Logo
Search
Close this search box.
Picture of Swen Keller
Swen Keller
In the crypto world Swen has consistently found success through his effective communication skills and the unique ability to navigate the details.
Table of Contents
    Add a header to begin generating the table of contents
    1. Home
    2. /
    3. Cryptocurrency Exchanges
    4. /
    5. Bitfinex Review 2024: Fees,...

    Bitfinex Review 2024: Fees, Pros & Cons

    Bitfinex review

    Bitfinex Review: Our Opinion

    Bitfinex exchange is one of the most popular and largest cryptocurrency exchanges in the world primarily due to its low trading fees. It is best for professional traders looking to engage in margin trading and various forms of derivatives trading. However, its close ties with the Tether stablecoin have generated a lot of problems with regulators as well as its dodgy security history which might be of concern to potential investors.

    An Overview of Bitfinex

    Bitfinex Home Page

    Bitfinex exchange, one of the oldest cryptocurrency exchanges, was launched in 2012. It is also one of the largest cryptocurrency exchanges in the world by trade volume ($12,003,773,984 – 30 day trade volume) and is owned by iFinex inc which is registered in the British Virgin Islands. 

    The Bitfinex platform offers various financial services for digital asset traders and liquidity providers including margin trading, margin funding, derivatives trading Bitfinex, and a suite of order types. It also provides its users access to an OTC market and peer-to-peer financing for a selection of over 190 crypto assets and 400 trading pairs

    Bitfinex also supports a suite of advanced charting tools that enables traders to visualize positions, orders, and price alerts. 

    That said, the Bitfinex exchange has had its fair share of scandals. The crypto exchange and Tether, a sister service to the platform, have been accused by the New York Attorney General of misleading clients and the market by hiding Tether losses and overstating its reserves. 

    Bitfinex has also received fines for running illegal off-platform transactions and operating unlicensed in some regions. The exchange was also hacked in 2016 which put a temporary halt on Bitfinex services.

    Pros

    Cons

    Bitfinex Review: Unique Features

    Bitfinex Paper Trading

    Bitfinex Paper Trading allows traders to test trading strategies in a simulated market environment using fake funds before trading in the actual market with real currency. Paper trading is available on Bitfinex subaccounts which mirror the trading functionalities of the master trading account. 

    This feature is suitable for beginners who wish to trade but need to learn the ropes of crypto trading before using real funds. It is also suitable for professional traders who wish to try out new trading strategies before executing the strategy in the actual market. For both users, paper trading mitigates the loss of funds and helps the users to maximize profit. 

    The major benefit of the Paper trading feature is that it allows users to engage in Bitcoin trading without using real funds and without any rush to real account funds. Bitfinex allows users to create multiple paper trading accounts which can be used to test various trading strategies. Users can also share their trading strategies and ideas with other users in the Bitfinex Pulse community. 

    Bitfinex Paper Trading is available for exchange, Margin, Funding, OTC, and derivatives trading. Users with unverified accounts can also access this feature. 

    To get started with Paper Trading on Bitfinex, log in to your Bitfinex account and scroll to the Sub-Account section. Next, create a new-sub-account. Once this is done you can start paper trading.

    Bitfinex Pay

    Bitfinex Pay

    Bitfinex pay is a widget that allows merchants to accept crypto payments for their goods and services

    Bitfinex Pay is easy to set up and it supports payment in a wide range of cryptocurrencies including Bitcoin (Lightning, Liquid), Avalanche, Ethereum, Solana, Polygon (Ethereum, Mainnet), EURt (Ethereum), USDT (Ethereum, Liquid, Polygon, Tron) and Dogecoin. 

    Payments made via Bitfinex Pay reflect in the recipient’s wallet within minutes. Users are also charged zero processing fees for using the widget. 

    For flexibility and convenience, Bitfinex has a WooCommerce plugin that allows merchants to receive borderless and contactless crypto payments with no technical knowledge. All that is needed is to download the WooCommerce plugin from WordPress and GitHub. After downloading the plugin, it can be easily configured with a few clicks. 

    The Bitfinex API makes it easy for merchants to easily integrate Bitfinex Pay to suit their specific requirements. 

    Bitfinex Pay offers various payment options. Customers can make Bitfinex payments directly from external crypto wallets like Metamask and WalletConnect.

    Bitfinex Borrow

    Bitfinex Borrow

    This is a peer-to-peer (P2P) funding platform that allows users to borrow funds from other users while using their fiat currencies or cryptocurrencies as collateral. 

    Bitfinex Borrow is powered by its users, and the terms of the loan are set by the lender. No credit checks are required to get a loan via Bitfinex Borrow, all you need is a verified Bitfinex account. Just like margin trading, margin funding, and Lending Pro, Bitfinex Borrow is only available to accounts that have at least intermediate-level verification. Note that Bitfinex Borrow is only available to users who created an account before the 1st of March 2022.

    Currently, the following currencies can be used as collateral on Bitfinex Borrow: Tether (USDT), Tether (XAUT), United States Dollar, XRP, Litecoin, Ethereum, Cardano, Euro, Bitcoin, UNUS SED LEO, Cosmos, Tezos, Bitcoin, Uniswap, IOTA, Chainlink, Solana, Japanese Yen, EOS, and Polkadot 

    The minimum amount users are permitted to borrow is $175 equivalent. Any borrowing request less than that amount will be rejected by the system. Also, the verification level of the user determines the borrowing choices available to them. Only users with a full verification level can borrow fiat currencies. 

    The amount of funds each user can borrow differs according to the type of collateral provided with an overall limit of $250,000. And the currency type is also subject to various factors like liquidity and the quality of the currency. Bitfinex has a loan calculator that users can use to find out how much they can borrow and the minimum margin requirements they must maintain. 

    As a borrower, Bitfinex does not place any limitations on how to use the borrowed funds. You can use the funds in the exchange or for any purchase outside the platform. 

    Bitfinex allows both lenders and borrowers to choose the terms and conditions that suit their preferences. 

    Borrowers can choose the interest rate that best suits their needs. Bitfinex Borrow offers 2 interest rates: fixed interest rate and variable interest rate. 

    With a variable interest rate, the loan interest fee does not start until the borrower moves funds out of their margin wallet. 

    Fixed-rate loans however have an expiry date based on the agreement the borrower has with the lender. If the borrower chooses not to repay the loan before it expires, Bitfinex will convert it to a variable-rate loan.

    Cryptocurrencies Available on Bitfinex

    Bitfinex supports over 190 cryptocurrencies. Available cryptocurrencies include Bitcoin, Ethereum, Tether Polkadot, Dai, USD Coin, Monero, Ethereum Classic, Bitcoin SV, Chainlink, XRP, Dogecoin, Tron, Uniswap, Cardano, Litecoin, Filecoin, Solana, Avalanche, Compound, Dash, Cosmos, Tezos, Algorand, etc.

    Bitfinex Review: Fees

    Bitfinex charges a range of fees depending on the payment method or service used. Its fee schedule is quite complex and will confuse beginners. 

    Bitfinex Deposit Fees

    • Cryptocurrency deposit: No fee
    • Stablecoin deposit: No deposit fee
    • Securities: Free
    • Bank wire: 0.10% (min 60, USD/Euro) of the transaction amount
    • Bank wire via OpenPayd: 0.5 (Euro/GBP) per transaction

    Bitfinex Withdrawal Fees for Fiat Currencies

    • Bank wire: 0.10% (minimum 60, USD/Euro)
    • Bank wire via OpenPayd (for transfers of 100,000 EUR/GBP or lower): 0.5 (Euro/GBP) per transaction
    • Bank wire via OpenPayd (for transfers of more than 100,000 EUR|GBP): 0.10% of the transfer amount
    • Express bank wire: 1% (min 60, USD/Euro)
    • Internal transfer (crypto assets only): No withdrawal fees

    OTC Desk

    There are no Bitfinex trading fees for Bitfinex users that execute OTC trades brokered by the OTC desk. However, other OTC trades incur a trading fee of 10 basis points on both sides. 

    Crypto to Crypto Transactions

    Bitfinex uses the maker-and-taker fee model to charge for this type of transaction. And it charges 0.10% in maker fees and 0.20% of the transaction amount in taker fees. 

    Crypto to Stablecoin

    The platform charges 0.10% and 0.20% in maker and taker fees respectively for this type of transaction. 

    Crypto to Fiat Currencies

    To convert your crypto assets to fiat currencies on Bitfinex you’ll be charged 0.10% in maker fees and 0.20% in taker fees. 

    Derivatives

    For derivatives trades on such a BTC/PREP, Bitfinex exchange charges users 0.0200% in maker fees and 0.0650% in taker fees. 

    It is important to note that Bitfinex offers discounts on trading fees based on the user’s 30-day trade volume and the amount of LEO tokens held. UNUS SED LEO is the native token of the Bitfinex ecosystem.

    Here are some of the fee discounts available:

    • All taker fee levels for holders of the UNUS SED LEO token will be reduced by 15% overall crypto to stablecoin and crypto to crypto pairs. 
    • P2P financing lenders will get trading fee discounts equivalent to 0.05% for every 10,000 USDT in UNUS SED LEO tokens they hold. 
    • Users that hold more than 50 million UNUS SED LEO tokens will receive up to a 25% discount on crypto withdrawals and all deposit fees. 

    Bitfinex Review: Payment Methods

    Bitfinex supports 4 payment methods including credit or debit cards, bank transfers, Tether, and cryptocurrency deposits

    The credit or debit card option is used for instant payments allowing users to buy cryptocurrencies directly. Supported credit or debit cards include Visa, MasterCard, and UnionPay. That said, using payment cards on Bitfinex exchange is a process that’s facilitated by third-party processors: Simplex, Mercuryo, and OWNR.

    Bitfinex Review: Security

    Bitfinex Security Features

    Like most cryptocurrency exchanges the Bitfinex exchange, stores the majority of its funds in a multi-signature cold storage system. The cold wallets are not available from the Bitfinex platform or Bitfinex secure server. Only about 0.5% of clients’ funds are accessible in hot wallets. 

    Its secure server is protected with up-to-date software and the database is backed up in real time on encrypted hard drives. The encrypted hard drives are replicated in different geographical locations. 

    The platform is also protected by automatic Distributed Denial of Service protection, which has designed security measures to prevent trading from being halted by outside attacks. 

    Bitfinex also secures users’ accounts with various security features such as two-factor authentication, physical security key via universal two-factor authentication, withdrawal protection, advanced API key permissions, and various advanced verification tools. 

    Despite these robust security features, Bitfinex has experienced security breaches in the past.

    Bitfinex Review: Staking Rewards

    Bitfinex crypto exchange supports staking and offers up to 8% APY on supported crypto assets. Supported digital tokens for staking include TRON, TEZOS, EOS, COSMOS, Solana, Polygon, Cardano, Polkadot, Kusama, and Ethereum. 

    Bitfinex crypto exchange pays out staking rewards weekly and allows users to withdraw or trade some staked tokens depending on the protocol or if it has a lock-in period. However, Ethereum cannot be withdrawn or traded once staked.

    Bitfinex Review: Supported Countries

    Bitfinex is available in over 150 countries including Singapore, Egypt, Hong Kong, Germany, etc. It is not available in the following countries: the United States, Canada, Austria, Italy, and other countries subject to a comprehensive embargo.

    It is also not available in high-risk jurisdictions or any country that prohibits or requires the registration or qualification of Bitfinex Securities, or that Bitfinex Securities Trading operates with a governmental authority.

    Opening a Bitfinex Account

    Bitfinex Sign Up Page

    The account opening process of the Bitfinex exchange is straightforward. 

    To create an account you need to download and launch the Bitfinex mobile app and locate the Sign-Up button at the upper right side of your screen. 

    Next, create an account by inputting the requested data such as your email address, username, country of residence, and account password. Once you’re done, tap the Sign Up button. 

    Next, you will have to create and confirm a PIN code for the Bitfinex mobile app which will be requested whenever you launch the mobile app. Also, depending on your mobile device you may be able to enable Touch ID or Face ID. 

    After this, you will be redirected to the Setup Security screen where you’ll need to download the Google Authenticator app. Then tap “I’ve installed the app”.  

    You’ll see a prompt to open the Google Authenticator app, open it and a new token will be inputted. Once you’ve added Bitfinex to Google Authenticator, copy the code generated and enable two-factor authentication. 

    Lastly, go to your email inbox and tap or click the “Confirm Email Address” button within the verification email from Bitfinex. 

    You’ve successfully created your account.

    Bitfinex Review: Trading Experience

    Bitfinex offers a mobile app and website for trading. The crypto exchange targets experienced traders and it offers advanced charting tools, an order book view, an order depth chart, margin trading, corporate accounts, an OTC desk, etc. 

    However, beginners can still start on the platform via its free paper trading account which allows users to trade on the Bitfinex exchange with play money before they invest in real fiat currencies. 

    Bitfinex also offers algorithmic trading and API for developers.

    Bitfinex Customer Support

    Bitfinex Help centre

    Bitfinex users can contact the customer support team by submitting a support ticket online. The platform provides customer support in 7 languages including English, Spanish, and Portuguese. 

    The customer support page has a group of preselected support categories that users can select to submit their support tickets. 

    The Bitfinex Knowledge base, accessible through the support page, provides users with a resource to discover solutions for their inquiries.

    Customer Satisfaction

    Bitfinex customer service has received both positive and negative feedback. While most customers have commended the support team for providing helpful support when needed, others have complained of their inability to contact the support team.

    Does Bitfinex Offer Education?

    Bitfinex offers a blog with crypto tutorials and a support page containing articles on how to use Bitfinex but that’s it. The platform unlike other top crypto exchanges does not have a dedicated education center.

    Is Bitfinex Right for You?

    Bitfinex is best for advanced traders and institutional traders looking to trade derivatives/margins and participate in margin lending.

    Final Thoughts

    Bitfinex is a popular exchange with low fees, advanced features, and a sizable selection of cryptocurrencies. However, it is not suitable for beginners and the exchange has a lot of scandals trailing it to make potential investors extra cautious about the platform.

    Our extensive analysis of the Crypto Exchanges doesn’t stop here. You can also read about our Bitstamp review as an alternative to Bitfinex.

    FAQ

    Most frequent questions and answers

    No, citizens of the United States cannot use Bitfinex

    No, Bitfinex is best for advanced users. Beginners will require a steep learning curve to use the platform.

    The exchange’s Terms of Service state that unauthorized access will result in account closure.

    Subscribe and Receive a Free Copy of Our E-book
    Bitcoin E-book on a tablet

    We always try to provide the most accurate information available, and make sure our team follow through.
    If you want to know more about our Crypto Exchanges Review Methodology follow the link below

    Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade, or sell any investment instruments or products, including but not limited to cryptocurrencies, or use any specific exchange. Please do not use this website as investment advice, financial advice, or legal advice, and each individual’s needs may vary from that of the author. Investing in financial instruments, including cryptocurrencies, carries a high risk and is not suitable for all investors. It is possible to lose the entire initial investment, so do not invest what you cannot afford to lose. We strongly advise conducting your own research before making any investment decisions. This post includes affiliate links with our partners who may compensate us.

    To view our privacy policy read here.

    You may also be interested in:
    Scroll to Top

    Subscribe & Get Your Free Bitcoin Trading E-Book!

    Simply insert your info, hit the button subscribe and you will receive an e-mail with a link to view and download the E-book. Remember to check your spam if you do not see our e-mail.