Crypto trading is a popular way to invest in the digital asset market. It can be difficult for someone who has never traded before, so this article will introduce how to buy and sell crypto. We’ll start with what crypto is, and then we’ll talk about different ways to trade it.
What is Crypto Trading?
Crypto trading is the act of buying and selling crypto assets. Crypto assets are digital currencies that function as a store of value, similar to gold or fiat currency. Crypto can be traded on exchanges using various orders: limit order, market order, stop-limit order.
To buy an asset, you place a bid at the desired purchase price; if it’s not filled immediately, your offer will remain open for other traders (or bots) to fill until either the price reaches your target level or another trader places an opposing trade at a better price than yours – in which case all your funds get automatically transferred into their wallet.
They become entitled to sell them back whenever they want. The same process applies when you wish to sell crypto. You can also sign up with Immediate Edge to improve your trading.
Steps to buy and sell crypto
- Pick a crypto exchange
There are lots of crypto exchanges out there. Each one has different trading pairs, limits and fees. The most popular exchanges are Coinbase/GDAX, Binance, Bitfinex, Poloniex or Kraken. You can also open an account on a decentralized exchange to buy less known cryptocurrencies with lower liquidity.
- Opt for a payment gateway
There are a few different payment gateways to choose from when buying or selling crypto. Each has its benefits and drawbacks, so it’s important to do your research before settling on one. Some of the more popular payment gateways include
- Coinbase: Coinbase is one of the most user-friendly options available. It allows you to buy and sell Bitcoin, Ethereum, and Litecoin easily. However, it does have higher fees than some of its competitors.
- GDAX: GDAX is an offshoot of Coinbase that allows more advanced traders to make trades using margin trading and other tools.
- Bitfinex: Bitfinex is one of the largest exchanges in the world, and it offers a wide variety of cryptocurrencies to choose from.
- Kraken: Kraken is another large exchange that offers various currencies. It has lower fees than Bitfinex, but its user interface can confuse beginners.
There are many other payment gateways available, so be sure to do your research before settling on one. Each gateway will have different fees and offer different currencies, so finding one that fits your needs is important.
- Place your order
The third step is to place your order. You can do this on an exchange or through a broker. When you buy crypto, you will need to provide personal information, including your name and contact information. Ensure that the site you use is reputable and has been in business for a while.
- Store your crypto safely
Use a wallet to store your crypto. There are many different types, but the most common is an exchange wallet (examples: Coinbase Wallet or Binance). Store it offline for greater security.
The Bottom Line
The process of buying and selling crypto can be risky, but it’s also a great way to make money if you’re careful. Do your research before making any transactions, and always use a safe wallet to store your coins. By following the right steps, you would surely earn profit from crypto trading.