Our BitFinex review 2021 will address several key areas that we consider to be important to the individual searching for the best cryptocurrency exchange with whom to start trading.
Based in Hong Kong, Bitfinex is a cryptocurrency exchange that provides a strict focus on trading. They allow customers to purchase and trade many digital currencies and are considered the market leader in USD based bitcoin trading. At the time of writing, Bitfinex was one of the world’s top 5 largest Bitcoin exchanges in terms of volume with over $7 billion USD in transactions performed from the 2021 period of January 10th to January 16th.
Our Bitfinex review discovered that, unfortunately, this cryptocurrency exchange does not service individual US customers. However, they still provide services for those with corporate accounts. While these restrictions mean that US citizens cannot access trading and funding services, for those people traveling in the United States whose primary residence lies outside this region, Bitfinex does provide access and trading capabilities.
Is BitFinex Safe?
Most bitfinex reviews make special mention of the security of the exchange, and ours is no different. So, is bitfinex legit?
The short answer is Yes. Due to its previous experience of hacks, the company is determined to ensure such security breakdowns do not happen again. There are several ways that they do this:
Safety of client funds – Almost all funds are held in cold storage, leaving only 0.5% of assets accessible online to potential hackers.
Database encryption – The company also uses database encryption and DDoS protection that ensures that trading is inaccessible to external parties.
Secure customer accounts – Client accounts are subject to two-factor authentication that protects users by encouraging them to provide a verified phone number so that potential hackers are unable to infiltrate their accounts.
The reason that many are apprehensive and ask the question is bitfinex safe stems from a significant hack where 120,000 bitcoins were stolen. The bitfinex scam occurred in August 2016 and involved the theft of $72 million worth of Bitcoin. The quick response by Bitfinex at the time of the hack and extra security measures employed since have resulted in no more serious hacks post 2016 indicating that the exchange is a safe one for crypto traders to use.
At Bitfinex there are a substantial number of cryptocurrencies available for users looking to buy and trade. This cryptocurrency exchange site is one that constantly updates and adds to their altcoin list so please keep in mind that there may be alterations to the following list in the months ahead. At the time of writing, the list of digital currencies that are accepted by Bitfinex to fund user accounts are:
- Bitcoin Cash
- Ethereum Classic
Our Bitfinex review 2021 can report that the exchange provides services to most countries around the world, with a small number of exceptions. The list of excluded countries is:
- United States
The BitFinex purchase process
The procedure from sign up to purchase is relatively straight-forward with Bitfinex and will now be explained.
To create an account, simply click the ‘sign up’ button in the top right-hand corner of the homepage. A pop-window will launch that explains several important notices that must be read and understood prior to proceeding. These notices refer to the professional platform used by the site, the minimum account equity required, the lengthy verification process and the inactivity fee that may be implemented by the company where customers aren’t actively participating in trading.
Having read and understood the notices provided, you’ll then need to provide a username, valid email address, password and time zone prior to the opening of your user account.
Having received confirmation of your account, you’ll then have to optimize your security settings. This involves providing a strong password in combination with two-factor authentication. Additional recommendations for the safety of funds are then provided which include: locking withdrawals from a new IP address, the setup of a withdrawal confirmation phrase, disabling “keep session alive” and enabling PGP email encryption.
Having optimized security settings, users are then promoted to deposit funds which can be done in the form of the supported cryptocurrencies or using USD and Euro fiat currency. Having completed this step you are then ready to make your first trade providing that you have deposited the minimum required funds to enable you to do so.
To make your first trade you will first want to ensure that the funds have been placed into your exchange wallet. Locate the trading page and select the pair you would like to trade. An order form will then appear. Select the exchange tab. Detail the order type, size, and price. Having done so, simply click exchange buy or exchange sell to execute the trade.
Our bitfinex review 2021 next addresses the fees charged for each transaction made on the exchange. Firstly, all deposits made with cryptocurrency are free but there is a transaction fee placed on withdrawals and this fee differs based on the type of cryptocurrency a user is withdrawing.
In terms of trading, users who accept the offers of other users pay a .2% fee per transaction. Whereas those who place trades within the order book are slugged a fee of just .1% per transaction.
There is relatively little in the way of limits on this cryptocurrency exchange providing the verification of your account has been approved. There appears to be no buying limit as long as the desired order does not exceed the market supply of the altcoin being sought.
Our bitfinex review found that the level of customer support provided by the exchange is average. While they do have support available 24/7, all contact with customer support officers is made via email with no live chat or telephone services available. We found that any queries were generally responded to within 12 hours, but others have reported longer delays in having questions addressed.
- Low transaction fees
- High volume cryptocurrency exchange with no identifiable limits
- Many trading options
- Many digital currencies available for purchase
- Ideal for advanced crypto traders
- Long verification process (6-8 weeks)
- Not available to USA clients
- Previously victims of hackers
- Customer support service less than ideal
- Not the best choice for beginner crypto traders
So, what is bitfinex best at? Our review found that for experienced traders looking for a site with a plethora of digital currencies, low transaction fees and strong trading capabilities, then bitfinex may be a perfect choice. However, for the beginner crypto trader, there may be better cryptocurrency broker choices. This is because the site does not provide the highest level of customer support, possesses a long verification process, and requires an initial deposit of $10,000 in crypto or fiat currency prior to undertaking trading.