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October 15, 2024 
27 min. 
Cryptocurrency is incomplete without cryptocurrency exchanges, such as Bitfinex, Binance, etc. A crypto exchange holds the potential to allow users trade, invest, stake, and do many more things with the crypto assets they have. Thus, a crypto exchange is an integral part of the crypto ecosystem.
In the cryptocurrency exchanges, there are two major types, which are:
- Centralized exchanges (CEX) like Binance, Bitfinex, KuCoin, etc.
- And Decentralized Exchanges(DEX) like Uniswap, SushiSwap, etc.
Both are used widely but the leading one is Binance, which is the centralized cryptocurrency marketplace. According to the official website of Binance, the number of active users on Binance will exceed 230 million in 2024. This reveals how pivotal crypto exchange is for blockchain afficandos.
Now a question may strike your mind that if Binance such an excellent platform, is Bitfinex worth a try in 2024? Yes, it is. The number of features and advanced trading opportunities that Bitfinex offers is of extensive vitality.
This Bitfinex review is a complete guide that will take you on a cruise of learning about the worth of Bitfinex in the modern blockchain ecosystem. We will also cover:
- Bitfinex exchange explained
- Key features of Bitfinex exchange
- Pros and cons of Bitfinex
- Practical tips to using this exchange the right way
- Important related questions for a better understanding of Bitfinex
Hold on tight as this journey is full of knowledge to level up your understanding and trading experience with the Bitfinex crypto exchange.
Why Do You Need Crypto Exchange?
In the Decentralized Finance (DeFi) ecosystem, there is a transition from centralized financial means. For instance, the fiat currency is under the control of central authorities and bodies like banks, governments, etc. This feature offers fiat currency security and leverage but keeps asset owners deprived of complete control over their ownerships.
Therefore, DeFi offers a completely new model that runs with virtual currency like Ethereum (ETH), Bitcoin (BTC), and other altcoins. Blockchain technology acts as the driving force behind this emerging ecosystem. However, there must be an intermediary (not one like a centralized fiancee but a decentralized intermediary) for a smooth conversion or exchange of value.
Therefore, crypto exchanges like Bitfinex are essential because they offer several benefits to users. That includes:
- Liquidity: A vibrant community of like minded crypto enthusiasts combine together to buy or sell their assets. This creates liquidity, meaning the ease of exchanging the available assets without falling prey to instant price fluctuation.
- In-Built Market Stats: A crypto exchange like Bitfinex allows traders and crypto enthusiasts to discover the price pattern or analyze the market inclination before making a trade. This shows that you don’t have to sign up for another platform to research the market and then come back and perform the trade. You get everything within a single dashboard.
- Ease of Use: Cryptocurrency exchanges are digitally accessible via any device, be it a smartphone, computer, or laptop. This offers comfort because visiting a physical market is not a necessity. This feature helps crypto exchanges to stand out in terms of accessibility from centralized financial counterparts.
- Convenience: On top of all features, cryptocurrency exchanges, such as Bitfinex, Binance, etc., are a one-stop-shop solution. You can trade any cryptocurrency of your liking on the go. If you desire to invest in margin trading, crypto exchange has got you covered. Furthermore, you can also trade options, spots, and futures, and buy non-fungible tokens (NFTs) as well.
You can learn more about the use cases of DeFi by clicking here.
Overview of Bitfinex Crypto Exchange
In the light of the above-mentioned features of a cryptocurrency exchange, let’s dive deeper and select a crypto exchange with enhanced benefits. We suggest you consider Bitfinex as this is one of the best crypto exchanges in the market in 2024. Before we explore the features and benefits of Bitfinex, you may wonder – what is Bitfinex?
Bitfinex stands out in the cryptocurrency exchange market as it offers an entry to crypto enthusiasts into the virtual world of cryptocurrency. Whether you want to invest in crypto for long term or do day trading, Bitfinex has got you covered. The low trading fees, versatile trading opportunities, and vast learning resources make it the top choice for crypto lovers.
It is noteworthy that Bitfinex exchange has a shady and not-so-great history due to its connection with Tether (USDT) stablecoin. In several unfortunate events, it has been the primary target of hackers and scammers. Therefore, regulatory authorities like the Security and Exchange Commission (SEC) of the US have fined it several times. We will talk more about it in the coming sections of this guide.
The Creation of Bitfinex
Back in 2009, an anonymous person created Bitcoin as a virtual currency for transactions and payments. Given the amazing features of Bitcoin and its blockchain, Bitfinex came into the show with value. The primary focus of creating Bitfinex was to level up the Bitcoin revolution in the financial market.
With simple and accessible technology, Bitfinex was started in 2012 by iFinex Inc. in Hong Kong. It offers a powerful pathway for crypto enthusiasts to get into the crypto market. It also focuses on providing its users with a high level of security and throughput in crypto transactions. Therefore, it is one of the popular cryptocurrency exchanges today.
According to CoinMarketCap, the daily spot trading volume on Bitfinex is around 67.55 million US dollars. Though Bitfinex is a centralized exchange like Binance, it supports both blockchain-based as well as fiat currency. Furthermore, it is registered in the British Virgin Islands of the West Indies while it is located in Hong Kong.
Bitfinex Freedom Manifesto
As we read about the creation and vision of Bitfinex, the Bitfinex Freedom Manifesto is inevitable to talk about. This manifesto paves the way for the global adoption of the leading cryptocurrency – Bitcoin. And the best thing is that the start of this manifesto will be from El Salvador, which is the first country to accept Bitcoin legally.
The primary goal of the Bitfinex Freedom Manifesto is to offer three key pledges. They are as follows:
- Open Communication Infrastructure: The first goal of this manifesto is to develop a platform that allows anyone to indulge in financial transactions without any limitations. Bitfinex is doing this through an open-source and peer-to-peer communication network. It means that every person in the community will be connected digitally, making it easier to send financial assets.
- Lightning Network: Lightning Network is Bitfinex’s solution that will promote the smooth transactions of cryptocurrency, especially Bitcoin. Since Bitcoin is the inspiration for Bitfinex, this network will contribute to its widespread adoption in the world.
- Bitcoin Community: Bitfinex has come forward against the social engineering incidents in the cryptocurrency ecosystem. As this exchange has been a victim of malicious activities lately, it is all good to invest in creating a Bitcoin community of blockchain developers and cybersecurity experts. This will put a stop to the evil incidents in the crypto environment.
Key Features of Bitfinex Crypto Exchange
Bitfinex has a mixed history of excellence as well as conspiracies. For instance, it was the top performing centralized exchange in its starting years. A single incident that connected Tether (USDT) and Bitfinex together as the accusation was about misleading consumers and crypto enthusiasts. Though those charges were fixed, the image that Bitfinex got after that time has not been rectified as of yet.
Therefore, Bitfinex is not among the top 5 cryptocurrency exchanges regardless of its age and amazing features. Be mindful that this exchange has done everything in its control to promote the excellence that Bitcoin has offered in the DeFi ecosystem.
Let’s dive deeper and explore some essential features that make Bitfinex a good choice to pursue in 2024.
1. Trading Fees of Bitfinex Exchange
Every time you intend to make a trade, the exchange charges a specific percentage of charges as a commission. Since these exchanges act as a third-party to connect you to the crypto world, this trading fee is a mandatory cost. The trading fee varies from exchange to exchange. One thing is for sure that this fee is comparatively lower than centralized financial exchanges.
Bitfinex stands out in the crypto market due to its lower fees than other platforms. There are a total of 2 trading fees, including maker and taker fees. The Bitfinex maker fee is about 0.10% of the trade while the taker fee is 0.20% for most of the trades.
However, you can save significantly on Bitfinex in terms of trading fee if you own the utility token of iFinex. iFinex is the parent company behind the Bitfinex crypto exchange. And its crypto utility token is LEO Token (LEO). By holding as little as $1 worth of LEO, you can qualify for a discount of up to 25% on trading fees.
Furthermore, you can get more discounts on trading fees if you trade in bulk. For instance, trading more than $500,000 a month on Bitfinex will help you save more on trading fees.
2. Security of Bitfinex
Security and safety of users’ assets are the most sought-after topics when discussing Bitfinex. Due to major events of financial losses, Bitfinex lost its leading position in the crypto market. Since then, it has started to regain its supremacy by implementing top-notch security protocols.
The primary security practices on the Bitfinex platform include:
- Two-factor authentication (2FA)
- Advanced security software integration via APIs
- Secured withdrawal and deposit features
- Hardware or cold wallet, etc.
On top of that, Bitfinex has invested a huge chunk of its assets in white-hat hackers and cybersecurity experts. They work tirelessly to boost the security infrastructure of this cryptocurrency exchange. This way, social engineers or evil hackers can never find a vulnerability to harm users’ assets and company’s public image.
3. Advanced Trading Options
Crypto trading is one of the most lucrative endeavors for making money from virtual and digital currencies. You can either be a day trader or a long term investor on Bitfinex. For day-trading, you will find market analytics tools and trading bots to help you kickstart your trading journey and take it to the next level.
If you are a seasoned crypto trader, you will find Bitfinex more feasible as it enables you to access sophisticated suites of tools. The advanced trading options of Bitfinex are designed to meet the demands of institutional and corporate level trading.
Some of the advanced trading options on Bitfinex includes the following:
- Margin Trading: In this strategy of crypto trading, Bitfinex lends you a specific amount of crypto assets for trading. You can start a margin trading in either spot or leverage trade depending on your choice. This strategy involves a fixed duration for the lended money on a predetermined interest rate. This is also like a crypto lending and borrowing system but with a little difference.
- Leveraged Tokens: Leverage trading is an advanced strategy for experienced traders as it multiples the profits and risks of a trade. For instance, you want to use a leverage token of Bitcoin with 5X leverage. This means that the profit it will generate will be 5 times more than its actual profit. However, the same goes for the loss as well. Therefore, it is a risky yet profitable strategy that requires adequate market understanding.
Beside these tools, Bitfinex allows you to manage risks while day-trading, investing, staking, etc., thanks to its suite of advanced tools. Furthermore, the complexity and risks involved in these advanced tools make it difficult for new traders to find success. Thus, you shouldn’t try if you are just starting out.
4. Staking On Bitfinex
Bitfinex allows users to stake their crypto assets on the platform and earn a reward as much as 7% annually. Wait, what is crypto staking? Crypto staking refers to holding your assets in a specific blockchain application for a fixed or flexible amount of time. In doing so, you get a return on investment that varies from one platform to another.
Staking is one of the best ways to earn passive income off your crypto assets. This money-generating strategy defies and goes against the volatility factor that is profound in the crypto world. For instance, a crypto token may go up or down in price within a day. But if you hold your assets for a year, its value will skyrocket to a peak value in the market.
This way, you not only preserve your assets but also earn rewards and profits via staking. With Bitfinex, you can stake multiple cryptocurrencies and earn significant rewards. The top choices for staking on Bitfinex include:
- Tron
- EOS
- Tezos
- Solana
- Polygon
- Ethereum, and many more.
5. Supported Cryptocurrencies
According to Bitfinex, it offers access to over 400 different spot markets. That includes a variety of crypto tokens and coins. Whether you want to invest or trade in Bitcoin, Ripple (XRP), Litecoin (LTC) or any other altcoin, Bitfinex comes to the rescue.
Furthermore, the trading experience on Bitfinex is user-friendly. So, even if you are a total beginner or just starting out trading, you can navigate through the interface of Bitfinex with ease. Remember, you should never try advanced tools when you are just starting out so that you avoid any unwanted circumstances.
Pros and Cons of Bitfinex
Perks of Bitfinex
- Cost-Effective Trading: As a trader, you don’t have to go deep into your pockets to start a trade on Bitfinex. Trading fee is one of the most highlighted benefits of using Bitfinex for your trading endeavor.
- Paper Trading: This involves copy trading where you can explore real-time trading experience without any risk of losing your assets. Since this is an educational measure to practice trading strategies and tactics, it can improve your stance on how you interact with your trades in the future.
- Easy Trading Experience: The effortless and simplified interface of Bitfinex makes it convenient for everyone to start trading on this exchange. You have the liberty to choose advanced options as well, making it the top choice for both beginners as well as seasoned day traders.
- One-Stop Shop Solution: In a single mobile and web application, you can enjoy everything you need to become successful in your crypto endeavor. Therefore, Bitfinex comes on the bucket list of every trader whenever they consider going all in cryptocurrency.
Drawbacks of Bitfinex
- Questionable Collaboration with Tether: The Bitfinex and USDT synergy has raised multiple questions on its working mechanism, leading to a class action lawsuit. Consequently, Bitfinex lost its credibility and position in the market. Though it came out victorious recently, the damage has been done already.
- Geographic Restriction: According to the 2024 Global Adoption Index, the US is number 4 in the adoption of cryptocurrency and blockchain-based solutions worldwide. As Bitfinex is banned in the US, it is a major setback for the crypto exchange.
Tether and Bitfinex Class Action Lawsuit
Bitfinex has been a victim of several cyber attacks, leading to the loss of millions of dollars. Besides, the class action lawsuit against Bitfinex raised concerns as the accusation connected Bitfinex with Tether (USDT). This created a negative image for Bitfinex as people were already cautious because of hacking attacks.
Recently, the Chief Justice of the US District Court, Laura Taylor Swain, dismissed the lawsuit. The judge issued a 6-page detailed verdict about the dismissal of the lawsuit, paving the way for normal working of the crypto exchange.
Bitfinex confirmed that it will continue working in collaboration with Tether to strengthen its contribution to the crypto community. Furthermore, it also invested significantly to improve the security infrastructure to gain its user base once again.
Bitfinex Ecosystem
Bitfinex offers traders and investors a complete experience. It has built an ecosystem with several features so that everyone can have easy access to the crypto world. Furthermore, they aim to offer financial freedom through cryptocurrency.
Let’s briefly discuss the Bitfinex ecosystem.
1. Bitfinex Exchange
This is where you can buy, sell, stake, and analyze cryptocurrency. With a huge share in the crypto market, Bitfinex exchange is one of the popular platforms for crypto projects. You can select from a wide range of crypto tokens and start trading on the go.
2. Bitfinex Pay
This initiative from Bitfinex extends a supportive hand to businesses and institutions. Bitfinex Pay paves the way for the global adoption of cryptocurrency. You can integrate it into your online stores or websites and start accepting cryptocurrency as a payment for goods and services. The best thing is that it charges no money or crypto to set up Bitfinex Pay for your business.
3. Bitfinex Securities
This is a tradeable and fungible product of Bitfinex for crowdfunding and money-raising campaigns. You can get three types of securities with Bitfinex Securities. They are:
- Equity: Once you buy equity, you are the complete owner of these assets.
- Debt: Bitfinex Securities offers you loans that you must repay after a predetermined time.
- Hybrid: This type of security has features of equity and debt.
4. Bitfinex Borrow
This platform allows Bitfinex users to get crypto loans from other members of the community by keeping their crypto assets as collaterals. This functions on a Peer-to-Peer (P2P) network, allowing comfortable exchange of assets digitally.
5. UNUS SED LEO
LEO is the native cryptocurrency of the Bitfinex crypto exchange. The CryptoMarketCap shows a $5.41 billion market capitalization of LEO, making it ranked 18 in the entire cryptocurrency ecosystem. You can trade LEO or invest in it and gain financial returns.
Conclusion
Bitfinex is a notable cryptocurrency exchange that allows the buying and selling of crypto assets. It is a centralized exchange because iFinex Incorporation controls it. It supports more than 400 crypto tokens and coins, allowing traders to get ahold of a large market.
Though it went through a tough time, Bitfinex is gaining momentum to get back to the top rank in the crypto world. In this pursuit, it has secured partnerships with top-notch cybersecurity organizations for improving the safeguarding of its exchange and other applications under the Bitfinex umbrella.
Is Bitfinex still worth it in 2024? Yes, it is worth giving it a shot because of its advanced trading options and other features. However, you must research the market and consider security practices to avoid falling prey to malicious activities.
FAQs
Can we survive without crypto exchanges?
Technically, we can survive without crypto exchanges. The blockchain of a cryptocurrency supports a peer-to-peer (P2P) network to allow users to send digital assets directly to another blockchain or network. However, this requires some technical skills, making crypto exchanges a useful alternative.
Who is Bitfinex for?
Bitfinex is a large crypto exchange with advanced and sophisticated trading options. Though freshers can start trading on Bitfinex, it is the best choice for experienced and seasoned day traders due to its complex and advanced tools.
How to Get Started on Bitfinex Exchange?
Trading on Bitfinex is straightforward as you will need to register first on the exchange. To do so, visit its website or download its mobile application. Then, register for the exchange with your email address and mobile number. After verification, you are good to go with trading cryptocurrency.
Is Bitfinex safe?
You can trust Bitfinex for trading and investing purposes. It has millions of users worldwide, making it a reliable option for crypto endeavors.
Can you use Bitfinex in the US?
Bitfinex has geographical limitations in some countries of the world. For instance, US citizens can’t access Bitfinex as it is banned in the region.
