Bitfinex: A Premier Cryptocurrency Exchange

Rated 4 out of 5
Bitfinex: A Premier Cryptocurrency Exchange

Bitfinex is among the leading crypto exchanges globally. It is notable for its relatively low trading fees. However, its close ties to Tether stablecoin have gotten it in trouble with the regulators severally. While its fees are notably low, its history with the regulators maybe its biggest misdoing and a deterrent to future users.

Company Overview

Bitfinex is one of the premier crypto exchanges on the planet. It was launched in 2012 and has maintained its rank as a leading crypto trading platform. Currently, it ranks as the ninth-largest crypto exchange platform globally by trading volume, according to data provided by coinmarketcap.

The company is known for its friendly trading fees charging around 0.20% per transaction or less. While that feature is enticing, many users are concerned with its shady past filled with fines and lawsuits. It has also been accused of market manipulation, one of the biggest nightmares for a crypto trader.

Bitfinex’s largest controversy dates back to when the US Attorney General found that it collaborated with Tether to hide USDT’s real backing details. The duo also hid information on the losses made. It has also been in the limelight for facilitating illegal off-the-books trades that question the moral integrity of the company’s operations.

What Cryptos are Available for Trading at Bitfinex?

Bitfinex exposes its userbase to more than 170 cryptocurrencies. Some of the large cryptos that it offers include 

  • Bitcoin
  • Terra Luna
  • USDT
  • Solana
  • Litecoin

How to Open an Account and Trade With Bitfinex

To trade with Bitfinex, you will be required to open an account with them. Registering for an account with Bitfinex is similar to other exchanges, but it’s only for non-US residents. 

To open an account with Bitfinex, one has to start by creating a username and password. Then follow the anti-money laundering and know your customer procedure by providing your personal information. Such information includes:

  • Personal contact.
  • Two valid forms of government-issued ID.
  • Clear selfie.
  • Confirmation that the trader’s identity matches their ID. 

Pros and Cons

Pros

Relatively low trading fees: Bitfinex edges its competitors by offering low trading fees. Low fees are one of the outstanding features of Bitfinex. It operates with a 0.10% maker fee and 0.20% taker fee. That rate applies to trades involving all cryptos, fiat, and stablecoins

Supports margin, derivatives, and advanced order types trades: Bitfinex offers these trades to supplement the common buy and hold practice. These types of trades are also favorites among experienced traders.

Paper trading and a more beginner-friendly mobile application: the exchange supports new traders by providing lesser risk trading options through paper trading and an easy mobile app trading user interface.

Cons

Bad history with regulators: The main misdoing of Bitfinex is an ugly history with regulators. It makes new users fear the occurrence of another controversy.

Questionable ties with Tether: Tether is a known company with some of the largest controversies. Its ties with Bitfinex in the leadership positions are a minus for the exchange.

Unavailability in the US: While crypto is all about financial inclusion, Bitfinex is blocked from trading in the US. As a result, many keep away from it since US regulators are known to keep such projects in check better than most countries.

Conclusion

While Bitfinex seems a good platform for both experienced and inexperienced traders to engage with the crypto market, it is best to DYOR before using it. It is not easy to turn around from controversies, which makes it a risky platform.