Choosing a reliable and secure cryptocurrency exchange is crucial for any investor interested in the digital asset market. In this sense, Bitfinex is one of the best-known exchanges in the world, but that does not mean that it is the best or safest of all. The reality is that Bitfinex has various weaknesses that can affect the experience and security of its users.
In fact, in Cointelegraph Research's New Crypto Standard report, which analyzes 9 global exchanges, we can clearly see many of Bitfinex's weaknesses. Weaknesses that cover aspects of regulatory level, transparency, security and user support, which will make you ask: What good alternatives are there? Below, we will explore these specific weaknesses and tell you which is the best alternative to this exchange.
Bitfinex and its weaknesses
As we said, Bitfinex is a well-known player in the crypto world, an exchange that has been operating from its headquarters in Hong Kong since 2012. It is by far, one of the exchanges with the longest history in the sector and that is something that is recognized. However, that has not prevented him from certain problems over the years. In fact, it has been accumulating some quite serious problems that can greatly hinder its operation in the medium term.
First of all, Bitfinex operates in a tax haven such as Hong Kong (according to the Oxfam y FAFT). A situation that places it in the crosshairs of the main global regulators, such as the SEC in the United States or the CNMV in Spain. The poor regulatory situation in this region allows the exchange to handle certain businesses that it could not handle directly in Europe or the United States because it does not meet the minimum operating requirements..
To this we must add that Hong Kong, although it is recognized as a pro-consumer jurisdiction, the reality is that its laws are quite lax. For example, in case of emergency (e.g. a massive hack of the exchange) the authorities of this region could give the go-ahead (on a mere legal technicality) to save the exchange and the companies related to it, instead of saving exchange users. Even knowing that the exchange funds belong to its users.
Little transparency
In fact, this can be seen very clearly in how Bitfinex takes advantage of loopholes in Hong Kong legislation to avoid certain transparency practices that are common in other exchanges. A good example of this is that although Bitfinex has shown its public business record, the company has never been properly audited and financial management reports are non-existent.
The same situation of lack of transparency has led Bitfinex to have calls for attention and million-dollar fines from regulators (e.g.: CFTC fined Bitfinex $45 million due to series of illegal operations). Situations that are repeated due to the way Bitfinex issues and manages the USDT stablecoin.
The situation of little transparency and failure to follow regulatory recommendations and laws has led the company to stop operating in certain jurisdictions, as happened with its operations in the United States, Canada and even partially in the United Kingdom.
Bitfinex security flaws
Other problems within Bitfinex are related to the security of the exchange, along with that of its fiat funds and cryptocurrencies. In the past, Bitfinex has faced various security issues, including two notable hacks in which more than $70 million in cryptocurrency was lost..
Added to this are facts such as:
- Bitfinex does not have insurance against the theft of cryptocurrency funds. If you have a counterparty, 100% insurance of the fiat funds, through OpenPayd.
- Does not comply with certain business certifications (e.g. ISO 22301 for business continuity in the face of fortuitous events)
- Does not perform Proof of Reserves (PoR). In this case, Bitfinex indicates that it has executed them using the services of the Zodia company, but said information is not public and the information it has made public in this regard is outdated (it is 2 years old).
Poor accessibility
One of Bitfinex's strongest weaknesses is its poor accessibility. For example, its trading interface may seem extremely complex for traders who are just starting out in the sector. The same thing happens with the rest of its services, the same as in the report of New Crypto Standard from Cointelegraph Research. In this point, Bitfinex has been the lowest rated exchange of the 9 exchanges examined (getting a D in its rating).
At this point, topics such as access to user support, access to tools and usage guides, visualization of operational data, among other relevant aspects for a clear operation on the exchange, come into play.
This has led to Bitfinex users express their dissatisfaction with the exchange service, reporting difficulties in receiving timely and effective responses to their queries and problems. This lack of proper support can result in a frustrating experience for users who need assistance.
Bit2Me as a featured alternative
Given Bitfinex's obvious weaknesses, Bit2Me emerges as a prominent alternative that addresses these concerns effectively. And we do not say this without basis, the same New Crypto Standard report, in which Bitfinex is rated as the worst of the 9 exchanges examined, makes the superiority of the Bit2Me proposal very clear. Especially when it comes to offering its users a legally registered platform, with guarantees of operation, with extensive experience in the sector, with first-class services that are easy to use.
Added to this are facts such as:
- Services designed and adapted for you. Bit2Me offers a variety of services tailored to the different needs of its users. Do you want a secure crypto wallet? Bit2Me Wallet It is a perfect solution. Do you want to operate professionally with cryptocurrencies? Well, for you we have Bit2MePro with more than 100 cryptocurrency pairs (based on USD, USDT and EUR) so you can operate in an environment of total professional control. Do you want your cryptocurrencies to work for you? For this we have Bit2Me Earn in which you can stake more than 32 cryptocurrencies and thus generate rewards while you dedicate yourself to other matters, and you can withdraw your rewards and cryptocurrencies at any time. Are you an innovator and want to launch a project? Bit2Me Launchpad allows you to create an ICO, to obtain financing and make your project a reality. Do you want to have cryptocurrencies and spend them using a debit card? Bit2Me Card It allows you to enjoy that little pleasure. All of this in a carefully designed and integrated interface to make it easier for you to manage these products either from your PC or smartphone (Android or iOS).
- Robust security. Bit2Me in its more than 9 years of existence has never been hacked. At no time has Bit2Me lost a euro in both fiat and cryptocurrency from its users due to hacking. And it has achieved this by prioritizing the security of its users' funds above all, implementing advanced protection measures and maintaining a solid track record in terms of platform security.
- Total transparency. Another highlight of Bit2Me is its transparency in all operations and policies. To do this, Bit2Me provides its users and the general public with different data of interest so that they can verify the correct functioning of the exchange. Whether at a regulatory level, such as security (computer science, fiat funds and cryptocurrencies), as well as a complete library of knowledge for support and learning in the crypto sector (through the Support guide and its Bit2Me Academy). For example in Bit2Me Security You can see all our audits publicly.
- Clear and competitive rates. Another highlight of Bit2Me is that it offers a clear and competitive fee structure, avoiding hidden costs and providing users with a clear understanding of the expenses associated with their transactions.
- Quality customer service. Finally, Bit2Me also stands out for its strong emphasis on offering exceptional customer service, ensuring that users receive the necessary support in a timely and effective manner. With communication channels via social networks (X/Twitter), web, email, Telegram (non-administrative community) and telephone. All of this available in 8 languages (English, Spanish, French, Portuguese, German, Italian, Romanian, Polish, Bulgarian) so you can speak calmly with the team that will help you clear up all your doubts and solve any problem you may have.
In summary, considering Bitfinex's specific weaknesses in terms of security, transparency, fees and customer service, Bit2Me presents itself as the best alternative, providing users with a reliable, transparent and customer-centric platform to carry out cryptocurrency operations of safe and profitable way.
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