In this article, we are going to help you out with your doubts about how to trade on Bitfinex Exchange. Bitfinex is among the few exchanges that provide high liquidity to the users. If you are planning to purchase cryptocurrency, trading on Bitfinex can be your best bet. However, we do suggest that you do some research about the exchange and compare its fees, services, features and supported cryptocurrency with other exchanges.
Bitfinex Exchange Advantages and Disadvantages
When trading on Bitfinex, you would be able to make your trade without delays. Furthermore, there are more than a hundred cryptocurrencies supported on the platform, so whether you are planning to purchase a single asset or a couple of them, it has it all. The platform is made experiences and advanced traders in mind, which is why it is often mentioned hard to use by beginners. Aside from having a little complicated interface, there’s no other issue you might encounter. It also has advanced trading features such as long and short margin trading and cryptocurrency lending.
- Supports over a hundred cryptocurrencies
- Offers high-level trading tools for intermediate and advanced traders
- Provided high liquidity
- To use the platform without verification, one must have $10,000USD in the account.
- Trade cryptocurrencies at a higher price than other platforms sometimes
How To Sign Up On Bitfinex?
The first step if you want to know about how to trade on Bitfinex is to open your Bitfinex account. Visit Bitfinex’s official website and click on Sign up option on the upper right corner of the page. Fill up all the necessary details, including your name, email address, set password and confirm the CAPTCHA. Click on Open account and verify your email address by clicking on the link sent to you.
Once, you are done with the basic set up; you need to go through the verification process. However, it is not mandatory; you would need to deposit at least USD 10,000 in your account to use the platform. Anyways, if you don’t have any issue with the verification and if you can wait for a while, then you should definitely do it. The verification procedure is straightforward, you just need to provide them with any of your identity proof whcih has your name and address on it. After submitting the documents, you need to wait up to 48 hours for it to get verified.
Before you go on and start trading on Bitfinex, do turn on 2FA for another level of security.
How To Trade On Bitfinex?
Now it’s time you deposit the funds into your account and learn how to trade on Bitfinex. As a new user, you can only deposit/withdraw Bitcoin into your account. To do so, go to the Wallets option and select Deposits. Copy your wallet address and send the funds to it.
As soon as the funds are transferred into your wallet, choose the trading pair to buy cryptocurrency. For example, if you want to buy Bitcoins, click on BTC option and then you’ll see its price chart, order books and button as well as other cryptocurrencies.
After selecting the trading pair, choose if you want to place a limit order or market order. If you are in a hurry and wants to buy Bitcoins right away, you must select market order. In a market order, your order is placed immediately at the best price available in the market. All you have to select is the number of Bitcoins you wish to buy, and your order would be executed. However, if you want to place your order at a specific price, choose limit order. There you can set the price of Bitcoins at which you want to buy it, and your order would only be placed when the prices go below your selected range.
Make sure you select the right pair whether you are purchasing or selling out bitcoin. For example, if you want to purchase Bitcoin using fiat currency USD, select BTC/USD and click on Exchange buy. The same is when you want to sell Bitcoin for USD, just select Exchange Sell instead.
Withdraw Your Funds
At last, you can withdraw your assets and transfer it to your private wallets for HODLing. To do so, go to Withdraw section and then select the cryptocurrency you want to withdraw. The transfer can take up to a few days to process. Assets like Litecoin and XRP can be transferred right away because of its offered transferring speed.
Precautions To Take Before You Trade
Now that you know how to trade on Bitfinex, there are some things you need to consider before making your purchasing. Read the pointers given below for best Bitcoin and cryptocurrency trading tips:
- Know the risk before taking it. The cryptocurrency market is volatile, and even if you have collected all the knowledge in the field, there’s no certainty of being benefitted. So, you must calculate the risks beforehand and only invest as much amount as you can afford to lose.
- Instead of putting your money on a single asset, invest in a couple to prevent high risks. If you spend all your savings in single crypto, there would be more risk associated with it.
- Keep all your fears and emotions aside. Don’t sell your assets in panic or take split-second decision out of greed.
- Create a proper and secure plan before you start trading.
- Learn everything possible about Bitcoin and cryptocurrency trading.
- Select a well-reputable crypto exchange like Bitfinex. Analyse all the security aspects of the platform and compare its fee structure with other exchanges.
- Subscribe to reliable crypto news channels and keep yourself updated to the latest news. However, you must not trust single news and look out for other sources.
- Learn technical analysis techniques such as chart reading and make your exit and entry plan.
So, before you go on and trust any exchange or put your money on any crypto asset, just make sure you have done your research about it. If you have any other doubts regarding cryptocurrency exchanges or any such topic, read our guides about the best crypto platform for trading.
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