8 steps for trading cryptocurrency on exchange





 
Congratulation as an early bird into cryptocurrencyBitcoin and altcoins, the new money 0.3 as I walk you through 8 solid steps for trading cryptocurrencies successfully on exchanges

Cryptocurrency is virtual, digital and cyber money that’s totally not controlled by the government. The invention of bitcoin the first decentralized digital currency and it magnificent benefits got so many attentions and brought about the development of other mimicking Bitcoin alternatives – altcoins, all aiming at solving one problem or the other, through the blockchain proof of work system.
 
Cryptocurrency is by designed a unit of account, medium of exchange and a store of value. It unit prices is determined by the market forces of demand and supply for the cryptocurrency, technological innovation and core development of the crypto project.
 
Just like in stock exchange market, cryptocurrency market for trading (buying and selling) is otherwise known as exchange, and every listed coins and tokens are estimated of their respective increase or decrease in unit prices and other statistical data through the coin or token API.
 
At crypto exchange, every listed coin or token means qualified for trading. But note, every single cryptocurrency listed at exchange cannot be exchanged with all other listed coins or tokens. So, there’s always a trading pair which is either fiat or other listed  cryptocurrency you are expected to use for trading (buying) the cryptocurrency you deem acquired. The most used trading pair by exchanges is BTC, USD, ETH, though there are other trading pairs like USDT, QTUM etc.

At crypto exchange and by design, all listed coins and tokens have their respective unit of account, and their units values are determined by their unit prices. Bitcoin as a unit of account for example; 

MilliBitcoin (mBTC) = 0.001 bitcoin - one thousand of bitcoin.
Microbitcoin (uBTC) = 0.000001 bitcoin - one million of bitcoin.
Satoshi (cBTC) = 0.000000001bitcoin - one billions of bitcoin


 
As a unit of account, each listed cryptocurrencies on exchanges have their respective exchange rate and value based on their unit prices. For example, as at the written of this article according to Coinmarketcap Calculator that's also applicable to exchanges, 0.005BTC = $39.66 while 0.005ETH = $2.52

 

8 Steps for Trading Cryptocurrency on Exchange


 
If you’re newbie trader, and yet to trade cryptocurrency at any exchange, then, these  simple 8 step by step processes should guide you through.
 
1. Identify Cryptocurrency to Buy – Cryptocurrency is of two types which include coins and tokens. Coins are cryptocurrencies operating independently while tokens are cryptocurrencies that depend on the third party platform (smart contract). 

Trading crtptocurrencies is all about buying or selling on exchange. You need to figure out the exact cryptocurrency you want to trade.
 
2. Figure out Exchange Trading Cryptocurrency - After determining the coin or token you want to buy at exchange, you need to figure out exchanges by which the said coin or token is listed for trading. This could be a little bit difficult for crypto beginner, but below article could be of help.
 

 
3. Trading Account Registration – After you’ve determined exchange the so coin or token is listed for trading, you have to register an account with the exchange. Some exchanges like Binance have severally paused their registration due to huge new members flooding their platform on daily bases and slowing down their server. 

Secure your account and avoid exchanges with bulk problem of verifying registration account. Most crypto exchanges like Cryptopia offers affiliate program of referring new members and earning commissions.
 
4. What Trading pairs are use – Trading pairs are fiat or digital currencies. After you’ve registered a crypto trading account with exchange, you have to figure out the exact digital currencies (trading pair) fixed for buying and trading cryptocurrency you so desired as listed on the exchange. Bitcoin is the most used trading pairs for trading cryptocurrencies on exchange platforms, followed by fiat currency like USD, ETH, USDT etc. For example;


  • Btc-alpha.com/exchange/LTC_USD/ -- (USD as LTC trading pair)
  • Yobit.net/en/history/bids/DOGE/BTC -- (BTC as DOGE trading pair)
 
5. Fund the Trading pairs – Now that you’ve figured out the exact fiat or digital currencies used as a trading pair(s) for acquiring or exchanging the coin or token you deem purchasing, now go ahead and add fund to the rading pair, using the “deposit” tab of the trading pair (cryptocurrency) to generate deposit wallet.

Remember, trading pair for a particular coin or token could be more than one currency. That is, a certain coins can be traded with multiple trading pairs. The most important thing is to figure out the exact trading pair with the coin or token you want to buy and get it funded.
 
6. What’s the exchange rate – All crypto trading platforms have their own fixed exchange rate, which is a minimum quantity threshold for trading. Although, the minimum exchange rate for trading coin and token at exchanges differs from exchanges, and platforms like Binance pushed up their minimum exchange rate to $30 per transaction, just to scare away newbie traders and mostly, traders with few or limited investment capitals. However, there are numerous crypto trading platforms like Livecoin with insanely low exchange rate per transaction.
 
7. Be mindful of transaction fee – There’s also a fixed transaction fee while trading cryptocurrencies just like there’s a fixed minimum exchange rate. The transaction fee as well as the exchange rate differs from exchanges, but the price is always fixed. You have to figure out transaction fee in order to determined if that’s too high or low for you, which is calculated to include with the total sum price of the unit or number of cryptocurrency you want to purchased (trade), after funding trading pair.
 
8. Trade crypto using buy and sell tabs – Now that you’ve successfully registered your crypto trading account, funded the coin or token you want to use for exchange and also comfortable with the fixed minimum exchange rate, it’s time to start trading listed cryptocurrencies of your choice using the “buy” and “sell” on the crypto market exchange page. Confirming trading of cryptocurrrencies normally doesn’t takes time, though, the confirmation speed differs from trading exchange.
 
Summarily, cryptocurrency trading helps crypto investors who either missed out of acquiring the coins or token during crowd-sale, airdrop, bounty or initial coin offering (ICO). After the last steps for trading cryptocurrencies on exchanges, which is to hit buy and sell tab, you have to check your trading account balance to see if the number of traded (purchased) coins or tokens is reflected in your exchange account balance. 
 
You can also sell purchased cryptocurrencies in your exchange balance back into the trading pairs (though still into your balance), through “sell” tab, provided the coins or tokens in your trading account balance reaches the fixed minimum exchange rate (in case of price drop), and can also be withdrawn into a third party wallet, using the “withdrawal” tab.
 
Crypto exchange order than platform for buying and selling coins and tokens, it is more or less a storing vault of value. Exchange may not the best devices for storing cryptocurrencies like cool storage, hardware wallet like LedgerNano etc due to risk of hacking trading platform, exchange malfunctioning or even shutdown. 

Perhaps, by choosing the best cryptocurrencies exchanges, you have nothing to worry about exchange platform malfunction, hacking or being shutdown, provided you’ve protected your crypto exchange with strong generated password, 2 factor authentication and private keys.
 
With the above listed step by step processes, you can start trading cryptocurrencies from any exchanges in the world. Is there any where you’re still having issue successfully trading cryptocurrencies on exchange? Kindly share with us by using the comment box bellow.





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