Bitfinex is one of the oldest cryptocurrency exchanges. Bitfinex has been around since 2012. Bitfinex is a platform to buy, sell and trade cryptocurrencies. Cryptocurrency enthusiasts can wire transfer or tether FIAT currency to the Bitfinex exchange in order to purchase their desired currencies. Users can also deposit cryptocurrency in the Bitfinex wallet and then trade-in or trade-out for altcoins.
How is Bitfinex different?
Bitfinex is quite different from typical cryptocurrency exchanges. For this reason, the exchange is slightly complex as well. As far as the looks are concerned, Bitfinex has a very good-looking UI, but the UI isn’t quite user-friendly IMO. Bitfinex has three wallets to offer. There is one wallet linked to the exchange, one is the Margin Trading wallet and one is the Margin Funding wallet.
I was just studying Bitfinex in order to make this guide. The Margin Funding and Margin Trading features of Bitfinex are what actually got me stuck for a few minutes. These are the very features that you will not find on exchanges like Binance and Kucoin and I guess this is why this exchange is different as well. I understood the Margin Funding and Margin Trading and I will try to explain it in the simplest terms for average users.
Marginal Funding & Marginal Trading – A feature worth using on Bitfinex
The Margin Funding wallet can be used to deposit funds in it. You can deposit funds in the form of FIAT money or any cryptocurrency. Any user looking for funds can enter a Margin Funding order to get the finances for a specific duration of time and an interest rate. Once the user has successfully traded using the currency acquired through Margin Funding, the money is then returned with the interest to the one who provided it in the first place. The user who is trading using the Margin Funding Money is doing Margin Trading.
So, if you want to do Margin Trading, you can simply grab the currency through the Margin Funding feature of this exchange. Bitfinex uses the peer-to-peer financing for the Margin Funding and Margin Trading features.
The remaining features of this exchange are quite easy to understand. You can deposit funds, withdraw funds, trade between bitcoin and altcoins. Assuming that all of you have got a basic idea of this exchange’s structure, we will now move towards the guide to buy/sell/trade cryptocurrency on Bitfinex.
Buy/sell/trade Cryptocurrency on Bitfinex – How To
Creating an Account on Bitfinex
- First of all, open Bitfinex web page.
- Click on the Sign-Up button appearing in the top right corner of the screen.
- Agree to all the terms and conditions and click on proceed.
- Enter your details in the form now in order to sign up.
- You will get a confirmation email in your email inbox now. Open the email and verify your newly made account.
- Now log into your Bitfinex account.
- Right after logging in, click on the account icon in the top right corner and then click on Security.
- In the Security, you will find Two-Factor Authentication. Click on it to enable it.
- Click on Google Authenticator and set it up using your smartphone now.
How to Deposit funds/cryptocurrency on Bitfinex
- Click on the Deposit button appearing on the top right.
- You will find a list of currencies under the heading “New Deposit” now.
- If you want to deposit a FIAT currency like USD or EUR, you will have to make a wire transfer.
- To transfer cryptocurrency i.e. bitcoin or an altcoin, select your desired coin from the list.
- Now you will find three addresses against a coin. These addresses will be of the Exchange Wallet, Margin Wallet and the Funding Wallet.
- The Exchange Wallet is the Wallet of your exchange, this is the cryptocurrency that you own.
- The Margin Wallet is the Margin Trading wallet, you will deposit funds in this wallet if you want to return funds to someone in their Margin Funding wallet.
- The Margin Funding Wallet is the one in which you will deposit funds to lend someone a chunk of your cryptocurrency.
- Copy your desired address now and use it on any other Wallet or Exchange to bring funds to Bitfinex.
- Once you have successfully deposited funds, they will appear in your balance on the left side.
Bitfinex Deposit Fee
How to Withdraw funds/cryptocurrency from Bitfinex
- To Withdraw funds, click on the Withdraw button.
- Select the currency that you want to withdraw.
- Now enter the address of the wallet to you which you want to transfer funds and enter the number of coins you want to send.
- Confirm the transaction using 2FA code and email now.
- That’s all.
How to Trade on Bitfinex
- Click on the Trading tab appearing on the top-left side of the screen.
- Select the currency you want to trade and select the currency against which you want to trade the altcoins.
- Now place a buy or sell order. You can find the prices on the left side to place a low buy or high sell order.
- That’s all.
Deposits, Withdrawals and Trade history appears on their respective pages.
That’s all with the Bitfinex Exchange. In case you have any queries, feel free to reach me out through the comments section below.