DigiFinex Review

With the rapid growth that the cryptocurrency market has seen over the last decade, it is no surprise that numerous exchanges have emerged, aiming to offer users a wide array of investment options and tools. However, it can be challenging to determine which services are the most reputable and worthwhile. Through my DigiFinex review, I aim to add clarity to this situation by explaining how this service fits within this sector.

Typically, many newcomers gravitate towards well-known exchanges in the market, such as Coinbase, Kraken, and Binance. While these are undoubtedly great choices, they should not overshadow the existence of other platforms that significantly impact this space, like the DigiFinex exchange.

Like many of its competitors, DigiFinex is vying to offer a comprehensive suite of tools for its user base, including spot and derivative exchanges, coupled with wealth management and growth utilities, and even a crypto card. On the surface, it appears that it could be in the running to be a top platform within this industry. But let's put these elements under the microscope to see if this is true.

What is DigiFinex?

Before unveiling the pros and cons in my DigiFinex review, let's take a look at the company itself and ask, "what is DigiFinex?". Fundamentally, it's a crypto exchange offering a variety of trading tools and options. These include spot, margin, ETF, margined, and futures trading. However, this only begins to reveal the full extent of what DigiFinex exchange is striving to achieve.

Upon further exploration of the platform, you'll notice that it provides cloud mining opportunities, offers loans, assists in launching new projects, and initiates interactive games/activities that can lead to bonuses. In essence, it seems to be a fully-fledged crypto ecosystem. The idea of building a comprehensive suite of tools has gained significant traction in this industry over the years, with many companies striving to offer as much as they can to their user base.

The overarching goal is to establish an interconnected project that ensures users never need to leave the platform to perform actions elsewhere, offering convenience to customers while increasing the amount of activity on the company side. This vision appears to be prevalent in my DigiFinex review, as the platform is evidently invested in being a one-stop-shop for a vast array of crypto enthusiasts.

It is a centralized (or CeFi) company, meaning that it holds custodial control over people's money. This also implies that while it operates with blockchain technologies and cryptocurrencies, its underlying architecture isn't dramatically different from a traditional financial company or institution. This point is vital to note for anyone venturing into the crypto space, as understanding whether you're dealing with centralized or decentralized activity can change how you engage with the network.

In general, DigiFinex was been operating for over 6 years now - that's a decent amount of time for a crypto exchange service to find its footing in the industry. It has over 700 different coins & tokens listed, which is actually a huge number, and the daily trading volumes on the exchange reach several billion USD. That's nothing to scoff at!

DigiFinex Review: PROs

Now that we have explored the question of "what is DigiFinex?", let's delve fully into my DigiFinex review by analyzing its strengths. These naturally present a positive perspective on the platform, which can be an excellent way to familiarize yourself with any company or service that you have never used before.

Wide Range of Trading Options

The ideal place to begin the discussion on the pros of this DigiFinex review is by assessing the extensive selection of trading options on offer. To begin with, it provides spot trading, which is often a standard feature with most exchanges and is overlooked by many investors. However, in addition to this, the DigiFinex exchange offers margin and ETF trading. All three of these options have relatively similar interfaces, which is beneficial for individuals who may be accustomed to one but wish to try the others.

For all three, the charts used are highly customizable, allowing users to set time parameters down to minute-by-minute differences. This is ideal for day traders who need to monitor market changes at a granular level. Plus, a wide range of indicators can be chosen and added for enhanced precision. Novice traders may not care about these, but for experienced professionals, they can be invaluable. There is even TradingView integration for those seeking additional modifications.

If spot, margin, and ETFs don't interest you, the DigiFinex exchange also provides perpetual tools, such as USDT margined and coin margined activities. These have a slightly different interface, but a highly informative and useful one nonetheless.

For individuals who might be looking for something less interactive and more social, it's worth noting in this DigiFinex exchange review that a copy trading community is directly integrated into the platform. Users can choose to sync their investment activities with others (or bots) who have proven track records of success. Alternatively, they can even decide to broadcast their own market movements and let others learn from them.

DigiFinex allows you to filter individuals by their 7-day win rate or their 3-week win rate. User profiles also display the assets they typically deal with, as well as the number of trades they've made over a set period of time. For complete beginners, copy trading can be an excellent way to learn the ropes when it comes to the crypto markets, as well as a means to be active in the space without dedicating the same time and attention required when trading solo.

Wealth Management Tools

A significant aspect of this DigiFinex review is that the company offers a collection of wealth management tools. Generally, these are dashboards and protocols that help people assess their financial health in the market, enabling them to make more informed and safe choices. Alternatively, they may be focused more on providing methods for growing a user's funds in a setting that is usually less risky than direct trading.

My DigiFinex exchange review focuses more on the latter, as the company provides financial plans similar to savings accounts, as well as offering crypto loans to its user base. For its savings-style accounts, it offers a 10% APR for USDT, and 5% for BTC and ETH. Alongside this, it provides fixed-term and fixed-rate investment plans designed to yield stable returns.

Additionally, it offers more advanced plans that are managed and overseen by its dedicated asset management team. These plans promise higher rewards, potentially reaching up to 50% APR — although, there's a significant caveat. The higher the potential rewards, the greater the associated risks. In other words, plans like these are not for the faint of heart, and despite being handled by extremely knowledgeable individuals, they are not without financial pitfalls.

Regarding lending, it should be noted in this DigiFinex exchange review that it's possible to receive large-scale crypto loans with daily interest rates as low as 0.02%. Of course, not every loan provided will carry such a small rate, but with the right settings, this percentage can be achieved. Additionally, there are no fees associated with these loans.

As long as you're registered on the site and have completed all the necessary KYC and AML verification checks, loans can be issued very quickly. These are considered a type of wealth management tool as they allow people who may struggle with cash flow to keep their finances afloat during times of hardship.

Loan terms range from 7 days up to 60 days. This means they are considered short-to-mid-term in duration. This makes them ideal for individuals looking for a quick cash injection to help them through rough times, or to secure a more substantial trading position.

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Audited Proof of Reserves

When trying to answer questions such as "is DigiFinex safe?", it's important to consider whether the platform is transparent and trustworthy in its operations. In this post-FTX era of the crypto world, transparency is more desired and necessary than ever before. People are naturally more skeptical of exchanges than they have been in the past, and the best way to mend the relationship between the consumer and the company is to be as honest and forthright as possible.

For this reason, my DigiFinex exchange review emphasizes the fact that the company publishes and regularly updates its proof of reserve data. This is a concept in the cryptocurrency world where a platform demonstrates that it holds enough cryptocurrency reserves to cover the balances of its customers. The idea emerged as a response to concerns about the solvency of cryptocurrency exchanges and other platforms that hold users' digital assets.

With a Proof of Reserves audit, an exchange or platform can prove to their users that they possess enough assets to cover all of their obligations. This can be a critical part of establishing trust in the platform, especially considering the history of hacks and insolvencies in the crypto industry, such as the infamous Mt. Gox and FTX incidents.

In the case of DigiFinex, the platform pledges to maintain a minimum ratio of 1:1 to the total assets of all its users. This means that the company commits to maintaining a balance of their own funds (reserves) that is equal to or greater than the total value of all the assets the users have on the platform.

This is particularly important in the cryptocurrency world, where some platforms operate on fractional reserves, meaning they do not have enough funds on hand to cover the full value of all customer deposits. Projects operating in this way can succumb to significant issues if a large number of their user base tries to withdraw their money all at once, as they would not have enough reserves to fulfill the demand.

My DigiFinex review, however, makes it clear that this company would not run into such problematic behavior. At the time of writing, its BTC and ETH reserves collateral rate is at 101%, and its USDT reserves are at 102%. The fact that these are all slightly over 100% is good news as it implies that mass withdrawals would not hinder their operations as they would still have some money in their funds left over.

Currently, DigiFinex handles its proof of reserves in-house, meaning they themselves are keeping a watchful eye over their funds. Typically, this would raise some eyebrows and refocus people's attention onto the question "Is DigiFinex safe?". However, the company is very open about the fact that they are in the process of seeking an independent auditor to check over their numbers and ensure their statistics are genuine and legitimate.

DigiFinex Card

The most exciting part of this DigiFinex review is that the company issues its own cards. To be more specific, these are USDT-denominated cards, powered by VISA, offering high limits. Traders can link these cards to their DigiFinex accounts and use their crypto in stores, both online and in-person, that typically only accept fiat. This is made possible because the act of transacting with the card triggers a conversion to fiat.

In other words, this process is automatic, so you, as an end user, do not need to perform the switch yourself. The transaction cap for this card is high, to the point where there is no spending limit. The card currently only supports USDT, although support for other assets is planned for the near future.

What makes cards like this so revolutionary is that they encourage people to use crypto for more than just trading and investing– they stimulate practical buying and spending by aligning with how people typically use their traditional credit and debit cards.

There are neither annual fees nor transaction fees when using the card. However, be aware that there are issuance and top-up fees. That being said, if your total top-up amount reaches $10,000 or higher, then the issuance fee is reimbursed to your DigiFinex account. For seasoned traders who work with large amounts of money, this is great as it demonstrates that the platform aims to return funds and not unduly squeeze its customer base for cash.

Cloud Mining

An important element of this DigiFinex review is that the company offers cloud mining utilities. This is where a platform allows its users to engage in mining without having to own any hardware whatsoever. The company itself handles the technical elements, and the consumer simply powers this remotely via their own funds or activity. They do not deal with any of the complexities of the process.

Some companies let you partake in cloud mining by simply engaging with the platform, depositing assets, or trading within the platform. The DigiFinex exchange operates similarly to this, although they give their users more control over the process by letting them pick their desired hashrate and deposit funds for electricity costs. It sounds complicated, but realistically all you would need to do is send a certain amount of money over to the exchange and have them take care of the rest.

This might lead some people to ask, "Is DigiFinex safe when it comes to mining?". It is natural to ask this, as it is a highly custodial service that they are offering, where you must place a significant amount of trust in the company itself to make all the appropriate decisions. However, the fact that you have some autonomy over how much you invest in the mining itself should offer some solace, as it lets you maintain control in a significant way.

Along with this, DigiFinex offers merged mining. This is where users can work with multiple blockchains to mine cryptocurrency. This is essentially a type of cloud mining where someone else looks after the complexities. While these services are becoming more commonplace, it is rare to come across a platform that offers mining capabilities for a range of blockchains, combined with a simple interface.

At the time when I was conducting this DigiFinex review, there were two merged mining options available on their hashrate market. One that was set at a contract price of 37 USDT, and one set at 3500 USDT. These two rates are great as they allow for decent entry points for both wealthier users and beginners who may just want to experiment with the service itself.

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DigiFinex Review: CONs

Of course, no DigiFinex review would be complete or suitable without casting a critical eye towards its limitations and negatives. These are elements that are perhaps undesirable, but nevertheless necessary to assess if traders are going to embark on using it.

No DigiFinex USA Support

Sadly, there is no DigiFinex USA available at the moment. This means that US citizens cannot engage with the platform or partake in any of its features. While the company is operational in many parts of the world, it appears that this is one location they are yet to expand into.

This is, of course, frustrating to hear, as the US has a consistently growing cryptocurrency user base. Considering the range of features and tools it offers, there are bound to be people who are disappointed by this revelation. However, make no mistake, DigiFinex still supports USD deposits and works with USDT. This may seem misleading, but in truth, this is a common practice even for companies that are not US-operational.

The reason is that the US dollar is often considered a global standard when it comes to fiat. With America still being considered a superpower, and with many countries outside of the States working with USD, it makes sense to build an infrastructure that can facilitate it.

It is hard to say with certainty within this DigiFinex review why they have decided to disallow US residents, but oftentimes companies feel anxious about the unclear rules and regulations when it comes to cryptocurrency within the country. When even corporations that have managed to become publicly listed, such as Coinbase, come under fire by the US Securities and Exchange Commission, it can create an atmosphere of unease and discomfort for smaller companies.

Relatively High Fees

No DigiFinex review, or any exchange review for that matter, would be complete without some discussion on their fees. When it comes to this company's spot fees, they are relatively high compared to some of their competitors. For spot trading, a regular user (someone with a trading volume of below 100,000 USDT) will find their maker fees are 0.15% and their taker fees are at 0.2%. Compared to Binance, whose maker and taker fees are set to 0.1% for spot traders, this can be disappointing.

For margin trading, DigiFinex's fees are set to 0.1% for makers and 0.2% for takers. Binance's maker and taker fees for margins are both at 0.1%, so this is slightly better for DigiFinex, but still somewhat high for takers. You could argue that their fees are competitive, but when you consider the simple fact that this company is not a household name, they really need to prove why exactly they are better than the top-tier platforms on the market.

For any underdog exchange, which essentially includes most platforms that are still making a name for themselves, they should be working hard to convince crypto enthusiasts to work with them, rather than their more well-established counterparts. For some traders, it does not matter how many features and tools you offer if you cannot provide them with a good enough deal. In other words, this is bound to turn some people away.

Card Limitations

One of the DigiFinex exchange's most sought-after features is its offer of a dedicated card, as mentioned earlier. While there are many benefits to this card, there are also some glaring issues with it. For starters, despite the fact it was referred to as a "credit card" on its older landing page, when digging through its FAQs, you will find that this is not exactly the case.

DigiFinex states that "since [a] credit score system is not yet available in the crypto ecosystem, your 'credit score' with us is the value of USDT you top up. Nonetheless, functionalities such as pre-authorization for travel reservations, payment integrations with Google Pay are still available and convenient, just like a traditional credit card." While there is nothing inherently wrong with these limitations being attached to a card, it is troublesome that they would call it a credit card at the top of their landing page.

While it does function and operate similarly to a credit card, there are bound to be people who will expect it to have a traditional credit utility involved. In reality, it works more like a debit card or prepaid card.

For many people, this distinction might not matter, but it creates some major limitations that are bound to frustrate certain users. You cannot use this card to build a credit score, and purchases made on it will not be covered by the same consumer protection laws that come attached to credit cards.

How to Sign Up to DigiFinex

Let’s round off this DigiFinex review by taking a look at how the sign-up process works. This is relatively straightforward, but remember that with no DigiFinex USA support, this step will not be relevant for people within that country. If you fall into this group of individuals, your best bet is to look at alternative exchange platforms.

Step 1: Head to the DigiFinex homepage. At the top, on the right, click the “Sign Up” button.

Step 2: A new page will open where you can sign up with your email or phone number. For this demonstration, I will be using my email address.

Step 3: After entering your email, a verification puzzle will appear. Complete this, and it will trigger an email to be sent to you containing a numerical code.

Step 4: Enter this code. Afterwards, click “Activate Account” at the bottom of the page.

Your account has now been created. Note, however, that this does not mean you are fully verified. To engage in the verification process, you will need an ID, some documentation that proves your residency, and to pass a liveness check (which typically involves some sort of camera test to show you are a real person).

Pros

• Very low trading fees
• Exceptional functionality
• Mobile trading app

Main Features

• Very competitive trading fees
• An intuitive mobile app
• Up to 100x leverage available

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Pros

• A very well-known crypto exchange platform
• More than 500 different cryptos available
• Two-factor authentication

Main Features

• Over 500 different cryptocurrencies available
• Strong security
• Small withdrawal fees

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Pros

• Fully reserved and transparent
• Multiple tradable asset classes
• Early new token support

Main Features

• 265 supports cryptocurrencies
• Secure & transparent
• Fully reserved

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Conclusions

In this DigiFinex review, I've covered a variety of areas, such as fees, trading tools and instruments, its prepaid card, and wealth management protocols. It is clear to see that this is a well-rounded and genuine crypto ecosystem that is working hard to offer a wide variety of utilities to its clients. It is making a meaningful effort to stand out from the crowd and offer a great range of tools. In other words, it is fair to say that this has helped to answer the question "What is DigiFinex?".

That being said, it does have some glaring faults. Its lack of DigiFinex USA support, misleading information about its card, and inability to match the fees of leading competitors such as Binance are bound to leave many people feeling dismayed and frustrated. To some extent, as long as you are not a North American citizen, these could be seen as relatively negligible issues that can be ignored. However, this will depend on what you want in an exchange and how severely you, on a personal level, see these problems.

The best thing to do after reading my DigiFinex review is to try the service out for yourself so that you can add context to the discussion instigated here. If you are a seasoned trader, you may be very impressed with the features on offer, and depending on how much money you are moving, you may not mind their fee structure.

That being said, do make sure to check out some alternative exchange platforms, especially if you're looking for a reliable service provider in the US!

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.