Table of Contents
- What is Bitfinex?
- Key data about Bitfinex
- Fees on Bitfinex
- Our opinion on the Bitfinex platform
- How to register with Bitfinex
- Secure your Bitfinex account
- Verify your account with your ID (KYC)
- How to buy cryptocurrencies on Bitfinex
- How to sell cryptocurrencies on Bitfinex
- How to withdraw your funds from Bitfinex
What is Bitfinex?
Bitfinex is a popular and cherished platform by many traders in the crypto sector. Given its history and all the obstacles it had to overcome, Bitfinex holds an important place in the cryptocurrency world. Founded in 2012, the trading platform has proven its stability and security over the years. Traders using Bitfinex have faced numerous issues following accusations that the platform manipulates the price of Bitcoin, or in the case of Tether’s (USDT) liquidity concerns. In addition, the exchange put its security to test following two hacks that resonated in the community, one in 2014 and the next one in 2016. During those hacks, no less than $80 million in cryptocurrencies were stolen.
Fortunately, the trading platform managed to overcome these events and prove to its users that it is secure.
The Tether (USDT) affair could have spelled the end of the exchange, as the stablecoin was managed by the same company and it was rather easy to make a connection between the two. Technically, each Tether (USDT) is worth a dollar. For each Tether (USDT) issued, one dollar must be held in the company’s reserves, thereby justifying its value. However, this proof of solvency hasn’t always been provided, and this has put the cryptocurrency sector under huge stress regarding the stability of Tether (USDT) and the Bitfinex company.
However, these issues belong to the past and users can now benefit from the advantages of a modern platform that offers the ability to trade hundreds of different assets, far beyond just Bitcoin (BTC).
Key data about Bitfinex
- Website: bitfinex.com
- Fees and commissions: low
- Daily traded volume: $1,423,550,177
Fees on Bitfinex
Bitfinex has a page dedicated to calculating fees. Note that fees may vary depending on the existing funds in your wallet.
To calculate your fees on Bitfinex, click here.
Our opinion on the Bitfinex platform
- A comprehensive and very secure user interface
- 24/7 customer service
- A high number of assets available
- KYC is mandatory
- Interface is overloaded
- A minimum of €10,000 is necessary for wire transfers
How to register with Bitfinex
Once you’ve clicked on the link, follow these steps:
- Step 1: click on the “Sign Up” button to create your account
- Step 2: fill-in the information required in the registration form so that you can create your username and confirm that you are an actual user
- Step 3: confirm your registration in your mailbox
- Step 4: all you need to do now is connect to your account and you’re all set to start trading
Secure your Bitfinex account
Once you’ve finished creating your Bitfinex account, you need to secure it. The trading platform puts user security at the top of their list, so you will need to provide some data before getting full access to trading.
We will begin with the basics, which is two-factor authentication (2FA). To do so, we suggest you start by downloading the Google Authenticator application.
Once the application has been downloaded to your smartphone, we invite you to follow these steps:
- Step 1: When you connect for the first time, Bitfinex redirects you automatically to the 2FA settings. If this is not the case, go to your “Security” settings in your user account
- Step 2: click on the “Setup” button in the Google Authenticator area
- Step 3: flash the QR code with your Google Authenticator application and enter the code provided by the application in Bitfinex to initiate the verification
- Step 4: to activate 2FA security, confirm the email received in the mailbox linked to your Bitfinex user account
- Step 5: if you wish, there are many additional steps you can take to further secure your account. Each verification reduces the risk of your wallet being hacked. You can, for example, filter and secure your withdrawal addresses, or carry out additional checks on your client session and email address
We leave it up to you to decide which additional features you want to activate
Perfect, your account is now protected. This will highly complicate any hacking attempt by a third party. You can rest easy now.
Verify your account with your ID (KYC)
To comply with the law, Bitfinex asks to verify your identity. There are 4 levels of identification on the trading platform, with each level requiring additional verification. The more you increase your level of verification, the more options you will have access to. This will allow you to manage all your digital assets, such as cryptocurrencies (like Bitcoin) and stablecoins (like Tether) but also perform bank withdrawals in the form of digital currencies. To accomplish this, we suggest you follow the steps below.
- Step 1: go to the “verification” settings in your account. A new window will open to begin the verification process
- Step 2: once you’re there, choose the verification that you want. We recommend you go for the highest level of verification to be able to access all the services provided by Bitfinex
- Step 3: you’ll then need to fill in your customer ID with your identity, address, and documents certifying your bank details: all the required information must be provided. Start by filling in your identity details in the first form
- Step 4: continue the verification procedure by providing your address. This will bring you to the next level and give you access to withdrawals. To verify your address, you need to submit an official proof of residence, such as a bill in your name showing your address
- Step 5: this time you’ll need to prove your identity. To do that, choose two official identification documents. You have the choice between your passport, ID card, driver’s license, or another document with your photo. Tick the two boxes of the two documents that you want to transfer
- Step 6: to continue, you will be prompted to provide your bank details. This will give you access to withdrawals directly to your bank account, enabling you to recover your money. Follow the instructions given on this page and provide your bank statement
- Step 7: now you only have to sign the statement where you certify that your declarations regarding your customer account are correct
Perfect, you have now provided all the proof required to access all of the options available on Bitfinex. Exchanges, market, margin trading, deposits, withdrawals, in crypto, dollars, or anything else: you will have access to all of this from your online account. You just need to give Bitfinex some time to finish the identity verification procedure.
How to buy cryptocurrencies on Bitfinex
Deposit funds on Bitfinex
Before being able to buy cryptocurrencies on Bitfinex, you need to deposit funds in your customer account. To do that, follow the steps below.
- Step 1: go to the “Deposit” icon in your wallet, in the upper right-hand corner.
- Step 2: once you are on the deposit page, you’ll be able to choose between two methods to deposit funds in your Bitfinex account. You can choose to pay by credit card, and instantly buy any crypto asset like Bitcoin (BTC), Ethereum (ETH), or Tether (USDT). Or you can decide to pay by wire transfer, which would allow you to send a precise amount of euros, dollars, or another fiat currency, directly to your Bitfinex account.
- Step 3 (with a credit card): once you have selected your credit card as a method of payment, you need to make a few choices.
Start by choosing which payment processor you want to use, this will mainly depend on which asset you intend to purchase.
Next, you need to select which cryptocurrency you want to buy, the amount that you want and to which wallet it should be sent. All you need to do now is generate an address for your wallet.
- Step 3 (for a wire transfer): once you have selected wire transfer as a method of payment, you need to make a few other choices.
Click on the currency you want to deposit, in this example we are using euros.
Then, you’ll need to create a deposit notification for a wire transfer of €10,000 minimum.
Once you’ve created it, wait until it is confirmed. You will then receive the information indicating to which account your funds should be wired.
Good. Now that you have some funds, perhaps even your first cryptocurrencies, available in your user wallet, you will be able to start trading on the market.
Deposit cryptocurrencies on Bitfinex
If you have cryptocurrencies in another wallet, you can easily transfer your assets to Bitfinex. Just follow the next steps.
- Step 1: go back to the “Deposit” section in the upper right-hand corner of your wallet
- Step 2: choose the cryptocurrency that you want to deposit in your wallet. Here, we deposit Bitcoin
- Step 3: you need to generate an address to send Bitcoin to your wallet. Then, to receive it in your Bitfinex wallet, you only need to indicate this address in the wallet from where you are sending your Bitcoin and wait for the blockchain to do its work
Perfect, you and your wallet now have all it takes to beat the market and become the best trader!
Buy cryptocurrencies in the market on Bitfinex
Now that your funds are available, you can enter the market. Here, the law of supply and demand rules, so prepare yourselves to negotiate your best order.
- Step 1: go to the main section of the website. If you don’t have it on your homepage, click here or on the Bitfinex logo in the top left
- Step 2: select the trading pair that you are interested in. A pair corresponds to the crypto that you want to buy against the currency that is sold in exchange. In this example, we will look at the price of Ethereum against the Dollar (ETH/USD)
Once you are on the right trading pair, you have several purchasing options. There are different types of orders you can make to purchase the desired asset. We will therefore look at the main purchase orders to guide you throughout this process.
Buying with a limit order
A limit order allows you to buy a certain amount of crypto at a set amount, or even better, if it’s a purchase, at a better (lower) price.
- Step 1: select the “Limit” option in the drop-down menu on the left of the trading screen
- Step 2: indicate the amount that you want to buy and the limit price. In this example, we chose an amount of 1 Ethereum (ETH) and a limit of $2,000
- Step 3: once you’ve checked the amount of the cryptocurrency that you decided to buy and the limit price (depending on the market price at that time), you can place your order.
As long as the limit price is in your favor, the order will purchase your cryptocurrency until reaching the total requested amount
Buying with a market order
A market order allows you to purchase the maximum amount, at the market price, with the total amount of money that you decided to spend. For example, if 1 Bitcoin is equal to €100,000 and you spend €1,000 you’ll get 0.01 Bitcoin.
- Step 1: select the option “Market” in the drop-down menu on the left of the trading screen
- Step 2: once you’ve checked that you selected the right option, you only have to indicate the amount that you want to buy. Here, we purchase 1 Ethereum (ETH) at market price
- Step 3: you should double-check the amount you’re about to purchase, and, if you are satisfied with the market price, place your market order.
You will receive your asset as soon as there is a seller. A market order is executed very quickly
Buying with a stop-limit order
A stop-limit order is similar to a limit order with the only difference being that a limit order will execute at a specific or possibly better price. A stop-limit order activates at a set amount and is filled at market price, which can sometimes generate a certain price gap.
- Step 1: select the option “Stop Limit” in the drop-down menu on the left of the trading screen
- Step 2: now you only have to indicate the stop price, meaning the price at which your purchasing order should be triggered, the amount of cryptocurrency, and the limit price at which you want to buy it
- Step 3: once you have duly verified the amounts and options that you chose, click on “Exchange Buy”.
When the “Stop Price” will be reached, it’ll trigger your purchase order at the “Limit Price”
There are many other purchase options available on the trading platform. However, for the purpose of readability, we are only introducing the most important ones.
Congratulations! You now own your first cryptocurrencies on Bitfinex. We will show you next how to sell them once you’ve become rich.
How to sell cryptocurrencies on Bitfinex
Now that you own cryptocurrencies on Bitfinex, you can sell them at any time you wish. The platform offers you the same conditions to sell as those to buy, therefore we won’t detail them in this section. If you want to get the details for the different order options available, we redirect you to the previous section titled “How to buy cryptocurrencies on Bitfinex”.
- Step 1: go to the main section of the website. If you don’t have it on your homepage, click here or on the Bitfinex logo in the top left
- Step 2: select the trading pair that you are interested in. A pair corresponds to the crypto that you want to buy against the currency sold in exchange. In this example, we look at the price of Bitcoin against the Dollar (BTC/USD), which is the default pair
- Step 3: once you’re here, select the sale option that you want in the left section of the screen. In this example, we sell 0.5 Bitcoin at market price
- Step 4: when your order is ready, check at which price you will be selling your cryptocurrency, and if everything is in order click on “Exchange Sell”
Be careful. When you sell your cryptocurrency against USD (dollars) or EUR (euros), depending on your tax residence, it may most likely be necessary to pay taxes on the realized gains, and this would apply to every transaction. It may be wise to convert your cryptocurrencies against USDT (Tether) or USDC (USD Coin), as they are also cryptocurrencies and therefore you should not be taxed on your sale.
Good. Now that you have sold your cryptocurrencies, you might want to use that money on another platform or simply withdraw it to your bank. Follow the steps described below and you’ll be all set.
How to withdraw your funds from Bitfinex
If you want to withdraw your funds from Bitfinex to send them to another platform or your bank account, you can do it at any moment. You can also send your cryptocurrencies to a physical wallet, be it software or paper, and secure your funds.
To do so, follow these next steps.
- Step 1: go to your wallet in the upper right-hand corner of the trading screen. Then, select the “Withdraw” tab
- Step 2: choose the fiat money (euro, dollar), or the cryptocurrency that you want to withdraw. You should have as many options available as you had when you bought
- Step 3 (withdrawing fiat money): to withdraw your money to your bank account, you will first need to select the currency that you want to withdraw, euro, dollar, or whichever other one. Then, you’ll have to indicate the bank details of the bank account towards which you want to wire your funds and wait for a few days
Be careful. When you sell your cryptocurrency against USD (dollars) or EUR (euros), depending on your tax residence, it may most likely be necessary to pay taxes on the realized gains, and this would apply to each transaction. It may be wise to convert your cryptocurrencies against USDT (Tether) or USDC (USD Coin), as they are also cryptocurrencies and therefore you should not be taxed on your sale.
- Step 3 (withdrawing cryptocurrencies): if you want to withdraw cryptocurrencies, you first need to choose which cryptocurrency you will transfer to another wallet. Then, you must indicate the address of your receiving wallet to submit the transaction
Is Bitfinex a secure trading platform?
Despite being a victim of a hack in the past, Bitfinex overcame this ordeal. Since then, security for the platform was greatly enhanced and all the checks have been put in place to avoid this situation in the future. Nevertheless, it is not zero risk and that is why we recommend that you hold the least amount of funds on trading platforms. If you leave them there, they are exposed to the risk of the platform, or your wallet, being hacked.
However, there is no need to panic, the risks of that happening remain low and Bitfinex is a perfectly-fit platform to trade your cryptocurrencies. If you want to reassure yourself, you may want to review the section of this guide where we discussed the security of your account. And if you want to make your cryptocurrencies completely secure, you should have a look at “cold wallet” solutions such as Ledger.
Do you need to be an adult to register with Bitfinex?
Yes, to register with Bitfinex you need to be an adult, as it is described in the general conditions of use. Therefore, if you are less than 18 years old, do not try to register with Bitfinex, as you will get caught during the verification process. You need to have an ID in your name which certifies your age.
Who are the people behind Bitfinex?
Bitfinex is a big company. It is managed by a team of 6 prominent individuals from the cryptocurrency sector:
– JL van der Velde : Chief Executive Officer
– Giancarlo Devasini : Chief Financial Officer
– Claudia Lagorio : Chief Operating Officer
– Paolo Ardoino : Chief Technology Officer
– Peter Warrack : Chief Compliance Officer
– Stuart Hoegner : General Counsel
How do I contact Bitfinex?
If you have any kind of problem or need support, Bitfinex offers several options to contact them. By connecting to your customer account from your mobile or PC, you can access their ticketing platform and open a ticket regarding various subjects, access it by clicking here. You may also want to check out their Help Center by clicking here. Note: 4.8/5 with more than 257 votes