Is Bitfinex a scam? How well is this platform doing in as far as the provision of services to clients is concerned? Such are the things that we shall be looking at in today’s review. I will address these questions and more by giving you the information that pertains to:
- Is Bitfinex a scam? (What is it?)
- Which services does Bitfinex offer?
- Currencies allowed on Bitfinex
- The fees and charges to expect on Bitfinex?
- The countries supported
- Is Bitfinex Legit?
- 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?)
Bitfinex is a popular exchange platform that has been serving its users ever since it was created back in 2012. This platform has managed to establish its position in the crypto-exchange industry as one that mainly targets advanced traders whose objective is to earn massive profits by staking large volumes of money. These traders are also presented with an opportunity to perform margin trading and lending on the same platform.
It is well known that Bitfinex is owned and operated by iFinex Inc, a firm based in HongKong.This firm created Bitfinex with the objective of having a P2P margin lending platform that could be used by Bitcoin owners but has over the years taken the steps necessary to see to it that the platform serves a larger client-base, by offering them more services.
Which services does Bitfinex offer?
Currently, Bitfinex offers its users the following services:
Access to the advanced trading platform
Bitfinex takes pride in having one of the most liquid order books in the crypto-exchange industry. In addition to that, it presents the users with a chance to execute the high volume trades that facilitate a low spread. These traders can then take advantage of the following features to maximize their chances at earning an impressive income:
- It has its advanced and customizable GUI
- There are more than 50 trading pairs.
- There are many order types
- It offers superior charting functionality
- Access to the Bitfinex API
With all of these features, the traders are usually well-equipped to go about their trading activities with more confidence, and ultimately to make larger sums of money.
Margin Trading and Funding
Bitfinex has managed to attract quite a large number of users by offering this service. Here, the users are presented with an opportunity to borrow money and to execute trades within this platform, with up to 3x leverage. This margin trading and funding approach is possible on this platform, and the users of the platform usually have the chance to define the terms of the funding. As a Bitfinex user, you have control over:
- The amount of money borrowed or lent out
- The duration of the loan
- The interest rate applicable to the loan.
Those who own cryptos on this platform can also go about the margin lending and funding activities in the same manner. They can do this quite securely, and earn interest on the cryptos loans issued. In addition to using cryptos to go about the margin funding process, users of this platform also have a shot at using other types of currencies and assets. Even in these circumstances, they are wholly responsible for defining the rate of interest to be charged, and the duration which the loan will take.
It is advisable for those who are getting started with trading to avoid diving into margin trading for a start. Margi trading in itself amplifies the risk and reward, but it can eat up the trading capital of a newbie really fast, more so if they do not have anyone to guide them.
It is also important to note that during the period in which the margin funding process is in effect, Bitfinex usually locks your funds until the loan duration is over.
Over the Counter Services
If you would like to trade in very large amounts of cryptos, privately, you can rely on the over-the-counter facility offered by Bitfinex. With this OTC service, you can safely and securely grow your wealth without attracting unnecessary attention.
Currencies allowed on Bitfinex
Currently, Bitfinex lets its users make deposits into their accounts using any of the currencies listed below:
The platform also lets you deposit funds via wire transfer. If you want to take it to the quasi-fiat tokens level, Bitfinex allows you to use Tether, which is a coin whose value is pegged on to the price of the USD.
Cryptocurrencies are also allowed here, with the most common ones being Iota, EOS, Bitcoin, Litecoin, Ethereum, Monero, Zcash, Ripple, and Dash. There is also a collection of 80+ other assets that you can use on the platform.
Note: If you use Tether on Bitfinex, you will, during the withdrawal of the funds’ phase, be required to verify your identity. You can however do your trades with an email address only.
The fees and charges to expect on Bitfinex?
Bitfinex uses a model referred to as a taker-maker model to charge the users of their platform. The fees, in the model, start from as low as 0.2% ( the taker) but can go to as low as 0% ( e.g. in large maker orders). No fees are usually charged for the Over-The-Counter orders on Bitfinex.
For the bank wire deposits and withdrawals, you will have to part with a 0.1% fee. This fee can go to as high as 1% if you make an expedited withdrawal.
The crypto deposits barely attract any fees, save for those which are less than $1000 worth of cryptos –with these, you will have to pay a deposit fee that is unique to the coin in question. When it comes to the withdrawal of your profits in cryptos you are required to pay a fee that is dependent on the coin you prefer to use for the withdrawal.
The countries supported
Bitfinex’s objective is to serve as many clients as possible, regardless of the nation they are living in. You can, therefore, access you Bitfinex account in any nation, except these:
- United States of America
Is Bitfinex Legit?
Bitfinex is a 100% genuine platform that cryptocurrency traders can rely on, moreso the advanced traders. This is mainly because Bitfinex is mainly suited for traders whose objective is to do voluminous trades. You can, therefore, consider other platforms in the industry if you do not have huge amounts of money to trade with.
Bitfinex has in the past fallen prey to a number of hacking attempts, some of which were successful. The owners of the platform have however reinforced the security of the platform, thus ensuring that no one lost their money. Currently, the platform stores 99.5% of its traders’ cryptos in cold storage, while the rest is placed in hot storage to facilitate liquidity.
Pros and cons
- Expert traders can benefit from it.
- High liquidity
- Reasonable and low charges
- Not the best for the newbies
- It may not be available in your country
Final words and verdict:
Overall rating : (4 / 5)
Bitfinex is a genuine crypto-exchange platform that you can rely on if you want to make money as an advanced trader. If you can hop onto this platform with a stake that is not more than 10% of your investment portfolio, then you can start earning your trading income right away. If you would like to try out investing in cryptos using a different approach, then you can have at my recommended alternative:
I hope by this point you have established whether Bitfinex is a scam or not, after having read the review. If you have any comments or questions about it, feel free to drop them in the comments section.