In this Bitfinex review, we will focus on margin trading and fees. Further, we will compare and analysis registration, trading currencies, deposit methods, exchange rates, fees and much more.
We, ourselves have used Bitfinex since 2015 so we have pretty good knowledge about this platform.
We will help you answer the question why you should consider Bitfinex over any other cryptocurrency exchange or trading platform.
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 2020 Intro
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. If you are interested in the lending feature we recommend you to read, Bitcoin passive income.
Bitfinex Sign Up and Registration
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. In the blog post, Best Ripple Exchange 2018, you can read more about Ripple exchanges in specific.
Bitfinex Deposit and Withdrawals
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.
For withdrawals, you can read more in our blog post, Best way to withdraw Bitcoin to USD or EUR.
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.
Bitfinex Trading Features
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
- Short a cryptocurrency. Read more about How to Short Bitcoin
- 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.
In Best Bitcoin Trading Platform 2018 several trading platforms are compared with regards to security, trading, fees, deposit and withdrawal methods of each individual bitcoin trading platform. The platforms analyzed by this guide are BitMex, Bitstamp, Coinbase, and Kraken.
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 Lending Feature
Bitfinex offers their trading customer a margin lending feature. This allows you to lend your Bitcoins and other cryptocurrencies to other traders.
Those traders will pay an interest rate for this service. The interest rate is driven by a market and therefor it changes from second to second.
However, for USD and EUR the returns tend to be stable and hover around 15% per year.
Read more about the best Bitcoin lending sites.
Bitfinex Review 2020 Pros and Cons
Summing all advantages and disadvantages of the Bitfinex, the pros and cons are:
Bitfinex Review 2020 Summary
In this Bitfinex review we demonstrated that 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 a large number of coins and trade, functions, the 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. Bitfinex is a good platform for trading and you can read more about Ethereum trading in particular here, Best Ethereum Trading Platform 2018.
Compare: Kucoin review