Bitfinex.com Review 2020 – Scam or Not?

Hong Kong-based Bitfinex is providing advanced trading services for anyone who wishes to exchange and trade cryptocurrencies. Being a leading liquidity and volume provider the market, Bitfinex offers margin trading up to 3.3x leverage and OTC trading options for private traders.

Bitfinex intro

About Bitfinex

Bitfinex is a Hong Kong-based trading platform that provides advanced services for cryptocurrency traders. The company behind Bitfinex is iFinex Inc, a corporation registered in the British Virgin Island with headquarter in Hong Kong.

The exchange was founded in 2012 by Raphael Nicolle. Nicolle started his career as th IT specialist in Paris where he got involved in bitcoin trading. He soon realized the opportunities laying in the developing cryptocurrency market, so he decided to start Bitfinex as a one man company offering bitcoin trading and lending options. He has been the CTO and lead developer of the platform until 2015 when he handed over his role to Paolo Ardoino who also holds this position at the moment. Bitfinex’s CEO is Jean-Louis van der Velde who has over 30 years of experience in the tech industry. Originally from the Netherlands, Jean Louis has transitioned to Asia and has been leading the exchange since early 2013 from Hong Kong. Jean Louis is also the CEO of Tether.

Bitfinex Senior team

 

Originally, Bitfinex started its business in 2012 as a peer-to-peer cryptocurrency exchange platform with offering P2P margin lending opportunity for traders of bitcoin and other altcoins. Later on, they switch to a centralized trading engine. Bitfinex is also associated with Tether cryptocurrency, one of the first and popular stablecoins which are pegged to the US dollar.

Tether and Bitfinex share common shareholders and management. By design, Tether is set to worth 1 USD and maintaining an equivalent amount of reserves for each Tether coin issued. Since 2018, from time to time rumors are arising about the lack of sufficient reserves and possible market manipulation involved in the bitcoin price in relation to the issuance of Tether coins. Up to now audits confirmed the legal basis of the company’s business activities.

Bitfinex Tether

The company’s primary focus was on the US market originally, however since 2018 August they have stopped offering services to US clients due to the changing regulatory environment. Restrictions only applicable to US residents, using the platform from the United States is still permitted. By that time Bitfinex has expanded its business to worldwide clients, servicing almost all countries globally.

Bitfinex is actively present on major social media platforms. On Twitter @bitfinex you can follow all major updates and announcements impacting the platform. Their 18k followers are also notified on Facebook about system related information. The company also has a Linkedin profile. On the official Telegram channel, the admins help to answer general questions about the platform, trading and compliance procedures. On Bitfinex’s blog, you can read about interesting stories, listing news, and guides.

Review Contents

bitfinex

Verification

You can start trading on Bitfinex without going through the verification process, however, in order to trade fiat currencies for Bitcoin or to trade with stablecoins, ID verification is needed. Depending on the account type (individual or corporate), the exchange can require additional documents.

Besides personal details, ID verification and proof of residence the Bitfinex verification process also requires a bank statement and a signed statement confirming the validity of documents and information provided. Verification time can take up to 1-2 weeks, mainly depending on the interest. 

There are no limits when it comes to trading.

Currently, Bitfinex accepts only US dollars from fiat currencies but offers trading and withdrawal option in USD, EUR, GBP, JPY.

Bitfinex Trading

In terms of cryptocurrencies, there are several altcoins you can choose from. They also accept stablecoins like Tether. In total, 164 cryptocurrencies are available at the moment for trading on Bitfinex. 

Here is the complete list of altcoins available on Bitfinex:

Bitcoin, Litecoin, Ethereum, Ethereum Classic, Zcash, Monero, Dash, Ripple, Iota, EOS, Santiment, OmiseGO, NEO, ETP, Qtum, Aventus, Eidoo, Bitcoin Gold, Streamr, QASH, YOYOW, Golem, Status, Basic Attention Token, Decentraland, FunFair, 0x, Time New Bank, SpankChain, TRON, RCN, iExec, AidCoin, SingularDTV, Augur, aelf, Ethfinex Nectar Token, IOSToken, Aion, Request Network, Raiden, Loopring, WAX, Dai Stablecoin, Cofound.it, SingularityNET, BnkToTheFuture, Medicalchain, Odem, Aragon, Dether, Mithril, Storj, Stellar Lumen, Verge, BitcoinInterest, Maker, VeChain, Kyber, POA Network (erc20), Ethfinex Voting Token, Lympo, UTRUST, BLOCKv, DADI, ORS, Auctus, Polymath, Fusion, CommerceBlock, 0Chain, Consensus AI, Nucleus Vision, Cindicator, Cortex, PAI Project, Seer, Essentia, Atidium, ADD, MEET.ONE, Atonomi, Hydro Protocol, Data, Everipedia, WePower, Zilliqa, Bancor, The Abyss, Xriba, Matrix, Banyan Network, Autonio, Digix Gold Token, VeChain, Universa, TokenCard, ParkinGO, Tezos, Content Neutrality Network, ContentBox, MobileGo, Rate3, Yggdrash, Melon, Walton, Credits, Omni, Internet Node Token, Dragonchain, Kleros, Digibyte, Bitcoin SV, Bitcoin Cash, WLO, Vetri, Enjin, On.Live, RBTC, GUSD, USDc, TrueUSD, Paxos, RIF, Blockpass, V-SYSTEMS, BitTorrent, Callisto, Ether Kingdoms, Data Transaction Token, Gnosis, DAOstack, Cosmos-Atom, Wrapped Bitcoin, CryptoFranc, EURS, LiquidBTC, Unus Sed LEO, Unus Sed LEO (EOS), Unus Sed LEO (ERC20), AirSwap, FOAM, Upfiring, ZB Token, OKB, USDk, Gate.IO, BitKan, Ampleforth, Algorand, Swarm, Tripio, Loom, Dusk Network, Ultra, RenrenBit, eosfinex token, DragonToken, FTX.com, socios.com Chiliz, LNX, TetherUSD (Omni), TetherUSE (Ethereum ERC20), TetherEUE (Ethereum ERC20)

In case of fiat deposits and withdrawals, a minimum of 10000 USD/EUR/GBP and 1M JPY is set. 

Wire transfers are available for 0.1 percent of the amount, with a minimum fee of 60 dollars.

Fees

Bitfinex fee structure is a bit different from the average applying a maker-taker fee model., The maker trader is adding liquidity to the exchange ecology, and a taker is the one who removes it. 

Trading fees start at 0.1 percent for the maker and 0.2 for the taker. The first decline in fees is at 500,000 dollars traded, which is a pretty high amount compared to the other exchanges. As the monthly trading volume rises, the fees steadily decline. The final point, with 30 million dollars or more traded, is 0 percent fee for the maker and 0.055 percent for the taker.

Bifinex charges an extra fee for small deposits which are less than 1000 USD value for all altcoins. Crypto deposits above 1000 USD are free of charge. Crypto withdrawals are free for EOS, NEO, XLM, and some smaller tokens, otherwise, you need to pay a small transaction fee to process your withdrawals.

Wire transfers cost 0.1 percent of the amount, with a minimum of 60 dollars for both deposits and withdrawals. Express bank wire transfers which are processed within 24 hours on business days cost 1 percent of the sum with a minimum fee of 60 dollars.

The exchange also charges margin funding fees. The charge on fee collected by Margin Funding Providers is 15 percent of the fees generated by active margin funding contracts. For those who are opened by a hidden offer the cost is a bit higher and totals for 18 percent.

Unus Sed LEO fees discountsBitfinex also recently introduced fees discount for those interested in UNUS SED LEO trading this is the platform’s own token issued in 2019 May through initial exchange offering (IEO).

Bitfinex.com Trading Analysis

The trading platform is very sophisticated, and it offers a lot of trading options. The offered types of orders include usual common order and also some advanced order types. Here is the list of order types offered on Bitfinex:

  • Limit
  • Market
  • Stop
  • Trailing stop
  • Fill or kill
  • One cancels other (OCO)
  • Hidden order
  • Post-only limit order
  • Reduce-only
  • Scaled

Due to the high volume of trades and good liquidity, bid/ask and order count is resolved in real time, allowing users to choose the best time to place an order.

Bitfinex Trading Analysis

The exchange also offers margin trading with 3 to 1 leverage, meaning that the user has to have at least 30 percent of the sum borrowed in their account.

The margin trading is supported by margin loans. The margin loans are granted through a lending market. Basically, the user can choose to lend the capital needed by margin traders. In return, lenders receive a daily interest rate on the Bitfinex platform. This type of arrangement is called Swap.

For more info check Bitfinex FAQ section, it has all the answers under the trading section.

 

Bitrfinex Smart features

Ease of Use

Bitfinex user interface is fantastic. The platform offers quick options to buy or sell digital currencies as well as to place orders.

The website is mobile-friendly and responsive. It’s fast, and real-time trading is possible. Mobile apps are also available for Android and iOS, offering trading, wallet and margin funding options. You can customize your experience to set up and secure your account with API keys and PIN pass protection. The mobile apps also help you to stay on track on your trading by offering notifications on trade executions and price alerts.

Bitfinex UI

Support

Support is available 24/7 via email and Telegram chat. Emails are typically answered within 12 hours, but in some cases, it can take longer. In addition, there’s an official forum where users can ask for help and a limited FAQ page that doesn’t cover all required information. On their Telegram channel, Bitfinex’s admin team answers general questions about the trading interface, trading in general and compliance-related questions. However, any account-specific information must go through the official ticket system within the platform to avoid security issues. Be aware that Bitfinex never approaches its users through private messages and you should never share your password with anyone asking for it as it is a common scam that has been emerging on the market.

The Bitfinex support team used to have a reputation for being extremely unprofessional and rude – but some users claim it’s mostly due to one person who started the operations. Since the early days, Bitfinex support team has grown significantly and trying to get back customer’s trust.

User Experience

There are numerous user complaints online about Bitfinex, but they are mostly related to the hacking incident and the support unprofessionalism. We haven’t found any complaints about trading or funding of the accounts, but we did found complaints about the performance issues Bitfinex has when it’s higher volatility of the currencies. The problems are so frequent and so serious that the exchange even got a new nickname – Glitchfinex. During the past year, Bitfinex spent a lot of money on improving its trading engine to avoid such glitches in the future.

The site is available in dark and light themes and you can also set notifications for your browser. The platform and the content is translated to Russian and Chinese as well.

Bitfinex UE

BitFinex Security

The exchange claims that 99.5 percent of client funds are kept in cold storage, with other .5 percent stays in hot wallets to ensure needed liquidity. Their cold storage system has a multisig feature and is geographically distributed in multiple secure locations.

On the client side, they offer two-factor authentication for both logins and withdrawals. Adding an extra layer of security is possible with two-factor authentication using Google Authenticator, Twilio or other third party physcial security key offered by FIDO U2F.  The exchange claims to have “advanced verification tools” to detect if the account has been compromised. Such tools include monitoring login activity for suspicious logins and IP addresses. Withdrawals are only allowed from usual IP addresses with extra confirmations in place. 

The exchange does have SMS and email notifications, and also offer PGP encryption in email communication.

Bitfinex Security

Despite the “strong” security, the exchange has been hacked multiple times. The first major hack happened in May of 2015 when a hacker was able to steal 1500 Bitcoins from their hot wallet. The exchange was easily able to reimburse the damaged users. But, in another attack in August 2016, reimbursement question became much more delicate as 120,000 BTC worth approximately 72 million dollars were stolen from the trading platform.

The company immediately issued BFX tokens which are meant to make up for the 36 percent losses of the customers after the incident. Bitfinex has already bought back a decent percentage ALL of their tokens.

Most of the security tools has been gradually added to Bitfinex so by now these available features indeed increases the trustworthiness of Bitfinex compared to other hacked exchanges.

Supported Payment Methods

  • Wire Transfer
  • Cryptocurrency
  • Credit Card

Supported Countries

Customers from all countries except USA, Cuba, Democratic People’s Republic of Korea (North Korea), the Government of Venezuela, Iran, Pakistan, Syria or Crimea are allowed.

Bitfinex Review Conclusion

Despite its controversial connection to Tether and prior exchange hacks, Bitfinex has been on the market for a very long time and managed to recover its clients trust from time to time even after serious events. The high liquidity and advanced order types, along with the margin and lending option helps clients to fully take advantages of what cryptocurrency trading can offer.

Pros

  • High USD liquidity
  • Low fees
  • Full package of order types, margin trading and lending market
  • Paid back all the losses from the hack (!)

Cons

  • Not a very transparent company
  • Has been hacked multiple times
  • Unclear situation with USDT (Tether)

Do you have good or bad experiences with this Bitcoin Exchange? Please share them!

Go to Bitfinex.com
Share your Experiences about Bitfinex.com:

27 User-Reviews for Bitfinex.com
  1. SimonF1, 13. June 2019

    Ive been using them for over 1 year and i dont see any problem with them, i love the trailing stop so if the price goes up then down hard i lock in any profits.
    Just lately Bitfinex has been disconnecting me despite me having “keep session active”

    This is a deal breaker and if Bitfinex doesn’t stop this then i will move my coins to another exchange.

  2. Rif, 6. June 2019

    This exchange does not send Bitcoin already for 10 days, support is also not responding, verification is also not performed! This is the worst exchange! do not mess with her!
    support ticket opened [#736861]
    12534993 withdrawal id

  3. Bukti Kapsul, 4. June 2019

    Well i am having a good experienec with Bitfinex because i founds the best strategy to use with it, it is called the Fib Fusion Strategy with it i make thousands of dollars on a weekly basis to get this strategy just carry out a simple google search the reviews are amazing.

  4. Anna, 19. April 2019

    Hello! Now released a new token!
    More information here!

    https://bit.ly/2vbB6na

  5. Ignacio Pena, 19. December 2018

    Really bad people working there. Every time that I requested a withdrawal I always encountered a drama. The last time they kept some money and until I did not threat them with a lawsuit the funds did not appear. Before this they even tried to make fun of me.
    They can be sued and pay you for damages, so if anyone is having problems with them he or she should consider this option.

  6. Ignacio Pena, 19. December 2018

    Really bad experience. Every time that I requested a fiat withdrawal I always encountered drama with them.

  7. Greg, 29. September 2018

    My verification process take 10 months so far. Customer support is not existing I sent emails no response.

  8. Jonathan Morris, 24. September 2018

    Possibly one of the best exchanges i’ve work with.

  9. anchor40, 8. May 2018

    Bad experience. XLM Withdrawal showing ‘PROCESSING ‘ AFTER FOUR DAYS. Sent several email but all to no avail. One reply from customers care that the issue will get resolved asap and yet four days after not resolved.
    Really helpless at the moment.Pure scam

  10. CJ, 22. February 2018

    extremely long and drawn out process, poor support, not always honest to clients – be wary of this!

  11. de123, 20. February 2018

    i like bitfinex only for margin and lending purpose, i never had any problem widrawing or depositing, but i never deposit bit or eth, only LTC or NEO. Unfortunatly there is no other broker that offers lening and margin trading for such a low fee, but there is always a but, i am afraid of a flash crashes, they are huge, and it could end up with a negative balance, which is not acceptable if u ask me, otherwise its number 1 for margin and lening.

  12. talal, 16. January 2018

    bitfinex is one of the worst exchange i have ever used. I have deposited a small amount of bitcoin which was 0.0017 btc to test out the exchange before dive deep into it. my transaction was successful at btc.com and has 200+ confirmations and also it showed “completed” in the transaction section and when i go to my wallet there is nothing there. it doesnt show up in my wallet. it was about 25 days ago. after that i have contacted them and open a ticket. they contacted me back after 6 days and only said that we are resolving the issue. after that they have just disappeared. i then contacted them thrice they never reply. today after 19 days they have emailed me saying that if the problem still persist. even after 25 days, my transaction still doesnt show up in my wallet.
    my final remarks about bitfinex are “bitfinex is one of the worst exchange i have ever used, they are sooooooo unprofessional that they dont even know what a professionalism is. their support is sooooooo poor that you have to wait days in order to get replied, not even one or day or three days but 19 days. i can give 0/10 and will never ever use this shity exchange again and encourage others to not use it, instead there are a lot of other exchanges those are far more better then bitfinex like BINANCE one of the best.”

    0/10

  13. Nacho, 6. January 2018

    Absolute scam – these guys are going belly up and they have disabled all withdrawals. Support page gives a “404 – page not found error” I just lost my crypto portfolio.

  14. x huang, 15. December 2017

    can someone tell me how can i contact them. their support are totally non existence
    I have an issue where my coins are gone 2 months ago . wrote to them a few times no replies after the tickets.
    3 days back send me an email saying they are busy and ask me for the detail of the incident. I asked them didnt i sent u guys a few mails and also at the time of the issue? how would u want me to give every detail. ?
    Then 2 days back. My platform have an issue,
    1. the values of the graph, the txs , the tradeview page all giveae me different value of 400 -600 points different. sent them an mail. same as before . auto reply and nothing else . Later part i cant claim my positions, i cant close my positions and also mobile api dont show the position. i was out at that time so i use my mobile api. My funds are all wiped off. now , the mobile api , the desktop show values of almost 20 times differenrt pricing.

    How could i get them ?
    they are really getting on my nerve. Withdrawal will never be done even 12 hours wait. Ripple ?> aint it almost instant?
    I am a cancer patient. as i cant work i am trying abit of my luck to earn some money. I waited for them and email them i need the money for my chemo theraphy, till now theres no reply at all

  15. Mina Masri, 14. December 2017

    I added my IP address to my IP whitelist, but It changed.
    So, I couldn’t log in to my account again. however, I have my right email, password, and 2FA pass too!!
    I message the website support 3 times in this problem section from more than one week but there is no answer till now!!!
    What can I do now to log in to my account and reach my wallet again?!!!

  16. AS, 14. December 2017

    Customer support is not supporting anything at all and never answer anything. 5 ticket and further 5 mails and non answer. Stay away.

  17. Robin, 14. December 2017

    The site is great, but the support doesn’t answer me. I have a big problem with my 2 FA and my Google Authenticator App. I lost my mobile phone and can’t get access to my account. I always sent a lot of mails to the support and contact them via twitter, but no reactions from them. My support tickets: #859154 #613574 #254951 #351980

  18. stolenbitcoins, 12. December 2017

    SCAM SITE, AVOID!! I made a deposit of about 0,03 BTC and the transaction has been confirmed but I can see no information about it in my bitfinex profile. I’m 100% sure that I sent it to the right address as I scanned the QR code and have also checked it many times afterwards. It is impossible to contact support: either they send you to go in loops from page to page or then the whole site crashes. 100% sure I’m using the official website as I have also checked this many times. I have no other explanation other than that THEY STOLE MY BITCOIN!

  19. Bryan, 8. December 2017

    I tried trading Bitcoin/USD (buying and shorting) mostly fast trending moves of .5-3% on Bitfinex with about $1000 and lost money in a volatile (good) market. I believe there are two main reasons for this here listed below:
    The first is when I would normally execute a trade on my exchange account or margin account during fast trending (up or down) movement the site always glitched somehow before I could react (buy or sell) even if I was already in the right wallet. For instance I got logged out or the chart froze/closed or some other BS glitch but only when the market was trending quickly. This happened on many occasions in one week so I don’t think it was a coincidence.
    Secondly as far as I can tell to switch from a buy to short or vice versa you need to cancel your trade then transfer funds in an awkward way between your exchange (non-margin) and margin account and then open a new trade. Otherwise you have to somehow maintain a calculated weighted balance in each account to try to maximize your returns.
    Unlike myself I have met someone who has made good money on Bitfinex buying a larger amount of Bitcoin and holding it for a while before selling it. That was not the case for me. Going after fast trends in volatile market like Bitcoin should be easy if you just wait but I found it difficult/impossible with Bitfinex even though I knew when to trade (unfortunately when the site failed). Sadly I have read another review with a similar isolated glitch type complaint before I started trading.
    As a side note the first couple of withdraws via Bitcoin transfer took a few hours each but taking my last bit of Bitcoin out was more than an overnight ordeal.

  20. Investor, 6. December 2017

    Bitfinex it’s very bed exchange

    1. They hold withdrawals.
    2. It’s not possible to open order or close on time. It’s lagging
    3. Support poor.
    4. Suspicions that manipulates
    5. Dishonest to clients. Deposit is fast withdrawals slow.
    6. When try to open order for example limit or stop. It’s take 1 min and more to wait for loading.

    Conclusion they can’t manage with current load

    And most importantly they chart for such bed service a lot. But hey don’t take the risk. We investors and traders take high risk.

    I will agitate and protest. Till when they will not fix alt and will not compensate lost.

    I lost thousand because of lagging website.

    WE NEED TO TO CLAIM ALL WHO HAVE PROBLEMS WITH THIS EXCHANGE

    Or stay foolish. Choose who you want to be a fighter or fool

    PLEASE ALL BITFINEX USERS. WRITE TO SUPPORT THIS MESSAGE.

    Please fix this list of problems:
    1. They hold withdrawals.
    2. It’s not possible to open order or close on time. It’s lagging
    3. Support poor.
    4. Suspicions that manipulates
    5. Dishonest to clients. Deposit is fast withdrawals slow.
    6. When try to open order for example limit or stop. It’s take 1 min and more to wait for loading.

    Or we will be forced to go to the competitor.

  21. yana, 15. November 2017

    Bitfinex customer service number i called 888-609-6733 to inform that i sent bitcoins on the wrong address worth $600 they told me open to ticket with bitfinexonly they can recover it

  22. JK, 21. October 2017

    Excellent platform but withdrawing cryptos can take up to 12 hours versus 1 or 2 minutes at most exchanges. This is a real drag and the only complaint l have.

  23. Pankaj Banerjee, 20. September 2017

    Extremely slow process. Compliance team takes more than a month just to verify an account. No replies. Cant say about the future. Already feeling scared, what will happen after I deposit monies and the team just sits on it without response or action.

  24. Tommix, 16. September 2017

    Worst company ever! Do not keep your money in their website! They steal your money, they stole my money and blocked access for me! Just because i wrote to support asking where is my money! People there are criminals.

  25. Andre, 24. August 2017

    Agree with Francesco. My 20 ETH disappeared in a failed withdrawal. It can easily be seen using Etherscan that the transaction never happened. That was 6 days ago. I’ve been opening a new ticket every day since then and I have yet to get anything more than an automated acknowledgement that they received the ticket. Customer service REALLY SUCKS. They are a scam.

  26. Francesco, 21. August 2017

    They made my ETH deposit disappear! I lodged 2 tickets: #154638. and #111979 but not received any response yet! It’s been days!!! How can they get 5 STARS!? I mean now that I started to dig the web is full of people whose money “disappear” and their customer service is non existent!!!

  27. Scott, 10. July 2017

    Great site they do what there supposed to do a+