Bitfinex Review

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Bitfinex Review

Bitfinex is an oldie. Lots of years of experience.

Bitfinex Overview

Bitfinex is a cryptocurrency exchange with a diverse range of crypto coins and trading choices. Some of these trading choices include spot trading, margin accounts, derivatives, paper trading, and more. 

The platform and services provided by Bitfinex are suited for both novice and experienced traders/investors.

Platform & Features

Bitfinex provides a user-friendly trading platform for beginners, and for more experienced investors they can take advantage of the many advanced tools which are available to them right on the platform – a win-win scenario for everyone. 

Some of these features are sophisticated charting tools, an order depth chart, an order book view, as well as quick buy/sell options. Additional complementary features include automated algorithmic trading, a rich application programming interface (API) for developers, historical price data accessed via the Bitfinex Terminal, margin trading, and derivatives trading.

And finally, you can also create a free paper trading account, where instead of trading with real money you can practice with fake money, in real time. The perfect way to improve your trading/investing skills without risking any real money. 

History Of Bitfinex

Bitfinex is one of the oldest cryptocurrency exchanges out there, having been established in 2012. Since its inception, the exchange has maintained its position as a market leader in the trading of cryptocurrencies. 

The majority of deals on Bitfinex cost 0.20% or less, making it one of the exchanges with relatively minimal trading costs. 

Security and Regulation

When it comes to the security of user accounts and assets, Bitfinex relies on a number of tried-and-true practices from the bitcoin sector. 

Two-factor authentication, complex application programming interfaces (APIs) for linking third-party services, withdrawal protection mechanisms, and cold storage for client assets are some of these.

Fees and Commissions

Bitfinex has low trading costs. The vast majority of deals are subject to a maker charge of 0.10% or a taker fee of 0.20%. This rate is applicable to exchanges involving crypto, stablecoins, and fiat currency.

You will get a discount of 15% on taker costs for crypto-to-crypto and crypto-to-stablecoin exchanges when you have the equivalent of $1 worth of LEO in your account. LEO is the main utility token at the heart of the Bitfinex ecosystem.

If you have at least $5,000 worth of LEO, you will get a discount of 25% on taker costs for trading cryptocurrencies and stablecoins, as well as a discount of 10% on trading fiat currency. 

In addition, if you have a sum of $10,000 or more in LEO, you may be eligible for a bigger percentage reduction depending on the amount of your balance.

High-volume traders, defined as those who do more than $500,000 in monthly business, may also be eligible for reduced commission rates.

What Can You Trade On Bitfinex?

On its active trading platform, Bitfinex offers more than 170 different cryptocurrencies. These cryptocurrencies include Bitcoin, Ethereum, Tether, Terra, Litecoin, Solana, and Ripple, amongst many more. 

In general, Bitfinex does a fantastic job of supporting currencies that are in high demand on its platform. 

How To Open Your Bitfinex Account

The process of establishing an account begins with the generation of a username and password. Unfortunately the platform is not available for United States citizens.

To comply with anti-money laundering and Know Your Customer (KYC) regulations, Bitfinex asks that you provide your personal contact information as well as two pieces of identification that are legitimate and issued by the government in order to establish an account and completely verify your identity. 

You will also be required to submit a selfie with them, which will serve as further verification of your identification.

Bitfinex Customer Support

Your Bitfinex account is largely a self-service platform, much like the majority of crypto exchanges. The most effective approach to seeking assistance is to look for the answers to your problems in the frequently asked questions and help parts of the exchange.

In addition, Bitfinex has a support ticket system to provide assistance to customers that send emails. In the event that you run into an issue, you won’t be able to receive immediate assistance since there is no support accessible through phone or live chat.

Pros

  • Compared to its rivals, Bitfinex’s trading fees are far lower than the industry standard.
  • Support is provided for sophisticated order types, margin trading, and derivatives trading 
  • There are sophisticated options for trading and investments accessible.
  • Paper trading provides novice cryptocurrency users with a risk-free way to try out a platform, and the mobile app is quite simple to use.

Cons

  • In the past, the government has issued penalties for misleading business activities because of regulatory infractions.
  • Bitfinex and Tether participated in several questionable transactions, and there may have been some questionable participation with the Tether currency.
  • Not accessible in the United States; access to the platform is denied to citizens and residents of the United States.

Conclusion

The regulatory background of Bitfinex is alarming, and customer opinion is divided. Suppose you’re located outside of the United States. In that case, you’ll need to weigh the positives (a solid platform with reasonable prices) against the negatives (a checkered past that includes consumer trust breaches).