In the last few years, trading digital assets have been revamped from how it used to be some years ago. This is mainly due to the entrance of core entities that have made the activities easier for traders. Bitcoin was created to be a payment medium involving only two people, eliminating any third party. However, there are entities that aid users in carrying out the transactions. These entities are called crypto exchanges, and they provide essential crypto services, charging traders small fees for their activities. One such famous crypto exchange is Bitfinex, which has been in the market for a long time. This article will look into everything concerning Bitfinex, including carrying how to carry out trades and lend on the platform.
What Is Bitfinex?
Bitfinex is one of the oldest crypto exchanges in the digital asset market. Launched in 2012, the form offers various crypto products housed on its platforms. Traders can leverage the platform to enjoy products like spot trading, derivatives trading, margin trading, and paper trading, among other services. The platform opens users to the feel of a complete crypto ecosystem. This is due to its easy-to-use interface and perfect onboarding. The platform also allows users to keep their crypto in wallets on their platforms, assuring them of one of the market’s best security. Although the crypto exchange has been embroiled in some scandals in the past, it still provides optimum trading services for users. Its past association with illegality might be a deal-breaker for some investors, but Bitfinex is one of the most trusted.
History Of Bitfinex
The crypto exchange is one of the oldest platforms in the sector after it was brought to media attention during its launch in 2012. Before this period, only a few people were in the crypto scene, but that quickly changed with the entrance of the exchange. According to a CoinMarketCap survey, the crypto exchange presently ranks eighth in the top 10 best crypto exchanges according to trading volume. The platform offers one of the lowest fees in the market, with traders paying a little above 0.20% to make transactions. As mentioned above, the exchange has been embroiled in a few legal issues in the past, but it has not dampened the quality of service that it provides. The platform hosts more than 150 crypto exchanges, including top coins like Bitcoin and the likes. It is also on hand to list new digital assets in demand by investors in the market.
Features Of Bitfinex
Like most crypto exchanges in the market, Bitfinex has some outstanding features that set it apart from other exchanges. These features are the qualities traders pick out when looking for the best exchanges to carry out their activities. Below are some of the features that set Bitfinex apart in the crypto market;
Ease Of Trading
Bitfinex offers one of the easiest ways to trade in the crypto market through its easy-to-use platform. The platform is easy to navigate for both existing and new users. The exchange also allows traders to leverage their paper trading to learn how to carry out activities on the side. In paper trading, traders are provided with a demo fund that they can use to test their respective trading strategies before investing their money. The website offers tools that traders can use to buy and sell crypto anytime. However, it will be advisable for new traders to use the mobile app to get the hang of things before using the official website.
Another feature that sets this platform apart is the trading fees that it charges during transactions. The exchange levies traders with a 0.20% taker fee for every transaction made. The website also takes a 0.10% maker fee in some cases. These rates solely apply to traders carrying out transactions using fiat, stablecoins, and digital assets. However, traders can use the LEO token to evade certain fees on the platform. LEO is the native digital asset of the Bitfinex exchange. If a trader holds $1 worth of LEO tokens, 15% will be shaved off-take fees for crypto and stablecoins transactions. The percentage of fees shaved off will depend on the LEO tokens a trader holds.
Bitfinex makes the security of assets belonging to users on the platform a top priority. It leveraged the best security measures to keep them safe. Besides holding a cold wallet that stores assets, traders must succumb to a 2 FA on their accounts and advanced API if they want to withdraw to other wallets outside the platform. Although the platform’s security is now stronger for now, it has succumbed to hack attacks in the past.
Services On Bitfinex
Bitfinex is open to all crypto traders and has all the kinds of services tailored to serve each trader concerning how they want it. However, we will be looking into margin trading and lending and how to carry them out on Bitfinex.
What Is Margin Trading?
Margin trading is a form of trading where traders are provided access to a large sum of money to trade. Notably, the funds used for trading are provided by third parties. Unlike regular trading, traders are open to large amounts and use them to leverage positions. The bedrock of margin trading is to help trader increase their earnings on every successful transaction. Traders can also leverage it to open positions in several assets recouping the biggest profits across every market. However, traders need to be careful when dealing with this type of trading. Although it is very low in volatility, unsuccessful trades might bring massive losses the way successful trades bring huge profits.
How To Carry Out Margin Trading On Bitfinex
Bitfinex provides its users with the opportunity to carry out margin trading on the platform. However, you should note that only traders with the verification can carry out margin trading on the platform. In the steps below, we will be looking at the steps to open margin trading on Bitfinex;
Step 1 – Open An Account
Like every good journey in crypto, you will need to sign up for an account. You will need to provide basic details that the site will need to identify you. After that, you will need to undergo some steps to ensure you verify your account. Once that is done, you can move to the next step. And if you already have an account, you can skip this first part. However, you will need an intermediate verification to carry out margin trading on Bitfinex.
Step 2 – Fund Your Wallet
The next step to kickstarting your margin trading is to ensure you have enough funds in your wallet. You can quickly transfer from any wallet to your Margin wallet on the website. Moving funds to your wallet ensure that you have enough money to make your transaction.
Step 3 – Enter The Trading Page
Once your wallet already has the funds you need to trade with, you can enter the trading page. You will need to click on the pairs you want from the ticker box on the trading page. Clicking the order form will enable access to the margin trading page. This is where you will fill in every necessary detail about your order and input your amount. Once your order is executed, you have created your position. You should note that fees will be charged to your wallet, so you must send in as many funds as possible.
What is Crypto Lending?
Lending is a service where holders of crypto assets lend to those who are willing to borrow them. Traders who intend to lend digital assets must provide collateral to be able to facilitate the loan. Although the collateral will be in the lender’s wallet, he will not be able to carry out any transaction using them. However, should the digital asset’s price drop, the value of the token that will be repaid will be more than the one borrowed. Bitfinex provides one of the easiest ways to carry out lending on its platform.
How To Carry Out Of Lending On Bitfinex
Bitfinex is one of the crypto exchanges that open its users to the opportunity to lend digital assets using its platform. It provides lending access on various tokens, including Bitcoin, Ethereum, USDT, and OMG tokens. Below are the steps to carry out lending services on Bitfinex;
Kickstarting your lending process on Bitfinex is easy as you need to register a new account or log in if you are already a user of the platform. You will have to provide basic details upon registration. Your details will be vetted, and your account verified if they check out. You can then move to the next stage.
Once you are done with the first stage, you will need to enter the Lending Products page on the website. You will need to accept the terms and conditions that will appear on the screen before moving forward with your activity. Once you are done, you will need to deposit funds into your account.
In this step, you will be required to choose the type of lending mode that you want. Bitfinex provides three types of lending modes: dynamic, static, and market. Each lending modes have its advantages and disadvantages. However, you will need to conduct thorough research into all three modes to determine which one best serves you.
Bitfinex is one of the oldest and most consistent crypto exchanges in the crypto market. This is due to their bespoke services since they entered the market. Although there have been some bumps on the road, they are still going strong. The platform provides one of the easiest and safest methods to carry out transactions. Traders who intend to carry out lending services and margin trading can also leverage the platform. However, traders should carry out research to determine what works best for them.
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