Is Bitfinex a scam? Is it one that you can use to achieve your money-making objectives? Is there anything unique about it? These are some of the things that I will be helping you unravel in today’s review. To accomplish that, I will feed you with information pertaining:
- Is Bitfinex a scam? What is it about?
- The services offered by Bitfinex
- Which are the currencies allowed on this platform?
- What fees are charged for using Bitfinex?
- Which countries are supported by Bitfinex?
- Is Bitfinex genuine?
- Pros and Cons
Name of the platform: Bitfinex
Official website URL: https://www.bitfinex.com/
Overall rating: (4 / 5)
Is Bitfinex a scam? What is it about?
Bitfinex exists as a crypto exchange platform that has been around since 2012. This platform is well-suited for use by the advanced traders who are out to make huge amounts of money by utilizing all the superior tools at their disposal. Bitfinex also offers these traders the opportunity to do margin trading and lending within the platform itself.
Bitfinex is owned by a company known as iFinex Inc, which is based in Hong Kong. At the time of creation, iFinex Inc was a P2P margin lending platform that supported Bitcoin only, but it has since then evolved to support other services as we shall see below.
The services offered by Bitfinex
Bitfinex offers quite a variety of services to its users, including:
Access to an advanced trading platform
Bitfinex has one of the most liquid order books that you will come across in the entire world. Most traders prefer high volume trades as they ensure low spreads, and this is exactly what Bitfinex delivers to them. Some of the main features on the trading platform include:
- An advanced and customizable GUI
- More than 50 trading pairs
- A wide variety of order types, e.g limit, stop-limit, scaled, trailing stop, and fill or kill orders.
- Charting functionality
- API access.
When these features are combined, they make Bitfinex a reliable and solid platform that even the advanced traders can use to achieve their money-making objectives.
Margin Trading and Funding
This is yet another service that makes Bitfinex attract many users. These users can borrow and trade on the platform with up to 3.3x leverage. This can happen through this margin trading platform. As a user of the platform, you are wholly responsible for the determination of the borrowing terms, including:
- The amount
Crypto owners are also able to lend their funds to fellow traders in a very secure manner and to also earn interest as they do that. The same users are also in a position to offer funding in the form of many other types of currencies and assets. They remain wholly in charge of determining the rate of interest that will be applied, as well as the duration.
Note that as a new trader, it may not be the best thing to dive into margin trading right away. This approach usually amplifies the risk involved and if things go wrong, you can lose all your trading capital all at once.
Another thing that is worth knowing is that with margin funding, your funds are usually locked on the platform for the specified loan duration.
Over The Counter Services
If you would like to trade very huge amounts of cryptos privately, then Bitfinex can give you access to the over-the-counter trading facility. This is a safe and secure platform through which you can build your wealth in private.
Which are the currencies allowed on this platform?
At the moment, Bitfinex allows you to make deposits in any of the following currencies:
You can also make your deposits through wire transfer. Bitfinex also allows you to make deposits using the quasi-fiat tokens that are pegged to the price of the US dollar, such as Tether.
You can make free deposits and very cheap withdrawals on this platform by using cryptocurrencies such as :
- and 80+ assets.
If you use Tether on this platform, then you are required to verify your identity at the time of withdrawing your funds. At the time of doing your trades, however, you can simply work with your email address
What fees are charged for using Bitfinex?
If you conduct a larger order through the Over-The-Counter Desk, you will not incur any expenses in the form of charges.
Bitfinex usually charges a 0.1% fee on al bank wire deposits and withdrawals. This figure can go to as high as 1% in the case of an expedited withdrawal.
The crypto deposits are in most cases usually free, but you will have to pay a certain fee when depositing an amount that is less than $1000 (in cryptos). The fee you pay is dependent on the type of coin. Again, there is a withdrawal fee that is dependent on the type of coin you are withdrawing.
Which countries are supported by Bitfinex?
Bitfinex is a platform that aims to serve clients from all over the world, but those in the nations listed below cannot benefit from what it has to offer. Those countries are:
- United States of America
Is Bitfinex genuine?
Bitfinex is a legit platform that serves crypto-traders, including the advanced ones. It would be good to point out that Bitfinex is a platform that is best for trading with large sums of money. If you are looking for a platform that will enable you to make a few bucks by staking a small amount of money, then you should look elsewhere.
As much as Bitfinex has suffered multiple hacks in the past, it has tried to reinforce the security of its clients’ accounts and has made an effort to reimburse all the lost funds. 99.5% of funds are usually placed in a cold storage unit, while the rest is placed in hot storage for the purpose of liquidity.
Pros and Cons
- It is a great platform for experienced traders
- It offers very high liquidity
- The fees charged are reasonable
- It may not be the best for newbies
Final words and verdict:
Overall rating : (4 / 5)
Bitfinex is a genuine platform that you can rely on, more so now that its security has been revamped to prevent hackers from accessing your funds. It is however one that is best suited for advanced traders. If you want to use lower volumes of money to achieve your money-making objectives, then you can rely on my recommended option below.
That’s all there is in my review about whether Bitfinex is a scam or not. I hope that you enjoyed it and that it helped you decide whether or not to rely on it. Feel free to lay out your thoughts in the comments section.