Bitfinex Review (2021) — How To Trade, Stake, And Lend Crypto!
Today’s post is a detailed review of Bitfinex, a cryptocurrency trading exchange.
Bitfinex brings to the table excellent trading tools to grant users a rewarding experience.
Also, various trading options are supported on the platform including OTC markets and margin trading.
Wondering whether Bitfinex is the right choice for you? Then read this post to the end to learn more about the platform.
Let’s get to it!
For an easy read, I divided this review into the following subheadings:
- Bitfinex Overview
- Features Of Bitfinex
- Bitfinex Products And Services
- Countries And Currencies Supported On Bitfinex
- Supported Payment Options And Fees Charged By Bitfinex
- Transaction Limits And Verification Requirements
- Bitfinex Support Channels And Public Opinion
- How To Trade On Bitfinex
Click on any item above to read its details right away.
1. Bitfinex Overview
Bitfinex is a cryptocurrency trading platform founded in 2012 by Giancarlo Devasini and Raphael Nicolle.
The platform is equipped with superb trading tools to accord users a satisfactory experience.
Not just that, Bitfinex intends to make crypto trading available to everyone, everywhere.
Additionally, it has an exchange token called LEO that helps facilitate transactions on the platform.
As you read on, you will learn about the services put in place by Bitfinex to meet its goals but first, let’s have a look at its features.
2. Features of Bitfinex
- REST and WebSocket APIs
- Order and funding books
- Lightning Network
- Chart tools
- Market statistics
- Mobile app
- Affiliate program
- Demo account
Next, we’ll see the products and services offered by the platform.
3. Bitfinex’s Products and Services
On Bitfinex, there are 2 categories of users: Traders and Lenders.
Traders get to enjoy these services:
The platform provides order books with top tier liquidity to facilitate transactions.
b. Margin funding
This is a unique service where users earn interest on fiat and digital assets.
Users can offer funding for different currencies & assets at the rate and duration of their choice.
c. Margin trading
They can choose to enter an order to borrow the desired amount of funding at the rate and duration of their choice.
Or simply open a position and the platform will take out funding for them at the best available rate at that time.
d. Over The Counter Market (OTC)
Through this service, large volume traders can perform trades directly with a counterparty without going through the public order books.
e. Advanced Order Types
This is a Scaled Orders Service that enables users to automatically create multiple limit orders across a user-determined price range.
Also, they can set the diversity and the distribution of the orders.
f. Honey Framework
With this service, users can create custom order types and event-driven automated trading strategies.
And you don’t have to be a developer to enjoy this service. Learn more about it here.
Other services available for traders include:
- Derivatives trading
- Professional connectivity and co-location services
- Advanced charting
- Corporate accounts
- Enhanced Reporting Framework
- Bitfinex Terminal
And that’s it for traders.
For lenders, they get to enjoy:
Here, users can stake their coins and earn rewards from the platform.
Rewards can be up to 10% yearly and all you need to do is to leave the coins in your Bitfinex wallet.
In the table below, you’ll find the supported tokens and their estimated Annual Profit Yield (APY)
b. Lending Products
- Log in on the Bitfinex Lending Products page
- Read and accept the “Notice and Consent”
- Select ‘Deposit’ to start earning crypto or ‘Withdraw’ to cease
- Click ‘Okay’ to dismiss the “Completed” popup window
Bitfinex also provides a P2P borrowing platform where users can lend and borrow directly from each other using cryptocurrencies as collateral.
Borrowed funds can be used on the Bitfinex platform and elsewhere.
- Verify your Bitfinex account
- Deposit enough collateral to your margin wallet
- Choose the currency and amount of your loan
- Set your terms and click ‘Borrow’
- Your loan is now credited into your margin account
Next, we’ll see the countries and currencies supported on the platform.
4. Countries and Currencies Supported on Bitfinex
All except Bangladesh, Bolivia, Ecuador, Kyrgyzstan, and the US.
5. Supported Payment Options And Fees Charged By Bitfinex
The platform accepts the following payment options:
- Bank wire
- Credit card
Bitfinex charges users for the different services provided.
Find more details below:
The platform charges traders based on the trading volume in the last 30 days. Have a glimpse:
Here, the borrower will pay the specified maker fees upon depositing collateral and when he is returning borrowed funds.
The lender will be charged 15% of the fees generated by the loan and then 18% if it was a hidden offer.
There are no charges for deposits made by crypto and stablecoins.
But there is a 0.1% fee for deposits made by bank wire.
Each token supported on the platform attracts its own withdrawal fees
Here’s a few of them:
For the complete list, check here.
Additionally, withdrawals via bank wire attract 0.1% fees while that of express bank wire (processed in <24hrs) has a charge of 1%.
For internal transfer of digital assets (i.e. from one Bitfinex wallet to another), there are no fees.
Furthermore, the platform grants users some discount when they own the network’s token.
Have a look:
Next, we’ll see the transaction limits on Bitfinex.
6. Transaction Limits and Verification Requirements
Minimum (fiat) — 10,000 for USD/EUR/GBP or 1,000,000 JPY or 75,000 CNH
Maximum — N/A
Minimum crypto withdrawal — 5 USD equivalent
Minimum reward — 0.5 USD
Minimum — $100 equivalent of the collateral
Maximum — $250,000 across all borrowing
On Bitfinex, users can trade after registering with the platform.
However, if you wish to deposit/withdraw fiat currencies then you need to verify your account.
The verification requirements are:
- Complete the KYC form.
- Upload two forms of valid government-issued identification with a picture e.g. passport, national ID card, driver’s license, etc.
- Submit a Selfie.
- Upload your Bank Statement
- Submit Proof of Residential Address e.g. utility bills, tax bills.
Verification requests take 2–3 working days to be processed.
In the image below, you’ll see the different account levels on Bitfinex and their verification requirements.
Check it out!
Still here? Good!
Keep reading to learn more about Bitfinex.
7. Bitfinex Support Channels and Public Opinion
Bitfinex has a Knowledge Base where users can obtain required information on the different services of the platform.
Should they need further help, they can contact the help center via this email: email@example.com
Also, users can find updates on the platform via these channels:
I checked Bitfinex on TrustPilot, it had an average rating with 169 reviews.
Also, I observed that the team responded to the users’ complaints on the site.
Then the platform is considered safe by WebOfTrust with a 4.2 rating and 10 reviews.
I’ll now show you how to trade on Bitfinex.
8. How To Trade On Bitfinex
Follow these steps to trade on this platform:
i. Go to Bitfinex.com and select ‘Sign up’
ii. Complete the form provided and click on Open Account. Then, click on the link sent to your inbox to confirm your email.
iii. Next, you log in. Go to your inbox again and click on the link sent to complete your log-in.
iv. You will be redirected to your Bitfinex account.
v. Set up your 2FA in order to continue using the platform.
vi. When you’re done with that, you can proceed to set up other security measures if you prefer.
vii. Otherwise, click on ‘Wallet’ from the menu bar to deposit funds into your account.
viii. Choose your preferred payment option and make the deposit.
ix. Now, you’re set! Select ‘Trading’ from the menu bar to go to the trading interface.
We’re almost done here. Let’s quickly answer some questions before we go.
Do I need to pay before I can stake my coins?
No. Simply leave your coins in your Bitfinex wallet and you will receive your rewards duly.
Do I need to verify my account before I can borrow funds?
Yes, you must verify your account up to intermediate level before you can borrow funds on the platform.
Is Bitfinex regulated?
Bitfinex is not regulated by any financial authority but its parent body — IFinex is registered in the British Virgin Islands.
How Safe Is Bitfinex?
Though the platform is not regulated, it has put up measures like 2FA, UFA, email encryption, withdrawal address whitelist, etc. to boost security.
Additionally, 99.5% of users’ funds are stored in cold storage.
And since the company was last hacked in 2016, there has not been any other bad news.
Then, users who lost funds were refunded with an equivalent amount of the network’s tokens.
Nevertheless, DYOR before investing in the platform.
If you want to learn how to trade cryptocurrencies profitably, we have created a perfect course to help you do that.
Enroll in our Cryptocurrency Mastery Course by going to www.ctmastery.com.
You can also join our Telegram community at https://t.me/ctmastery for more information.
And that’s all I have for you in this review. I hope you enjoyed the read?
Now, tell me, what’s your take on Bitfinex? Would you open an account with them?
Perhaps, you already did, what has been your experience?
Let me hear your thoughts in the comments section right now.
Also, share this post with fellow crypto traders, thank you!