Is Bitfinex a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether Bitfinex is a good crypto exchange to start trading with. In this article you will learn whether Bitfinex is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker Bitfinex
The Bitfinex crypto exchange is a platform for trading cryptocurrencies and tokens. You can freely trade Bitcoin, Ethereum, Litecoin, cryptocurrency pairs, and fiat pairs like USD, EUR, GBP, JPY, etc. The company has its proprietary trading terminal with a mobile application for margin trading; it has a leverage of up to 1:10 (up to 1:100 for derivatives). The terminal stands out for its several unique features, including scalable orders that a trader can easily customize to suit their trading strategy. Customized orders and strategies can be tested without restrictions on a demo account that does not require a capital investment. You can use bank cards for deposits and withdrawals and there are no limits on the withdrawal of funds. The platform has a typical affiliate program and several investment programs, including staking and deposit.
| 💰 Account currency: | Cryptos, currencies |
| 🚀 Minimum deposit: | $10 |
| ⚖️ Leverage: | Up to 1:10 (margin trading), up to 1:100 (derivatives) |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptos, currencies |
| 💹 Margin Call / Stop Out: | No |
Bitfinex Pros and Cons
👍 Advantages of trading with Bitfinex:
•large trading volumes;
•handy mobile application;
•top-tier level of security;
•custom orders;
•tons of currencies pairs;
•leverage up to 1:10 (derivatives are up to 1:100);
•demo account;
•investment programs.
👎 Disadvantages of Bitfinex:
•snail-paced multi-stage verification;
•relatively high fees when working with fiats;
•absence of direct responses from call center, they use only alternative communication methods.
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
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Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
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Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
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Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
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Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
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Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
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Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for Bitfinex Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. Bitfinex offers traders the following conditions.
| 💻 Trading platform: | Proprietary platform |
| 📊 Accounts: | Standard, demo |
| 💰 Account currency: | Cryptos, currencies |
| 💵 Replenishment / Withdrawal: | Bank cards and accounts, crypto and electronic wallets |
| 🚀 Minimum deposit: | $10 |
| ⚖️ Leverage: | Up to 1:10 (margin trading), up to 1:100 (derivatives) |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | Zero-entry |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptos, currencies |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | Yes |
| ➕ Affiliate program: | Yes |
| 📋 Orders execution: | Not indicated |
| ⭐ Trading features: | Tons of cryptocurrencies and tokens, currency pairs, significant leverage for margin trading and derivatives; there is a demo account; customized orders are available |
| 🎁 Contests and bonuses: | Yes |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of Bitfinex commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
Like most crypto exchanges, Bitfinex offers a dynamic fee system. The fee hinges on the volume of trades during the calendar month — the more a client trades, the lower his fees. Additionally, fees can be reduced thanks to the opportunities indicated in the referral program.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From 0.1% per market order | Yes (0.1% of the amount, minimum fee is $60) |
Investment programs of Bitfinex
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. Bitfinex offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
In addition to the referral program, Bitfinex offers two options for passive earnings for users. Each of them has its conditions, you can simultaneously activate both functions:
Deposits (lending). By activating the corresponding function in the personal account, the user transfers part of his funds to ensure the lending services provided by the site. You can deposit Bitcoin, Ethereum, Tether, 0x, and OMG Network, and Tether Gold. After activating the function, the user receives information about the annual interest, which depends on the asset and the amount of the deposit. Lending funds can be withdrawn at any time. Payments come to the user's personal wallet.
Staking. Bitfinex implements the so-called “soft-staking” technology when an investor only needs to choose an asset and indicate how much he is willing to provide. After that, the interest rate will be calculated. The annual income for the indicated option can reach 10%. At the moment, nine assets are available for staking, interest payments are made daily. The longer an investor keeps the staking function active, the higher his status in the system and the faster his interest rate grows.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
Bitfinex’s affiliate program
Bitfinex offers a three-tier affiliate program. It works as follows. After registration, you will receive a personal referral link. A user who registered on the site using it will bring you income based on a percentage of fees on all his transactions.
Also, income will be provided to you by users who are invited by your referral through their link. This algorithm allows you to profit from the trade of third-level partners.
1st level - remuneration 18%;
2nd level - remuneration 6%;
3rd level - remuneration 2%.
Referral trading volumes do not matter, and the affiliate program is unlimited. After verifying your account and referral accounts, you can get a profitability increase factor of up to 1.44x. By trading Unus Sed LEO assets, you can get an additional factor of up to 1.5x. With high activity on social networks, where the platform is presented, you can also earn a multiplier of up to 1.5x.
Conclusion. Is Bitfinex good for beginners?
The Bitfinex cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, Bitfinex could be considered as a good cryptocurrency exchange for a start.
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FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.