Is Bitfinex A Scam? Read The Article To Its Conclusion To Get The Best Answer

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Mrcoin

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Is Bitfinex a Scam? What does the community say about it? Let's find out through the following article!

1. IS BITFINEX A SCAM OR LEGIT?

As forexscams.org has written that: “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”. They also have some very nice compliments:​
  • 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​
However, According to 99BITCOIN.COM: “There has been a lot of criticism about the exchange throughout the years, mainly about the transparency of their business and their close relation to the stablecoin Tether. It always feels as if they are hiding something without the ability to actually prove it.

On April 24th, 2018 Bitfinex was accused by New York’s attorney general’s office of an $850 million coverup stating: “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a coverup to hide the apparent loss of $850 million of co-mingled client and corporate funds” Bitfinex has denied the claims, sending an open letter to its users a day after, saying that the attorney general’s office letter is filled with inaccuracies and false assertions.”

The Bitfinex project gets many low rating comments on the Trustpilot website. Below are some customers service reviews that we have collected from Trustpilot.com:

Furthermore, In 2016, Bitfinex got hacked. The exchange lost control of over 119,756 Bitcoin (BTC) from its customers.

According to Coindesk: “The source of the vulnerability appears to lie in how Bitfinex structured its accounts and its use of bitcoin wallet provider BitGo as an additional layer of security on customer transactions.” This set up a big question about the security of Bitfinex

2. OVERVIEW ABOUT BITFINEX

Founded in 2012 by Giancarlo Devasini and Raphael Nicolle, Bitfinex is a cryptocurrency exchange originally registered in the British Virgin Islands.

The Bitfinex exchange offers margin-trading, and their in-house indicators for both Bitcoin long and shorts provide essential trading signals to other leading crypto players in the market. Besides, the exchange also supports fiat trading, deposits, and withdrawals.

2.1. CORE FEATURES AT BITFINEX

Exchange Trading at Bitfinex

Exchange Trading entails trading without the use of leverage. At the heart of Bitfinex are central limit order books for the spot trade of digital tokens.

Margin Trading at Bitfinex

Bitfinex enables qualified users to trade with up to 10x leverage and receive financing through its Margin Funding and peer-to-peer financing features.

Margin Funding at Bitfinex

Margin Funding allows you to earn interest on your capital while avoiding the risks of

Over the Counter (OTC) Market at Bitfinex

Bitfinex provides a private Over the Counter (OTC) Market for traders looking to conduct large deals directly with a counterparty without using public order books.

OTC Market will allow you to access significant amounts of liquidity without affecting the exchange market price.

Paper Trading

The Paper Trading tool allows you to test and experiment in a simulated market. Since the tokens are for testing, no actual deposits are necessary.

2.2. PROS & CONS


As one of the oldest crypto exchanges, Bitfinex has been offering their customers many advantages:​
  • One of the earliest CEX to exist, gaining the advantage of a first-mover.​
  • A lot of trading tools for advanced traders.​
  • Relatively low fees.​
Every cryptocurrency exchange has its strengths and weaknesses. Here are some disadvantages of Bitfinex:​
  • Attached to numerous dramas: price manipulation, relationship with Tether, 2 hacks,…​
  • Small liquidity compared to other major CEXs.​
  • Only a few Fiats are supported.​
  • Not available in the U.S.​
  • Not ideal for crypto beginners.​
  • Limited options for derivatives trading.​
  • Lengthy verification process.​
Is Bitfinex A Scam? We can't confirm yet. The journey of Bitfinex as a exchange trading platform has not been impeccably smooth in its early days, as soon after it came into existence, the cryptocurrency exchange experienced hacks and several other controversies for price manipulation and security breaches along with allegations of insolvency.

What do you think about Bitfinex? Do you stand for positive or negative comments about this exchange? The most important thing is each individual's experience. Hope that you will provide us with more information and comments right below!
 

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