existing knowledge might find themselves a little lost.
Does Bitfinex have a mobile app?
Through the mobile browser as well as in the mobile app, the Bitfinex platform supports the same set of features and functions. Just like the desktop version, the mobile app is powered by TradingView, providing its users with access to the analytics charts on-the-go.
The mobile app comes with both Android and iOS support. The interface of the app is well-adjusted for mobile devices and comes with five main modules: Trading, Derivatives, Funding, Transfer, and Account. When opening a particular trading pair, you need to scroll the page in order to see the trading book, which may be not very convenient for those users who want to focus on quick trades.
The best way to describe Bitifinex mobile trading platform is solid but unspectacular.
What coins does Bitfinex support?
On the platform, there are 150+ trading pairs, however, when ranged by the trading volume, only a few dozens of pairs are worth taking into consideration. The daily volume of most currencies falls way below 500 USD.
Among the most popular coins are EOS, Litecoin (LTC), Ripple (XRP), Monero (XMR), and IOTA. The former is a rarer coin that is available for purchase on just a few platforms right now, so Bitifinex has a slight edge on the competition here.
Tether (USDT) is also traded on the platform, too, of course, don’t forget that once upon a time 5 billion in USDT was sent to Bitifinex from an unknown wallet. Given Bitifinex Tether troubles in the past, it might be a case of the less said about this particular coin the better though.
Verified users can make deposits in fiat currency in EUR, JPY, GBP, and USD via wire transfer from a linked bank account, as well as via bank/debit cards.
What are Bitfinex fees?
Bitfinex fees have always been a hot-topic amongst traders, with this generally being for good reason. Maker fees on Bitfinex range from 0 to 0.2% and taker fees range from 0.055% to 0.2% per order. The size depends on the trading volume over the past 30 days. Obviously, the more you trade the better rates you get, but that’s no unsurprising. It is worth noting that Bitfinex has scrapped its minimum account balance requirement, something we think other exchanges could learn from.
Bank and card deposits are charged a 0.1% fee, while cryptocurrency deposits are free for any sum above 1,000 USD. For smaller amounts, fees vary depending on the currency you deposit.
Withdrawal fees can be as high as 1% if you need to get your funds urgently, so be careful. More detailed information about Bitfinex fees is available on a dedicated page on its website.
Is Bitfinex customer support reliable?
On the platform, there is an extensive knowledge base covering all the possible questions that new users may come across. Also, support is reachable via email with the promised 12-hr response time. In reality, it usually takes much longer, or at least this is what we found when we were putting together this Bitfinex review.
However, the TrustPilot score shows that the customer support team does a decent job. as Bitfinex gets an “excellent” review based upon user scores, which is actually a much higher score than most of its competitors.
What else does Bitfinex offer?
In addition to excellent support, Bitfinex offers a wide range of extra features. It supports the Lightning Network, helping its users send Bitcoin instantly at near-zero fees. For businesses, it offers corporate accounts with expedited verification and dedicated customer support. Institutional customers get perks as well in the form of co-location service and Virtual Private Server.
Bitfinex affiliate program is also of note, as it allows users to earn an unlimited commission from referrals. Think of this as a pumped-up refer a friend scheme and you would be on the right track.
Is Bitfinex legit?
Overall rate: 8.1/10
Despite the numerous Bitfinex hacks and security breaches, the exchange has still managed to come up smelling of roses. Nowadays it has implemented all the safety standards of the industry and can be considered to be one of the most secure and reliable trading platforms around. Yes, Bitfinex is one of those rare exchanges that has seemingly learned from its mistakes, with it putting many a negative Bitifinex review in the past.
With the vast range of tools and services that it offers, it suits professional traders better than newbies. While Bitifnex US customers are still left wanting more — sorry guys — the rest of the world will likely find that this cryptocurrency exchange has plenty to offer.
Originally published at https://fullycrypto.com on June 19, 2020.