Bitfinex Exchange: Complete Review

/Bitfinex Exchange: Complete Review

Bitfinex Exchange: Complete Review 2018-05-03T14:24:55+00:00
Bitfinex Exchange: Complete Review

Bitfinex Review

Quick inner navigation:

  1. What is Bitfinex?
  2. What cryptocurrencies do Bitfinex support?
  3. Bitfinex verification
  4. Is Bitfinex safe?
  5. Customer support
  6. What fees Bitfinex charge?

What is Bitfinex?

Bitfinex is an exchange platform that allows users to buy, sell and trade bitcoin and other cryptocurrencies. Bitfinex (BFX) has its HQ in Hong Kong and is a popular exchange site that focuses on cryptocurrency trading. Bitifinex began operations in 2012. The company initially allowed the use of US dollars as fiat exchange. That however changed when banks disallowed the wire transactions… It has one of the highest trading volumes on the market due to its robust UI, several easy pairings, and low fees.

Bitifinex offers a number of special features that make it great.

  • Margin lending that allows you to earn interest when you leave funds on the site.
  • OTC services for anonymous trading
  • API allows for Automated trading
  • Mobile app for Android and iOS

What methods of payment Bitfinex accept?

Buying methods include:

  • SWIFT bank transfers
  • TUSD (Tether US dollars)

You can sell on Bitfinex using:

  • SWIFT bank transfers
  • TUSD (Tether US dollars)

Up front, Bitfinex has to up their game here by introducing fiat currency payments. Having said that, Bitfinex allows all payments on the site done in cryptocurrency. The current impasse on the use of USD came about after US banks disallowed transactions involving banks. This has made Bitfinex rely on cryptocurrency, even though the site has agreements with several other banks to pick up on wire transfers.

What cryptocurrencies do Bitfinex support?

Bitfinex supports all major cryptocurrencies, even IOTA.

The site ranks as one of the top exchanges for this reason alone. It provides for the trading of a range of cryptocurrencies and pairs them up with USD, BTC, and Ethereum. You can trade in virtually almost all coins on Bitfinex, including IOTA. To make it friendlier to beginners, the site gives an extensive overview that examines each of the cryptocurrencies on offer. In addition, the team at Bitfinex constantly conducts coin reviews and on-site vetting, adding crypto not available.

Does Bitfinex require some kind of verification?

Verification on Bitfinex is done via email

There is two levels verification: individual and corporate.

For individual verification you need:

  • Be 18yrs old
  • Provide contact information
  • Identification documents- 2 valid documents
  • Have a bank statement in your name
  • Provide proof of address document like a utility bill

For upgrading to corporate verification you need also:

  • Provide corporate documentation
  • Every director/major shareholder information
  • Complete online form for each director/shareholder

What fees Bitfinex charge?

Transactions fees on Bitfinex are very low for both standard and large transactions.

  • At low volumes, Bitfinex charges 0.2% fee.
  • For those who place trades in the order book, the fees is 0.1%
  • The platform has waived maker fees for accounts that have traded over $7.5m, whereas taker fees may fall as low as 0.1% with sufficient volume.

Bitifinex operates like most other exchanges. Trading fees applicable to transactions vary from depending on the trade and are arrived at after what they call a fee schedule has been analyzed. Bifinex considers two-pointers when determining the fee you will be charged when trading. These are:

  • Your accumulated volume in trade over 30 days.
  • Your status as either a maker or taker

Makers and takers both act on the liquidity order books, but they place the orders indifferently. A maker adds an order above or below the ticker price depending on whether they are selling or buying. Takers, on the other hand, fill orders.

In summary, Bitfinex fees ranges as follows: makers – 0% to 0.1% and takers – 0.1% to 0.2%. Deposits are free, though withdrawal fees depend on the type of cryptocurrency you are dealing with.

Does Bitfinex limit transactions?

Bitfinex doesn’t have a purchase or selling limit. However, with Bitcoin and Zcash, the minimum you can spend is 0.01 and 0.1 respectively.

One of the major limitations facing Bitfinex is the fact that it does not support fiat currency so much. This factor may lock out first time traders who can only begin by getting payments done by other means other than cryptocurrency. Another big sore is the constant threat of hacking. The site has had one major hack in which $72m in BTC was lost. To better improve its standing, Bitfinex has revamped its security system. It is also worth mentioning that because USD payments are unavailable at the moment, many of the customers may be forced to look away to get USD services.

Is Bitfinex safe?

Bitfinex is a popular exchange site, ranking among the top two or three on many stat sites. The owner and operator, iFinex.Inc is a respected company from Hong Kong. For the last six years, Bitfinex has provided good service to a growing market, albeit with the constant challenge of having to contend with hacking threats. For instance, the 2016 hacking may have crashed many other sites, but Bitfinex emerged from that with its reputation intact. The company was able to buy back and compensate affected customers. In short, the trading community trusts Bitfinex for the services it provides.

  • Customer support- They offer a compressive customer support with a 24-hour active forum and email where you can ask questions.
  • Handling speed- Bitfinex transaction takes a minimum of 12 hours to complete. Bitfinex offers fast transactions across the board. Most activities involving account opening, a verification process to deposits and withdrawals have a span of between 2-24 hours. Bitfinex encourages its customers to ensure they are familiar with the “Greenlane Conditions” to understand how withdrawals work and how that affects handling speed. In our opinion, Bitfinex does a good job in speeding up transactions. However, more needs to be done to make the whole process smooth for beginner traders.

Who should use Bitfinex?

The UI of Bitifinex is tailored to meet the expectations of the user. The site has ensured users get the most support by having a dedicated help center that handles all FAQ within 24 hours. Their email service is great for users who may have trouble navigating their accounts on the site and cannot get specified replies at the help center. However, unlike the help center, the email service has been criticized for being quite slow in offering responses. What’s great is that the site has a dashboard with simple to navigate links like “Getting Started”, “Open Account” and “Currency Overviews”.

The Bitfinex interface looks a bit condescending if you are a novice out for your first foray into trading coins. That, however, does not mean that the site is not suitable for beginners. In truth, it is quite the opposite. Beginners can easily find their way around using the help center. There are also several widgets that make navigation easy by being accessible from the home page. A beginner can learn by following the “get started” button and so on. The site nevertheless is suited for seasoned traders.

To sum it up

To summarize, if you are out to get into the business of cryptocurrency trade, then I’d recommend Bitfinex.

Pros

  • Provides the largest and most advanced bitcoin trading platform in the world.
  • It has a very friendly interface, perfect for beginners.
  • Comes with advanced trading features and order types.
  • Mobile app supported
  • Trades a wide range of cryptocurrencies.

Cons

  • Hacked before; Bitfinex was hacked in 2016 with 12,000 bitcoins lost.
  • Does not support fiat currency like others

It is one popular site that will offer you more than just a place to sell or buy your coins.

Furthermore, the UI makes it great for novices and in case you consider security paramount, the revamped systems will guarantee you safety for your cryptocurrencies.

Bitfinex has scored high on most of our rating tools and therefore earns our recommendation as a reputable exchange.

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