Bitfinex Review 2021 – Is It Safe and Legit Or a Scam Exchange?

bitfinex
8.1
Bitfinex Review 2021 – Is It Safe and Legit Or a Scam Exchange?
Bitfinex Review 2021 – Is It Safe and Legit Or a Scam Exchange?
Great mobile apps
Low fees
Advanced trading features
High liquidity
Multiple order types

Bitfinex is a full-featured cryptocurrency exchange that is trusted by millions of traders all around the world.

The company first entered the market in 2012, and has enjoyed steady expansion ever since. Since 2014, Bitfinex has emerged as one of the world’s largest Bitcoin trading platforms.

Today, Bitfinex is the leading exchange for USD-denominated Bitcoin trading, with daily volumes well north of US$1 billion. In addition to Bitcoin, it provides access to the world’s leading altcoins, including Monero and Ethereum, as well as full-spec wallet services.

Market participants who are looking for a one-stop exchange for all their cryptocurrency needs will definitely find Bitfinex both effective and convenient.

What is Bitfinex?


Bitfinex is one of the world’s largest and most advanced Bitcoin trading platforms. Access to multiple altcoins, deep liquidity and advanced trading features make Bitfinex perfect for serious traders looking to make money from cryptocurrency.

Bitfinex also offers a customizable interface that allows you to personalize your workstation. The platform is fully equipped with ten different order types and margin trading that give their users the opportunity to trade the market without limitation.

The exchange is incorporated in the British Virgin Islands and their executive team is based around the world. They also maintain their offices in London, Taiwan, and Hong Kong.

The exchange was hacked in August 2016, leading to the loss of 120,000 BTC and this is the second largest hack in Bitcoin history (after Mt. Gox). After the hack, Bitfinex moved from a hot wallet to a cold storage system. Bitfinex created BFX tokens after the hack (each token represented $1) and gave them to customers to represent their stolen equity. By April 2017, Bitfinex had bought back all of the BFX tokens from customers, which means that Bitfinex had paid their users back for every dollar stolen during the heist.

Bitfinex Features


Here’s an overview of the major features of Bitfinex:

bitfinex

Margin Trading

Bitfinex allows leveraged trading of up to 5 times by providing traders with access to the P2P funding market. Traders can open a position and Bitfinex will take out funding for the trader at the best available rate at that time, or they can enter an order to borrow the desired amount of funding at the rate and duration of their choice.

Margin Funding

Liquidity providers can earn interest by providing funding (funding is traded on an order book at various periods and rates) to traders wanting to trade with leverage.

Using the Bitfinex margin funding system, you can earn interest on both cryptocurrencies and fiat currencies, including the US Dollar, Bitcoin, Dash, Litecoin, Monero, Zcash, Ethereum Classic and Ethereum.

Users can also choose to lend at the “Flash Return Rate” (FRR), or they can customize the rate and duration of the loan. Using the Auto-Renew feature, users can also renew offers automatically upon expiry.

Multiple Order Types

Bitfinex offers a wide variety of order types. Thanks to this feature, traders are given the tools they need for every scenario. Bitfinex offers a suite of order types, including:

Hidden gems for huge ROI in 2021?

If you would have bet on the right coins last year you could easily have 100xed your capital…
You could even have made as much as 1000x (hint: DOGE) which means you could have turned $100 into as much as 100k.
Experts believe this will happen again in 2021, the only question is which coin do you bet on?
My friends at WhaleTank are one of the leading crypto signals providers with a proven track record of successful gem picks. You get not only buy and sell signals but also insider info on top ICOs and new coin launches.
Click here to check them out (free to test out before a one-time payment for the premium membership)

  • Post Only
  • Hidden Order
  • Fill or Kill
  • OCO (One Cancels Other)
  • Stop
  • Trailing Stop
  • Limit
  • Market
  • TWAP (Time Weighted Average Price) (Algorithmic Order)
  • Iceberg Orders (Algorithmic Order)

Mobile Apps

Bitfinex has mobile app available for Android and iOS devices. The mobile apps let you trade, transfer funds, access your wallet, engage in margin funding, and setup access via API keys. It is highly recommend that any trading of substantial value be performed only through a secured desktop or laptop because of the inherently less secure nature of mobile platforms.

Customizable Trading Interface

Bitfinex’s interface, with charts based on the popular Trading View charting site, is customisable, responsive and detailed.

Users can customize Bitfinex’s trading interface more intensely than you normally can with other exchanges. You can choose different themes, change your layout, and setup notifications or data preferences, for example.

You can also organize and sort the order book columns, set table preferences, manage tickers navigation, and compose the trading sidebar and choose whether it’s one the right or left side.

Bitfinex-Trading-Chart1

What Cryptocurrencies Can Be Traded on Bitfinex?


Bitfinex offers trading of the world’s leading cryptocurrencies, including:

  • Bitcoin
  • Ethereum
  • Ethereum Classic
  • Dash
  • Monero
  • Litecoin
  • Ripple
  • NEO
  • IOTA
  • OmiseGo
  • Zcash
  • EOS
  • Bcash
  • Santiment

Supported Countries


Bitfinex is available worldwide with few exceptions.

Bitfinex Fees


Bitfinex offers some of the lowest fees in the cryptocurrency world. Here are some of the most important Bitfinex fees:

✅ Taker Fee: 0.2% (Volume Under $500,000 in 30 Day Period)

✅ Maker Fee: 0.1% (Volume Under $500,000 in 30 Day Period)

  • Maker and taker fees drop on volume over $500,000 in a 30 day period. They continue dropping through 10+ levels, all the way up to the lowest fees, which are available to traders who make more than $30 million of trades in a 30 day period.

Here is a tabular overview of how Bitfinex fares against its competitors in terms of charged fees:

ExchangeLeverageCryptocurrenciesFeesLink
Prime XBT1000x50.05%Trade Now
BitMEX100x80.075% – 0.25%Trade Now
eToro2x (only for non-US customers)150.75% – 2.9%Trade Now
Binance Futures10x170.012% – 0.06%Trade Now
Deribit100x20.025% – 0.075%Trade Now
Bithoven20x130.2%Trade Now
Kraken5x80.01 – 0.02% ++Trade Now
Gate.io10x430.075%Trade Now
Bitfinex5x250.1% – 0.2%Trade Now
PrimeBit200x40.02%-0.05%Trade Now
ByBit100x8-0.025%-0.075%Trade Now
Phemex100x40.025% – 0.075%Trade Now
Poloniex2.5x220.09%Trade Now

Deposits & Withdrawals


  • Deposits via Bank Transfer: 0.1% (minimum fee of $20)
  • Deposits via Cryptocurrency: Free (available deposit methods include Bitcoin, IOTA, Ripple, Litecoin, Dash, Zcash, Monero, Ether, Ether Classic, and TetherUSD)
  • Bitcoin Withdrawals: 0.0004 BTC
  • Ripple Withdrawals: 0.01 XRP
  • Iota Withdrawals: Free
  • Dash Withdrawals: 0.01 DSH
  • Litecoin Withdrawals: 0.001 LTC
  • Monero Withdrawals: 0.01 XMR
  • Zcash Withdrawals: 0.001 ZEC
  • Ether Classic Withdrawals: 0.01 ETC
  • Ether Withdrawals: 0.01 ETH
  • Tether USD Withdrawals: $2
  • Express Bank Wire Withdrawal (minimum fee of $20)  (Within 24 Hours on Business Days): 1.000%
  • Bank Wire Withdrawals (minimum fee of $20): 0.1% of the withdrawal amount

Payment Methods


Bitfinex only accepts bank wire fiat deposits in EUR, JPY, GBP, and USD. Bitfinex also supports Tether (USDT), the quasi-fiat token unofficially pegged to the US dollar’s price. Of course, you can also deposit any of the supported cryptocurrencies on their platform.

The fee structure for withdrawing fiat currencies is 0.1% of the amount withdrawn, with a minimum $60.00. Standard withdrawals are processed within 5-15 days.

How Fast Will My Funds Be Available?


Withdrawals may take up to 12 hours to complete. However, if certain security requirements are met, this may be expedited. Ensuring that withdrawal addresses have been locked for at least 5 days and enabling 2-factor authentication can ensure that your withdrawals are processed faster.

Generally speaking, most withdrawals that are processed automatically will be available in a couple of minutes.

Customer Support

Bitfinex offers comprehensive customer support, including an active forum, an FAQ section, 24/7 email (support@bitfinex.com) where you can ask questions.

Should you have any outstanding issues you can also submit a ticket to the support team once logged in.

Bitrefill integration


Recently, Bitfinex integrated Bitrefill which is a popular service to buy gift cards using your cryptocurrency. Thanks for this integration, users can purchase gift cards for popular services such as Uber, Starbucks, Amazon and many more straight from the Bitfinex dashboard. 

Bitfinex Staking & Lending


In April 2020, Bitfinex started their staking program. This enables Bitfinex users to earn passive income by staking their coins (the ones that are supported on the Bitfinex platform).

At the time of updating this review of Bitfinex, following coins are suported for staking:

  • Cosmos (Atom)
  • V.Systems (VSYS)
  • EOS (EOS)
  • Tezos (XTZ)
  • Algorand (ALGO)
  • Tron (TRX)

Thanks to the simple lending process, users of Bitfinex platform can also let their coins work for them by lending them via Bitfinex and earning interest on those assets.

Is Bitfinex legit and safe to use?


Bitfinex has tight security measures in place to protect client funds, and around 99.5% of client funds are held in cold storage and away from the prying eyes of hackers.

The platform also uses email encryption to monitor withdrawals by IP, and 2-factor authentication for logins and withdrawals. One more thing worth noting is that new withdrawal IPs are also locked for 24 hours.

These security features, combined with other data encryption techniques, also ensure that client privacy and confidentiality is protected.

Next Steps

If you’d like to get started, visit Bitfinex.com and select “Sign Up” at the top right hand side of the interface to create an account (only an email address is required). After that click the “Support” tab at the top right of the interface, and then click the “Tours & Guides” option and follow the interactive guides.

Note: If anything remains unclear, contact their support staff or research the topic in the “Help Centre”.

FAQs


Can Bitfinex be trusted?

Bitfinex is fairly controversial with their alleged Tether printing and lack of transparency in business conduct. We can’t claim with certainty that Bitfinex is trustful, like Coinbase or Kraken so proceed with caution.

Why are Bitfinex prices higher?

Because dollars on Bitfinex aren’t the same as dollars other places as Bitfinex used to use Tether as the base currency which is pegged to USD but that peg is not always working as expected and a slip of 2-3% occurs causing the premium on BTC and other coin prices. It is what used to be called a Tether premium.

How to short on Bitfinex?

To open a short position:

  1. Go to the Trading page > Choose the pair you wish to open your short > Margin section (not Exchange)
  2. Place a Margin Sell order (enter the amount, order type, price).
  3. (optional) place the desired options for margin funding. “Advanced Funding Options” button.
  4. Set an order by clicking on “Margin Sell”, Margin Funding will automatically be done by the system through the p2p margin funding platform.
  5. To close the margin position, you can do it in two ways: use the close button (a Market Margin Buy order will close the short) or place Limit Margin Buy order of the same amount of BTC as your short. When the order is completely filled, the short also closes, borrowed funds are repaid and profit/losses will be credited to your trading wallet balance.

Conclusion


Bitfinex is a giant in the cryptocurrency industry, and it offers one of the strongest value propositions on the market today. The exchange uses a cold storage system today instead of hot wallets, and also offers extremely competitive trading fees.

Bitfinex alternatives


If you are not fond of Bitfinex, here is a list of potential crypto margin exchanges that can be good alternatives or read the full list by clicking here:

8.1 Total Score
Bitfinex

Ease of use
8
Reputation
7.5
Customer support
7.5
Offered assets
8.5
Fees
9
PROS
  • Great mobile apps
  • Low fees
  • Advanced trading features
  • High liquidity
  • Multiple order types
CONS
  • May not be perfect for beginner traders
  • Bitfinex was hacked in 2016
  • Tether saga is connected to Bitfinex, could blow the exchange up
intelligent crypto
How are  regular people making returns of as much as 27,144% in a year?  By picking the right coin at the right time - click the button to learn more.
Crypto arbitration still works like a charm, if you do it right! Check out Bitsgap, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Felix Kuester works as an analyst and content manager for Captainaltcoin and specializes in chart analysis and blockchain technology. He is also actively involved in the crypto community - both online as a central contact in the Facebook and Telegram channel of Captainaltcoin and offline as an interviewer he always maintains an ongoing interaction with startups, developers and visionaries. The physicist has couple of years of professional experience as project manager and technological consultant. Felix has for many years been enthusiastic not only about the technological dimension of crypto currencies, but also about the socio-economic vision behind them.

1 Comment
  1. I found that TAGZ is a scam. I also invested on their platform and after they kept asking me for kyc I got suspicious and did not invest more. They did not give me my investment (50,000 €) nor profits back. I found recoverwealthnow360 at g mail dot com before I they could drain me. I reported the situation and got a settlement claim (Investments + profits + damages).
    Now before I do anything with my newly returned wealth, I am thinking of minimizing the damage. Does anyone scammed by TAGZ had to take a loss? No! Because we have help. I would probably have lost my investment without hearing that recoverywealthnow360 ad on the Radio. But I want to minimize the damage now I have successfully received my claim to withdraw my investment

Leave a reply

CaptainAltcoin
Logo