How To Buy and Sell Cryptocurrency Assets
In the previous article, we saw an overview of how to trade cryptocurrencies safely. There I shared the numerous factors we should consider before investing. Besides this, I also shared a couple of best practices while indulging in crypto trading.
In this article, we’ll be going through the functional intricacies of buying or selling a digital asset. Hence this article will focus on the overall process, right from registering on an exchange to buying and selling your first cryptocurrency.
While most platforms have a similar trading process, there might be differences when it comes to the registration or verification process and the various modes of trading. For now, I’ll be covering the common process so that you can trade on an exchange such as DHCOINX.
Register On the Exchange
Once you’ve decided which exchange you want to trade on, you’ll need to signup on that platform. For this, you’ll require to fill in your details such as user ID/email and password. Usually, many platforms send a confirmation email to the ID, which you can use to create an account.
Post this, depending on the exchange you’re signing up to, you’ll need to perform a KYC/AML process. This is because the exchange has to comply with the government’s regulations, and hence they require your details such as social security number, identity proof, address, etc.
Once you’re done with these two steps, you’re all set to perform your first transaction.
Fund Your Cryptocurrency Wallet
Since you’re new to the platform, your wallet will not have any funds for you to buy a cryptocurrency. So, you need to deposit some funds into the wallet. These funds can be in the form of cryptocurrencies or fiat currencies, based on your exchange.
If you’re depositing cryptocurrencies, you’ll need to provide the address of your personal crypto wallet and the address of the exchange’s wallet and deposit the fund. If you’re depositing fiat currencies, then you can do so via bank transfer, SEPA, etc., based on the currency and payment mode of your choice.
Once you’re through with this process, you have funds in your wallet and are ready to buy the first cryptocurrency asset.
Buying And Selling Cryptocurrency
To buy or sell a cryptocurrency, you usually need to go to the trades tab. There’ll usually be a list of all the cryptocurrencies enlisted on the platforms. Besides this, there will also be various trading pairs available on the platform.
All you need to do is select the cryptocurrency you want to buy, the volume of cryptocurrency you want to buy, and place the order. Now there are various in which you can place an order. These include: limit orders, stop orders, and market orders. Based on these, your transaction will occur, and you would’ve bought your first cryptocurrency.
To sell your first cryptocurrency has a similar process. You go to the trades tab. From the list of trading pairs, select which cryptocurrency you want to sell in exchange for which cryptocurrency. Specify the volume, place the order, and make the transaction.
Conclusion
Thus, with these 3 simple steps, you can buy and sell your first cryptocurrency asset. While this was a rather functional aspect of crypto trading, we will be seeing how to succeed at crypto trading in the following article.