Is Bitfinex a scam? Despite getting hacked this cryptocurrency exchange remains a popular option for serious traders
Bitfinex is a cryptocurrency exchange that provides its services via a web-based platform and a mobile app. Bitfinex is operated by iFinex Inc., a Hong Kong based company. iFinex Inc. (BVI) operates as a financial technology company. Bitfinex offers the most liquid order book in the world, allowing users to easily exchange the major cryptocurrencies. Bitfinex is one of the world’s largest and most advanced bitcoin trading platform that is more suitable for experienced traders. The platform offers leveraged margin trading through peer-to-peer funding market and users are able to create their own charts, monitor and edit their orders and positions, track their trading history and wallets movements. Security of funds and user information is top priority, security systems are constantly upgraded and tested to ensure that Bitfinex is exceeding industry-best standards. Fees at Bitfinex are relatively fair when compared to the competition, they are 0.20% for the “takers” and 0.10% for the “makers”. Bitfinex supports a selection of 20 cryptocurrencies and the overwhelming majority of system funds are stored in offline, cold wallets.
The 2016 hack was a major blow to the company, Bitcoin worth approximately $72 million was stolen from Bitfinex users. Bitfinex first announced the security breach on August 2, 2016. The bitcoin was taken from users’ segregated wallets and Bitfinex has been tracking down the hack. Significant hacker funds transactions were signed off by Bitfinex’s security provider, without full security. The U.S. Commodity Futures Trading Commission ordered Bitfinex to pay a $75,000 fine for offering illegal off-exchanged financed commodity transactions. The company issued the so-called BFX tokens, to the victims. Due to financial regulation changes in the State of New York, certain Bitfinex services are no longer available for New York Residents.
Payments to and from Bitfinex can be made via cryptocurrencies, to deposit or withdraw fiat currencies to or from your Bitfinex account, you will need to go through the verification process. Processing times for verification can take up to 5+ weeks, depending on the level of public interest. Verification is essential for users wishing to deposit/withdraw fiat currencies; however, you are free to deposit, trade and withdraw cryptocurrencies, and can do so immediately upon signing up. On the official website, you can not find a live chat but you can send a message anytime via email. The customer support should be better and they should try to resolve problems of their clients faster. Bitfinex is active on Facebook and Twitter. This is definitely a good and reliable exchange but according to the user reviews this exchange should try to be more “user-friendly”. As the interface and the exchange’s features are failry complex, I highly recommend that new traders take the time to become fully acquainted with all relevant aspects before depositing any funds or engaging in trading.
Experiences with Bitfinex
Despite getting hacked and losing $72 million in customer funds, Bitfinex remains a popular option for serious traders. Because of its complex interface, it’s probably only a good choice for traders with good experience. The following quotes give you a sense of what other traders think about this cryptocurrency exchange:
- Definitely, if you are looking for an easy and friendly exchange/wallet, Bitfinex is not for you
- I had a positive impression about this site before I had to open a ticket with their supporting team to resolve my 2FA problem. Has already been 12 days and they have not reply to my ticket
- A functioning website is expected, but having to wait for 2 weeks for the support team to reply (still not resolved) is simply unacceptable
- It is an excellent exchange, very fluid. and fast interface and very clear accounts in transactions, customer service is excellent, respond within 24 hours after the consultation, good security, and easy to withdraw all funds
- Been using Bitfinex for over a year now and I’m happy with their service. Even how they handled the hack some time ago, all the services on top of just trading, the UI is advanced, but if you know your way around it, it works fine
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Is Bitfinex a scam? Despite getting hacked this cryptocurrency exchange remains a popular option for serious traders,
I use several exchanges. Bitfinex is generally good, but withdrawals seem to take longer than on other exchanges (even though I withdrew the same altcoin).
Because of the hack I’m not feeling very comfortable there and only use them in rare instances like IOTA trading. Sure, they have margin trading etc but still no broker I would trust a lot of money.