Strong points
Cryptocurrencies can’t be bought at the bank (at least not yet)! In fact, the vast majority of banks don’t offer crypto products. Therefore, if you’re looking to dive into crypto trading, you need to turn to the services of a crypto exchange or a broker. But which one to choose? In this Bitfinex review, we present all the basics of the Bitfinex exchange, exploring its history, ecosystem, and strengths and weaknesses.
Before delving into the details of crypto trading on Bitfinex, let’s get a general overview of the exchange.
Bitfinex
Bitfinex
Bitfinex is on a mission to simplify access to crypto trading for its users. To achieve this, the exchange provides advanced trading tools, implements innovative technology, and maintains high levels of customer service (the security aspect will be addressed later in this article).
As mentioned on its homepage, the crypto space is evolving rapidly, and Bitfinex aims to be part of the ongoing transformation. The platform emphasizes its “forward-thinking and agile approach.” It’s worth noting that Bitfinex also has its own mobile application available on Android and Apple.
As a crypto exchange, Bitfinex offers services for trading digital assets. With Bitfinex, you can buy, sell, and exchange cryptocurrencies. Bitfinex is owned by iFinex Inc, with its headquarters located in the British Virgin Islands. The leadership team includes:
“We firmly believe that the best cryptocurrency trading experience should be accessible to everyone.” – Bitfinex
Bitfinex traces its origins back to 2012, specifically December 2012, when the platform was officially launched. In its early days, the platform exclusively facilitated the exchange of Bitcoin. However, over the years, it diversified its assets.
The history of Bitfinex is marked by several attacks or difficulties, impacting its reputation. More details on these unfortunate events will be provided in the security and reliability section below.
Bitfinex
Bitfinex
In addition to cryptocurrency trading, Bitfinex offers several services. Let’s explore them.
The core activity of Bitfinex revolves around crypto trading. One of Bitfinex’s notable strengths is its extensive selection of cryptocurrencies. Currently, more than 170 cryptocurrencies are available, including major players in terms of market capitalization such as:
In addition to these “classic” cryptocurrencies, you can also invest in metaverse coins like The Sandbox (SAND) or Decentraland (MANA). Bitfinex also facilitates trading of DeFi tokens such as Uniswap (UNI), SushiSwap (SUSHI), or PancakeSwap (CAKE). Lastly, for those who enjoy taking risks and investing in recently launched tokens with highly volatile prices, Bitfinex offers tokens like ApeCoin (APE).
Beyond traditional trading, Bitfinex provides the option for margin trading. This means you can use leverage (up to 10 times) to maximize your gains. It’s important to note that this type of trading is designed for experienced users. Without prior knowledge, you expose yourself to potentially significant losses.
The Bitfinex Leaderboard section allows you to check the results of the platform’s traders (for those who have agreed to make their names and results visible). At a glance, you can review the best traders of the week and month, as well as identify those who performed less favorably.
Bitfinex offers a dedicated application, Bitfinex Reporting, to meticulously track your results. This application is available for desktop use on Windows, Linux, and Mac. In addition to providing a detailed report of your activities, this application assists you in preparing your tax declaration.
Similar to other exchanges, Bitfinex has its native token: UNUS SED LEO (LEO). By purchasing this token, you gain certain conveniences and advantages. For instance, your transaction fees are reduced, and it allows you to contribute to the development of the iFinex ecosystem.
The UNUS SED LEO token was launched in May 2019. The token is notably used by the platform in a burn mechanism. Essentially, each month, iFinex repurchases a certain quantity of LEO tokens from the market and burns them (removes them from circulation). The quantity of burned tokens is equivalent to 27% of the revenue generated by iFinex. The UNUS SED LEO token has the unique feature of operating on two blockchains. Thus, 64% of the LEO tokens were launched on Ethereum, while the remaining 36% were launched on the EOS blockchain.
Bitfinex platform enables staking. As a reminder, staking is a crypto service that allows you to earn passive income. Simply choose the cryptocurrency you want to stake, buy it, and you’ll receive weekly returns.
For example, the platform communicates the potential annual returns based on different cryptocurrencies:
Bitfinex allows you to lend your cryptocurrencies and be compensated for it. This involves locking your crypto funds for a certain period. This service is available with many cryptocurrencies, such as Bitcoin, Ethereum, etc.
Bitfinex also offers crypto lending solutions. You can get a loan in the following cryptos:
Depending on the amount of crypto requested and the loan duration, you’ll need to deposit a collateral amount in fiat currency. For example, if you want to borrow 0.006 BTC for 32 days, you’ll need to deposit the equivalent of €206.99 in collateral.
Bitfinex
Bitfinex
Interested in making your first moves in crypto trading on Bitfinex? Learn the steps to buy cryptocurrencies on the Bitfinex app and website.
After uploading the necessary documents for a level, click “Submit” to initiate the verification process. Verification typically takes 2 to 3 business days.
Before buying cryptos, you can fund your account, though it’s not mandatory. This step allows you to have funds readily available, reducing transaction time and fees.
Bitfinex supports deposits in fiat (Euro, USD, GBP, JPY, CNH) and cryptocurrencies.
Fiat deposits require a registered bank account in your name, Full-level verification, and a minimum deposit of €10,000.
Deposit funds in Euro, USD, GBP, JPY, or CNH via bank wire transfer.
Your bank account must be registered in your name. You need to have achieved Full-level verification.
The minimum deposit in euros is €10,000.
Import your existing cryptocurrencies to your Bitfinex account. Choose the crypto you want to deposit and the wallet (Exchange Wallet, Margin Wallet, Funding Wallet) based on your trading preference.
Obtain the Bitfinex wallet address for your deposit.
Visit the “Trading” tab on your Bitfinex account. Depending on your situation, you can buy cryptos with fiat, deposited crypto, or directly with a credit card.
Instant crypto purchases can be made through various networks: OWNR, Mercuryo, Simplex, and happyCOINS. Available networks depend on your verification level.
The Bitfinex fee structure is as follows:
If you own UNUS SED LEO tokens, you can benefit from transaction fee reductions based on the following scale:
Crypto to Crypto:
Crypto to Stablecoin:
Crypto to Fiat:
Let’s address it upfront—Bitfinex doesn’t have a spotless history when it comes to attacks or financial scandals. Here are some “issues” the platform has faced since its inception:
While its history may not be in its favor, the platform is not a scam. Despite challenges, Bitfinex remains in the market.
Limited information is available about Bitfinex’s regulations. However, it seems the platform is licensed with the financial authorities of Bermuda. Despite being lightly regulated, the platform is not authorized to operate in the following countries:
Bitfinex
Bitfinex
