How to use Bitfinex is something all traders should know very well. Bitfinex is a cryptocurrency exchange founded in 2012, which provides advanced services for liquidity providers and digital currency traders. It is the most significant exchange by volume for the trading of bitcoin against USD, and it is the most advanced exchange worldwide. Moreover, Bitfinex also facilitates the trading of a lot more altcoins. Today’s articles will give you a brief guide on what Bitfinex offers and how to use it.
Bitfinex consists of three main features
1. Exchange Trading
There are central limit order books at the heart of Bitfinex for the spot trade of digital tokens. Therefore Users may deposit, trade, and withdraw their digital tokens.
2. Margin Trading
Bitfinex permits qualified users to carry out their trading with up to 3.3x leverage and receive financing with the assistance of the Bitfinex margin funding and the peer-to-peer financing platform. While opening a financing position, a user can manually put in a funding order to get the preferred amount of financing; at the duration and rate of their choice. As an alternative, users may open a funded trading position, and automatically Bitfinex will link them to peer-to-peer financing at the existing prevailing rate.
3. Margin Funding
The P2P financing market offers users a way to earn interest on the digital assets they own through; lending their funds to other users that would like to trade with leverage.
Now To get started on how to use bitfinex
Once you create your Bitfinex account, the first thing you need to do is optimise your security settings. Bitfinex offers a progressive range of security features that help users increase their account security and protect their funds even more.
As a bare minimum, Bitfinex insists on users creating strong and unique passwords for their account, and combine this with Google 2FA. Furthermore, It is crucial that you put down your 2FA key, that will be made visible throughout the setup process and save it offline or in a secure place! Worst case scenario if you fail to do this, you may experience account lockouts lasting days.
Some other recommendations for those who wish to protect their funds include;
Enable two-factor authentication.
Lock your withdrawals following the use of a new IP address.
Arrange for a withdrawal confirmation phrase.
Disable or lock withdrawal addresses for all currencies.
Disable “keep session alive.”
Limit access into your account based on IP address.
You must enable PGP email encryption.
In order to start trading on Bitfinex, you must first deposit some funds of course. This may come in the form of any of the supported cryptocurrencies (ETH, BTC, LTC, BCH).
How to use Bitfinex with Fiat Currencies
Take note that if you want to deposit as well as trade fiat currencies (USD, EUR, GBP, JPY), then you first have to verify your account. Additionally, aside from letting you make a deposit, trade and withdraw some fiat currencies; having a verified account can aid in speeding up deposit and withdrawal times.
How to use Bitfinex with Cryptocurrencies
When you want to make a deposit, go to the Deposit segment of your Bitfinex account, which you will find in the top right corner. You can then choose the currency you want to deposit (e.g. BTC), and generate an address in the particular wallet you would like to send to, and then input it as the receiving address.
You can choose a wallet from the three that are available – Exchange, Margin, Funding
The Exchange Wallet is used to buy and sell supported cryptocurrencies on Bitfinex. The use of the Margin wallet is while trading on margin. The Funding Wallet is useful in the provision of financing for other margin traders.
Nevertheless, the most popular type of wallet is the exchange wallet. The use of the exchange wallet is in the buying and selling of any of the supported currencies. Moreover, It is easy and free to transfer funds between the three wallets; therefore, you don’t have to panic if you are not sure about which wallet you think you might need.
Bitfinex is one of, if not the most established exchange currently in operation, and it provides a service that is tailored to experienced traders as well as institutional investors. Hence the exchange enjoys extraordinary USD liquidity, while also offering widespread orders and trading options. It is the largest Bitcoin exchange by volumes traded. I believe after reading this guide on how to use Bitfinex
You are now officially ready to make your first trade