Bitfinex Exchange Review
Bitfinex is a popular cryptocurrency agency based out of Hong Kong and one of the leading exchanges for Bitcoin trading. The exchange facilitates the trading of around 35 altcoins.
While the overall daily trading volume of Bitfinex exceeds $1.0 billion, its Bitcoin volume alone has gone over 5.77 million bitcoins from mid-April to mid-October 2017. This is a lot more than what Kraken (3.65 million BTC) and Coinbase (3.06 million BTC) achieved during the same period.
In this Bitfinex review, we will discuss, among other things, how to trade on a Bitfinex exchange, how to deposit on a Bitfinex exchange, how to withdraw from a Bitfinex exchange, how to deposit USD in a Bitfinex exchange, and Bitfinex pros and cons. We’ll even do a Bitfinex vs Bittrex vs Binance comparison that’ll give you an idea of how Bitfinex stacks up against the competition.
Bitfinex Pros and Cons
Even though it is the largest trader in Bitcoins in the world, Bitfinex has its share of disadvantages, as you can see in the Bitfinex pros and cons list below:
- Unlimited withdrawal
- Advanced trading features and order types
- High trading volume, deep liquidity
- In-house mobile app
- Competitive fees
- Not beginner user-friendly
- The exchange was hacked in 2016
- Payment problems since early 2017
- May not be suitable for beginners or those unfamiliar with trading platforms
- Currently the exchange has blocked Fiat currency deposits
How to Use Bitfinex Exchange: Step-By-Step Guide
Bitfinex offers both basic trading and margin trading. Go to the web site and create an account by entering your e-mail address. Wait for an e-mail for a message from Bitfinex, then click on the link provided. That link will take you to the Bitfinex login page.
The next step is to fund your account. Click on the deposit menu. On the “Deposit” page, you will come across several deposit options. Click on one of the options, let’s say Bitcoin for this example.
When you click on Bitcoin, you’ll get to choose from “Exchange,” “Trading,” and “Deposit.” Since this is about trading, click on “Trading.” You’ll be provided with a BTC address, which you can use to deposit your Bitcoins.
Once you trading wallet is funded, you can now start trading. For basic trading, click on “Exchange.” Choose the currency pairs you want to trade with, such as BTC/USD.
Place an order by placing an amount at the order size form
To buy BTC with USD, click on “Buy.” To sell BTC for USD, click on “Sell.” Your order will then be placed and you will see it in the orders list.
How to Deposit/Withdraw Money from the Bitfinex Exchange
You can deposit into Bitfinex either from your external wallet or from a third-party exchange. All you have to do is go to the web site, select the cryptocurrency coin that you’d like to deposit to, and choose the type of wallet (exchange, margin, funding) you want to deposit the funds in.
Once you’ve chosen the wallet, copy the deposit address. Next, open the external wallet from which you wish to access funds and paste your Bitfinex deposit address in the “Transfer Destination” space provided.
You can use this deposit address on a permanent basis. If you open a new deposit address, the old addresses will still remain valid for accepting deposits.
For withdrawal of altcoins, go to the withdrawal portion of the web site. Select the cryptocurrency coin that you’d like to withdraw and the wallet you’d like to take from.
Now open the wallet you want to withdraw to. In this wallet, you have to click on “Deposit.” Choose the currency you want to put in and you will get an address. Copy this address and paste it in your Bitfinex account in the Transfer Destination provided. Finally, click on “Withdraw.”
How to Deposit Money on the Bitfinex Exchange Using a Credit Card
As Bitfinex has currently stopped accepting fiat currency deposits, one cannot deposit on Bitfinex with a credit card.
How to Deposit Money On the Bitfinex Exchange from PayPal
As Bitfinex has currently stopped accepting fiat currency deposits, one cannot deposit on Bitfinex with PayPal.
How to Deposit USD Into the Bitfinex Exchange
As Bitfinex has currently stopped accepting fiat currency deposits, it is not possible to deposit USD into Bitfinex. However, you can buy Tether USD on Kraken and transfer that to Bitfinex.
How to Withdraw Money from Bitfinex
As Bitfinex has currently stopped supporting fiat currency deposits, it is difficult/almost impossible to withdraw money from. The best bet is to transfer the altcoins to an external wallet and then trade the altcoin for money on an exchange that supports cryptocurrency-to-fiat-currency trading.
What Countries are Supported by the Bitfinex Exchange?
With the exception of a few countries (Bangladesh, Kyrgyzstan, Bolivia, Ecuador), the Bitfinex supported countries are spread across the globe. Currently, the United States of America is not supported by this exchange.
What Cryptocurrencies are Supported by the Bitfinex Exchange?
The Bitfinex supported currency list has over 35 cryptocurrencies. The altcoins supported by Bitfinex are Bitcoin, Ethereum, Ripple, EOS, Litecoin, Bitcoin Cash, Iota, NEO, Ethereum Classic, Dash, Monero, aelf, OmiseGO, Zcash, Bitcoin Gold, Santiment, Qtum, ETP, TRON, 0x, QASH, Status, Streamr, Eidoo, YOYOW, FunFair, Augur, Time New Bank, Basic Attention Token, Golem, AidCoin, Aventus, RCN, iExec, Decentraland, SpankChain, and SingularDTV.
What Crypto Pairs are Supported by the Bitfinex Exchange?
Bitfinex allows the pairing of Bitcoin, Ethereum, Ethereum Classic, Zcash, Monero, and Litecoin with many of the 35 cryptocurrencies mentioned above. For the full list of Bitfinex supported crypto pairs, visit the official web site.
Bitfinex Verification Requirements
For verification, Bitfinex follows a standardized compliance measure for anti-money laundering (AML), know your customer (KYC), and counter-terrorism financing (CTF) laws and regulations. The verification time is very long and can take anywhere between six and eight weeks. Verification can only be done for people 18 years and older. The requirements for verification are:
- A completed online form
- Personal information, including telephone number, e-mail address, and residential address
- Two valid government-issued picture IDs (passport, national ID card, driver’s license, residency card, employment permit card). People with only one ID should contact firstname.lastname@example.org to arrange for a Skype call.
- A bank statement with your name as the account holder
- Proof of address (a statement from a utility, service company, licensed corporation, or government authority clearly indicating your name and residential address). The proof of address should not be more than three months old.
What is the Minimum Withdrawal/ Deposit Limit on Bitfinex Exchange
Before signing up, people often ask, “What is the minimum withdrawal limit on Bitfinex, and what is the minimum deposit on the Bitfinex exchange?” For users who are verified, there is no minimum withdrawal or deposit amount for cryptocurrencies.
What are the Fees on the Bitfinex Exchange?
Bitfinex has a tiered fee structure. Depending on the trading volume over the past 30 days and whether you’re paying maker fees or taker fees, the trading fees range from zero to 0.2%.
Bitfinex Deposit Fee: There is no Bitfinex deposit fee, except for bank wire deposits, which incur either 0.1% of the deposit amount or US$20.00, whichever is greater.
Bitfinex Withdrawal Fee: The Bitfinex withdrawal fee varies depending on the currency. Withdrawals via bank transfer incur a 0.1% of the withdrawal amount or US$20.00, whichever is greater. However, for express bank wire (24 hours) the fees go up to one percent of the withdrawal amount.
Is Bitfinex Safe?
Ever since Bitfinex was hacked in 2016 and users collectively lost a total of about $72.0 million, it’s not surprising that “Is Bitfinex Safe?” and “Is Bitfinex trustworthy?” are among the most frequently asked questions about it. Since the hack, site security has been upgraded and trading volumes are increasing, meaning that people are again beginning to trust the site. Having said that, Bitfinex is as safe or risky as any other exchange.
Bitfinex Vs. Bittrex Vs. Binance
Many first-time users of cryptocurrency considering Bitfinex are keen to know how the exchange stacks up against the competition. The Bitfinex vs. Bittrex vs. Binance table below gives you an at-a-glance comparison between three (Bitfinex included) popular exchanges:
|Company location||Hong Kong||Las Vegas||Japan|
|Customer support||24/7 Email, FAQ Forum||Email, Social Media|
|Has been Hacked||Yes||No||No|
|Tradeable coins||Bitcoin, Ethereum, Ethereum Classic, Zcash, Monero, Litecoin||Bitcoin, Ethereum, Litecoin||Bitcoin, Ether, Ethereum Classic, Zcash, Ripple, BNB, ARK, AST, BNT, BQX, BTG, CTR, DASH, DNT, ENG, ENJ, EOS, Monero, Litecoin|
|Trading Volume||High (but declining)||High|
|Trading Fees||0 to 0.2%||0.25%||0.05% to 0.1%|
|Withdrawal Fees||No, except for wire transfers||Yes||None|
Bitfinex is one of the most popular cryptocurrency exchanges in the world. But ever since support for USD was indefinitely discontinued, the popularity of the exchange has been on the wane. Having said that, it is still one of the best professional exchanges for cryptocurrency-to-cryptocurrency trading.