Binance vs Bitfinex: See How These Exchanges Stack Up
Binance and Bitfinex are two of the most popular exchanges used to trade alternative cryptocurrencies (altcoins). In this Binance vs Bitfinex comparison, we’ll cover:
|Review||Binance Review||Bitfinex Review|
|Fees||0.1%||0.2% or less|
|Accepts U.S. Based Users||Yes||No|
|Minimum Account Equity Required?||No Equity Requirements||$10,000|
|Deposit/Withdrawal Methods||Cryptocurrency||Cryptocurrency, USD & EUR Bank Wires|
|Withdrawal Limits||2 BTC equivalent / 24 hrs unverified accounts|
100 BTC equivalent / 24 hours verified accounts
|Unlimited withdrawals w/o needing verification for crypto only.|
Verification required when depositing or withdrawing fiat currencies.
|Has Exchange Been Hacked?||No||Yes|
|# of Supported Cryptocurrencies||100+||35+|
|Company Location||Hong Kong & Tokyo||Hong Kong & Taiwan|
|Community Trust Grade||A+||B-|
|Site||Visit Binance||Visit Bitfinex|
If you looked through the table above, you probably noticed a few key differences between these two Asia based cryptocurrency exchanges.
First of all, if you’re living in the United States, you can immediately rule out Bitfinex as an option. Bitfinex stopped serving U.S. individual users in late 2017. Binance does accept U.S. based customers, in fact they’ve made up the largest portion of the exchange’s user base.
U.S. residents may also want to check out our Binance vs Bittrex vs Poloniex Comparison.
Perhaps the biggest upside of Bitfinex over Binance is that they accept fiat currency deposits through USD and Euro bank wires. You should however be aware that you must first verify your Bitfinex account, a process the exchange currently estimates to take 6-8 weeks. New accounts also must achieve an equity balance of $10,000 before being allowed to trade on the platform.
Meanwhile, Binance only allows you to deposit, withdraw, and trade cryptocurrencies. With just an email address you’ll be able to have full functionality and withdraw up to the equivalent of 2 BTC / 24 hours. You can verify your account to increase your withdrawal limits to 100 BTC / 24 hours. There is no official minimum fund balance required to begin using the platform, although the exchange does have some minimum withdrawal and trade limits (these shouldn’t affect most users).
In general, we think Binance comes out above Bitfinex in nearly every other key area, as Binance has:
- Lower fees for most users.
- More available cryptocurrencies to trade.
- Binance has never been hacked before, although it is a far newer exchange (see below for more details on the Bitfinex hack).
- Binance’s customer support has been better than Bitfinex’s in our experience, although neither has been particularly great.
Bitfinex was launched in 2012 as a platform geared towards serious cryptocurrency investors.
In mid-2016, the exchange was hacked, resulting in the loss of nearly 120,000 Bitcoins (valued at $72 million at the time). The exchange temporarily deducted 36% from all users’ balances, while issuing users an IOU token called “BFX”. Each token was used to represent $1 owed to Bitfinex customers.
It took around 8 months to pay all customers back, but eventually all BFX holders were given the dollar figure they were owed.
Despite this rocky past, Bitfinex remains a top 10 cryptocurrency exchange in terms of daily trade volume.
Binance announced plans to launch an ICO to fund their exchange on June 14th, 2017. The ICO raised $15 million in just 3 minutes and a month later the exchange went live.
In less than 6 months after its launch, Binance already held the #1 spot for daily exchange trade volume on many days. While Binance is still very new, we haven’t yet seen any major cause for concern and in general everyone seems to love the platform.
While this is certainly an opinion, we prefer the user interface of Binance when compared to Bitfinex. You can see a peak of both platforms below:
Bitfinex accepts fiat currency (USD, EUR) deposits, while Binance does not. With that said, you first need to verify your account (which takes 6-8 weeks) and deposit $10,000 or more. We’d prefer to just buy Bitcoin or Ethereum elsewhere, deposit it onto Binance, then use it to trade for other cryptocurrencies.