Bitfinex is one of the most well-known cryptocurrency exchanges out there. The crypto exchange has been in operation since 2012. The exchange offers you different types of products to trade in. Such as spot, margin and futures trading.
But most users prefer using its futures trading services due to low cost and simplicity. And if you want to do the same, you might be wondering how to trade futures on Bitfinex?
If you do, here is the answer:
How to Trade Futures on Bitfinex?
#1. Create Bitfinex Account
First, start by creating a Bitfinex account if you are not an existing user yet. To sign up on the exchange, go to Bitfinex.com and click on the Sign Up button.
Next, fill in all your details like name, email, and password, and follow the onscreen steps.
Also, Bitfinex requires you to enable 2FA before you start using the exchange. So make sure to use Google Authenticator or any other app for the job.
#2. Deposit Funds
The next step is to deposit funds. To do so, go to Wallet from the top navigation bar and select Deposit.
You can deposit funds in multiple ways. For instance, you can use your credit/debit card to make a crypto purchase, bank transfer, or transfer cryptocurrency to your Bitfinex account.
However, Bitfinex does not allow you to deposit funds via peer-to-peer.
#3. Go To Crypto Futures
The next step is to go to the crypto futures. For this, click on Derivatives. This will open the Bitfinex perpetual contracts Window.
Unlike most exchanges, Bitfinex only allows you to trade in perpetual swaps. As a result, you won’t find weekly or monthly contracts on the exchange.
#4. Select Trading Pair
On the Perpetual futures window, you will find a list of all the available pairs on the left side of your screen. Simply navigate through the list or search for the pair you want to trade.
Once you click on a specific trading pair, its chart will open up along with other options.
#5. Fill Out The Order Form
Now to place your trade on Bitfinex, you are required to use the order form, which is located right below the trading pairs list.
The order form has three main options, and the first one is the Limit dropdown menu. Using it, you can select your order type.
Right below that, you have the PRICE USDT option, where you can enter your order value.
Next, there is the Leverage slider. Use the slider to adjust leverage as per your needs. The leverage would vary based on your selected trading pair.
#6. Place Your Order
Once you are done filling out the order form, you need to click on the Derivative Buy button if you want to create a long order. Or you can click on the Derivative Sell button for a short order.
Also, once your order is placed, it will be visible under the technical chart. You will find different options such as positions, orders, and order history. From here, you can edit, cancel or close your orders or trades.
What Are Bitfinex Futures Fees?
Just like a majority of cryptocurrency exchanges, Bitfinex too has a tiered fee structure with the standard maker and taker fee model. Meaning the higher volume of trades you execute within 30 days, the lesser the trading fee you have to pay.
Regular users having a trading volume less than $2,000,000.00 will be charged a maker fee of 0.0650% while the maker fee is 0.0200%.
However, you can get a discounted trading fee if you hold LEO tokens in your account. LEO token is a utility token for the Bitfinex exchange.
If you hold LEO tokens, then you will be charged a minimum maker fee of 0.0200% and a minimum taker fee of 0.0450%.
Bitfinex Provides Futures on Which Assets?
On Bitfinex, you will find a wide range of trading pairs. You can trade in both USDT-M Margin and Coin-M margin on the exchange. And here are some of the popular trading pairs:
- BTC-PERP
- ETH-PERP
- SOL-BTC-PERP
- SHIB-PERP
- BTC/EURt-PERP
You can use USDt, EURt, CNHt, XAUt or MXNt as the base currency for your perpetual trades.
How Do I Reduce Bitfinex fees?
There are three main ways to enjoy reduced Bitfinex trading fees. First, you can increase your 30 days trading volume. However, this requires you to trade at a massive amount which won’t be possible for many.
However, you can hold UNUS SED LEO tokens in your account. By holding these tokens for 30 days, you can enjoy a reduced level of taker fee.
The last option is to use someone’s referral link to receive a 6% discount on trading costs. To avail of this offer, you can use our link to sign up for the exchange.
Conclusion
Trading futures on Bitfinex is a pretty straightforward process. It not only offers you an easy-to-use interface.
But you get a wide range of trading pairs and multiple options to deposit funds into your account. Also, withdrawing funds from the exchange is relatively easy.
So now it is your call to go ahead and check the exchange out and see how it is working for you.
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