BitFinex Review 2020 [UPDATED] All You Need to Know

Cryptocurrency has gained popularity in recent years. But there is an element of risk and fraud involved in it. In this article, we will take a thorough look at BitFinex, a leading cryptocurrency dealer. We reviewed its services to try to find out if it is safe to invest your funds in it.

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What Is BitFinex?

BitFinex exchange was established in 2012. It is headquartered in Hong Kong and operates worldwide with a few exceptions. It is an online portal for trading in cryptocurrencies. It lets users buy, sell, and trade in a wide range of digital currencies.

It started as a P2P Bitcoin exchange involved in margin lending but later expanded by adding more cryptocurrencies under its fold. It accepts both fiat-to-crypto and crypto-to-crypto exchanges. Other prominent services include limit and stop orders, over the counter trades, margin trading, etc.

It is more popular in intermediate and advanced level traders. Its website is creatively designed to facilitate the user with easy-to-navigate menu options and dashboards. It is one of the most popular cryptocurrency exchange platforms and handles a whopping USD 2 billion worth of trade in a day.

Top Rated Bitcoin Exchange 2020

EXCHANGERATINGFEATURESVISIT

Excellent Reputation

Regulated PlatformVariety of CoinsAvailable via App

66% of retail investors lose money
when trading CFDs with this provider

Who Created the BitFinex Exchange?

BitFinex was created by one Mr. Raphael Nicolle in Hong Kong in 2012. It is also based there but has its affiliate offices in other countries too. It is owned and operated by iFinex Inc. which is registered in the British Virgin Islands.

Is BitFinex Safe?

BitFinex was an unfortunate victim of a hacking incident back in 2016. Resultantly it lost 120,000 BTCs. Since then BitFinex has upgraded its security apparatus and there has been no repeat incident as such.

BitFinex takes security matters very seriously now. Almost 99.5% of customers’ funds are stored in cold storage by using a geographically dispersed multi-signature system. Users can also employ Universal second authentication (U2F) which asks for an additional physical device like a USB to log in.

Additionally, it does the following to protect its system from vicious attacks:

BitFinex Sign-Up Guide

To sign up at BitFinex head over to their site and agree to their terms and conditions. These include temporary minimum account equity of USD10,000. New accounts are not able to buy or sell until they reach this amount.

If you want access to fiat deposits and withdrawals, you have to go through a verification process that takes 6-8 weeks to complete.

User Guide

Step 1: Sign up process

You can start your account by providing your username, a strong password, and an email address in the given fields. It is also important to give your time zone and unique captcha text.

bitfinex open account

Step 2: Account verification

You will need to verify your account to deposit funds. Click on the verification tab on your account portal and follow the instructions. You will have to provide a lot of personal information and then upload some government-sponsored ID.

Step 3: Account deposit

After verification, click on the “Deposit” button for making a deposit. It will ask you the currency, Tether, or a list of cryptocurrencies to deposit. You will also be given a reference number. This process can take 10 days to complete.

bitfinex account deposit

Step 4: Buying cryptocurrencies

Buying Bitcoin currency on BitFinex is easy. You have to log into your account and then click on the “Trading” tab located on the top left. Now choose the currency fair (like ETC/BTC). Now in the “order form” select the “Exchange” tab and then choose the type of the order and the amount of crypto you would like to buy.

Exchange implies immediate here. To place the order, click on the “Exchange Buy” button. This completes your procedure. You will get the Bitcoins in your wallet once the transaction is finished.

bitfinex buy and sell currencies

Step 5: Selling cryptocurrencies

The process of selling cryptocurrency is similar to buying. At the “Trading” page to the left of the “Buy” section you will see the “Sell” function.

Click on it and follow the on-screen instructions. Similar to purchase there is an exchange sell and margin sell option here as well.

BitFinex Fees

As a trading platform for cryptocurrencies, BitFinex charges fees. These vary according to the traded amounts and whether the user is a “make” or “taker”. If you take an existing order you are a taker and if you make a new one you are a maker.

The maker fee varies from 0.1% to 0.0% while the taker fee ranges from 0.2% to 0.055% based on the volume of the executed trade in the last 30 days.

The higher rates are for volumes less than USD500,000 and to qualify for the lower rates users will have to accumulate a volume of 30 million dollars in a month.

The cryptocurrency deposits are free, but withdrawals carry a fee depending on what cryptocurrency you are withdrawing.

Bank wires carry a deposit and withdrawal fee of 0.1% which can go up to 1% if you want a speedy withdrawal.

BitFinex Deposit & Withdrawal Methods

Let’s look at the deposit and withdrawal methods in the domain of BitFinex.

  1. Deposit: To make a deposit, log in to your account and go to the ‘Deposit’ section. Select the currency and create an address in the wallet you wish to send to and input that addresses as the receiving address. A deposit via bank transfers takes 6-8 weeks.
  2. Withdrawal: Withdrawal from BitFinex is also simple as a deposit. You have to go to the “withdraw” section after logging in, fill in all the required fields, select the asset you want to withdraw and that’s about it. Your account must be verified to withdraw and secured with 2FA and whitelisted addresses.

Features of BitFinex

Advantages of Joining BitFinex

  1. It is one of the most popular cryptocurrency trading portals out there.
  2. It is easy to join and provides an interactive and innovative user interface to which you can follow with ease.
  3. Due to previous hacking experiences, it now puts security protocols among its top concerns. These include storing 99.5% of user funds in cold storage, protection via DDoS, database and email encryption, and constant backups.
  4. It has highly competitive and very low fees.
  5. The procedure for deposits and withdrawals is pretty straight forward.
  6. It enjoys the trust and support of its users. Combined daily trade activity amounts to around $2 billion.

How Does BitFinex compare to other exchanges?

Let us compare BitFinex with other exchanges on the following factors;

Pros & Cons of BitFinex

Conclusion

BitFinex is one of the most established cryptocurrency exchange companies out there. It provides a comprehensive and fully customizable service to experienced investors and traders. It enjoys very high USD liquidity and offers an array of trading and ordering options, making it one of the largest BTC exchanges by traded volume.

BitFinex has had a chequered history when it comes to security. It was a victim of two high profile hacking attacks that dented its reputation. Since the last incident in 2016, the company has raised the bar of its security protocols very high and paid back all the hacked funds to its investors.

We recommend that anyone using BitFinex should make use of all of its security features and do not keep large funds there. It is better to keep withdrawing to your wallets to be on the safe side of things.

Top Rated Bitcoin Exchange 2020

EXCHANGERATINGFEATURESVISIT

Excellent Reputation

Regulated PlatformVariety of CoinsAvailable via App

66% of retail investors lose money
when trading CFDs with this provider

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