Is Bitfinex Safe? An Honest Review
If you are venturing into crypto trading for the first or even the 100th time and looking for an easy-to-use and secure platform, Bitfinex might tick all the right boxes. Founded in 2012, Bitfinex is a cryptocurrency exchange that believes in technological innovation to develop the smooth trading of digital assets.
The platform features many advanced charting tools and features that help make trading a piece of cake for everyone. What’s more, Bitfinex also offers an OTC market, peer-to-peer financing facility, and trading of a broad selection of derivatives and assets.
Whether you are a liquidity provider or a professional trader, Bitfinex offers strategies that can help you gain the best trading experience, courtesy of cutting-edge technology and innovation. The team at Bitfinex excels at all the aspects of Blockchain technology so that you can use this trading institution without any hurdles.
However, despite all the positives of Bitfinex, people still ask, “Is Bitfinex safe,” and “Is Bitfinex legal?” If these questions bother you, know that this review will cover all facts to help you find the answers. So keep reading as we explore Bitfinex deeper.
Is Bitfinex Safe? How is Bitfinex Protecting Your Money?
Whether you are a novice trader or a professional one, you should know about the safety procedures an exchange follows before trading with it. After all, you can’t risk your money with a platform that fails to provide you with a safe environment for your money.
So, is Bitfinex safe? The short answer is yes.
Bitfinex considers your money a valuable asset and keeps it secure from all external factors. The team at Bitfinex performs end-to-end auditing and implements tried and tested security measures to ensure that your hard-earned money is safe from any external attack.
While the company doesn’t reveal much about the security they offer due to proprietary reasons, it is safe to say that Bitfinex offers a safe home for your money so that you can trust the platform any day. The platform offers some security features by default and can also provide additional measures according to your demand.
Here are some common ways in which Bitfinex protects your money.
All the funds in the exchange’s system are stored in multi-signature and offline cold wallets. Moreover, no wallets are accessible on the platform's server or on the exchange itself.
The system security at Bitfinex is pretty tight. For example, the Linux system is always up-to-date to reduce the chances of any glitches or hacks. Furthermore, all the data present on the platform has an excellent backing system, meaning the chances of losing valuable information are reduced significantly.
Bitfinex’s system also receives protection through Distributed Denial of Service. This feature prevents the system from getting halted by external attackers.
Bitfinex also follows some common security measures that every exchange implements. We will discuss them in detail below, but these are two-factor authentication, universal 2nd Factor, advanced API key, advanced verification tools, and protection for withdrawals.
How is Bitfinex Regulated by Governments?
Unfortunately, Bitfinex isn’t regulated by any government or private body. However, that doesn’t mean that the cryptocurrency exchange isn’t safe. Bitfinex is one of the most reliable platforms, courtesy of its unique security features and measures.
In addition to that, the exchange offers a 24//7 support service for its customers. This means that you can communicate your problems with the platform via mail and request the exchange to take action as required.
Has Bitfinex Had Any Security Compromises?
Unfortunately, the Bitfinex scam or hack is considered one of the most significant security compromises since 2009. Hackers took advantage of the poor security at Bitfinex in its early days and were successful in making 2000 unauthorized transactions.
What’s more, the attackers successfully stole Bitcoins worth $72 million at that time. The number of stolen Bitcoins was 119,756. The hack happened in 2016, and in 2023, the Department of Justice successfully seized around $3.6 billion in crypto from the attackers.
This Bitfinex scam became a huge news in just a few days and was a significant reason behind the exchange losing its standing in front of its customers. However, Bitfinex soon decided to make a huge comeback byck king crucial changes to its security system.
The platform tightened its security measures and made sure not to make any compromises. Therefore, since that incident, Bitfinex hasn’t received any complaints about the safety of the funds.
Can I Use Bitfinex In the US?
No, Bitfinex isn’t available in the USA. Other than this, the exchange is available primarily for the citizens of most countries worldwide. However, since there is no list of supported countries on the official website, you will have to go through the entire verification process before you can get a confirmation.
Bitfinex Security Rules
Here are the details on all the security rules that Bitfinex follows to secure your funds.
Two-factor Authentication
Bitfinex helps add an extra layer of security to your account through two-factor authentication. This feature protects all your basic operations, for instance, logging in to your account or withdrawing funds. You can also configure two-factor authentication using a U2F Security Key or a Google Authenticator.
Universal 2nd Factor
The exchange allows its customers to use a physical key and benefit from the safe and secure Universal 2nd Factor.
Advanced API
Bitfinex helps its clients to create advanced API keys that come with top-quality and secure read/write permissions according to every feature. In addition, the WebStocks and REST APIs can help traders experience the complete power of the platform.
Advanced Verification Tools
Bitfinex also features some advanced verification tools designed solely for protecting your funds. The platform saves and analyzes the login data regularly to detect any unusual activity on a timely basis.
Furthermore, the Intelligent system helps detect any frequent changes to the IP address to keep all the hackers at bay. In the case of a suspect, the exchange limits all the access to a particular account to prevent all kinds of cyberattacks.
Suppose you suspect any unusual activity in your account. In that case, you can communicate this with the team, and they will instantly provide you a link to freeze the account temporarily.
Withdrawal Protection
If you want to withdraw your money from your wallet, know that you can do so without any worry. That’s because Bitfinex provides very tight protection for its customers.
For instance, the security system monitors all IP addresses and detects any unusual withdrawing pattern pretty quickly. Moreover, the confirmation stage when making a withdrawal is fully protected against browser malware, reducing all chances of hacking.
Email Encryption
If you seek more protection from Bitfinex, you can opt for email encryption. This facility helps add a layer of protection to your email communication, increasing the overall security.
Bitfinex Pros and Cons
Like any other exchange globally, Bitfinex also has some good and bad points. However, it is safe to say that its positives outweigh its negatives. Here is a list of some pros and cons for your understanding.
👍 Bitfinex Pros
• The low trading fees at Bitfinex make the platform relatively affordable to its competitors. This Factor helps attract more traders to this exchange.
• Bitfinex is famous for providing high liquidity to its customers. The BTC/USD trading volume is impressive and helps improve price stability while building traders’ confidence.
• Bitfinex has been a victim of a major hack, and so it takes its security pretty seriously now. With so many safety measures, your funds are always safe.
• The platform provides many advanced features and tools to make trading convenient and beneficial for everyone.
• This platform has an intuitive mobile app for new traders to access all the features conveniently.
• The customer support at Bitfinex is top class. All queries are answered within 12 hours.
👎 Bitfinex Cons
• The exchange is not available for the citizens of the United States, and that’s a massive loss for both the platform and the traders in the region.
• Bitfinex isn’t regulated by any government or private body, regardless of its history of hacks.
Is Bitfinex Good For Beginners?
Since Bitfinex demands a low trading fee and has an easy-to-use app, it is an excellent platform to start trading. However, the crypto exchange only accepts bank wire, and no other method to buy and sell crypto instantly. This limitation might discourage some beginners from joining the platform.
Summary
So, is Bitfinex legit and safe? Yes, in a nutshell, the exchange is both secure and legitimate. Since Bitfinex was a victim of a significant hack episode in 2016, it has since made sure not to compromise its security. In addition, the platform offers tight security measures for its customers and ensures that its system is always up-to-date to avoid external attacks.
Top 10 Bitfinex Reviews
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I like how Bitfinex handles security. The multi-stage verification felt a bit long at first, but after going through it, I feel safer trading here than on other platforms I’ve tried. The custom order features are a huge plus for me as I can fine-tune my trading strategy. However, I wish they had more direct customer support options because getting responses through alternative channels can sometimes be slow.
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Bitfinex is great for experienced traders like me who need advanced tools and options. I’ve used their staking feature for a few months, and it’s been pretty decent, with steady returns. The interface, especially on the desktop version, is well designed and easy to navigate. That said, the fiat fees can get a bit high, so I mostly stick to crypto-only trades to avoid them. All in all, it’s been a reliable platform for my needs.
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Comment
Honestly, I didn’t expect much when I first started using Bitfinex, but it’s actually surprised me in a good way. The first thing that got me hooked was how easy it is to execute trades, especially during crazy market swings. I’m talking about times when other platforms freeze up, Bitfinex kept running smoothly. The advanced trading features, like margin and stop orders, are awesome but not overwhelming. I also really appreciate how tight their security is. Every time I log in or make a move, I get instant notifications, so I know my account’s in good hands. On the flip side, their fees could be better. It’s not terrible, but sometimes I feel like I’m paying more than expected. Withdrawals are quick though, no hiccups there.
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What stands out to me with Bitfinex is the huge variety of crypto pairs they offer. The platform is user-friendly, especially the mobile app which I use most of the time. One thing that could be better is the verification process, it took quite a while to get through it, but once it’s done, withdrawals are smooth. I mainly do margin trading, and the leverage up to 1:100 for derivatives has worked well for me. Just be mindful of the fees, which can add up with smaller trades.
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The customer support provided by Bitfinex is often slow and unresponsive, leaving users feeling frustrated and unsupported. I cannot recommend Bitfinex as a reliable or trustworthy crypto exchange option.
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It’s great working here! Such professionals make trading calm and comfortable. Bitfinex has a good reputation.
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I trust bitfinex, otherwise I wouldn’t work with it. Anyone can have complaints, like the users who wrote comments below. Tell the broker about them so that it can take action and, if possible, resolve the issue! If there were any problems at all, since I didn’t have any problems when trading here.
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Comment
Trading on Bitfinex is not going well. And all the 6 months that I have been trading there, there have been constant delays in withdrawing funds. I had to wait 3 weeks, and 4. Then I met a friend who used to trade with them. And he said that he had the same situation. Nothing changed...
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Comment
Contacting the company is almost impossible. Support does not answer, although my question is directly related to the withdrawal of my profit, which I have been waiting for a very long time.
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Comment
Really has low trading volumes and liquidity. Transactions and withdrawals are slow and delayed. The trading interface is inconvenient and incomprehensible. That's all I wanted to say.
FAQs
Is Bitfinex wallet safe?
Yes, the Bitfinex wallet gets cold storage protection backed by DDoS protection.
Which coins can you trade on Bitfinex?
The platform supports 150 coins, including Bitcoin, Ethereum, and Litecoin.
Is making an account on Bitfinex easy?
Yes, it is. You have to use the mobile app and follow all the prompts before providing any verifications.
Is the exchange’s app safe?
Yes, the app is safe as it uses two-factor authentication and features many different features for withdrawal protection.
Glossary for novice traders
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1
Crypto trading
Crypto trading involves the buying and selling of cryptocurrencies, such as Bitcoin, Ethereum, or other digital assets, with the aim of making a profit from price fluctuations.
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2
Extra
Xetra is a German Stock Exchange trading system that the Frankfurt Stock Exchange operates. Deutsche Börse is the parent company of the Frankfurt Stock Exchange.
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3
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
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4
Leverage
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
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5
Bitcoin
Bitcoin is a decentralized digital cryptocurrency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.
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Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
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.