Bitfinex is one of those platforms that splits opinion almost perfectly down the middle — and usually for reasons that go beyond trading features.
Table Of Content
- What Is Bitfinex?
- Key Features of Bitfinex
- 1. Advanced Trading Interface
- 2. Deep Order Type Support
- 3. Margin Trading
- 4. Peer-to-Peer Funding Market
- 5. Derivatives and Perpetual Contracts
- 6. Broad Cryptocurrency Selection
- 7. Peer-to-Peer Borrowing
- 8. Staking
- 9. Bitfinex Pay
- Bitfinex Fees: What You’ll Actually Pay
- Bitfinex Security: The Full, Honest Story
- User Experience: What It’s Like to Trade on Bitfinex Day to Day
- Bitfinex vs. Binance vs. Kraken
- Bitfinex Pros and Cons
- Who Should Use Bitfinex?
- Tips for Using Bitfinex Safely and Effectively
- Final Verdict: Is Bitfinex Worth Using in 2025?
- Bitfinex Review: Quick Summary
Ask a seasoned crypto trader who’s been in the market since 2015 or 2016, and there’s a decent chance Bitfinex is somewhere in their history. It was, for a stretch of years, the largest Bitcoin exchange in the world by volume. It introduced margin trading and lending features to a mainstream crypto audience long before most competitors caught up. For power users who needed advanced tools and deep liquidity, it was simply the place to be.
Ask someone newer to crypto, and you’re more likely to get a raised eyebrow. Bitfinex has a complicated history — a significant hack in 2016, long-standing controversies around its relationship with Tether, and regulatory friction in several major markets. These aren’t things you can wave away.
So where does Bitfinex actually stand in 2025? Is it still a legitimate choice for serious traders, or has the baggage become too heavy to carry? I’ve dug into the platform thoroughly — the trading experience, fee structure, security practices, available features, and the context around its controversies — and I’m going to give you the complete picture. No glossing over the rough parts.
What Is Bitfinex?
Bitfinex is a cryptocurrency exchange that has been operating since 2012, making it one of the oldest continuously running exchanges in the industry. It was founded in Hong Kong and is operated by iFinex Inc., a company incorporated in the British Virgin Islands. Bitfinex shares its parent company with Tether Limited, the issuer of USDT — the world’s largest stablecoin by market cap — a relationship that has generated significant controversy over the years and is worth discussing honestly.
The platform is designed with professional and institutional traders in mind. It offers spot trading, margin trading, derivatives, a peer-to-peer lending market, and advanced order types that most casual investors will never need but serious traders genuinely rely on. The interface reflects this orientation: it’s powerful, configurable, and not particularly forgiving to newcomers.
Bitfinex is not available to US residents. The platform began restricting US users in 2017 and has maintained that restriction since. If you’re reading this from the United States, this review is largely informational — you’ll need to look elsewhere for a compliant trading home.
Key Features of Bitfinex
1. Advanced Trading Interface
Bitfinex’s trading terminal is among the most capable in the industry. The interface is highly customizable — you can rearrange panels, configure your order book depth, set up multiple chart views, and tailor the layout to your specific workflow. For traders who spend serious time on a platform, this level of customization matters.
The charting is powered by TradingView integration, giving you access to professional-grade technical analysis tools without leaving the exchange. Indicators, drawing tools, multiple timeframes — it’s all there, and it works cleanly.
2. Deep Order Type Support
Bitfinex supports a comprehensive range of order types that go well beyond the basic market and limit orders offered by beginner-friendly platforms: limit orders, market orders, stop orders, trailing stop orders, fill-or-kill orders, immediate-or-cancel orders, post-only orders, and hidden orders — among others. For traders who build systematic strategies around precise order execution, this depth is genuinely valuable and reflects the platform’s professional heritage.
3. Margin Trading
Bitfinex has offered margin trading since the early days of crypto, allowing users to open leveraged positions on a range of cryptocurrency pairs. Leverage is available up to 10x on select pairs. The margin trading interface is detailed and includes the tools needed to manage risk effectively — though no interface can substitute for the discipline to actually use them.
Margin trading dramatically increases risk and is appropriate only for experienced traders who understand how leverage works, how liquidations occur, and how to manage position sizing. If those concepts are unfamiliar to you, margin trading is not where you want to start.
4. Peer-to-Peer Funding Market
One of Bitfinex’s most distinctive features — and one that genuinely sets it apart from most competitors — is its peer-to-peer funding market. On Bitfinex, individual users can lend their idle funds (in crypto or stablecoins) to other users who want to trade on margin, earning interest in return.
The interest rates are determined by the market — supply and demand between lenders and borrowers — rather than being set by the platform. During periods of high trading activity and elevated demand for margin, lending rates can be quite attractive. For users holding significant stablecoin or crypto balances who want to put those funds to work passively, this feature has real appeal.
It carries risk, as all lending does. Borrower defaults are managed through the platform’s liquidation system, but in extreme market conditions, gaps can occur. Understanding the mechanics before participating is essential.
5. Derivatives and Perpetual Contracts
Bitfinex offers perpetual swap contracts and futures on select cryptocurrency pairs, allowing traders to gain leveraged exposure to price movements without holding the underlying asset. The derivatives offering is more limited in scope than dedicated derivatives exchanges like Bybit or Binance Futures, but it covers the major pairs most traders actually use.
6. Broad Cryptocurrency Selection
Bitfinex supports over 200 cryptocurrency trading pairs, covering major assets like Bitcoin, Ethereum, Litecoin, XRP, and Monero, alongside a range of mid-cap and smaller tokens. Notably, Bitfinex has historically been willing to list assets that more conservative exchanges avoided — Monero (XMR) remains available on Bitfinex while many Western exchanges have delisted it under regulatory pressure.
7. Peer-to-Peer Borrowing
In addition to the funding market, Bitfinex offers a direct borrowing service that allows users to borrow crypto or stablecoins using their holdings as collateral — a feature more commonly associated with DeFi lending protocols, offered here in a centralized form with relatively straightforward terms.
8. Staking
Bitfinex offers staking rewards on a select range of proof-of-stake assets, allowing users to earn yield on holdings kept on the platform. The staking feature is integrated directly into the account interface without requiring separate setup.
9. Bitfinex Pay
Bitfinex Pay is the platform’s crypto payment solution, allowing merchants to accept cryptocurrency payments and users to send value in crypto. It reflects Bitfinex’s broader ambitions beyond pure trading, though it remains a more niche feature within the overall product suite.
Bitfinex Fees: What You’ll Actually Pay
Bitfinex uses a tiered maker-taker fee structure based on your 30-day trading volume.
For users with monthly trading volume under $500,000, the standard rate is 0.10% for makers and 0.20% for takers. As your volume increases, fees decrease progressively — high-volume traders can reach 0% maker fees and significantly reduced taker fees at the upper tiers.
By global standards, these fees are competitive for a full-featured professional exchange. They’re lower than Coinbase’s standard rates and comparable to Kraken’s professional tier. For active traders, the volume-based discounts can meaningfully reduce costs over time.
Deposit and withdrawal fees vary by method and currency. Cryptocurrency withdrawals incur standard network fees. Fiat deposits and withdrawals via bank wire incur fees that depend on your account verification tier — with higher verification levels generally accessing better fee structures.
One practical note: the minimum withdrawal fee structure for crypto can make small withdrawals relatively expensive on a percentage basis. If you’re moving small amounts frequently, this adds up. Consolidate withdrawals where possible to avoid paying disproportionate fees.
Bitfinex Security: The Full, Honest Story
Security at Bitfinex is a topic that requires honesty rather than simple reassurance, so let me give you both the current picture and the historical context that shaped it.
The 2016 Hack. In August 2016, Bitfinex was hacked for approximately 119,756 Bitcoin — worth around $72 million at the time and vastly more at subsequent prices. It was one of the largest exchange hacks in history. Bitfinex’s response was controversial: rather than covering losses from company reserves, they distributed the loss across all account holders through a system of “BFX tokens” that could be redeemed or traded. Over time, these tokens were fully redeemed, and the losses were repaid — a fact that’s often underreported. In 2022, the US Department of Justice seized approximately 94,000 Bitcoin connected to the hack from two individuals who had laundered the stolen funds, in what was the largest financial seizure in DOJ history at the time. The partial recovery of stolen funds doesn’t erase the breach, but it adds important context.
Post-Hack Security Overhaul. Following 2016, Bitfinex substantially rebuilt its security architecture. The platform moved to a multi-signature wallet system using BitGo, requires multiple approvals for significant fund movements, and holds the majority of user funds in cold storage. They have not suffered a major security breach since — nearly a decade of clean operation following that transformation.
Current Security Features. Bitfinex offers two-factor authentication via authenticator app (strongly recommended), IP address whitelisting, withdrawal address whitelisting, and advanced session management. The withdrawal whitelisting feature — which restricts crypto withdrawals to pre-approved wallet addresses — is a particularly powerful protection that every user should enable.
The Tether Relationship. Bitfinex and Tether Limited share a parent company (iFinex) and have maintained a financially intertwined relationship that drew regulatory attention. In 2021, iFinex settled with the New York Attorney General’s office for $18.5 million, agreeing to stop serving New York residents and submit to ongoing reporting requirements — without an admission of wrongdoing. Questions about whether USDT is fully backed by dollar-equivalent reserves have persisted, though Tether has published reserve attestations with increasing regularity. This remains a background risk factor for users holding significant USDT balances and is worth factoring into your risk assessment.
No US Regulatory Framework. Because Bitfinex does not serve US residents and operates outside US regulatory jurisdiction, American users would have significantly less legal recourse than with a domestically regulated exchange. For non-US users, the regulatory picture varies by jurisdiction, and checking your local regulations before using the platform is advisable.
User Experience: What It’s Like to Trade on Bitfinex Day to Day
Bitfinex is not trying to hold your hand, and it makes that clear from the moment you log in. The interface is dense with information — order books, funding books, multiple chart panels, position management tools — and it assumes a baseline of trading knowledge that beginner platforms consciously avoid assuming.
For experienced traders, this is actually a relief. There’s no unnecessary simplification, no patronizing pop-ups explaining what a limit order is, no feature buried three menus deep because the platform decided it was “too advanced.” What you see is a professional-grade trading environment that treats you like a professional.
For beginners, it can be genuinely overwhelming. The learning curve is real and steep. If you’ve never used an order book interface before, Bitfinex is not where you should start. Build your fundamentals on a more introductory platform first, and come to Bitfinex when you’re ready for more sophisticated tooling.
The mobile app handles the core trading functionality well — order placement, position management, portfolio overview, and funding market access are all usable on mobile, even if the full desktop experience can’t be fully replicated on a smaller screen.
Account verification is tiered, with higher levels unlocking higher withdrawal limits and fiat functionality. The standard KYC process requires government-issued ID and is typically processed within a reasonable timeframe, though complex cases can take longer.
Customer support operates via a ticketing system and live chat for verified users. Response quality is generally adequate for technical questions, though response times during high-volume market periods can stretch. The knowledge base is comprehensive enough that many common questions can be resolved without opening a ticket at all.
Bitfinex vs. Binance vs. Kraken
Bitfinex vs. Binance: Binance is larger, more liquid, and carries a vastly broader asset selection and more active retail user base. Bitfinex has a more specialized professional focus and the unique P2P lending market that Binance doesn’t replicate. For most active traders, Binance’s liquidity advantage is significant on major pairs — but Bitfinex’s advanced tools and lending features appeal to a specific professional audience that values depth over breadth.
Bitfinex vs. Kraken: This is the closest comparison in the industry. Both are veteran exchanges with serious trading tools, competitive fee structures, and long operating histories. Kraken is available to US residents; Bitfinex is not. Kraken has a stronger regulatory compliance posture in Western markets. Bitfinex offers the P2P funding market and has historically maintained deeper liquidity on certain Bitcoin pairs. For non-US professional traders, both deserve serious consideration — the decision often comes down to specific pair availability and which interface you prefer.
Bitfinex vs. Bybit/OKX: For derivatives and perpetuals specifically, Bybit and OKX have built more comprehensive and deeply liquid derivatives markets. Traders focused primarily on perpetual futures will likely find those platforms superior for that specific use case. Bitfinex’s edge remains in spot trading depth, professional order types, and its unmatched P2P lending ecosystem.
Bitfinex Pros and Cons
What Works Well:
- One of the longest operating histories in crypto, running since 2012
- Advanced, fully customizable trading terminal with TradingView integration
- Comprehensive order type support including hidden, trailing stop, and fill-or-kill orders
- Competitive tiered maker-taker fee structure with meaningful volume discounts
- Unique peer-to-peer funding and lending market with market-determined interest rates
- Deep liquidity on major Bitcoin and stablecoin trading pairs
- Strong post-2016 security infrastructure with cold storage, multi-sig, and withdrawal whitelisting
- Monero and select privacy coin availability where many competitors have delisted
- Borrowing, staking, and Bitfinex Pay for broader financial utility
Where It Falls Short:
- Not available to US residents — a hard restriction with no compliant workaround
- The 2016 hack and ongoing Tether relationship remain legitimate concerns for some users
- No beginner onboarding — steep learning curve that can be alienating for new traders
- Regulatory framework is less robust than fully licensed Western exchanges
- Derivatives offering is less comprehensive than dedicated platforms like Bybit or OKX
- Small withdrawal fees can be proportionally expensive for frequent small movements
- Customer support can lag during peak market activity periods
Who Should Use Bitfinex?
Bitfinex is an excellent choice for:
- Professional and experienced traders outside the US who need advanced order types, deep liquidity, and a highly configurable trading terminal
- Margin traders who want leveraged spot exposure with sophisticated risk management tools
- Passive yield seekers who want to participate in the P2P lending and funding market
- Long-term crypto participants who value a platform with a decade-plus operating track record
- Monero and privacy coin holders who need a reliable exchange for XMR trading
- High-volume traders who benefit from the tiered fee discount structure
Bitfinex is not ideal for:
- US residents — not available, full stop
- Beginners who need guided, simplified trading onboarding
- Users who prioritize regulatory comfort in fully licensed Western jurisdictions
- Derivatives-focused traders who would be better served by Bybit or OKX
- Users uncomfortable with the Bitfinex-Tether history who would rather trade with that uncertainty fully off the table
Tips for Using Bitfinex Safely and Effectively
Enable every security layer immediately. Two-factor authentication via an authenticator app is non-negotiable. On top of that, enable IP whitelisting and withdrawal address whitelisting before you deposit a single dollar. These features exist for exactly the scenarios you hope never happen — don’t skip them because setup takes twenty minutes.
Understand the funding market before participating. The P2P lending market can generate attractive passive yield, but it carries real risk in extreme market conditions. Read Bitfinex’s documentation on how the liquidation system protects lenders, what flash scenarios look like, and what the realistic range of outcomes is. Go in with complete information.
Keep only what you’re actively trading on the platform. Long-term holdings belong in cold storage — a hardware wallet like Ledger or Trezor. Use Bitfinex for active trading capital, not as a savings account for your entire portfolio. This is good practice with any centralized exchange.
Use limit orders to save on fees. Placing limit orders qualifies your trades for the maker fee rate (0.10% at standard tier) rather than the taker rate (0.20%). On high-frequency trading, this difference compounds significantly. Get comfortable with the order book and use limit orders as your default.
Start with the simplified interface if the full terminal feels like too much. Bitfinex offers a basic trading view alongside its full professional interface. There’s no shame in using the simpler view while you orient yourself. Graduate to the advanced terminal when you’re ready — it’ll be waiting.
Final Verdict: Is Bitfinex Worth Using in 2025?
Bitfinex demands to be evaluated on its own terms — not held to the standards of a consumer-friendly exchange, and not dismissed because of controversies that its competitors have used to paint it with a broad brush.
For non-US professional traders who need advanced order types, deep liquidity on major pairs, a genuinely distinctive P2P lending market, and a trading environment built for sophisticated participants — Bitfinex remains a serious, capable, and well-established option. Nearly a decade of clean security operation following its 2016 overhaul is a meaningful data point. The trading infrastructure is professional-grade in ways that most exchanges still haven’t matched. The P2P funding market has no close equivalent among major centralized platforms.
The concerns are real and shouldn’t be minimized. The Tether relationship introduces systemic risk that’s difficult to fully quantify. The regulatory posture is less robust than fully licensed Western exchanges. The exclusion of US users reflects ongoing regulatory friction that isn’t going away.
Approach it eyes open, enable every security feature from day one, keep only active trading capital on the platform, and understand precisely what you’re trading and why. Do that, and Bitfinex can be a genuinely powerful tool for a serious trader’s arsenal.
But if you’re new to crypto, based in the US, or want maximum regulatory comfort — this isn’t the right exchange for you, and that’s a perfectly reasonable conclusion to reach.
Bitfinex Review: Quick Summary
| Feature | Rating |
|---|---|
| Trading Interface | ⭐⭐⭐⭐⭐ |
| Order Type Depth | ⭐⭐⭐⭐⭐ |
| Liquidity (Major Pairs) | ⭐⭐⭐⭐⭐ |
| Fee Structure | ⭐⭐⭐⭐ |
| P2P Lending Market | ⭐⭐⭐⭐⭐ |
| Security (Current) | ⭐⭐⭐⭐ |
| Regulatory Compliance | ⭐⭐⭐ |
| Mobile App | ⭐⭐⭐⭐ |
| Beginner Friendliness | ⭐⭐ |
| Asset Selection | ⭐⭐⭐⭐ |
| Customer Support | ⭐⭐⭐ |
| Derivatives Offering | ⭐⭐⭐ |
| Overall | ⭐⭐⭐⭐ |
Disclaimer: This review is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency trading carries significant risk, including the possible loss of capital. Margin trading amplifies both gains and losses. Always conduct your own research and consult a qualified financial professional before making investment decisions.
