Bitfinex is one of the major exchanges for cryptocurrencies and it has the largest in terms of volume for trading Bitcoinin the world. The exchange allows users to trade Bitcoin, Ethereum and Litecoin for US dollars and Ethereum or Litecoin for Bitcoin. It is also a peer-to-peer financing platform allowing users to trade with up to 3.3 leverage. The P2P financing market provides a way for users to earn interest on USD, BTC, ETH and LTC through funding other users who trade through financing.
The exchange offers three account types which are namely Trader, Exchange and Deposit. Trader account allows a user to access exchange, margin trading and margin funding. On the other hand, Exchange account allows a user to access margin funding and exchange. Exchange account is best for those who wants to simply buy and sell Bitcoin. Lastly, Deposit account allows access to margin funding only. This account are for users who does not want to trade cryptocurrencies but wants to earn by financing only.
◘ You can always update your account type in the account settings.
Basic trading or exchange is placing an order to buy or sell at a specified price, at current market price, or once the market reaches a definite price. On the other hand, Margin Trading allows you to trade on margin by borrowing money from a broker. It allows you to buy more than your usual ability.
In this guide, we will provide a step by step guide on how to trade in Bitfinex. We will start from creating and funding your account to basic trading and withdrawing funds from your account.
How to get started with Bitfinex?
◘ Create an account by entering your email address and your preferred username and password
◘ Next, go to your email and verify your email address. Click the link provided on the message.
◘ Then, you will be taken to Bitfinex login page. Login with your email and password.
Now, you are set and ready. The next step is to fund your account.
How to fund your Bitfinex account?
◘ Click on Deposit menu as shown and you will be taken to the Deposit page where you will be provided with several deposit options. In this tutorial, we are going to use the Bitcoin payment.
◘ After clicking the Bitcoin option, you will then be provided with three deposit addresses, which are dedicated for Exchange, Trading and Deposit. In this tutorial, we are going to choose Trading option. Use the provided BTC address to deposit your Bitcoins.
◘ You can also manage your wallets if you want to transfer funds to and from them. Click on Wallets menu, enter the amount and the currency, and the from and to wallets.
◘ Once Trading wallet is funded, you can now start trading
How to trade in Bitfinex?
We will only show you how to do basic trading. Once you already know learned the basic, you can jump into margin trading and margin funding to explore more ways to earn.
◘ Click on Exchange menu. Choose from several currency pairs you want to trade with. In this tutorial, we are going to use BTC/USD.
◘ Place an order by placing an amount at the ORDER SIZE form as shown
◘ Click on BUY if you want to buy BTC with USD or click on SELL if you want to sell BTC for USD.
If you think Bitcoin will rise in value against US dollar then choose to buy BTC, otherwise if you think that US dollar will rise in value against Bitcoin then choose to sell BTC.
◘ Once you clicked BUY or SELL button, your order will then be placed and you will see it in the Orders list as shown.
◘ So if you clicked SELL and the price of BTC goes up, then your order will be taken and you will have your money plus your earnings on your wallet.
How to withdraw your funds?
◘ Withdrawing funds is easy. Just click on Withdraw menu and you will be provided with several withdrawal options.
◘ If you want to withdraw Bitcoin, just click Bitcoin option and enter amount, wallet and the withdrawal BTC address then click Request Withdrawal.
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