A growing number of consumers long to dabble in the cryptocurrency sphere. But they're not sure where or how to get started. Are you among this group?
If so, you may feel overwhelmed by the number of different platforms on the market today. While having many choices comes with distinct advantages, it can also lead to decision paralysis.
Take, for example, Bitfinex vs Crypto.com. Both companies come with excellent reputations and years of experience in the industry. But which one's right for you? Keep reading for our breakdown of the differences between Bitfinex and Crypto.com.
What Is Bitfinex?
A digital asset trading platform, Bitfinex offers users cutting-edge services as global liquidity providers and digital currency traders. One of the first professional platforms to cater to crypto trading, the company started in 2012.
Besides providing users with a suite of advanced trading features and charting tools, the company offers six different core products that we'll delve into later. It's also worth noting that iFinex Financial Technologies Limited supports Bitfinex's derivatives platform.
Why Customers Love Bitfinex
Bitfinex includes six core products that traders and investors appreciate. They include:
- Exchange trading
- Margin trading
- Margin funding
- Over the counter market (OTC)
- Derivatives
- Paper trading
With exchange trading, customers gain access to trade, deposit, and withdraw digital tokens. Qualified users may trade up to 10x leverage with financing provided by the company's peer-to-peer (P2P) financing and margin trading platform.
The company's P2P financing market offers users a way to earn interest on digital assets by lending their cryptos to other customers who want to trade with leverage. The company also provides a private OTC market for traders who'd like to perform large trades with a counterparty directly.
Customers also gain access to derivatives trading with a maximum leverage of 100x, and its paper trading function lets users test tokens before making any real deposits.
Bitfinex Fees
Bitfinex charges trading fees for takers of 0.20 percent, which falls just below the industry standard of 0.25 percent. The company offers a discounted rate of 0.10 percent for maker fees, promoting the exchange's liquidity.
If you regularly trade with Bitfienx, you'll gain access to trading fee discounts, but gaining access to this feature requires reaching an aggregate value of $0.5 million in 30 days, which means these discounts aren't readily available to just anyone. Find out more about the company in our Bitfinex review.
Bitfinex Security
You'll enjoy multiple layers of security when using Bitfinex. They include knowing the company stores approximately 99.5 percent of its customers' funds in cold wallets.
What else does Bitfinex do to ensure the safety of the platform? The platform relies on encrypted user password storage, daily encrypted database backups to multiple locations off-site, and up-to-date Linux systems to host the platform.
What Is Crypto.com?
A cryptocurrency and payment platform, the widespread adoption of digital currencies. It provides users with a wide range of crypto services. For this reason, many people consider it a genuine digital currency one-stop-shop.
Headquartered in Hong Kong, Crypto.com is lead by Kris Marszalek, a seasoned entrepreneur. He works in tandem with the company's three other co-founders to provide users with an excellent, secure experience.
These three co-founders are:
- Rafael Melo, CFO
- Gary Or, CTO
- Bobby Bao, Head of Corporate Development
Crypto.com started gaining momentum in early 2017 but was initially known as Monaco. In June of that year, it raised $26.7 million in an initial coin offering (ICO). At the time of the ICO, investment prices averaged $2.89/MCO.
Besides the four founders at the helm of Crypto.com, the company employs a vibrant team of blockchain and crypto enthusiasts, many of whom came from Ensogo. Why does this matter? Because some have asserted Ensogo closed due to unstable cash management.
Rumors also swirled about Ensogo's inability to deliver on promised rewards and flash sales. Although this led to initial skepticism about Crypto.com, the company has worked hard to forge a trustworthy reputation.
Read our detailed review: Crypto.com Review: Pros and Cons. Is Crypto.com safe?
Why Customer Love Crypto.com
Why do customers keep coming back to Crypto.com? They appreciate the platform's focus on supported assets as well as many compelling features. Crypto.com facilitates all of the following:
- Buying and selling cryptocurrencies
- Sending funds to other Crypto.com users
- Using a crypto wallet
- Earning interest on your crypto through staking
- Using their convenient, crypto-fueled CRO Visa card
- Using the site's native coin, CRO, for interest yields of 20x
You can find out more about the services provided by the company in our Crypto.com review. Let's take a closer look at another compelling feature of the company, super-low fees.
Crypto.com Fees
Crypto.com's complex fee structure relies on a maker/taker model, common to many other exchanges, along with trading volume considerations. Maker fees may range from 0.036 to 0.10 percent based on your 30-day trading volume. Taker fees fall between 0.090 and 0.16 percent. That said, it's hard to make generalizations about these fees.
Why? Because other factors also come into play. For example, your minimum and maximum withdrawal fees will also be stipulated by the type of crypto you're using. You can find out more about the platform's sophisticated fee structure here.
Crypto.com Security
Crypto.com takes vital steps to protect your digital assets. That said, you won't enjoy the same security that you would with a traditional bank account.
After all, traditional bank accounts get backed by FDIC or SIPC insurance. But you won't find this with crypto exchanges. What's more, you must bear in mind that Crypto.com remains based in Hong Kong rather than the US, which comes with different regulations.
If you're the kind of person who wants to speak to a live person, Crypto.com may not be right for you. You won't find a mailing address or phone number on the website, which could prove frustrating when you need to talk to someone.
Compare with the best alternative exchanges
| Exchange | ||
|---|---|---|
| Nexo | Best overall crypto lending platform. | Go to site → |
| CoinLoan | Best for crypto loan borrowers. | Go to site → |
| YouHodler | Most versatile crypto lending platform. | Go to site → |
| Bit.com | Best crypto derivatives platform. | Go to site → |
| Matrixport | Best for institutional investors. | Go to site → |
| Gemini | Best crypto exchange for U.S. investors. | Go to site → |
| Binance | Best overall crypto exchange. | Go to site → |
| Kraken | Best U.S. crypto exchange for advanced traders. | Go to site → |
Bitfinex vs Crypto.com: The Takeaway
When exploring Bitfinex vs Crypto.com, you'll find both platforms come with many advantages. Each company takes security seriously and has significant business experience to draw from. That said, Bitfinex outperforms Crypto.com when it comes to the length of time in operation.
Bitfinex has also avoided a blemished reputation, unlike Crypto.com, which still operates under the shadow of Ensogo. But both exchanges offer low rates, although you stand to get a better deal with Crypto.com. Nevertheless, Crypto.com's fee structure proves complex and difficult to grasp.
Last but not least, Crypto.com's CRO Visa card proves highly convenient and tough to beat. Before deciding which platform's right for you, check out our comprehensive list of crypto platforms.