Bitfinex is one of the best cryptocurrency exchange platforms and it’s based in Hong Kong. It’s ideally meant for serious active trading or cryptocurrencies, however, even beginners can dabble in it for the purchase of coins. Bitfinex facilitates trading in a number of different altcoins, both popular and lesser-known ones.
Bitfinex also happens to be the world’s leading exchange in terms of volume alone. However, we’ll get into the details of that later.
In this Bitfinex review, I’ll give you a complete overview of this site so that you can decide whether it’s the ideal choice for you.
However, you shouldn’t make a decision until you haven’t compared it with other services as well. If you’re interested in a comparative table, you can simply move on to “PART 3: Bitfinex Compared (and other Alternatives)”.
PART 1: Bitfinex: The World’s Biggest Exchange by Volume
Bitfinex is currently the world’s leading exchange platform in terms of volume. From mid-April to mid-October, 5.77 million BTC have been traded in their platform. If you compare this figure to other leading platforms, Bitfinex comes ahead of the others by almost twice the volume.
The following graph will show you how the trading volumes are distributed amongst various platforms.
The highest volume is significant for a number of reasons:
- It represents a low spread, so the difference between asking and selling prices is lowest in this platform, thus ensuring maximum profitability for a trader.
- It also enhances liquidity. As such, you can trade in high volumes of bitcoins without pushing the price further.
PART 2: The Bitfinex Hack
Like so many other platforms like Bittrex and Coinbase, Bitfinex has also been subject to a major hack. In August, 2016, 120,000 bitcoins worth $72 million US dollars were stolen. This isn’t nearly as catastrophic as the famed Mt. Gox hack, however, it still pushed the bitcoin prices down by almost 25%.
Bitfinex responded to the hack in the following ways:
- Even though only a few users suffered the losses, they spread it out to all the users and convinced everyone that they’ll soon be compensated in full.
- They also issued custom BFX tokens to all the users who suffered losses, equal to the value of the losses. The users had the options of waiting for Bitfinex to repurchase the tokens, investing in equity in the company, or using them for trading purposes in the platform.
They started paying back the losses in 2017, and in April they assured everyone that all the BFX tokens would be repaid soon.
Bitfinex has largely succeeded in winning back the trust of all of its users. They’ve paid back all the losses in full and they use the most advanced state-of-the-art security measures as well.
To start with, 99.5% of the client’s funds are kept in cold offline wallets, and only 0.5% are kept online for the purposes of liquidity. Furthermore, the cold storage is distributed in various geographical locations, all of which are securely held.
The users need to create their accounts with two-factor authentication, and they have advanced verification measures in place as well. However, one aspect in which they’re behind some of the competitors is the fact that they don’t use PGP encryption while sending emails.
PART 3: Bitfinex Compared (and other Alternatives)
Bitfinex has one of the most diverse range of cryptocurrencies available for trading, and it’s available in all countries that accept cryptocurrency trading as well. However, if you’re from the US, you might not be able to participate in margin trading. In that case, you should look out for alternatives such as Coinbase.
One of the best aspects of Bitfinex is that it has the lowest transition fee amongst its competitors. This makes them ideal for active trading. However, if you’re just interested in buying cryptocurrencies and not in active trading, then you can try out a more direct platform such as Coinmama.
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PART 4: Bitfinex Trading Information
Bitfinex supports a wide range of cryptocurrencies. These include all the popular coins such as Bitcoin, Ethereum, Litecoin and Dash, but also the lesser-known coins such as EOS, OmiseGO, Iota, Ethereum Classic, Zcash, Ripple, Santiment, and Monero.
Bitfinex only accepts USD as fiat currency.
Bitfinex is available worldwide. However, margin trading has been disabled in the US for unknown reasons.
Bitfinex has a low trading fees of 0.0 to 0.2% on all transactions. Furthermore, the fees becomes lower as you continue trading, and if you cross the 30 million dollars margin, the fee drops down to 0% for the maker and 0.1% for the taker.
Bitfinex has a minimum order limit of $10, but it has no ceiling on the purchases.
How fast are your funds available?
The funds are available immediately upon the order being approved.
PART 5: Bitfinex Trading Guide
In order to start trading in Bitfinex, you need to first create an account with them.
To do so, you need to go to the Bitfinex Website. Click on ‘Open Account’, and agree to all the terms and click on ‘Proceed.’ You only need to verify an email address to create an account with Bitfinex.
You’ll need to deposit some funds before you can start trading. Bitfinex accepts a number of different payment methods. They accept Bank Transfers, however other alternatives such as Credit/Debit Cards, PayPal and Skrill aren’t accepted. If you’d like to use these payment methods, you should try out Coinbase instead.
If you want a detailed guide on how to trade with Bitfinex, you can watch this YouTube video:
PART 6: Bitfinex Review Conclusion – Is it a Good Choice?
All things considered, Bitfinex is a powerful exchange platform. The fact that they’ve bounced back from their hack and returned all the losses also stands as a testament to their integrity to never wrong their users. They also charge very low transaction fees, so they’re ideal for active trading.
Do comment down below and let me know if you found this Bitfinex review to be useful. If you have any other questions, feel free to ask.
Bitfinex has suffered major security breaches, but they continue to be a reliable exchange platform with a low transaction fees and wide support.
- Low transaction fee.
- Wide range of cryptocurrencies.
- Global presence.
- Past security breaches.
- Only USD accepted as fiat currency.