Bitfinex is a cryptocurrency exchange that offers various trading functions from its clients bent on making a profit from BTC transactions. The platform is one of the largest in the market in terms of USD trade. The company offers regular exchange and OTC (over the counter) services for its clients.
Bitfinex Review Summary
This Bitfinex Review aims to provide you with interesting and, more importantly, useful information regarding Bitfinex. We review the exchange’s verification requirements, trade details & functions, fees and security features.
Creating an Account
Opening an account at Bitfinex does not cost a thing and lasts less than 5 minutes. You need to provide your email address, username and password to be able to purchase and sell coins.
Verification was not mandatory in the past. Now, however, the company adopted anti-money laundering (AML) and counter-terrorism financing (CTF) laws and regulations, meaning that identity check is necessary. The said new rule applies to fiat currency deposits and withdrawals, while cryptocurrency transactions are still available for unverified users.
What Cryptocurrencies are Available?
You can trade on the daily basis at Bitfinex 21 digital currencies, which are:
- Bitcoin, Litecoin, Ethereum, Ethereum Classic, Zcash, Monero, Dash, Ripple Iota, EOS, Santiment, OmiseGO, Bcash, NEO, ETP, Qtum, Aventus, Eidoo, Bitcoin Gold, Streamr and Recovery Right Tokens.
That is a large number of coins available for you to play with, especially when various trade functions are used.
Deposit Methods and their Costs
The only deposit methods accepted at Bitfinex are bank transfers. The said funding service is available to those accounts that have verified their identity although the information about the deposit limits is not available on the site.
The fees for bank transfers stand at 0.1% (minimum $20) of the value you wish to deposit in your account. Cryptocurrency funding does not cost a thing.
Exchange rates and Fees
Bitfinex imposes one of the lowest transaction fees in the market, organized in maker and taker fees. The position depends on whether your order adds or deducts the value from the market. Maker fees stand between 0.1% and free, while taker fees stand between 0.2% and 0.1%. Your monthly trade volume dictates the level of trade fees that you will incur at the end of the month.
Withdrawal costs are presented in the table below according to the currency used:
Margin trading carries 15% fees with itself for the orders that are open to all traders. Hidden orders have 18% fees.
Exchange rate has a low spread, meaning that buying and selling prices of digital currencies are very close.
How high is Liquidity at Bitfinex?
Bitfinex is one of the largest bitcoin platforms in the world, with $37 billion worth of trade on monthly basis. The largest liquidity exists at OTC desk in the Bitfinex platform, with large volumes traded on the daily basis.
The biggest liquidity is USD to BTC trades, with value passing $390 mark on active funding orders.
Traders have two options when buying and selling coins at Bitfinex. First is regular exchange that has long and short (buy and sell) positions. There are various margin trade functions that you can use, them being:
- Different order types (limit, market, stop, trailing stop, fill or kill, one cancels other – OCO, hidden orders, etc)
- Customizable interface
- Lending of coins to others
- Powerfull API tools (REST and WebSocket)
OTC desk is primarily for advanced users who have the means and desire to be more serious about crypto trade. The $100.000 minimum is a proof of this. While many might see the number as too high, we deem it necessary to create a safe environment for everyone. After all, here you trade large volumes and security of funds come first.
Found in 2014, company had a long way towards the top spot in terms of USD/BTC trade. In 2016, Bitfinex was hacked by an unknown group of cybercriminals. The incident resulted in $72 million lost trader’s funds, many of which are yet to be refunded. Furthermore, the dispute with Wells Fargo brought about the stop of fiat withdrawals in 2017. Suffice to say, large number of traders have left the platform since until verification allowed the said withdrawals.
Security & Safety
You have several options when it comes to securing your funds and coins at Bitfinex:
- Two-factor authentication (2FA)
- Email encryption
- IP login limitations and whitelists
- Login email alarm system and history
- Keep the sessions alive or cut them off
Bitfinex Pros and Cons
Summing all advantages and disadvantages of the Bitfinex, the pros and cons are:
⬤ Cryptocurrency trade does not require verification
⬤ Large amount of coins available at OTC desk
⬤ 21 cryptocurrencies available for trade
⬤ One of the lowest trade fees in the market
⬤ Good Security Features
⬤ Various margin trade functions available
⬤ Geared towards experts, confusing for beginners
⬤ Fiat deposits/withdrawals require verification
⬤ Bitfinex was hacked in 2016
⬤ Limited number of deposit options (bank transfers only)
⬤ Fiat withdrawals are not available anymore for unverified users
If you are a cryptocurrency veteran or you wish to be more serious about the investments in coins, Bitfinex would be a quite good choice for you. With large amount of coins and trade functions, platform offers good trade flexibility.
The issue remains about the verification requirements and limited deposit options. Beginners would find it hard to navigate through the exchange unless they spend hours on learning about the trade functions.