Bitfinex Review 2023: Is This Exchange Safe & Worth Using?

Beware that after all the work you put in to get verified they tell you that you can’t make EUR SEPA payments to online e-money banks such as monese, revolut and others. I used Bitfinex in my early crypto days when the UI was simple, and there were no minimum limits to get started on it. Only after accepting these conditions can one initiate the process to open an account on Bitfinex. On first look, I found their UI somewhat cluttered, but you can dig through and find the relevant options for yourself.

is bitfinex safe

To trade on a platform with good support can make a huge difference. I would much rather trade on a trusted platform with less functionality than a new hyped exchange. So, you can see how this would benefit your crypto account’s security.

A couple of key points include that deposits from crypto and stablecoins are free, whereas bank wire comes with a 0.1% fee. Order execution fees depend on how much is traded, beginning with maker fees of 0.1% and taker fees of 0.2% up to 0% maker fees and 0.55% taker fees. We can’t possibly go through the intricacies of each in this Bitfinex review, however, we can assure you the range is strong enough for pretty much anybody’s cryptocurrency needs.


Besides margin trading and funding, traders can take advantage of limit, market, stop, trailing stop, fill or kill, iceberg, OCO, hidden, and post-only limit orders. Coinbase is still the safest crypto exchange to use out of all centralized trading platforms. Out of all the trading platforms, I will go through today, most of them have several of these important safety features. You must understand why this will keep your funds safe on an exchange and I will do my best to explain in detail. Verification time can take a maximum of two weeks, depending on the interest. The Signup process at Bitfinex is very easy though it may be a little lengthy.

Central limit order books where users can deposit, trade, and withdraw digital tokens. All of these trading platforms are a little different when it comes to safety. This review is meant to help you find a secure crypto exchange. Okex has Hot and Cold storage for your digital assets but the only keys you will get are to the hot wallet to your account. Okex is also a safe crypto exchange and it has a very good reputation among traders.

As such, Bitfinex is viewed by the cryptocurrency community as one of the more reliable cryptocurrency exchanges around. Cryptocurrency trading and investments have been high since the time cryptocurrencies entered the finance sector. Hundreds of cryptocurrency exchanges are operating worldwide, most of which are regulated and a few are not. Bitfinex is not a regulated cryptocurrency exchange but one of the most reliable exchanges, focusing on the trader’s safety more than making profits. In this Bitfinex review, a summary of all important points is covered to help traders choose the right cryptocurrency exchange according to their conveniences. Bitfinex allows users to trade more than 160 assets with minimal slippage.

Order types

Bitfinex is primarily aimed at professional traders – people who already have a pretty varied portfolio of financial assets, and now want to get into crypto trading, as well. A single look at the features available on the site will tell you that you should have some knowledge about financial markets and investments in order to utilize the full potential of Bitfinex. In terms of the fees and charges that are applicable at Bitfinex, “Takers” pay a fee of 0.2%. For investors who place trades , they are charged a fee of 0.1%.

is bitfinex safe

The exchange in question allows you to make deposits with 5 different fiat currencies – USD, EUR, GBP,JPY, and CNH. In the introductory part of the Bitfinex review, I’ve mentioned the fact that Bitfinex has suffered some security issues over the years – that is true. However, it’s also something that we’ll discuss a bit later on in the article. For now, let’s take a look at some of the current security features that are present on the site.

How To Get Started On Bitfinex

In order to keep client funds safe, Bitfinex stores 99.5% of its user funds in a cold storage system that is also geographically spread out and uses a multisig feature. It’s safe to say that the Bitfinex exchange did a lot of work to provide users with diverse, convenient, and efficient security measures. Some of these options were provided after the series of infamous hacks. It means that the current level of security is much better and the company is working to improve its service. Bitfinex has tight security measures in place to protect client funds, and around 99.5% of user funds and digital assets are held in cold storage and away from the prying eyes of hackers.

  • Bitfinex offers relatively low trading fees, with most trades costing just 0.20% or less.
  • We’re not going to use that as a reason to mark them down in this part of our Bitfinex exchange review though, because it’s all about saying secure.
  • The main reason to use Bitfinex is its advanced trading tools and low fees.
  • For an exchange that caters almost exclusively to professional traders, Bitfinex is remarkably user-friendly.

It’s very important to feel safe while trading cryptocurrency and you should never transfer funds to a new trading platform that you don’t know anything about. I want to mention though, no cryptocurrency exchange is completely safe. There is always a risk of theft when trading on any crypto platform. This is considerably higher as compared to the trading fees charged by other exchanges like Coinbase. However, the fees drop to as low as 0% for makers that compensate for the loss, and also, there are no trading fees charged for large orders that are conducted through the OTC desk. Bitfinex offers order books with top tier liquidity, allowing users to easily exchange Bitcoin, Ethereum, EOS, Litecoin, Ripple, NEO and many other digital assets with minimal slippage.

Deposits & Withdrawals

Bitfinex also offers margin funding along with margin trading. Margin funding provides a secure way to traders to earn interest on fiat currencies as well as digital assets. Margin funding provides funds to traders who want to trade with leverage.

Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. . Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. Comparatively, the fees imposed by Bitfinex are relatively fair.

Complaints point to slow customer service responses and delayed withdrawals. Bitfinex’s reviews are better than some competitors, but overall, most cryptocurrency companies don’t score well on customer review sites. Bitfinex’s active trading platform includes standard features like advanced charting tools, an order depth chart and order book view, and quick access to buy and sell supported currencies.

Bitfinex vs. Binance

Select the market you want to trade in, and from here, you’re free to determine the price, quantity, and type of orders you would like to execute. The measures mentioned above reduce Bitfinex’s vulnerabilities. Although the exchange doesn’t insure user funds, it had taken responsibility to compensate users when assets were lost due to security breaches. They are not regulated but that’s not very common for a cryptocurrency trading platform. To start with, they have your digital assets in cold storage outside of the exchange.

Select the exchange wallet you want the funds to be deposited. The supported fiat currencies include – USD, EUR, GBP, JPY, and CNH. Staking – Now you can get up to 10% APY for staking your crypto assets on Bitfinex.

Kraken Exchange Review 2023: Unveiling the Pros and Cons of Trading on Kraken

Making a deposit is simple, yet it takes time in case of bank transfer. It is so because deposits via bank transfers are for verified accounts only. At the time of writing, Bitfinex takes approximately six to eight weeks to verify your account.

While there are many options available, everything is laid out in an impressively intuitive fashion, with easy-to-navigate dashboards and menus. Yet despite the robust security measures, Bitfinex has been hacked twice . Since then it has significantly improved its security and compensated lost funds to every user. Initially, it was a peer-to-peer margin lending platform for BTC, but later, other cryptocurrencies were made available and Bitfinex has turned into a cryptocurrency exchange. From the very beginning, the platform was aimed to attract users from the US.

It also includes its 2016 hack of nearly 120,000 Bitcoin, one of the largest exchange hacks in history. But all in all, Bitfinex lets you open long and short positions to trade on margin. Bitfinex also supports derivative trading if you complete Intermediate verification. Overall, Bitfinex has one of the best dashboards for advanced traders.

Fortunately, the Justice Department was able to reclaim $3.6 billion of that sum. Also, some may argue that the multiple hacks have made the platform much more resistant to future attacks. Bitfinex has denied the claims, sending an open letter to its users a day after, saying that the attorney general’s office letter is filled with inaccuracies and false assertions. However, there has been a lot of criticism about the exchange throughout the years, mainly about the transparency of their business and their close relation to the stablecoin Tether.

Crypto exchange support is security as well but most traders don’t really understand why. I feel very safe when I’m trading here and I always recommend new traders to start here if they don’t know where to begin. Another thing you can do to secure your account is to apply so-called “withdrawal addresses” to your account.

It has a separate P2P platform called the ‘Bitfinex Borrow’ that allows users to borrow funds from their fellow users using the cryptocurrency assets as collaterals. After verification and activation of accounts, traders can deposit funds in their accounts. The processing may take up to ten days before the account is ready for trading. Bitfinex security and safety are the major concerns for Bitfinex, not because the platform experienced consecutive hacks soon after its inception but because the customer’s safety is prioritized.

This lets you buy or sell large amounts of crypto at an agreed upon price without impacting exchange market prices. Bitfinex also integrates with Celsius, so you can lend out your crypto to earn interest. It has interest rates as high as 17% for certain tokens and it supports dozens of cryptocurrencies.

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