Coinbase vs Bitfinex: Cryptocurrency Exchange Comparison

Many finance experts believe that cryptocurrencies are the future of payments. After all, their penetration rate increases with each passing day and the number of companies and individuals that are starting to trade with them is vast.

Moreover, El Salvador even legalized Bitcoin in the world’s first, which is a major step forward for the crypto world. The success that these digital assets had in 2021 was amazing and it is the main reason why thousands of people are now looking to register at exchange platforms to start their trading journey.

Here, we decided to square off two reputable sites of that character and see which one comes out on top. Below, we’ve compared Coinbase and Bitfinex.

Introducing the Exchanges

Coinbase

Coinbase is an American-based cryptocurrency exchange platform that was established in 2012. Thanks to its massive availability, customer approach, as well as security, this platform managed to climb to the top and become one of the most reputable crypto trading sites globally.

There are plenty of unique products that this company offers, with Coinbase Pro and Coinbase Wallet being some of them. We’ll also take a look at them later on in this comparison. As a reputable platform, Coinbase only deals with a handful of cryptocurrencies – Bitcoin, Ethereum, Litecoin, Bitcoin Cash, USD Coin, Dai, and Dogecoin.

The good thing about registering and trading with Coinbase is the fact that the fees are below the market average, hence, you don’t have to worry about losing a lot of money while trading your favourite crypto on this site.

Coinbase’s accepted deposit and withdrawal methods are bank accounts, wire transfers, and of course – cryptocurrencies. PayPal is also accepted and Coinbase operates in around 30 countries around the world.

Pros

  • Massive security
  • Easy to use
  • Accepts the most popular cryptocurrencies
  • Huge reputation

Cons

  • Not available in many countries
  • Customer Support is subject to many negative reviews

Bitfinex

On the other hand, we have Bitfinex, an exchange platform that is owned by iFinex Inc. and whose API allows you to fully integrate your products and platforms. Moreover, it is known for having advanced tools that will help professionals have the best trading experience on the market and ensure the best results possible.

Ever since its establishment in 2012, Bitfinex has always pushed the limits in technological innovation and digital asset trading. Thanks to its mobile app, you can rest assured knowing that you can trade on your iOS or Android device at any time and place, just as long as you stay connected to the Internet.

The fees at Bitfinex are relatively low and they are based on the monthly trading volume. Withdrawal fees at this platform depend on the chosen method. Bank/wire transfers come with a 0.1% fee, while express bank transfers come with a 1% fee. As for cryptocurrency withdrawals, the fees also vary, depending on which crypto you have chosen.

According to statistics, Bitfinex focuses a lot on security and 99.5% of all the funds that are possessed by its clients are stored in cold storage. The well-known Universal 2nd Factor Authentication (U2F) can also be used by traders to increase their overall security at this platform. There are countless accepted cryptocurrencies at Bitfinex, including the most popular ones – Bitcoin, Ethereum, USDT, Litecoin, Ripple, and Dogecoin.

Pros

  • Mobile app for iOS and Android users
  • Numerous available trading tools
  • Many accepted cryptocurrencies
  • Low fees

Cons

  • Complicated for novice traders
  • Only a handful of accepted fiat currencies

Coinbase vs Bitfinex: The Face-Off

Let’s start with the number of accepted cryptocurrencies. This is one of the biggest flaws that Coinbase has as it only accepts 7 of these digital assets. On the other side, Bitfinex accepts numerous cryptocurrencies which means that traders will be provided with more flexible solutions.

In terms of the fees, Coinbase’s fees vary between 0.5% and 4.5%, whereas the fees at Bitfinex are much lower and are around 0.4%. This is another section in which Bitfinex comes out on top.

However, the tables are turned when we take ease of use into consideration. Since Bitfinex is focused on professionals, it has tons of trading tools that may provide you with more information, which is good, but to an extent. The large number of tools also makes it far more complicated than Coinbase and not a good choice for novice traders.

Finally, when we check the security, both operators are making sure that their registered traders are safe, but Coinbase has a slight advantage. There are statistics of Bitfinex suffering hacks, whereas Coinbase is perfectly secure and even has its own e-wallet where traders can store their digital assets without worrying about being compromised.

Standout Features

Let’s start with Coinbase’s standout features as there are quite a few to name. The aforementioned Coinbase Wallet allows you to store your cryptocurrencies and NFT without requiring you to register an account with the exchange. It is optimized for mobile and desktop use and is very secure.

Coinbase Pro is yet another standout feature designed for traders that are looking to get extra insight into the market. This tool supports more cryptocurrencies and has a lot of trading tools that will help you achieve great success with your digital assets.

Finally, Coinbase Card is an upcoming feature of this exchange that will provide traders with fast transactions and cashbacks. Moreover, its users will escape annual fees.

As for Bitfinex, its biggest standout feature are its trading tools. Thanks to them, professionals can rest assured knowing that they will be provided with the most comprehensive service; one that will increase their chances of making a profit.

Its mobile app is also worthy of mention as it makes trading extremely accessible. Registered traders can download it on their iOS or Android devices and be provide with on-the-go trading services. Finally, the fees at this trading platform are significantly lower than many of its competitors, which is one of the main reasons why traders are looking to register here. The number of accepted cryptocurrencies on this platform is extremely vast, as well.

Conclusion

Each trading platform specializes in its own field. In some areas, Coinbase takes the lead, but there are features where Bitfinex comes out on top. Thanks to the fact that these two exchanges have been present on the market for almost a decade, they can easily identify the needs of their targeted traders and do everything they can to meet or exceed their expectations while maintaining their security.

When you are looking to register at any of these platforms, be sure to take your individual preferences into account as they will help you make the best choice and start your trading journey successfully. With that being said, below, we’ve listed some of the reasons why you should choose any of the two exchanges.

  • You should use Coinbase if:
  • You want to trade with the most popular cryptocurrencies
  • Are a novice trader
  • Want to be secure at all times
  • Be flexible with your options
  • You should use Bitfinex if:
  • You want to trade with many cryptocurrencies
  • Like to be provided with detailed charts and graphs
  • Want mobile access at any time and place
  • Are a professional trader
Michael Hughes