Bitfinex vs Poloniex - Find Out the Best One

Bitfinex vs Poloniex, which exchange is best for you? How do you know? Choosing an exchange to trade on can be quite tedious and frustrating, but it is very important to choose the right one. Hence, a good detailed comparison can help you see which exchange best suits your needs. Poloniex vs Bitfinex are both in the list of the top 20 most popular crypto exchanges according to daily trade volume. However, the two platforms are designed for two different audiences. Bitfinex caters to serious traders more and accepts fiat as well as a selected number of cryptocurrencies. Whereas Poloniex is a crypto-only exchange that offers a wide range of altcoins. Let's dig a little deeper into the details of both exchanges.

Poloniex

Poloniex is a crypto-only exchange that was launched in 2014. The exchange is based in Wilmington, Delaware. As it is a crypto-only exchange that does not support any fiat currency, it compensates for that by offering a range of altcoins to trade. Back in 2017, Poloniex was one of the top cryptocurrency exchanges in the world by trade volume. However, due to security issues and certain concerns raised by users, it is now ranking much lower.

Bitfinex

Bitfinex is a cryptocurrency exchange that was launched first in 2012 and is considered one of the oldest exchanges, call it ‘vintage’. Different from Poloniex, this exchange accepted fiat currency as well as crypto and is designed for serious and experienced traders. Bitfinex is based in Hong Kong as well as Taiwan. Just like Poloniex, Bitfinex has also faced issues with security and was affected negatively by it as well.

Bitfinex vs Poloniex – Main Features and Interface

The Poloniex user interface is rather innate and user-friendly. Beginner traders would really appreciate the simplicity of the Poloniex Dashboard. Most of the important information is available on the main page of Poloniex. However, the trading part of it is quite straightforward on the user interface. Nevertheless, comparing it to other exchanges, it may be considered cluttered, and the dull color scheme doesn’t help much either. The Bitfinex User Interface, on the other hand, has a sleeker finish with a darker color scheme that suits “serious traders”. At first glance, the UI looks a bit clattered, but if one looks with the intent, they will find the information suitable for them. One thing that is great and unique about the Bitfinex dashboard is the option to customize it to your liking.

How Safe are these Exchanges?

Poloniex has had a rough ride when it comes to the safety of its platform. With regards to the user experience, there have been security issues raised that include; frozen accounts, lengthy withdrawals that take weeks even months to be completed, and missing funds. Even though these security issues were resolved, the Poloniex name in this regard was severely tarnished. Bitfinex has had its fair share of security issues as well. After two notable hacks that have occurred, Bitfinex strives to make its platform as secure as possible for the users by implementing several of the security measures used by leading exchanges. The exchange makes sure to secure users' funds by keeping most of the funds in Cold storage and having about 0.5% of the crypto assets available in hot wallets. There are also several verification tools that monitor any changes in the account’s activity. Another great security measure that Bitfinex has put in place is database encryption and duplication as well as DDoS protection which prevents trading being ceased by external influence.

The Currencies Supported by Each Exchange

Bitfinex currently has 72 market pairs which are linked to these four base currencies; EUR, USD, ETH, and BTC. As the site supports fiat currencies and the purchase of two of the top cryptocurrencies, there are many more currencies that are available for trading. The other currencies are available for trading include; BCH, LTC, DASH, ETC, XMR, XRP, EOS, OMG, NEO, ZRX, and ZEC. Bitfinex always strives to add more options for traders by increasing the number of coins and hence there are constantly new additions on the site. Therefore, they have made an overview available of each coin on the site and checking the site frequently is necessary in order to stay updated on any new additions. Poloniex, on the other hand, does not accept any Fiat currency, so the only way you can make a deposit is in digital currency. Therefore, a close alternative to fiat currency is Tether USD, which USD placed on the blockchain; other than that, one has to go through a platform that accepts fiat to convert it to cryptocurrency and then make their deposit. Nevertheless, the site does provide quite a wide range of cryptocurrencies including;

• Bitcoin (BTC)
• Dash (DASH)
• Litecoin (LTC)
• Ethereum (ETH)
• Zcash (ZEC)
• Monero (XMR)

As well as more than 80 other cryptocurrencies for traders to enjoy on Poloniex. 

Bitfinex vs Poloniex – Fees and Charges

Bitfinex is a cryptocurrency trading platform, and therefore trading fees are inevitable. The fee charges vary depending on the amount that is being traded as well as if the user is a ‘taker’ or a ‘maker’ of the particular trade. For the maker, the fees are from 0.1% to 0.0%, and the taker's fees range from 0.2% to 0.055% depending on the trade volume as of the last 30 days. Poloniex also uses the same industry-standard maker/taker model. The maker/taker system supposedly boosts liquidity which is something Poloniex values as it supports more than 80 unique altcoins. The sites maximum and minimum fees are 0.25% and 0.05% respectively. There are no fee charges on withdrawals and deposits on Poloniex.

Customer Support

The Bitfinex support team is available for users via email 24/7. The time for answering any queries is 12 hours plus. However, there is a section made available by the site that deals with answering the most pressing issues as well as a question and answer section that will help tremendously. For Poloniex, customer support service is one of its major strengths. The team is readily available through an email ticket system, the response may be a bit lengthy, but the questions are precisely answered. Nonetheless, an FAQ is available that covers most of the basic questions.

Conclusion 

After comparing the two sites, we can see that they both have their shortcomings, but they also have strengths that cater to their target trader. For an experienced Crypto trader, Bitfinex is the go-to exchange. When it comes to usability, Poloniex is the go-to crypto-to-crypto exchange, especially for beginners. With all the above mentioned, I am sure you have enough information to choose wisely, I hope this article has helped you. Happy trading!