DigiFinex is this a scam? Review and Customers Reviews

DigiFinex – it’s a major cryptocurrency exchange whose platform hosts almost 200 altcoins, and the average daily trading volume reaches almost two billion dollars. DigiFinex is one of the largest exchanges in Asia, yet unknown in Russia. Let’s find out what this exchange offers, whether it can be trusted and whether digifinex.com is a scam?

 

Why DigiFinex?

The cryptocurrency exchange DigiFinex was launched in 2018. The founders of the project are Ned Kee and Kiana Shek. The startup received venture capital investment from Chinese tech companies like Tencent, Baidu and Xunlei. The exchange focuses on the Asian market, attracting investors from China, Hong Kong, South Korea and Vietnam. At the same time, DigiFinex has registered with the Monetary Authority of Singapore, but does not yet open accounts for residents of this state.

Despite the Asian way of development, the exchange has Russian. However, the quality of translation is poor. Many pages are translated by machine translation, or are not adapted at all. The exchange shows excellent growth rates – by the middle of 2020, the daily turnover on the platform exceeded one billion U.S. dollars. In addition to Bitcoin, there are 197 altcoins traded. Together they form 294 trading pairs. The most popular direction for transactions remains BTC/USDT. This pair accounts for 15 percent of the total volume. The most “popular” crypto on the exchange is Tether. Pairs with this stabelcoin occupy 92% of the entire trading balance. Transactions with Bitcoin are in second place, with about seven percent. Ethereum is in third place, but as a percentage, it’s crumbs – 0.6% of trades. DigiFinex is quickly listing tokens from new DeFi projects. This helps attract customers and build trading volume.

The exchange has its own coin – DigiFinexToken DFT. But this altcoin is of technical value and is poorly represented in trading. The volume of transactions on DFT, if we evaluate the indexed trading floors – 400,000 USD per day. The capitalization is unknown. The main priority of the exchange management calls safety. To this end, DigiFinex has introduced a scalable asset storage system. Clients’ cryptocurrency holdings are placed on autonomous, “cold” wallets. And the highly liquid part is stored in tiered “hot” vaults.

Investments

In addition to the trading terminal with the ability to cryptocurrency exchangeThe main product of this exchange is the China A50. The main product of the ETF section is the China A50. It is an index fund traded on a blockchain within the exchange. The underlying asset is the A50 index of the Shanghai Stock Exchange.

In fact, it is a full-fledged stock market instrument transferred to a cryptocurrency platform. The quote currency is Tether USDT. Shanghai Exchange itself operates in yuan, so investors should take into account changes in currency quotes. The A300 and A500 products, also listed on DigiFinex, operate on a similar principle. Only there the basic basket of shares is expanded, in accordance with the A300 SSE and A500 SSE indices.

Also in the ETF section are BTC3L and BTC3S quotes. These are not really ETFs, but rather structured products built around Bitcoin quotes. BTC3L stands for Bitcoin 3 Long, that is, a long position on Bitcoin with three times the leverage. BTC3S, respectively, is a short position with x3 leverage. Using leverage in a contract allows you to triple the potential profit with the right timing for the transaction. But such instruments are associated with a high level of risk. That’s why we don’t recommend them for beginners.

In the Wealth section, the company’s clients can transfer funds for management to several available funds. Each fund is managed by DigiFinex traders, as well as by third-party managers. There are many funds, each of them has its own strategy, target return and possible set of assets. Note that no earnings guarantees are given here. This is also a high risk investment. The exchange also has a derivatives trading section, margin transactions and the ability to buy cryptocurrencies off-exchange, on a P2P basis. These features will not surprise modern traders – it is present at all major exchanges. But DF products are still noteworthy (How to Make Money on Cryptocurrency?).

 

How to exchange cryptocurrency on DigiFinex platform?

A simple way to exchange on DigiFinex is to open an order on the exchange. This can be done in the Basic Spot section by going there from the main menu of the site digifinex.com. In the left menu, the client can choose the crypto-pair he is interested in. For example, BTC/USDT or XRP/ETH. Trading pairs are sorted by currencies, and clicking on it opens a chart for the asset. Let’s show the process using Ripple/Ethereum as an example. By selecting a pair from the list on the left, we will open a chart. It is provided by the service TradingView. This means that it contains all popular indicators and traders can use them to analyze quotes. The Order Book is located on the right. This list shows what buy and sell offers are currently available on the exchange. There you can see “extreme prices” – realistic maximum and minimum values for a transaction.

There is an order form below the chart. To exchange, you will have to fill in these lines. If the Limit Price tab is selected, but the trader can choose a price from the Order Book, enter it in the Price field and make a deal at that price. In the Amount field, enter the amount of cryptocurrency to be purchased. Using the “slider”, the user can quickly configure the deal parameter as a percentage of his deposit – if you set 50%, half of the current balance will be sent to the order. If 100% – all coins from the account will go for exchange. Having specified the parameters, it remains only to click on Buy.

Using the Market Price tab, the trader does not specify a price, but allows the system to choose from what is in the Order Book. You only need to enter the number of coins to exchange. Using the Stop Limit tab, it is possible to place an order automatically. It will be triggered as soon as the chart reaches the target price. For example, we will activate the sale of XRP for ETH, as soon as the rate rises to the point that suits the investor. This convenience allows you to open and close positions automatically, without having to sit at your computer and monitor quotes.

If the user is an experienced trader and the features offered by the standard spot interface are not enough for him, he can switch to the Pro Spot section. There are more order settings, tools for analyzing the chart and the speed of order execution is higher. If the trader wants to make a deal with a leverage, he should go to Basic Margin or Pro Margin. The size of the leverage depends on the client’s verification, his deposit, and the number of deals on the platform.

DigiFinex also has a section with P2P over-the-counter exchanges. This is a convenient way where traders offer prices directly to each other, and purchases are paid by wire transfer to the seller’s bank account or e-wallet. Alas, Russian-speaking clients have nothing to do in P2P on DigiFinex – all transactions are in Chinese, denominated in yuan, and payment is only accepted for Chinese systems WePay and AliPay.

 

Verification on the digifinex.com platform

Without verification, users can trade cryptocurrency and futures and use leverage. But transactions are limited by the daily withdrawal limit of 1 BTC. In order to expand the possibilities, you need to go through identification at digifinex.com. To do this, go to your profile settings, to the tab Your Information. Next to KYC Status click on Unverified. Select Personal Verification. If the client is going to work through the corporate account, then he should click on Enterprise Authentication. The system will offer to install a mobile application of the exchange. Further actions are performed through it.

First, the program will require access to the front camera to perform facial recognition of the customer. Then the app will open. It remains to go to the profile settings from the smartphone to complete KYC. The process itself looks standard for modern crypto exchanges: you will need to fill out a questionnaire, specify the information from your passport, add a scan of the document and your own photo. Questionnaire must be filled in English. It is desirable to upload documents in Latin alphabet. For example, passport, driver’s license or ID-card, if you have one. Verification takes up to three working days. When the client’s status is upgraded, he will receive a notification in his personal account and by e-mail.

 

Deposit and withdrawal

There are several ways to top up your balance on DigiFinex. The first is a direct transfer in cryptocurrency from a wallet or another exchange. To do this, in the main menu, you need to open the Balance section and go to Deposit. On the left will appear a list of cryptocurrencies available for deposit. Select the desired altcoin and click on Generate deposit address. The system will create a personal wallet. To it, you need to send coins from a third-party source. This can be a “cold” or “hot” wallet, an account on another exchange, a mining pool.

The second way of deposit is from a bank card. It is available only after verification. Click on the Buy Crypto menu item. In the form that appears, you can choose how many dollars to spend or how much cryptocurrency to buy. The drop-down list of fiat currencies includes not only dollars, but also euros, pounds and even rubles.

DigiFinex works with two providers, Simplex and Mercuryo. They charge different fees and the page shows which transfer will be cheaper. Once the purchase amount is entered, the gateway will ask for bank card information. Crediting, most often, is instant. Sometimes it takes up to one hour. To withdraw cryptocurrency from the exchange, you should go to the Balance menu and open Withdraw. Before the withdrawal of funds, be sure to enable two-factor authentication through Google Authenticator. On the left side of the page there is a list of altcoins. When the user selects the desired one, a form opens. Here they must specify the shipping address and the number of coins. It remains to confirm the operation by clicking on the Withdraw button.

Cryptoexchange Commission

DigiFinex does not charge deposit fees – all cryptocurrency deposits are free. When using bank cards, as we mentioned earlier, the commission is taken by the service provider.The trading commission for spot exchange is fixed – 0.15% from the transaction for makers and 0.20% for takers. The percentage rate for margin trading is 0.05%.

How do I get a discount on commissions?

The exchange has a system of discounts. Clients who meet the monthly volume requirement can count on it. Another way to pay less commission is to lock in internal DFT tokens on the account. The first tier opens by generating trading volume of 100,000 USDT in the last thirty days. Or, place at least 100 DFT on the balance. By meeting the conditions, the trader will receive commissions of 0.12% maker and 0.18% taker. Other levels look as follows:

• Volume of 1 000 000 USDT or 500 DFT on the balance: the commission maker 0.10%, and the taker – 0.16%.
• Volume – 5 million USDT, the balance – 2,000 DFT: 0.080% maker – 0.140% taker.
• From 20 million, 10,000 DFT: no maker commission, 0.120% for takers.
• From 200 million, 30,000 DFT: – 0.003%, 0.100%. Traders receive accruals on maker positions.

Maximum loyalty program step: 500 million USDT or 100 thousand blocked DFT tokens are required. The commission is -0.006% maker, 0.080% taker.

Withdrawal fees

DigiFinex.com provides fees for withdrawing cryptocurrency from the exchange. Here are the rates for the most popular coins:

• Bitcoin: 0.0003 BTC.
• Ethereum: 0.006 ETH.
• Tether: 3 USDT.
• Bitcoin Cash: 0.01 BCH.
• Ripple: 10 XRP.
• EOS: 0.10 EOS.
• Dash: 0.004 DASH.
• Litecoin: 0.03 LTC.
• Cardano: 0.006 ADA.
• Stellar: 10 XLM.

DigiFinex’s overall withdrawal fee level is lower than many of its competitors. For comparison, on KuCoin withdrawals of Bitcoin will cost 0.0005 BTC and Ethereum withdrawals will cost 0.01 ETH. XT.Com charges 20 USDT to withdraw Tether. Ripple withdrawals on DigiFinex, on the other hand, are more expensive than the market. On Gate, withdrawing this altcoin will only cost 1 XRP.

 

DigiFinex bonuses

On the site digifinex.com like different promotions and contests. Most often they are aimed at supporting new tokens that have been listed. Usually they are short events of one or two weeks in length. Therefore, there is no point in discussing them in the review. You can track the latest shares of the exchange in a special section on the official website. Most contests are arranged in the same way. A new token appears on the exchange and participants need to gain the maximum volume in pairs with this cryptocurrency within a certain period of time. When the time comes to an end, the administration counts who made the most trades. Traders who scored the most points receive additional tokens. They can be exchanged for stabelcoins or withdrawn from the platform.

But sometimes DigiFinex gives away original gifts. For example, on Valentine’s Day, the administration gave away cryptocurrency worth $2,140. To get the prize, traders had to trade at least 214 USDT on February 14 and subscribe to the exchange’s official Twitter. For these actions, the exchange awarded DFT tokens worth $2,140.

Referral program

Referral program is available in the profile settings, under Referral Rewards. User can get his own link and share it with friends. If a friend registers through the link and makes his first deposit in the first week, he will receive $2 in BTC. The same reward will be received by the user who invited him. In addition, a participant of the referral program who invites new clients can get up to 48 percent of the commission collected from the users invited by him.

 

Complaints about DigiFinex

DigiFinex.com is a young platform. But there are already enough reviews on the Internet about working with it. What do users most often praise DigiFinex for?

• Almost all popular cryptocurrencies are available for trading. Liquidity is fine.
• Simple and profitable referral program.
• Cross rates of some currencies. That is, the exchange takes into account transactions not only paired with BTC or USDT, but also with Ethereum and internal token DFT.
• Additional investment opportunities.
• Replenishment with a bank card.

There are bad reviews, too. Customers don’t like that the commission discount system is built around the DFT token. Many are alarmed by the facial scanning of KYC. There are negative stories related to technical problems on the exchange. A review was found on Reddit: a customer complained that he could not withdraw assets due to problems with two-factor authentication. Given that he was not the only one who encountered this, there were suspicions of fraud. But representatives of the company appeared in the comments and resolved the issue through the support team.

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Regulation of the crypto exchange digifinex.com

The crypto exchange is operated by DigiFinex Limited. Legally, it is registered in the Seychelles. The head office is in Singapore. Some departments of the company are located in China, Hong Kong and South Korea. Seychelles is popular among Asian fintech companies. The laws of this state allow startups to save on taxes and reinvest in business. In addition, such a location removes the need for licensing in other countries. Nevertheless, DigiFinex is subject to international rules, as well as the laws of the countries where the firm is officially represented.

The company is committed to monitoring suspicious transactions and countering the financing of terrorism and crime, as well as the laundering of illegally earned money. In this regard, all of the company’s clients wishing to increase transaction limits must undergo an identity verification procedure. The official website of the exchange has information that DigiFinex is registered with the Monetary Authority of Singapore and also reports to Australian regulators from AUSTRAC. This increases confidence in the project, as both Singapore and Australia are known for strict laws in the financial industry.

Read the user agreement at digifinex.com

Digifinex.com User Agreement

By opening an account, new DigiFinex customers acknowledge acceptance of the rules and user agreement. The agreement is posted on the DigiFinex subdomain of ZenDes The agreement is not available to residents of the USA and Singapore. The exchange prohibits registration for residents of these countries. The document warns that trading and cryptocurrency investments are high risk. In addition to money losses due to failed transactions, technical failures, hacks, blockchain errors and other problems are possible. Therefore, clients opening an account should be aware of and accept all possible negative consequences.

The management of the crypto-exchange undertakes to do everything to prevent errors and hacks, but declines responsibility in case of force majeure. The company reserves the right to interrupt service to a particular client without explanation. In addition, working within the limits of financial law, the administration may freeze or block the accounts of clients suspected of financing crime or money laundering. The only jurisdiction for resolving disputes is the place of incorporation of the legal entity. That is, the Seychelles. Anyone wishing to call DigiFinex Limited to litigation must initiate a case in the Seychelles. Also, this person undertakes to bear all costs of representation of the company in court.

Customer Service

If you have any difficulties, users can contact the support service of the cryptocurrency exchange through the chat on the website digifinex. com.. You can also write to the e-mail address: [email protected]. The reception of Requests is connected. The company is present on popular social platforms like Facebook, Twitter, Reddit, Medium and Instagram. Support representatives monitor comments about the exchange and respond in case of published problems.

 

Is DigiFinex a Scam?

DigiFinex – is a big project that has received solid investments. The company works closely with Chinese technology giants and attracts Asian users. Daily trading volumes steadily exceed a billion dollars, which also indicates the trust of customers. Official volume reports are confirmed by the statistics of CoinGecko and CoinMarketCap portals.

DigiFinex is not a scam, but one of the largest Asian exchanges. The company introduces new products and may well become one of the centers of cryptocurrency investments. In the trust rating from CoinGecko, DigiFinex received eight points out of ten. The transparent work of the exchange, openness of the management, a high level of cybersecurity are noted. The independent agency Certified rated the project at two stars out of three, giving good marks for protection against hacker attacks.

 

Conclusion

DigiFinex – is an interesting project with many internal products. There is a fiat gateway, margin trading, cryptocurrency loans. It is possible to deposit assets at interest and earn by bringing friends through referral links. The asset management section and trading of tokenized ETFs, for shares on the Shanghai Stock Exchange, looks promising. In addition, the fees for withdrawing coins here are cheaper than those of competitors.

Therefore, DigiFinex has a future and this exchange is worth following closely. Alas, the administration has not yet made a normal Russian-language version. Also, there is no support in Russian and at least some community for customers from the CIS. This makes using the platform inconvenient. But otherwise, the rating is positive.