Bitfinex Review: Is Bitfinex Trustworthy?

Same as many other exchanges, Bitfinex has a “maker” and “taker” fee model. A maker is a person who puts forward a sale offer, while the taker, as you’ve probably guessed by now, is one who accepts that order. As pointed out earlier in the Bitfinex review, the company has appeared to learn their lesson, and have since strengthened their security exponentially. A derivative is like a contract that’s tied to the asset that you’re interested in – in this case, it would be the cryptocurrency.

is bitfinex trustworthy

Access to multiple altcoins, deep liquidity, and advanced trading features make Bitfinex perfect for serious and professional traders looking to make money from cryptocurrency. On the other hand, if you’re an experienced cryptocurrency trader, Bitfinex likely offers everything you’ll need and more. The high cryptocurrency liquidity combined with advanced features such as margin funding, leverage, and multiple order types makes it a great trading platform. It’s important to remember that the platform charges users with fees. Just like on most other cryptocurrency exchanges, deposits on Bitfinex are not charged with fees. First off, the fee depends on the trading volume the trader had in the last 30 days.

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Please make sure to do your own research, make educated financial decisions and consult your Financial Advisor. If you’d like to get started, visit and select “Sign Up”at the top right-hand side of the interface to create an account . After that click the bitfinex review “Support” tab at the top right of the interface, and then click the “Tours & Guides” option and follow the interactive guides. These security features, combined with other data encryption techniques, also ensure that client privacy and confidentiality are protected.

Withdrawing your funds from Bitfinex is as simple as making a deposit. Go to the “Withdraw” option within the “Wallet” button, select the asset you want to take out and fill all the required fields. Note that you won’t be able to withdraw currencies if you haven’t secured your account with 2FA and/or whitelisted addresses. Also, you must have your account verified first to withdraw fiat currencies.

Emil has working experience in Bain and KPMG, collaborated with PayPal and Revolut, organized more than 30 educational events about blockchain and cryptocurrencies in Eastern Europe. Deposit options The Minimum amount of cryptocurrency to replenish Bitfinex accoung – $5. This limit is set to to avoid processing small transactions. To gain access to more features of the platform, you need to go through the identity verification procedure. Comparison of verification levels and their functionality is presented in the table. The lack of easy deposit methods combined with the complicated interface will certainly take time to master and will make costly mistakes more likely.

Bitfinex also takes measures to track behavioural patterns which can trigger manual inspections on unusual withdrawals. Notifications are sent to users and accounts can be frozen if suspicious activity is suspected. Fiat deposits must be made through wire transfer and can be made in many of the major currencies including EUR, GBP, USD and JPY. Bitfinex has the most liquid order book in the world, with an extremely high volume of BTC/USD trades each day.

Trading fees

In April 2016, a far more significant hack hit Bitfinex, with almost 120,000 Bitcoins stolen. This currently stands as the second largest hacks in history. As a result, Bitfinex cut all user accounts by 36% to distribute the loss between users.

Bitfinex is also known for its past of high-profile hacks and allegations, which has led many traders to be wary of the platform. However, the platform has a range of security features which are bound to provide reassurance to many. Though BitFinex has gone through myriad challenges, it is presently one of the most advanced trade platforms out there. The exchange seems to have overcome its troubled past and has become one of the most reliable crypto trading sites today. BitFinex allows its customers to easily stake their crypto assets while earning profits in the process. An intuitive interface is provided on the platform to make it simple.

is bitfinex trustworthy

After clicking on the Open Account button the potential user needs to check the mail and tap on the confirmation link from the email sent by the exchange. The user should confirm that she/he is not a US citizen because the US residents are not allowed on the Bitfinex exchange. So many entities trying to drag Bitfinex’s name in the mud, yet all of them fail. As a regular trader, most of the claims are flat out lies, made by people who clearly have never used the exchange. Only negative so far is the verification time, a week to get KYC taken care of is a bit too much.

Clicking it takes you to the deposit page where you can choose the preferred method of funding. Bitfinex supports a wide range of deposit options, including fiat currencies (USD, EUR, JPY, CNH & GBP), and a wide selection of cryptocurrencies. With regards to carrying out trades and managing funds, things are similarly uncomplicated. Using the order form on the right-hand sidebar, users can place everything from a simple market-price exchange to stop-limit margin trade. And when it comes to deposits, crypto and stablecoin deposits are completely free, while bank wire transfers charge 0.1% of the amount with a flat minimum of $60.

But if you’re willing to take a small gamble on the platform, you might find a good overall experience at Bitfinex. As discussed above, Bitfinex has a close relationship with the Tether stablecoin, which is always worth $1. However, past issues with dishonesty regarding reserves may make you rethink holding too much Tether in your account if you’re willing to hold it at all.

You’ll need to enter a range of personal information, and then upload a copy of some government-issued ID. Because Bitfinex charges really high fees, is not user-friendly, does not accept U.S. traders and was hacked in 2015 and 2016, we would suggest re-thinking your plan to open an account. However, if you want to proceed, follow our simple step-by-step guide below. As Bitfinex has currently stopped accepting fiat currency deposits, one cannot deposit on Bitfinex with PayPal. As Bitfinex has currently stopped accepting fiat currency deposits, one cannot deposit on Bitfinex with a credit card.

For investors looking to trade large amounts of cryptocurrency exceeding $100,000 of worth, the platform offers the over-the-counter trading facility where clients can execute the trade privately. Deposits made to Bitfinex in cryptocurrency under the amount of $1000 may be charged a small fee. Cryptocurrency deposits valued at $1000 or more are generally not charged a fee. Fiat currency deposits made via wire transfer are charged a 0.10% fee with a minimum fee of $60.

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Other options do exist in the cryptocurrency space such as Coinbase, who are regulated by the UK’s FCA and CySEC in Cyprus. Next, open the external wallet from which you wish to access funds and paste your Bitfinex deposit address in the “Transfer Destination” space provided. On the “Deposit” page, you will come across several deposit options. Click on one of the options, let’s say Bitcoin for this example. The registration process on the Bitfinex exchange is simple. The user is required to provide a username, email address, set the password, and choose the time zone.

  • Since the hack, site security has been upgraded and trading volumes are increasing, meaning that people are again beginning to trust the site.
  • This happens in real time and is displayed on the Partner’s Control Panel.
  • While this amounted to $72 million in 2016, at today’s rate this amounts to approximately $600 million.
  • To be fully verified you need to send copies of 2 IDs, proof of address, bank statement and a selfie.

One of the priorities of the Bitfinex APIs’ design was the high speed of any actions committed by the user. Access to the data and the transactions are meant to take place in real-time as the trader is requesting this or that action. Are they taking all the necessary measures to provide security of users’ funds? Bert Kozma is a writer and Editor-in-Chief at

In addition to the regulatory challenges listed above, the company has been hacked multiple times, losing customer funds and trust in the process. Most trades come with either a 0.10% maker fee or a 0.20% taker fee. Additional options and features include automated algorithmic trading, a robust API for developers, historical pricing data through Bitfinex Terminal, margin trading, and derivatives trading. But while it’s suitable for a wide range of users on the surface, this exchange has a shady past, including several fines and accusations of cryptocurrency market manipulation. Investing in cryptocurrencies, Decentralized Finance , and other Initial Coin Offerings is highly risky and speculative, and the markets can be extremely volatile.

In order to increase the trading speed, the owners of corporate accounts and professional traders might use the special servers in the data centers located in Switzerland. Connecting with Virtual Private Servers provides traders with RAM and CPU power and advanced SSD storage. Also, users might request access to FIX Feed and ISP Links in order to strengthen the security of the traded assets.


The alleged manipulation was made in partnership with Tether, the company that has strong ties with Bitfinex, moreover, companies are partly governed by the same people. According to New York Attorney General Letitia James, Bitfinex was using Tether to cover up the losses of the user funds worth $850 million. The company is accused of insolvency, and this question is not properly addressed by Bitfinex. The scandalous hacks that took place in 2015 and 2016 are not making the reputation of Bitfinex look better. On the other hand, some lessons were learned by the Bitfinex team, and the security level was improved.

Cold storage refers to keeping crypto coins in hardware devices. 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.

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. It always feels as if they are hiding something without the ability to actually prove it. This situation persisted for weeks, leading to client complaints and all kinds of distortions in Bitfinex’s pricing. Normal service was eventually restored—although US dollars and US customers are no longer accepted by Bitfinex as a result of these banking headaches.