Best Cryptocurrency Exchange: Bitfinex Review
Bitfinex was founded in 2012, It is used by a lot of experience crypto digital currency traders and liquidators. Their headquarter is located in Hong Kong. Bitfinex currently provides service in 52 countries. However, If you’re beginner then I wouldn’t recommend joining this exchange there’s a reason for that and I’ll be covering it in this article.
If you want to invest in cryptocurrency rather than trading it I would recommend joining Coinbase (you can easily purchase Bitcoin, Ethereum, Litecoin and other Crypto Tokens with ease and safely store them in a hardware wallet like Trezor or Ledger Nano S.)
Bitfinex has been a subject of many controversies, sometimes it was because of the Major hacks and sometimes because of Tether (Tether is a cryptocurrency which according to Tether Limited is pegged to the US dollar. The Tether or in crypto terms (USDT) is closely associated with Bitfinex and because of this both USDT and Bitfinex has been criticized a lot by the crypto community around the globe.
Location: Although officially the exchange has an office in Hong Kong. According to their website “servers cloud-based and globally distributed.” However, Bitfinex is planning on moving their operations officially to Switzerland.
Features: Exchange Trading, Margin Trading, Margin Funding, Mobile App, API
Verification: Yes, This exchange requires verification, It is mandatory for fiat currency trading and it can take up to 5 weeks before you get any reply from Bitfinex. So If you wish to deposit/withdraw and trade in fiat currencies you’ll have to verify your account. However, Verification is not needed for crypto deposits/withdrawals and trading.
New Accounts: Due to the recent surge in Bitcoin prices and other cryptocurrencies Bitfinex had to temporarily disable new user registrations, after that, they introduced a new policy the new accounts must have a minimum capital of $ 10,000 USD only then the user will be able to use full features of the platform. (The detailed statement screenshot is attached below.) This is the main reason why I don’t recommend this exchange since not everyone has that kind of budget which makes this Exchange not suitable for beginners.
Fees: Bitfinex Trading fees varies depending on traders account activity in last 30 days.Deposit fees for Euro and USD fiat currency are 0.100% with the minimum fee amount of $20. The deposit fee is applied on less than $1000 USD equivalent.
The Withdrawal fees vary from coin to coin (each cryptocurrency has its own minimum withdrawal limit and fees) you can find out more about deposit fees and withdrawal fees on their official website. For Margin funding, the fees are currently 15% on all generated fees received by margin providers and an 18% charge applied to fees on hidden offers.
Payment Methods: Crypto, USD, EUR, (GBP & JPY added recently)
Bitfinex is continuously adding new trading pairs and also the option to purchase cryptocurrency using fiat currency USD, EUR, GBP & JPY (The members can now purchase different cryptocurrencies using their local currencies), currently only Bitfinex exchange offers this option but other exchanges will most probably start offering this feature as well to attract new users. What I dislike about Bitfinex is the deposit fees and also the minimum deposit restriction has made this exchange not suitable for beginners. However, for experienced traders and users with crypto trading experience, this exchange is a good option. This is my unbiased Bitfinex Review I personally do have an account at Bitfinex that I decided not to verify although I had created the account before the new policy was implemented but the deposit fees and other limitations made me join other exchanges like Binance and Bittrex etc.
Also, Bitfinex has been hacked in past, approximately $72 million worth of bitcoin (119,756 BTC) was stolen in August 2016 which plunged the price of BTC by 20%. They were subpoenaed by the CTFC Dec 6, 2017. The main reason for the subpoena was controversy revolving around the Tether (USDT). Before that the exchange was once hacked in May 2015 when the hackers stole around 1500 bitcoins from the exchange.
I would highly recommend Binance cryptocurrency exchange it is one of the most popular cryptocurrency exchange in the world and is growing rapidly!
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