The oldest major exchange still active

Bitfinex launched in 2012 and remains operational, a distinction that fewer crypto exchanges than you might expect can claim. Its BTC/USD and ETH/USD order books carry institutional depth comparable to Kraken, and the exchange introduced peer-to-peer margin funding markets in the early years of crypto trading, a structure that remains unique among major exchanges. Traders can lend USD, BTC, or other assets to margin traders and earn interest on the outstanding loan balance, providing a passive yield mechanism not available at most competing exchanges.

Margin trading and advanced order types

Bitfinex supports margin trading up to 10x on spot pairs, with portfolio margin available for qualifying accounts. The platform's order management includes hidden orders, trailing stops, and fill-or-kill types that most retail exchanges don't offer. The API is mature and widely used by quantitative traders who have built infrastructure around Bitfinex's order book data.

Tether connection and regulatory history

Bitfinex and Tether (USDT) share common ownership through iFinex Inc. The exchange and Tether settled with the New York Attorney General in 2021 for $18.5 million, admitting to covering an $850 million shortfall with Tether reserves. This settlement, and Bitfinex's 2016 hack (72 million USD in BTC was stolen and later recovered by US authorities), are material events that prospective users should research before depositing. No compensation scheme is in place.

Proof of Reserves

Bitfinex publishes proof of solvency data periodically via wallet attestations and public fund tracking. The approach is less structured than Kraken's quarterly Armanino attestations, providing some transparency but without the standardised audit methodology.

Where it falls short

The regulatory history involving the 2021 NYAG settlement and the 2016 hack introduces counterparty risk considerations not present at Kraken or Coinbase. Not available to US residents. Verification and onboarding requirements are stricter than some peers. The platform interface, while functional, is less polished than Bybit or OKX.

Bottom line

Bitfinex is appropriate for experienced traders outside the US who want deep BTC/USD liquidity, advanced order types, and the P2P margin funding mechanism, and who have assessed the regulatory history as an acceptable counterparty risk given their specific situation. For traders who prioritise regulatory standing and security track record above all else, Kraken is a more straightforward choice.