Buy Cryptocurrency on Bitfinex – A Beginners Guide
Cryptocurrency is slowly but surely becoming a household word and interest begins to rise every day in the phenomenon. Chance is, as beginners, you must have heard of a cryptocurrency exchange called Bitfinex and you have wondered how to buy crypto from the platform.
The crypto market considers Bitfinex as one of the most advanced and largest exchanges by trade volume. Lots of experienced traders have turned to Bitfinex as their exchange of choice to buy and sell cryptocurrencies.
In case you are seeing the word “cryptocurrency exchange” for the first time and don’t know what it is; a cryptocurrency exchange is an online platform where you can buy, sell and trade cryptocurrencies. Exchanges usually have lots of cryptocurrencies listed in their marketplace with supported trading pairs. Read more about what is a cryptocurrency exchange.
Trading pairs allow users to trade or exchange one cryptocurrency for another without first exchanging either of them for fiat currency. The most frequently traded crypto pairs are Bitcoin, the world’s leading cryptocurrency, and Tether (USDT) which is the most popular stablecoin in the market.
Bitfinex is owned and operated by iFinex Inc. It was founded in Hong Kong in 2012 and has since grown to the status of one of the most used crypto exchanges in the market. Bitfinex is not very beginner-friendly, but it is user-friendly when you have found your way around it. Learn more on our Bitfinex review 2022 post.
Bitfinex core features
There are features available on the Bitfinex platform that would make you want to consider using them. These features are listed below:
- Margin funding
- Margin trading
- OTC (over-the-counter) market at Bitfinex
- Exchange trading
- Derivative trading
- Paper trading
- Buy cryptocurrency with a credit/debit card
Cryptocurrency trading pairs available on Bitfinex
A cryptocurrency pair allows each crypto asset to be valued and estimated without using fiat or local currency. One of the reasons to use cryptocurrency trading pairs is to reduce trading fees.
If the trading pair does not exist, you might have to use two or more trading pairs to get the desired cryptocurrency. Hence, the availability of a trading pair is advantageous and trading on a platform with good pairs is very essential. Below are some of the trading pairs available on the Bitfinex exchange.
How to sign up and create an account on Bitfinex
Just like every other cryptocurrency exchange, you will have to sign up and create an account on the platform before you can begin to buy, sell or trade cryptocurrencies. Creating an account on Bitfinex is an easy process that you can finish in a matter of minutes.
Bitfinex is not available in all countries, so it is very important to check for and go through their Terms and Conditions of use to see if you are eligible to use the platform based on your country of residence.
Luckily, Bitfinex is available in over 52 countries of the world. Their services are available in most countries except for the United States, Bangladesh, Bolivia, Ecuador, and Kyrgyzstan. According to a post on Shetcoiner, one of the reasons Bitfinex is not available in the United States is because it is required to provide lots of legal requirements which they haven’t and also the exchange platform cannot be accessed in the US using a VPN.
Below is a step-by-step guide to signing up on Bitfinex:
1. Visit the Bitfinex website at https://www.bitfinex.com/ and locate the signup button at the top right corner of the homepage. Note: to avoid getting scammed, make sure to check the link and be sure you are on the Bitfinex website.
2. Enter your details on the signup page: Some of the details required to sign up include a username, an email address, and a password. Go further to choose your country of residence from the dropdown and also put a referral code if you have one. Click on the signup button.
3. Enable Google Two-Factor Authenticator: 2FA is an extra layer of security that is needed to protect your account from the hack. You must enable it.
4. Click on the continue button to configure the two-factor-authentication
5. Confirm your email address: Open the email you have used to register your account and you will find a message from Bitfinex containing a verification link. Click on the “Confirm Email Address” to continue.
6. You’re all set: When you return to the signup page after confirming your email address, you should see a message showing that everything is set and you are ready to proceed. Click on the login button to get started with your new account.
How to buy cryptocurrency on Bitfinex
After signing up and creating an account, you can now go on to buy cryptocurrency on the Bitfinex platform. Buying crypto on Bitfinex is an easy process, you just have to follow a few steps.
Fund your account
Before you can buy any cryptocurrency on Bitfinex, you will have to fund your account. Funding simply means depositing a certain amount of money or crypto into your account that you will spend in purchasing these cryptos.
In Bitfinex, there are several ways of funding your account which include a credit/debit card, wire transfer, fiat money through Tether, or deposit using cryptocurrencies. You should note that before you can deposit money to your account using fiat money, your account must have passed through verification.
1. After a successful verification process, click on the deposit tab on the top page to get started. The deposit page shows you different options available on how you can fund your account. Click “Bank Wire” and select the currency you wish to deposit. Follow the instructions by filling out your bank details including the amount you wish to deposit.
2. Once the deposit is successful, the amount will be reflected on the “balance” section on the left side of the screen.
You have successfully funded your account.
Buy cryptocurrency on Bitfinex
After depositing funds in your account, it is now time to buy your first cryptocurrency on Bitfinex.
1. Make sure the funds are in your exchange wallet. This wallet will be used when buying or selling supported cryptos on the platform. Locate the wallet tab at the top right and click it.
2. Enter the amount you want to transfer and also your currency of choice. Select the wallet you will be transferring the fund from and also the receiving wallet. Click on “transfer” once you are done.
3. After funding, you can now go ahead to start buying cryptocurrency. Click on the “trading” tab next to the Bitfinex logo.
4. Choose the cryptocurrency you intend to buy and then select the trading pair.
5. On the next page, an order form will open. Select the preferred order type. The default order is usually “Limit.” Put the amount you want to spend to buy the cryptocurrency in the ‘Price USD’ box. It is very important to confirm that everything is correct before you click the “exchange buy” button.
Congratulations, you have purchased your first cryptocurrency on Bitfinex.
Read our comprehensive Bitfinex Review to see more