BITFINEX

    Bitfinex is a global crypto exchange where peer-to-peer Bitcoin trading was used. Later it converted to buy, sell, trade, and store digital currencies over 170 cryptocoins including popular ones Bitcoin (BTC), Ethereum (ETH). With a user-friendly interface it provides a transparent secure exchange, making it suitable for both new and experienced traders to explore the crypto market.

    History and Background

    Bitfinex was started in 2012 by Raphael Nicolle. It is one of the earliest crypto exchanges meant for Peer-to-peer trading. Currently it is under the operation of iFinex Inc. The headquarters of Bitfinex is located in the British Virgin Islands with offices in Hong Kong and Taipei.  The CEO of Bitfinex is Jean-Louis van der Velde. This platform serves millions of users worldwide and they focus on continual improvement. 

    Bitfinex’s Global Presence and Reputation

    Bitfinex is well-regarded for its high liquidity and advanced trading features, ranking among the top 25 centralized crypto exchanges with a daily trading volume of around $223 million as of March 2025. It’s regulated in some areas but not available in the USA, Bangladesh, Bolivia, Ecuador, or Kyrgyzstan, though it serves most other countries. Despite past issues, it’s a reliable platform for seasoned traders.

    Why is Bitfinex One of the Top Exchanges?

    Bitfinex offers a wide selection of cryptocurrencies, and utmost security, making it appealing to both newcomers and experienced traders. With user-friendly features for beginners, advanced tools for pro traders, fast trading, unmatched educational content, and unique features like paper trading, it remains a top crypto trading platform.

    Key Features of Bitfinex

    Bitfinex offers features to meet various user needs:

    • Cryptocurrencies: Bitfinex can trade 170+ coins, including ones like BTC, ETH, Solana (SOL), and also stablecoins like USDT and USDC.
    • Low Trading Fees: Get spot market fees starting at 0.1% for makers and 0.2% for takers, with discounts for UNUS SED LEO token holders.
    • Advanced Tools: Get real-time charts, order books, and the Honey Framework for custom trading strategies.
    • Lending and Staking: Earn passive income by lending crypto or staking coins on this platform. 
    • Bitfinex Derivatives: A platform for futures trading with up to 10x leverage.
    • Paper Trading: Practice trading strategies without real funds and risk of losing capital. 
    • Educational Resources: Bitfinex Pulse and Alpha provide market news and guides.
    • Mobile and Desktop Apps: Trade anywhere with user-friendly apps.
    • 24/7 Support: Access help via live chat, tickets, or the Help Center.

    Getting Started on Bitfinex

    Creating an Account

    • Visit the official bitfinex.com and select “Sign Up.” 
    • Provide your email, 
    • choose a unique username
    • set a strong and unhackable password, 
    • Pick the country you live in
    • Add a referral code if you have one. 
    • Once you get an email with an activation link, confirm your account and sign in to access the dashboard.

    Completing KYC/Verification

    Bitfinex requires Know Your Customer (KYC) verification for full access:

    • Basic: Allows crypto deposits/withdrawals with minimal info.
    • Basic Plus: Enables fiat deposits (requires ID).
    • Intermediate/Full: Unlocks advanced features like margin trading (needs proof of address and financial details).
    • Verification takes hours to days, with Full verification recommended for high-volume traders.

    Enabling Security Features

    Users secure their accounts by:

    • Setting up Two-Factor Authentication (2FA) with an authenticator app (not SMS).
    • Using a strong, unique password.
    • Enabling IP address monitoring to detect unusual activity.

    Overview of the Dashboard

    Bitfinex’s dashboard is clear and organized. Users see tabs for trading, funding, lending, and account settings. The “Trade” section handles buying/selling, while “Funding” manages deposits/withdrawals. A Lite mode simplifies the interface for beginners.

    Funding a Bitfinex Account

    Depositing Fiat Currency

    Bitfinex supports various fiat currencies from USD, EUR, GBP, JPY, and CNH. Deposit options include:

    • Bank Transfer: 0.1% fee (minimum $60), takes 1-5 days.
    • Credit/Debit Card: Via partners like Simplex or Mercuryo, with fees based on the processor.
    • OpenPayd: Flat 5 EUR or GBP fee for smaller deposits.

    Depositing Crypto

    To deposit crypto from an external wallet:

    • Users need to select the “Funding” tab and add “Deposit.”
    • Then choose the desired coin (e.g., BTC, ETH).
    • Pick the desired network (e.g., Bitcoin for BTC, ERC20 for ETH).
    • Copy the wallet address or scan the QR code and send crypto.
      Tip: Matching the network is crucial to avoid losing funds.

    Understanding Deposit Networks

    Bitfinex exchange shows which network works best for each coin, and users need to pick the right one to make sure deposits go through safely and smoothly. Every cryptocurrencies runs on different blockchain networks, like ERC20 for Ethereum or TRC20 for Tron.

    Using “Buy Crypto” Options

    Bitfinex’s “Buy Crypto” feature is beginner-friendly:

    • Credit/Debit Card: Instant purchases via Simplex or Mercuryo (minimum $25, fees vary).
    • Bank Transfer: Lower fees but takes 1-5 days.

    Trading on the Spot Market

    For trading crypto pairs (e.g., BTC/USD), a user:

    • Visits the “Trade” tab and selects “Spot.”
    • Chooses a pair and selects “Lite” for simple trading or “Advanced” for more options.
    • Place an order.

    Market, Limit, and Stop-Limit Orders

    • Market Order: Buys/sells instantly at the current price.
    • Limit Order: Sets a specific price to buy/sell.
    • Stop-Limit Order: Triggers a limit order when a price is hit.

    Converting Small Balances (Dust)

    Bitfinex allows users to trade small balances manually on the spot market to consolidate into a single coin, though no direct “dust” conversion tool exists.

    Bitfinex Wallets Explained

    Bitfinex uses different wallets for specific purposes:

    • Exchange Wallet: Holds assets for spot trading.
    • Funding Wallet: Manages deposits, withdrawals, and lending.
    • Margin Wallet: Supports margin and derivatives trading.

    Transferring Between Wallets

    To move funds, a user:

    • Go to the “Wallets” tab.
    • Select “Transfer” and choose the source/destination wallet.
    • Enter the amount and confirm.
      Bitfinex also offers a wallet for storing assets on the platform, but users can transfer to external wallets for added security.

    Withdrawing Funds from Bitfinex

    Withdrawing Crypto

    To send crypto to an external wallet, a user:

    • Navigate to “Funding”, “Withdraw” and select the coin.
    • Add a withdrawal address (requires email verification).
    • Enter the amount, confirm with 2FA, and pay the network fee (e.g., 0.0004 BTC for Bitcoin).

    Withdrawing Fiat

    To withdraw to a bank account, a user need to:

    • Select “Withdraw” and pick the currency (e.g., USD).
    • Add bank details and enter the amount.
    • Pay a 0.1% fee (minimum $60).
      Note: Full verification is required for fiat withdrawals.

    Common Withdrawal Errors

    • Wrong Network: The withdrawal network must match the destination wallet.
    • Unverified Account: Fiat withdrawals need higher verification.
    • High Fees: Crypto withdrawal fees may exceed network costs, so users should check fees first.

    Bitfinex Lending: Making Passive Income

    Bitfinex offers ways to earn passive income:

    • Margin Funding: Lend crypto to margin traders and earn interest (P2P).
    • Staking: Lock coins to support networks and earn rewards (availability varies).
      To start, a user has to:
    • Go to the “Funding” tab.
    • Select “Lending” or “Staking.”
    • Choose a coin, set terms (for lending), and confirm.

    Advanced Features (Optional for Beginners)

    • Margin Trading: Trade with up to 10x leverage (high risk).
    • Derivatives Trading: Trade futures with up to 10x leverage.
    • OTC Trading: For large trades by institutional clients.
    • Honey Framework: Create custom trading strategies without coding.
    • API Access: Build trading bots or apps. Beginners can skip these until comfortable with basic trading.

    Bitfinex Mobile App Overview

    Bitfinex offers iOS and Android apps with two modes:

    • Lite Mode: For beginners, focusing on basic trading.
    • Advanced Mode: For pros, with full trading tools.

    Key Features

    • Buy/sell crypto on the go.
    • Monitor prices and balances.
    • Manage deposits/withdrawals.
    • Access lending and support.

    Pros of the App

    • Clean design.
    • Secure like the web platform.
    • Supports Android 6.0+ and iOS.
      Note: Some users report bugs, like slow performance or inaccurate charts, so checking for updates is advised.

    Safety, Security & Support of Bitfinex

    Bitfinex Security

    Bitfinex improved security post-2016 hack, using:

    • Cold Storage: Stores most funds offline.
    • 2FA and IP Monitoring: Protects accounts.
    • Bug Bounty Program: Rewards users for finding vulnerabilities.

    Tips to Secure an Account

    Users should:

    • Enable 2FA with an authenticator app, avoiding SMS.
    • Use a unique, strong password.
    • Watch for phishing emails and fake websites.

    Accessing Support

    Bitfinex provides 24/7 support via:

    • Live Chat: For quick answers to common questions.
    • Ticket System: For detailed issues.
    • Help Center: Offers guides on trading, KYC, and more.
      Note: Some users find support slow for complex issues like account freezes.

    Pros and Cons of Using Bitfinex

    Pros

    • Low fees (0.1% maker, 0.2% taker, with LEO discounts).
    • High liquidity for major coins like BTC and ETH.
    • Wide range of trading tools and features.
    • Strong security with no hacks since 2016.
    • Paper trading for practice.

    Cons

    • Not available in the USA or certain countries.
    • Customer support can be slow for complex issues.
    • Lower liquidity for less popular coins.
    • Past hack and regulatory issues may concern some users.

    Bitfinex for Different User Types

    • Beginners: Lite mode and paper trading make it approachable.
    • Traders: Advanced tools and low fees suit professionals.
    • Investors: Lending and staking offer passive income.
    • Developers: APIs enable custom trading solutions.

    Final Thoughts 

    Is Bitfinex Right for Users?

    Bitfinex is ideal for users seeking a secure, feature-rich exchange with low fees. It’s great for both beginners (via Lite mode) and pros (via advanced tools). However, those in restricted countries like the USA or needing fast support might prefer alternatives like Kraken or Binance.

    What to Explore Next

    Users can:

    • Try paper trading to practice strategies.
    • Explore lending for passive income.
    • Read Bitfinex Pulse for market insights.

    Resources

    • Bitfinex Help Center: Guides on trading and account setup (bitfinex.com/help).
    • Bitfinex Blog: News and updates (blog.bitfinex.com).
    • YouTube: Search “Bitfinex tutorial” for video guides.

    FAQs

    1. Is Bitfinex available globally?

    Bitfinex is available on global exchanges except few restricted countries - the USA, Bangladesh, Bolivia, Ecuador, and Kyrgyzstan. In order to check whether it is available in your country, visit the official bitfinex.com/legal/exchange/terms for details.

    2. How long does verification take?

    Verification takes a few hours to a few days, depending on the level and document clarity.

    3. Why is my deposit/withdrawal delayed?

    Delays may occur due to network congestion, bank processing, or incomplete KYC. Contact support at cs.bitfinex.com if needed.

    4. Can I recover funds sent to the wrong address?

    Crypto transactions are irreversible. Always double-check addresses and networks.

    5. Bitfinex vs. Other Exchanges?

    Compared to Kraken, Bitfinex has more advanced tools but isn’t available in the USA. Compared to Binance, it offers fewer coins but better liquidity for major pairs and stronger security focus.