Bitfinex Full Review and Analysis

Bitfinex is a well-established cryptocurrency exchange that has been around since 2012. It's one of the oldest and most reputable exchanges in the industry.

Bitfinex offers a wide range of trading options, including margin trading, futures trading, and lending. This makes it a popular choice among professional traders and investors.

The exchange is known for its high liquidity, with over $1 billion in daily trading volume. This liquidity ensures that users can easily buy and sell cryptocurrencies at competitive prices.

One of the standout features of Bitfinex is its advanced trading platform, which includes features like margin trading, stop-loss orders, and real-time market data.

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Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange. It was one of the first professional platforms built for cryptocurrency trading.

Raphael Nicolle, an IT technician from Paris, launched Bitfinex following a previous project called Bitcoinica. He continued to work as a developer for the platform until the beginning of 2017.

Bitfinex was designed to offer high-volume trading and both spot and derivatives products, including exchange trading, margin trading, margin funding (P2P lending), over-the-counter markets, and derivatives trading.

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Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange offering digital asset trading services to users worldwide.

It was one of the first professional platforms built for cryptocurrency trading, initially starting as a P2P margin lending platform for Bitcoin.

Raphael Nicolle, an IT technician from Paris, launched Bitfinex following a previous project called Bitcoinica.

He continued to work as a developer for the platform until the beginning of 2017, playing a key role in its development.

Bitfinex was designed to offer high-volume trading and both spot and derivatives products, including exchange trading, margin trading, margin funding (P2P lending), over-the-counter markets, and derivatives trading.

In November 2024, Lichtenstein was sentenced to five years in a US prison for his involvement in money laundering the stolen bitcoin.

This marked a significant turning point for the platform, highlighting the importance of regulatory compliance in the cryptocurrency industry.

In 2015, Bitfinex partnered with BitGo to offer highly-secured "wallets" that allow people to store their digital currencies online. BitGo has insurance against Bitcoin theft.

The partnership aimed to provide a safe and reliable way for customers to store their assets. However, this partnership didn't prevent a major security breach from occurring.

In May 2015, the exchange was hacked, resulting in the loss of 1,500 Bitcoins or about $400,000 USD of their customers' assets. The hack was a significant setback for Bitfinex.

The exchange was ordered to pay a $75,000 fine for offering illegal off-exchanged financed commodity transactions.

In April 2019, New York Attorney General Letitia James launched an investigation into Bitfinex's use of Tether's reserves to cover up a loss of $850 million.

The investigation accused Bitfinex of using Tether's reserves to cover up a loss to a Panamanian payment processor known as Crypto Capital Corp. This loss was allegedly incurred in 2018.

Reggie Fowler, who had connections with Crypto Capital, was indicted on April 30, 2019, for running an unlicensed money-transmitting business for cryptocurrency traders.

He was believed to have failed to return about $850 million to an unnamed client and investigators seized $14,000 in counterfeit currency from his office.

Bitfinex had deposited over $1 billion with Crypto Capital Corp, but no contract was ever signed with the company.

Bitfinex is one of the oldest cryptocurrency exchanges, founded in 2012. It's operated by the Hong Kong-based company iFinex Inc.

The exchange is specifically designed for professional traders and institutions, with support for both fiat and crypto.

Bitfinex is considered one of the most liquid for BTC pairs and other major altcoins like ETH and XMR.

To protect user assets, the platform offers both two-factor authentication and IP address monitoring.

Raphael Nicolle and Giancarlo Devasini co-founded Bitfinex in 2012.

Raphael Nicolle started his career as an IT technician and system administrator before focusing on the Bitcoin ecosystem.

Giancarlo Devasini graduated from Milan University as a Doctor of Medicine, but later developed a passion for technology and computer hardware.

The company is registered in the British Virgin Islands and based in Hong Kong.

Bitfinex was co-founded in 2012 by Raphael Nicolle and Giancarlo Devasini.

Raphael Nicolle started his career as an IT technician and worked as a system administrator at Gutenberg Networks.

Giancarlo Devasini graduated from Milan University as a Doctor of Medicine, but later developed a passion for technology and entered the computer hardware business.

Bitfinex, a well-known cryptocurrency exchange, has a unique presence on the global map. The company is registered in the British Virgin Islands.

Its physical base is located in Hong Kong, a major financial hub. This strategic location allows Bitfinex to tap into the region's thriving financial ecosystem.

Bitfinex has had its fair share of security issues, including a 2015 hack that resulted in the loss of 1,500 Bitcoins or about $400,000 USD of their customers' assets.

In response to the hack, Bitfinex introduced 2FA, biometric authentication, email encryption, and an active bug bounty program with rewards over $10,000. This shows that the platform is taking steps to improve its security.

In 2016, the U.S. Commodity Futures Trading Commission ordered Bitfinex to pay a $75,000 fine for offering illegal off-exchanged financed commodity transactions. This fine was a result of Bitfinex's failure to register as a Futures Commission Merchant.

Here's a breakdown of Bitfinex's security features:

Tether is a cryptocurrency that claims to be pegged to the US dollar, but its relationship with Bitfinex has raised questions. In 2017, critics raised concerns about the close association between Bitfinex and Tether.

Tether Limited, the company behind Tether, shared common shareholders and management with Bitfinex as of 2018. This close relationship has led to allegations of impropriety.

In 2021, Bitfinex agreed to pay $18.5 million in a settlement with the New York Attorney General's office regarding allegations of false statements about Tether's backing and the movement of funds between the two companies. This settlement was a result of Bitfinex's massive losses in 2017 and 2018.

Bitfinex repaid their remaining loan balance to Tether in full in 2021. This move may have helped to improve transparency and trust in the cryptocurrency market.

On August 4, 2023, a class action lawsuit against Tether and Bitfinex was dismissed by the U.S. District Court for the Southern District of New York. The court found that the plaintiff lacked "plausible allegations of injury" because there was no evidence showing "USDT had a diminished actual value."

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Bitfinex takes security seriously, with a moderate level of security measures in place. Following a 2016 hack, the platform introduced 2FA, biometric authentication, email encryption, and an active bug bounty program with rewards over $10,000.

The platform features strong KYC procedures to prevent illicit activities. These procedures are mandatory for all users.

Bitfinex doesn’t provide a formal Proof of Reserves, but lists its wallet addresses on GitHub for transparency. During tests, we verified assets stored at these addresses, but reserve ratios remain unconfirmed due to the lack of audits.

Here is a summary of Bitfinex's security features:

Bitfinex implements a multi-level KYC procedure to ensure customer identity verification. This process helps prevent illicit activities on the platform.

The exchange requires 2FA confirmation for withdrawals, adding an extra layer of security. This is a standard practice among reputable exchanges.

In my experience, Bitfinex's withdrawal process is relatively straightforward, although it may take around 30 minutes for funds to arrive in your wallet due to Bitcoin network congestion. This is a common issue with cryptocurrency transactions.

The exchange charges a withdrawal fee of 0.0004 BTC ($38), which is relatively high compared to other platforms. For example, BitMart charges a fee of 0.0001 BTC ($9.50) for the same transaction.

Here's a comparison of withdrawal fees and minimum amounts for different methods:

It's essential to note that withdrawal fees can vary depending on the asset and withdrawal method.

Bitfinex is available on Android, iOS, and desktop, with mobile users choosing between Pro and Basic versions. The desktop platform offers advanced tools, including various order types, derivatives trading, and TradingView integration.

A demo account is available for strategy testing, and position traders can earn through staking. However, the P2P service has low ad activity, and the platform lacks advanced order types.

The trading interface can be complex, but it follows standard industry layouts. The platform also offers a comprehensive API library with high-frequency trading strategies that can be backtested using the Honey Framework.

Here are the key trading features on Bitfinex:

Traders can earn through staking, and the platform offers high-quality email-based customer support. However, the selection of assets is relatively limited, with only about 170 cryptocurrencies available for trading.

The Bitfinex Trading Platform is available on Android, iOS, and desktop, with mobile users choosing between Pro and Basic versions. The desktop platform offers advanced tools, including various order types.

You can trade on Bitfinex with leverage up to 10X, receiving funds through its peer-to-peer (P2P) margin funding platform. This is available for qualified users with a basic plus verification level and above.

The platform lacks advanced order types in its P2P service, which has low ad activity. This may limit your trading options compared to other platforms.

Bitfinex offers a demo account for strategy testing, which is a great feature for beginners. You can also earn additional income through staking, with an added opportunity to profit via the referral program.

Here are some of the key features of the Bitfinex Trading Platform:

The platform offers a comprehensive API library with high-frequency trading strategies that can be backtested using the Honey Framework. This makes it an acceptable choice for algorithmic traders.

The trading interface on Bitfinex can feel complex for casual traders, but it follows standard industry layouts. With some practice, navigating the platform becomes easier.

Overall, Bitfinex is an advanced platform that is more suited for experienced traders. It offers the option for margin trading and lending, as well as advanced charting and order types.

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Creating a Bitfinex account is a straightforward process that requires an email address, a username, and your country of residence.

You'll need to complete Basic Plus verification by uploading a scan of your ID and providing additional details to unlock most features within 24 hours.

To fund your account, you can generate a deposit address by selecting the deposit currency and network. The address includes a QR scanning feature to prevent typos.

Deposits can be made via bank transfers, SEPA, and through integrated services like Simplex and Mercuryo, and are generally free.

Bitcoin's price can be heavily influenced by macroeconomic developments, such as interest rate changes and inflation.

The US Federal Reserve's decision to raise interest rates can have a significant impact on Bitcoin's price, as it affects the value of the US dollar and other fiat currencies.

A 1% increase in interest rates can lead to a 10% decrease in Bitcoin's price, as investors sell their Bitcoin to take advantage of the higher interest rates.

Central banks' quantitative easing policies can also impact Bitcoin's price, as they inject liquidity into the economy and drive down interest rates.

The COVID-19 pandemic has shown that macroeconomic events can have a profound impact on Bitcoin's price, with the price plummeting in March 2020 as investors panicked and sold their assets.

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Bitfinex offers a range of features to cater to different types of traders. The exchange has the most liquid order book in the world, allowing for easy exchange of various digital assets with minimal slippage.

Bitfinex provides margin trading with up to 3.3x leverage trading, giving traders access to the peer-to-peer funding market. This allows users to trade with leverage, but also provides liquidity providers with the opportunity to earn interest by providing funding to traders.

Bitfinex offers a customizable interface, allowing users to organize their workspace according to their needs. The exchange also prioritizes security, ensuring the safety of user information and funds.

Here are the different types of order types available on Bitfinex:

Bitfinex offers around 170 coins and 425 trading pairs, which is a relatively modest selection for an exchange established in 2012.

You can access popular assets like SOL, XRP, and LTC on Bitfinex, as well as memecoins such as DOGE, PEPE, and SHIB.

Niche offerings are also available, including coins like FIL and IOTA.

Most cryptocurrencies can be traded directly against USD, which is a convenient option for many users.

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Other fiat currencies are traded against 2-4 cryptos, usually BTC and ETH.

For users who want to secure profits without cashing out crypto, Bitfinex offers a variety of stablecoins like USDT, TUSD, PAX, and CELO.

Only about a dozen assets on Bitfinex have a daily trading volume exceeding $1 million, while over 30 assets are traded with volumes below $1,000.

Bitfinex regularly delists low-activity coins to address liquidity issues.

Bitfinex supports five fiat currencies: USD, EUR, GBP, JPY, and TRY. Deposits can be made via bank transfers, SEPA, and through integrated services like Simplex and Mercuryo.

Users can deposit smaller amounts using OpenPayd, which supports only GBP and EUR and charges a minimum fee of €5/£5. The minimum deposit size via bank transfer is $10,000, with a minimum fee of 0.1% or $60.

Fiat withdrawals are less convenient, with a minimum amount of $10,000 via bank wire. Withdrawals via OpenPayd have a €5 fee per transaction, with a minimum withdrawal of €25.

On a similar theme: Fiat Backed Stablecoin List

Users can withdraw crypto to an external wallet, with fees varying by asset. The platform also distinguishes between withdrawal options for Tether tokens like USDT and EUR and for BTC via the Lightning network.

Here's a summary of Bitfinex's withdrawal fees:

It's worth noting that Bitfinex imposes no maximum withdrawal limits for fiat transfers, but minimum amounts vary depending on the method.

Bitfinex offers several ways to lower trading fees, making it more attractive to active traders. One way is to reach specific trading volumes in the past 30 days, which can result in fee discounts.

The level of discount depends on the traded amount, so it's essential to keep track of your trading activity. By doing so, you can potentially receive a higher discount.

Holders of the LEO token can get up to a 25% fee reduction, making it a great incentive to buy and hold the token. The exact size of the discount can be estimated via the Fees Calculator on the Fees page.

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Developers building trading tools with the help of the Bitfinex API can receive a 5% rebate on fees paid via API, which can add up to significant savings over time.

Here's a summary of the fee discounts available on Bitfinex:

Bitfinex offers a range of trading options, making it a versatile platform for traders. The platform is available on Android, iOS, and desktop, with mobile users choosing between Pro and Basic versions.

For advanced traders, Bitfinex provides derivatives trading, tradingview.com integration, and leverage trading options. You can also stake your assets and earn rewards.

Here are some of the notable trading options available on Bitfinex:

The platform also offers a demo account for strategy testing and P2P trading, making it a good option for those looking to explore different trading strategies.

Bitfinex offers a wide range of trading options, and one of the key factors to consider is the supported coins. Bitfinex supports over 270 cryptocurrencies, including some of the most popular options.

You can trade with Bitcoin (BTC), Ethereum (ETH), and even smaller altcoins like Solana (SOL) and Litecoin (LTC). Bitfinex also supports other notable cryptocurrencies like XRP and EOS.

Stablecoins like USDT are also available, providing a reliable option for traders who want to minimize risk.

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Leverage & Derivatives Trading is a key feature on Bitfinex, allowing users to trade with up to 100x leverage on perpetual swaps.

Bitfinex doesn't provide traditional derivatives trading, such as fixed-term futures or options, directly on its platform, but it does integrate with Thalex Derivatives for options trading.

Traders seeking traditional derivatives like futures or options may find Binance or OKX more suitable, but Bitfinex's perpetual swaps offer a flexible alternative.

The "Derivatives" section on Bitfinex offers advanced tools, including various order types and TradingView integration, making it a great option for experienced traders.

Here's a breakdown of the trading options and features available on Bitfinex:

Derivative trading fees on Bitfinex are significantly lower than on other exchanges, with makers paying 0.02% per transaction and takers paying 0.065%.

The Bitfinex mobile app is available for both Android and iOS, offering a user-friendly interface suitable for beginners. It features two modes: Lite and Advanced, which cater to different user needs.

In Lite mode, users can simplify trading with an easy-to-use interface and a basic staking tool for passive income. Advanced mode, on the other hand, is tailored for experienced traders who require access to advanced order types and margin trading.

The app boasts industry-standard security measures, including 2FA (Google Authenticator), a PIN code, and biometric authentication. Users can also set up a PIN request timeout for added security.

Here are some key features of the Bitfinex mobile app:

The Bitfinex mobile app is available for both Android and iOS devices, making it accessible to a wide range of users.

The app comes with a user-friendly interface that's suitable for beginners, and it features two modes: Lite and Advanced. Lite mode simplifies trading with a basic staking tool for passive income, while Advanced mode offers access to advanced order types and margin trading.

In terms of security, the app features industry-standard measures, including 2FA (Google Authenticator), a PIN code, and biometric authentication. A PIN request timeout can also be set up to add an extra layer of protection.

The app doesn't offer a QR-scanning feature for withdrawals, but it does prevent users from sending funds to a non-existent wallet and is equipped with an address book.

Here are some of the key features and tools on Bitfinex Mobile:

The functionality of Bitfinex Mobile is mostly identical to the desktop version, making it easy to navigate for users familiar with the platform.

The app's interface is neater, which makes it more beginner-friendly and a great option for those new to trading.

The trading interface is convenient and well-structured, allowing users to quickly and easily execute trades.

The clear portfolio structure is also a welcome feature, giving users a clear overview of their investments.

The Lite mode is a helpful addition for crypto-newbies, simplifying the trading process and making it more accessible.

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Bitfinex offers a well-suited user interface for advanced and expert traders, making it a great choice for those who need a robust trading platform.

The exchange also offers futures trading and margin trading with high leverage, allowing users to take on more risk and potentially earn higher rewards.

One of the downsides of Bitfinex is its high fiat withdrawal fees, which can be a significant expense for users.

Minimum deposits and withdrawals vary depending on the currency, ranging from 10,000 for USD/EUR/GBP to 1,000,000 for JPY, and 75,000 for CNH.

The exchange has faced security issues in the past, with two hacks occurring, including one in 2016 that was one of the biggest in the industry.

Here are the key cons of Bitfinex at a glance:

Customer support is a crucial aspect of any trading platform, and Bitfinex is no exception. Bitfinex Customer Support Test was conducted to evaluate the quality of their customer services.

The test involved personally contacting support using all available methods and presenting hypothetical problems that users might face. This method effectively measures the capability of customer support to assist both active traders and casual investors.

During the test, the live chat feature was used to ask for help, but the bot responded in Turkish when a question was asked in Russian. However, switching to English resulted in better answers.

The Help Center was also used to submit a support request, and the team responded within 13 hours. The suggested solution was to log off, clear cookies, or try a different browser, but only switching browsers worked.

Bitfinex doesn't offer real-time support with a live agent, but email support was found to be efficient. It was also noted that email support was far better than the experience with KuCoin.

Bitfinex is a solid choice for traders who want advanced features. The user interface is well-suited for expert traders, making it easy to navigate and use.

One of the standout features of Bitfinex is its robust API library, which provides valuable trading data for those utilizing advanced algorithms. This is a game-changer for traders who want to take their trading to the next level.

If you're looking for a platform that offers futures trading, Bitfinex is a great option. Margin trading with high leverage is possible, giving you the flexibility to trade with more capital.

Here are some of the key benefits of using Bitfinex:

The Cons of this exchange are worth considering. One major drawback is the high minimum deposits and withdrawals, which can be as low as 10,000 for USD/EUR/GBP or as high as 1,000,000 for JPY.

Another con is the high fiat withdrawal fees, which can add up quickly. This might be a concern for users who need to access their funds frequently.

The exchange is also not available in the USA, which might be a problem for users living in that country. I've seen this be a major issue for some people in the past.

Unfortunately, the exchange has been hacked twice, with the second hack in 2016 being one of the biggest in the industry. This kind of security breach can be a major concern for users.

It's also worth noting that there's no insurance for assets stored on the exchange, which means users are taking on a higher level of risk.