Setting Up Your Crypto Bank
This article is a follow up to The Crypto Bank.
Summary
Before we get started, I will summaries the process in short. To get funds into your Bitfinex account, you will have to buy cryptocurrency from a broker and sell it on the platform’s exchange for USD. Basically,
- Buy Crypto from the Broker – Crypto.com
- Transfer to Bitfinex Exchange Wallet
- Sell Crypto for USD on Bitfinex Exchange
- Transfer to Bitfinex Funding Wallet
- Setup Margin Funding
Getting the accounts
Alright, you will need 3 different accounts for the process
- Crypto.com – Crypto Broker
- Bitfinex – Crypto Exchange, Margin Funding
- Xfers – Payment Institution (Optional but recommended)
I’m not gonna go through the account creation process because I can’t create a second account. The registration is quite self-explanatory so it should not be too difficult. Here are some key considerations.
Transfer Options
You can choose to fund your account with a debit/credit card or with Bank Transfer (via Xfer). I would recommend Xfer because there isn’t an additional cost. Xfer is approved by the Monetary Authority of Singapore for the provision of e-money issuance services (usually for Crypto Services).
If you still choose to fund via card, you should know that there’s a 3.5% transfer fee and if you’re transferring in SGD it will incur additional FX fees depending on your banks, because Crypto.com charges in USD.
Verification Process
The verification processes on crypto platforms are very strict due to the misuse of cryptocurrencies for activities like terrorism & money laundering. It’s normal, don’t be shocked. It will take 2-3 days for your accounts to be verified.
You do not need to verify your Bitfinex account for this process.
Crypto.com
I recommend Crypto.com because it is easy to use and it’s an all in one app which provides the function of a broker, exchange, debit card provider and payment system. I will cover all the features of Crypto.com in the next article.
Using my link above will give you $50 USD Bonus if you stake a minimum of 50 MCO coin. However, staking is optional, you do not have to subscribe to an MCO card to use the platform. As such, the $50 USD Bonus referral will be locked until you decide to stake MCO.
Crypto.com has a Crypto Earn program which is similar to Bitfinex Margin Funding, however, it pays simple interest. You can read the comparison about it below.
MAS Regulations
With the new Payment Services Act, your Xfer account (General Wallet + Digital Goods Wallet) is capped at $5,000 SGD. You can read more about the above here.
Getting started
I recommend reading everything through before you get started to make sure you fully understand the process.
⚠️ DISCLAIMER ⚠️
I am not a registered financial advisor. All above content, investment and/or financial opinions expressed on this blog are from research and personal experience and are intended as informational purpose only.
It is important for you to do your own analysis before making any investment based on your personal circumstances. I will not be liable for your losses.
Prerequisite – Adding Bitfinex Wallet & Topping-up Xfers
You will need to add your Bitfinex Exchange Wallet to your Crypto.com App. This can be done later but it’s recommended to do it first to speed things up.
Login to Bitfinex and select Deposit under Wallet on the top right of the screen. Search and select Ethereum under FILTER BY CURRENCY… search box. Click on the QR Code icon for your exchange wallet. You should see the QR Code popup. We are done on Bitfinex for now.
Go to your Crypto.com app on your phone.
Start your Crpyto.com app on your phone, select Crypto Wallet under Accounts tab. Click on the Transfer icon, followed by Withdraw icon then External Wallet. Click on Add Wallet Address and select Ethereum.
Scan the QR code on YOUR Bitfinex Exchange Wallet – Please do not scan the screenshot above. Give it a name, simply – Bitfinex Change Wallet and hit continue. There will be a verification email required, complete it and we are done.
Next, we will be making an Xfers top-up.
Start the Crypto.com App and go under the Accounts tab. Select Fiat Wallet. Click on Buy Crypto and select Ethereum. Enter the amount you want to purchase, for simplicity you can select the Max volume. Clicking on Purchase and you will be brought to a confirmation screen which you will then need to confirm the order.
If you are using a card, just select the Credit Card option.
I choose to buy Ethereum because of its fast transfer speeds between platforms, which will prevent large price discrepancy when selling on Bitfinex later on. Etherum has the second-largest market cap on Bitfinex making it easier to liquidate as well. There is also a limit on what cryptocurrencies you can buy on crypto.com with SGD. Your main options are pretty much Bitcoin, Ethereum or Litecoin. I didn’t choose Bitcoin because the transfer speeds are slower in general.
Step 2 – Transfer to Bitfinex Exchange Wallet
In your crpyto.com app on your phone, select Crypto Wallet under Accounts tab. Click on the Transfer icon, followed by Withdraw icon then External Wallet. Select withdrawal on the Bitfinex Exchange Wallet created in the prerequisite step. Complete the required verification and we are done for this step. Refer to the prerequisite section for guidance.
You can check the status of the transfer on Bitfinex Deposit page.
If you’re lost, there’s a detaiedl withdrawal guide here by crypto.com.
Do take note that there is a 0.003 ETH withdrawal fee. You can find the relevant withdrawal fee in the Fees & Limits section of the Settings in your Crypto.com App.
Be VERY careful when transferring cryptocurrencies – you will not be able to reverse an incorrect transaction.
Step 3 – Sell Crypto for USD on Bitfinex Exchange
Because Crypto.com is a broker, the prices are relatively higher at about 0.9% compared to the exchange. With the additional withdrawal fee of 0.003 ETH and an upcoming fee of 0.2% for selling on the Bifinex exchange platform, you should calculate how much you want to sell your ETH for to ensure that the fees are covered.
Convert your original total purchase price from SGD to USD on Google. Now using the formula below you should be able to get a break-even selling price.
Sell Price per ETH in USD ≈ (Original Total Purchase Price in USD / No. of ETH in Bitfinex Exchange Wallet)/98.8%
However, prices of cryptocurrencies do fluctuate every minute, therefore, it’s recommended to sell the Ethereum as soon as possible to prevent inuring further loss due to fees and price discrepancy between platforms.
It’s your choice whether to wait for the prices to hit your sell limit so you don’t incurring any loss due to fees price discrepancy or just sell it at the market rate.
Select the USD/ETH Ticker on the left navigation menu and enter your Sell Price per Ethereum in the textbox. Click on the 🔴 to set the sell quantity to the max. Lastly, click on the Exchange Sell button and wait for the execution.
Once, executed you will be able to see the USD in your Bitfinex Exchange Wallet Balance.
Step 4 – Transfer to Bitfinex Funding Wallet
Click on the USD Funding Wallet and select Transfer Fund. Select Exchange as the source and Funding as the Destination. Confirm the transfer by clicking on Transfer on the pop-up.
Step 5 – Setup Margin Funding
Click on Funding on the navigation menu or simply click here.
Everything here on out is pretty self-explanatory, below is an orientation of the Margin Funding Platform, where you will learn how to use it.
Section 1
This is where you offer your USD for funding. You can fund a different amount at different rates.
Clicking on USD Offer will set up your offer on the Funding Exchange.
| Textbox | Purpose | Sample Value |
|---|---|---|
|
RATE% PER DAY |
Used to set your offer rate in % |
0.027 |
|
AMOUNT USD |
Used to set the offer amount at this rate in USD Dollars Minimum offer is $50 USD |
500 |
|
PERIOD DAYS |
Used to set the number of days for the loan. Minimum is 2 days, maximum is 30 days |
2 |
Section 2
This is where you can check offer rates and the volume over the selected period.
The dotted line, also known as the Price Line, represent the last match offer rate on the funding exchange.
Section 3
This section shows the offers you provided and their respective rates, amount and expiry details. There’s a small refresh icon on the right, which allows you to renew the offer once it expires. However, do take note that if you have Auto-Renew (Section 5) turned on, that rate will take priority and this auto-renewal section will be disregarded.
Section 4
This section shows your offer that has yet to be taken up by a user and their respective rates, amount and expiry details. The pencil icon allow you to edit the offer. The cross icon cancels this offer.
The refresh icon on the right, similarly, allows you to renew the offer once it expires. As per above if you have Auto-Renew (Section 5) turned on, that rate will take priority and this auto-renewal section will be disregarded.
Section 5
The Auto-Renew function allows you to automatically renew once a loan expires. Sometimes, a trader closes his position before the offer expires. This might happen in the middle of the night while you’re sleeping, therefore there’s an opportunity lost.
Therefore, it’s advisable to keep Auto-Renew turned on at Max Amount (0) at your preferred period and rate.
You might have also noticed the FFR selection, for an explanation on FFR you can check here.
Summary
That’s all regarding THE CRYPTO BANK. Feel free to ask me any question using the form below, will try to reply ASAP and share the answer on this post.
For more information regarding Bitfinex Margin Funding, you can read the Q&A here.
Resources & References
Summary
That’s all regarding THE CRYPTO BANK. Feel free to ask me any question using the form below, will try to reply ASAP and share the answer on this post.
For more information regarding Bitfinex Margin Funding, you can read the Q&A here.
| Details | Bitfinex | Crypto.com |
|---|---|---|
|
Name
|
||
|
Currency
|
USD
|
USDT
|
|
Interest Rate (Annualised)
|
Approximate 8-10%
|
Up to 12%
|
|
Term
|
2-30 Days
|
Flexible / 1 Month / 3 Months
|
|
Minimum
|
50 USD
|
250 USDT |
|
Pay Out
|
Daily |
Weekly
|
|
Type |
Compound Interest
|
Simple Interest |
Summary
That’s all regarding THE CRYPTO BANK. Feel free to ask me any question using the form below, will try to reply ASAP and share the answer on this post.
For more information regarding Bitfinex Margin Funding, you can read the Q&A here.
Buying Crypto on Bitfinex via mercuryo
If you’re looking to fund your account via Card, you might want to purchase to Crypto Currency directly on Bitfinex. Navigate to the Deposit Page under Wallet and you will see the option to purchase via Payment Cards.
I have never tried this before, so I can’t really compare the rates against Crypto.com. This might be a better option if you have a bank with USD currency. You can find out more here.
Questions
If you have any questions just drop me a message and I will try my best to explain it to you.