You know, researching a cryptocurrency exchange before start using it, is a good thing. But most people skip that part and start trading on various cryptocurrency exchanges. It’s not good which is why you must read this Bitfinex exchange review before getting started on Bitfinex.
Here’s the thing. I usually write reviews for cryptocurrency beginners. So beginners, what do you need to look before start trading on cryptocurrency exchanges?
Trading cryptocurrency on an exchange is a financial fact. Your money in it. So it needs to be secured. And fees. Fees are generated in a couple of ways. When depositing funds, you need to know it’s supported cryptocurrencies.
I’m going to take note of all of the above-mentioned factors and review them on the Bitfinex exchange. Here’s everything I’m going to cover. Feel free to skip to the required one.
Bitfinex – The Basics
Bitfinex’s mission is to provide the best and ultimate cryptocurrency trading experience to its users. Founded in 2012. Owned and operated by iFinex Inc., Hong Kong.
Seems it is based on China. But it also registered in the British Virgin Islands. Bitfinex doesn’t have a bright past. What does it mean? It had been hacked several times because of the lower security.
2015 was the first report. Lost about $400,000 from their customers. And the second was in 2016 and its $73 million more was stolen from its customers’ accounts.
You might be thinking, what the hell am I reading this review, Bitfinex is useless. Hold on a second. It looks like Bitfinex has upgraded everything to improve customer satisfaction and security.
I know, its a lot of curiosity going around. Read this full review and then decide whether you are going to give it a try or not. Let’s track down the basic fundamentals of Bitfinex.
Besides, Bitfinex has been hacked a couple of times. So is it not secured still? Let’s find out. Hmm, I see pretty good security features there. Here’s what I found.
This uses a very unusual method named “Pretty Good Private” also knows as OpenPGP encryption. This allows encrypting and decrypting data by providing cryptographic privacy and authentication for data communication. This can easily be set up through igolder.com.
All you need to do is, generate a private key and a public key for your email through igolder.com and add the public key to your Bitfinex account.
Important: Don’t lose public and private keys. Keep them safe and secure.
Use this link to decrypt emails from Bitfinex:
This is a very common method every cryptocurrency exchanges use these days. Two-factor authentication is a real tough security feature that using your mobile device/hardware device to encrypt your account.
There are two types of 2FA in Bitfinex. U2F key or by Google Authenticator. U2F key is a physical key that can use to log in to your Bitfinex account. You must activate either one of these in order to use Bifinex.
I don’t see many cryptocurrency exchanges that have this feature. Keep session alive, Send email on login to confirm your login, detect IP address changes, IP address whitelist, track login history are included in this section. Each can activate individually.
In here, you can manage your withdrawals by whitelisting IP addresses, withdrawal addresses, monitor withdrawals by IP, and more. The important fact is you can whitelist withdrawal addresses for each cryptocurrency listed in Bitfinex.
Bitfinex holds withdrawals by 5 days if it detects any whitelisted withdrawal address changes.
And that’s all about the security. What do you think? Has Bitfinex improved its security in some way? Comments are open to start a discussion.
You already know there are two types of fees on every exchange. Trading and withdrawal fees. In Bitfinex, there is an additional deposit fee from bank wire.
Trading fees apply when you making trades. Trading fees are two types. Maker fees and Taker fees. Maker fees apply when you add liquidity to the order book by placing a limit order under the ticker price for buy and above the ticker price for sale.
Taker fees apply when you remove liquidity from the order book by placing any order that is executed against an order of the order book.
Taker fees starting at 0.2% and Maker fees from 0.1%. However, you can reduce those fees by increasing your trading volume or increasing your LEO amount.
What is LEO?
Genarally, it’s the official cryptocurrency of Bitfinex. LEO helps you level up your account while reducing every kind of fee in Bitfinex exchange.
Here are the detailed charts of Bitfinex fees.
Supported Currencies and Payment Methods
Currently, Bitfinex supports for 150+ cryptocurrencies with 10 market pairs, and for fiat currencies, it supports EURO, CNH, Yen, Pound Sterlin, USD. These fiat currencies can deposit to the Bitfinex account through bank wire transfer.
Bitfinex has come so far with major degrades. It still doesn’t fit some regulatory environment in some countries. Bitfinex services are available worldwide except in the following countries.
- United States of America
When tracking down features, there are some pretty important features on Bitfinex as others. Here are some of them.
First of all, what is affiliate marketing? It’s a method of earning extra money from referrals. With Bitfinex, you can grow a community with a unique URL and receive commissions as it grows.
Do you know about Initial Coin Offerings? Token sales on Bitfinex are almost the same as the ICO but it’s more like Initial Exchange Offering.
The advantage of this offering is, You won’t end up getting scammed. And most IEOs become successful so your investment could be worth enough.
But there are some conditions if you want to take part in token sales. Read here.
Staking means in general, If you hold specific cryptocurrencies, you will be rewarded by following coins daily, weekly, monthly, and yearly. But limited cryptocurrencies are supported staking on Bitfinex.
Pros & Cons of Bitfinex
1. Better user interface. User-friendly interface mainly on user satisfaction. Good user interface = More user engagements.
2. Good security features. Considering current situations, Bitfinex has some decent security features.
3. Buy cryptocurrencies directly with cards. It’s really really useful because you don’t need to hang around with withdrawal fees.
4. Mobile application. Its easy to interact with the exchange when it available on mobile. Biftfinex mobile app is available in both android and iOS platforms.
1. Not beginner-friendly. Beginners without some experience in cryptocurrency exchanges should struggle a bit.
2. Hacked a couple of different times. “Has been hacked” is not a good sign for a cryptocurrency exchange.
Conclusion and My Thoughts
Bitfinex is a hong kong-based cryptocurrency exchange with 150+ cryptocurrencies listed and many more useful features. It is fast-growing but experienced some major degrades.
However, it seems like Bitfinex has upgraded its security against hacks and phishing. Your though might be different. Leave it down there.
But when using Bitfinex, make sure to activate all the available security features to maximize the security. It’s always good for you.
Still, Bitfinex forth a try because of its reputation and liquidity. New to Bitfinex? Register here.
Okay. Was my Bitfinex exchange review helpful? Or is it needs to improve? What are our opinions on Bitfinex? I wrote a lot, now I would like to hear from you. Leave a comment.