Bitfinex Review

Here Are Bitfinex Pros and Cons

Bitfinex fact sheet

Security is one of the most important aspects of crypto exchange or any place where we are investing our money. Sadly, this is where Bitfinex has its biggest problem. Currently, they don’t have any regulatory license from any government body. This is considered a problem by the majority of traders, as they are less protected in case of hacking, theft, or any wrongdoing on the part of Bitfinex. But there are also traders who find this a positive, as it removes government control from the exchange and brings some form of decentralization.

Security measures adopted by Bitfinex

When looking at security measures adopted by Bitfinex there is one major security measure missing, crime insurance. When looking at the Bitfinex user agreement, users have to acknowledge that they are not protected by any insurance policy from any government body. This is bad, but on the bright side, Bitfinex is known to compensate traders in the event of theft. 

Also, for further protection, Bitfinex utilizes cold wallets to store the majority of funds. These cold wallets are not connected to the internet, making it impossible for someone to hack into them and empty out the funds. According to Bitfinex, only 0.5% of funds are stored in hot wallets, so 99.5% of funds that Bitfinex posses are stored in cold wallets, making it impossible for someone to steal these funds.

Bitfinex also offers users two-factor authentication. Here traders can use their phone number or email address to further protect their accounts. When this two-factor authentication is turned on, users receive one-time codes either on their phone or email in order to access their accounts.

When looking at the assets that are available on Bitfinex we can see that this exchange is not the biggest. In total Bitfinex offers trading of 182 cryptocurrencies and 444 trading pairs. 

Here is a list of some of the major tokens available on Bitfinex:

• Bitcoin
• Ethereum
• USDT
• XRP
• Solana
• Litecoin
• Polkadot
• ADA
• Tron

This is just a small list and there are many more tokens available on the exchange.

We also need to mention that some traders might not have access to some tokens, based on where they reside. So before joining Bitfinex, traders should check if there are any tokens unavailable for them.

Bitfinex offers a wide range of trading tools to its users. The most simple spot exchange is present on the website, where traders can simply trade one crypto for another with minimal slippages and in a fast manner.

Traders can also use the margin trading feature to increase their profits. Margin trading is when traders are borrowing funds from the exchange or other traders. This gives them the opportunity to trade with larger amounts of funds than what they own, but they can also suffer very big losses when using margin. 

Bitfinex also allows traders to fund margins. What this means is that traders can lend their funds to the exchange, so they can provide these funds to those who want to use margin trading. When doing so, traders earn interest on their investments.

Traders can also trade crypto derivatives. Derivatives trading is when traders are speculating on the future prices of assets by buying derivatives contracts and waiting for the price to reach the price they speculated. These can be both long and short positions, so traders can make money even in down-trending markets.

Another great feature that Bitfinex has is its paper trading. This is a space where traders can trade in real market conditions using fake funds. This is a great place for those who wish to learn how crypto trading works, but don’t want to risk real money. It is also great for those who want to try out new strategies.

Bitfinex offers automated trading to its users called Bitfinex Honey. It is easy to use these trading bots and traders are not required to know coding in order to use them. This is a great feature for those who are not confident in their trading abilities or simply don’t have time to actively trade.

Traders can also stake their tokens on Bitfinex. Currently, Bitfinex supports the staking of 10 cryptocurrencies, among them you will find tokens such as Solana, Cardano, and Ethereum. So traders who have these cryptocurrencies and plan on holding them for a long period of time can use this staking feature to earn interest on their assets.

When looking at the fees on Bitfinex, we see that they utilize the common maker-taker fee structure. This is a fee structure where traders who have limit orders placed to sell/buy crypto when the price reaches a certain level pay different fees compared to those who buy and sell cryptos on spot prices. Here is the table of maker/taker fees that Bitfinex uses.

These fees can be even lower if the 30-day trading volume increases further. Also, traders who hold LEO tokens can receive further discounts of up to 25%.

When looking at the website of Bitfinex we have mixed feelings. On one end, it has a simple design, is not overloaded with unnecessary stuff, and everything you are seeing on the website is there for specific reasons. When looking at the menu of the website, the names of some sections might be confusing, but it is still easy to find everything you are looking for.

But on the other hand, the website looks somewhat dry. Everything is squared and does not look too pleasing. It has a dark design, with a dark gray background, the texts are either white or green, and the green text can be hard to read as it blends with the background.

So we can not say whether this website is good or not, and in the end, it comes down to personal preferences What we can say is that navigating the website is easy to get used to.

Another part that Bitfinex can improve on is its educational page. When visiting their blog page, educational materials are very limited. Some of the most important topics are covered, but there are still a lot of materials that can be added. There are other informational posts here, but they can not be considered very educational. Most of the posts are dedicated to specific topics regarding Bitfinex. Such as how to trade derivatives on Bitfinex. These types of topics have some educational value, but most of the articles are dedicated to Bitfinex specifically and offer no general guidance.

Pros and cons of Bitfinex education

This is where things get way better. Bitfinex has a really well-built support system in place. Their support center is built with simplicity in mind. Everything is straightforward and traders can find information about everything that they might be interested in or have problems with. They have sections dedicated to problems associated with accounts, trading, and more. So it is really easy to find exactly what you are looking for.

Traders can also use live chat options available on the website. When visiting Bitfinex we can see a small chat icon in the bottom right corner of the screen. Here we can contact customer support in a really fast manner.

If you were unable to receive support from the live chat and require more professional assistance, there is an option to contact Bitfinex using an email address. When visiting this page, you will be greeted with a large list of possible topics you might be having problems with. Once you select which problem you have, Bitfinex will then ask you to try to provide as much information as possible, in order to provide high-quality support.

Another bright spot of Bitfinex is its mobile application. It is one application that can switch between pro and lite versions. 

The lite version of the app is more aimed at beginner traders. Here you won’t find complicated sections, and you can only access the exchange market, staking platform, and your wallet. While using the pro version of the app, along with these mentioned things, traders will have access to derivatives, funding, and other more professional tools. 

Now let’s take a look at how we can get started on Bitfinex. This is a simple process that should not take a long time for anyone.

Step 1: Creating Account

The first step when joining Bitfinex is to create your own account. When doing so, you will be asked to provide your email address, come up with a username and password, and indicate where you are from.

After this, Bitfinex will ask you to turn on Google Authenticator in order to protect your account. For this, you will need to download Google Authenticator on your phone and connect it to Bitfinex using the code or QR code provided. Then the Google Authenticator will give you a code to complete this link. After that, you will simply need to verify your email and your account will be registered.

Step 2: Verification

When you create your account, you are not required to pass verification to trade on the exchange, but there will be some limitations placed on your account. If you wish to remove these limitations, you will need to pass verification.

There are four verification levels on Bitfinex. Registration is enough to gain the first-level verification, while other levels require you to provide official ID documentation, proof of address, and bank statements, depending on the level of verification you wish to unlock.

Step 3: Deposit funds and start trading

Once we register the account and unlock the verification level we want, all that is left for us to do is deposit funds and start trading. For this, we need to go to the wallet and select the deposit option. Once there we need to select which currency or crypto we will be depositing and what deposit method we want to use. Once the payment goes through, we are ready to start our trading journey.