This ultimate guide in buying crypto on Bitfinex exchange shows the beginner as the advanced trader all necessary options available to execute orders.
Bitfinex is one of the biggest and most reliable cryptocurrency exchanges in the world. In particular, because they have a proven track record that goes back to 2012. Since that time, many cryptocurrency traders all around the globe have been using this platform to trade cryptocurrency.
At the time of writing Bitfinex, has more than 1.6 million active users all divided into different types of traders. For instance, you have cryptocurrency veteran traders and also brand new crypto enthusiasts trying to enter the market. Furthermore, this platform has become very popular mostly because of its ease of use and support of several different payment options.
Experienced crypto traders know that you can buy fractional amounts of bitcoin or any other cryptocurrency. No matter what the current trading price is, anyone can get involved for only minimal dollar costs. At a trading platform like Bitfinex, you can easily buy any dollar, euro, or other fiat currency amount of bitcoin desired.
In this guide, I will show you how easy it is to buy Bitcoin or any Altcoin on this platform. Also, I will go into detail on how to trade crypto on Bitfinex and what other advanced options Bitfinex has to offer.
Step 1: Sign up and create an account at Bitfinex
The first step, creating an account at Bitfinex, is very easy and straightforward, although you have to take some things into consideration. Like any other cryptocurrency platform, Bitfinex will lead you through a verification process. Additionally, this verification process allows you to provide identity documents like a passport, driver’s license, or anything else that includes your name and address.
If you have no issues with this then you can continue creating an account, however, it takes some time(probably 48 hours) before you are fully verified.
To enumerate, if you are a professional trader or someone who has serious intentions you can bypass this verification process by depositing $10000 at once into your account. Of course, this is not mandatory and is totally up to you.
Remember to enable 2FA or any other type of security before you start trading cryptocurrency on the Bitfinex platform.
Step 2: Transferring money to your Bitfinex account
The next logical step before buying crypto on Bitfinex would be to deposit money from your bank account or credit card. Simply tap the “Wallet” button on the upper right Bitfinex menu, and a new screen will appear with several deposit options.
Bitfinex deposit options
As stated above Bitfinex is a very professional trading platform that offers different kinds of options for different kinds of traders(beginner, advanced). Therefore, you can deposit from the several sources listed below.
- Payment cards(VISA, Mastercard)
- Bankwire(Euro, USD, CNH, YEN, and GBP)
- Tether(USDT, EURT, CNHT,XAUT)
- Cryptocurrencies(Bitcoin, Litecoin, Ethereum and hundreds of other cryptos)
In general, for crypto purchases, you’ll usually be depositing fiat currency from your bank or credit card. Transfers from bank accounts can take as long as 7-10 days, so prepare in advance for trading.
Deposits made on a regular basis at set intervals will allow you the most flexibility when placing Buy orders. However, these must be made manually, as there is no current automatic transfer option for fiat currency in Bitfinex. There are no fees for depositing money into your Bitfinex account.
Step 3: Start Trading on Bitfinex
When deposits finally have been completed, you are ready for the next step which is starting to buy cryptocurrency on Bitfinex. For example, if you want to buy Bitcoins, go to the left menu and click on BTC right under “Name”. In addition, 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 want to buy crypto right away, you must select a 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 enter the number of cryptos you wish to buy, and your order will be executed.
However, if you want to place your order at a specific price, then choose a LIMIT order. Additionally, you can set the price at which you want to buy. Also, your order would only be placed when the prices go below your selected trading range.
If you are an inexperienced trader and things don’t make sense yet.. don’t worry. In the next chapters, I’ll go into detail about the trading options the Bitfinex platform has to offer 😄
The Bitfinex trading Interface
For more detailed info on trading on Bitfinex, it always begins with the main trading interface that will be the starting point of every trade you make. As explained earlier, you firstly select the cryptocurrency you want to trade in the left panel menu. For example, if you want to buy Bitcoin with USD then you select the BTC/USD trading pair.
At the center of the screen, you see a big chart(in this case BTC/USD) with lots of green and red candles in it. On the left, above the chart, you have several buttons to choose from: ‘Timeframe’, ‘Type of candles’, and ‘Indicators’. Personally, I think that the ‘Timeframe’ is the most important option because it is necessary as a trader to make decisions on different timeframes(1D, 4h, 1h, or 30min). Furthermore, below the chart, you have two boxes showing the active ‘Positions’ you are in and open ‘Orders’.
Placing Market Orders on Bitfinex
Market orders are the easiest tools available and also the quickest path to cryptocurrency in case you are planning to buy crypto immediately. To perform this step you have to decide on the left what type of order you want to perform. On Bitfinex, all traders have two options: “Exchange Buy” and “Exchange Sell”.
By all means, you have to decide what type of order you want to perform. In case of performing a MARKET buy order on BTC/USD pair, you have to select the arrows in the box and choose “Market”. Then you only have to give the amount of BTC you want to buy and click on “Exchange Buy” button. After that, the order will immediately be processed at the latest price available in the order book. Below, on the left side under “Balances” the BTC being purchased appears under the exchange wallet.
It is important to realize that if you are willing to sell cryptocurrency for fiat like USD or EUR that you can do this the same way. However, at this point, you choose “Exchange Sell” altogether with the “Market” option selected.
How to perform a Limit order on Bitfinex
LIMIT orders on Bitfinex allow you to specify the exact price at which you are willing to buy or sell. Basically, LIMIT orders give you complete control over your purchases. By placing LIMIT orders, you can turn crypto price volatility into an advantage rather than a drawback. Always keep in mind that, while LIMIT orders can be used to boost your returns, your orders may never execute if the market price continues to move away from the specified price. Monitor open orders regularly and reassess your investment decisions while the market changes.
In general, most traders, especially if you are inexperienced in trading, are using LIMIT orders to perform their trades on the platform. Therefore, the default trading setup screen on Bitfinex is set to perform a LIMIT order from your Exchange wallet. More experienced traders can also use the MARGIN option to start trading with leverage. However, if you are a beginner with zero to less trading experience I would strongly advise not to use this option before you are certain what you are doing.
Secondly, you have to decide if you want to BUY or SELL any cryptocurrency to make the LIMIT order complete. In the case of buying Bitcoin with USD, you will have to give the USD amount and also set the price at which you are willing to buy Bitcoin. Also, make sure you take a look at the current order book. For instance, below the “Exchange Buy” and “Exchange Sell” buttons you will see the latest BID and ASK prices. If you place an order between the BID and ASK price you have a big chance that the order will be executed immediately or very soon.
Using Limit order advanced options on Bitfinex
As explained earlier, LIMIT orders give you full control over the purchase or sell you want to make on the trading platform, but there is more. For more advanced trading techniques, Bitfinex allows you to use specific tools when trading cryptocurrency. For example, using a “Trailing stop-loss” is a good tool to exit a position when you are in a profit already, but doesn’t want to sell everything at once. So, how can you use these advanced options for LIMIT orders on Bitfinex?
Very simple, just like putting a LIMIT order you go to the left and select the order type you want. On Bitfinex you have 6 advanced options besides LIMIT and MARKET orders. Therefore, trading crypto on Bitfinex is a very smooth exercise 😎
Type of Order Forms on Bitfinex
- Market order – Buy or sell cryptocurrency at market price in the order book
- Limit order – Buy or sell crypto at a preset price or range
- Stop order – If the market reaches a preset price which functions as a trigger(mostly for traders in a long position), automatically a market sell order will be performed.
- Stop limit order – Similar to a ‘Stop order’. In this case, the trader has to give two values to perform the order. A ‘Stop price’ which functions as a trigger and a ‘Limit price’ at which the order should be performed when ‘Stop price'(trigger) is hit.
- Trailing stop order – This type of order can be used to take a profit even though you aren’t sure if the current price is the top. You present the ‘Distance’ (mostly in USD) at which the price can fall from the most recent top. Also, you have to enter the amount of crypto you are willing to sell at market price. In other words, the stop-loss position will de modified when a new ATH is reached until the ‘Distance’ is hit.
- Fill or kill – This type of order is mostly used for large orders and is only performed when a certain price is a hit and where the entire order can be performed at once. If not, the entire order will be canceled.
- Immediate or Cancel – Similar to fill or kill, only this type of order can also be partially filled. If an order is partially filled, then the rest of the order will be removed from the order book.
- Limit(Order book) – Here you just look up an order in the order book. Then you click on this row and the order(BUY or SELL) will be executed at that price.
- Scaled order – With this order type Bitfinex allows you to use an algorithm to enter lots of orders at the same time. This can be handy when you want to buy up in a range when the price goes down. You select the range in which you want to buy and the algorithm automatically places ‘scaled orders’ downwards the order book.
Video: How to set up a Scaled order on Bitfinex
What does Post Only mean?
When placing LIMIT orders into the Bitfinex order book, you can further limit trading fees by selecting Post Only in the Advanced tab. The post-only limit order option ensures the limit order will be added to the order book and not match with a pre-existing order. If your order would cause a match with pre-existing order, your post-only limit order will be canceled. Also, the ‘Post-Only Limit Order’ ensures that you will pay the maker fee and not the taker fee unless matched with the HIDDEN order.
How do Hidden orders work on Bitfinex?
The HIDDEN order option ensures that an order does not appear in the order book; thus does not influence other market participants. Moreover, it is an easy solution for the Bitfinex platform to maintain anonymity in the market when trying to buy or sell.
Executing a HIDDEN order is also very simple. Just like any other LIMIT order, you give the price and the amount of crypto you want to buy. After that, you only have to select the ‘Hidden’ checkmark.
Difference between maker and taker fees
It is important to know that for every order submitted on the platform maker and taker fees exist. In other words, buying crypto on Bitfinex comes at a cost. This goes for every cryptocurrency trading platform on the globe. Traders who create orders on the platform, the ‘makers’, have to pay fees when these orders are filled.
On the other side, there are ‘takers’ who fillfull orders submitted by other traders. In most cases these are just MARKET orders where you have to pay a certain fee as well. Finally, the costs of these fees are variable and how bigger the volume of the order the less maker and taker fees you have to pay.
Overview of Maker and Taker Fees on Bitfinex
|30d trading volume||Maker fees||Taker fees||Discount LEO holders|
|$0 – $500.000||0.10%||0.20%||25% discount|
|>$500k – $1000.000||0.08%||0.20%||25% discount|
|>$1 million – $2.5 million||0.06%||0.20%||25% discount|
|>$2.5 million – $5 million||0.04%||0.20%||25% discount|
|>$5 million – $7.5 million||0.02%||0.20%||25% discount|
|>$7.5 million – $10 million||0.00%||0.20%||25% discount|
|>$10 million – $15 million||0.00%||0.18%||25% discount|
|>$15 million – $20 million||0.00%||0.16%||25% discount|
|>$20 million – $25 million||0.00%||0.14%||25% discount|
|>$25 million – $30 million||0.00%||0.12%||25% discount|
|>$30 million – $300 million||0.00%||0.10%||25% discount|
|>$300 million – $1 billion||0.00%||0.09%||25% discount|
|>$1 billion – $3 billion||0.00%||0.085%||25% discount|
|>$3 billion – $10 billion||0.00%||0.075%||25% discount|
|>$10 billion – $30 billion||0.00%||0.06%||25% discount|
|>$30 billion||0.00%||0.055%||25% discount|
Withdraw Cryptocurrency from Bitfinex Exchange
Besides, buying cryptocurrency on Bitfinex you also have the option to take profit in cash or send your cryptocurrency to a local wallet. Moreover, like any other cryptocurrency exchange out there you can withdraw your cryptocurrency immediately.
The process is very simple. Firstly, you select ‘Wallet’ on the upper right and choose ‘Withdraw’ from the dropdown menu. A new screen appears where you can choose what type of withdrawal you like to perform.
Steps to Withdraw Cryptocurrency from Bitfinex
For example, if you want to withdraw a cryptocurrency like Ethereum and sent ETH to your local wallet. The process is as follows:
- Below under ‘Cryptocurrencies’ find Ethereum and click on it
- Fill in your public key(Ethereum address) and the amount of ETH. Also make sure you choose the right platform wallet to withdraw from(Exchange Wallet, Margin Wallet, or Funding Wallet)
- If you want to receive the exact amount of ETH you entered, then you have to uncheck the ‘Take fee from amount’ option. If not, then the transaction fee will be included and you will receive a little less cryptocurrency in your wallet. Also, the transaction fee you have to pay will be shown above.
- Agree with both checkmarks. Also, if you want to leave a note you can do it here. Finally, click ‘Request Withdrawal’ button.
- The last thing you have to do is to confirm the withdrawal from an email sent to you.
How fast are withdrawals from Bitfinex?
It depends. On average withdrawals from Bitfinex take about 12 hours. However, you can speed up this process by committing to some extra security measures available on the platform. The first option is ‘Condition Set One’ which asks you to enable Two-Factor Authentication or IP address whitelisting enabled for at least 5 days.
The second option is ‘Condition Set Two’ which asks you to enable Two-Factor Authentication or IP address whitelisting. On top of that you have enabled ‘Sent email on login’ and ‘Monitor withdrawals by IP’.
These measures seem a little strict but this platform has been subject to several hacks in the past and wants to make sure your cryptocurrencies are as safe as possible.
Buying Crypto on Bitfinex: Pros and Cons
In my opinion, this platform has everything an aspiring cryptocurrency trader with serious intentions needs to become successful. The process of buying crypto is very easy and because of high liquidity and volumes, any cryptocurrency trade made on the platform will execute immediately.
Intermediate and advanced traders are also using this platform because of the advanced trading tools available. This ensures that high volumes and liquidity are guaranteed.
|✓ Pros||✗ Cons|
|Supports hundreds of different cryptocurrencies||Withdrawals can take long|
|High level trading tools available||$10000 deposits for anonymous access|
|High liquidity makes good trading experience|
Final words on Buying Crypto with Bitfinex Platform
In general, buying cryptocurrency with Bitfinex is a very smooth process with no additional complications. For instance, executing MARKET or LIMIT orders can be done by any beginner without extra trading knowledge or advanced trading experience. Also, this platform is very popular among intermediate and advanced traders, mostly because of the advanced trading tools available.
All in all, if you are a trader with serious intentions this Bitfinex platform can be it for you. In particular, because of the high entrance of $10000, advanced traders have to deposit on the platform. Traders and cryptocurrency investors can both be served because of the different tools available on this platform. Be profitable!
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