So after buying your first cryptocurrency you now want to get into the real stuff. Anyone can buy bitcoin on easy to navigate websites like coinbase but where to go from there and how to make transactions without screwing up and losing your cryptocurrencies is a different story. We will explain the process here.
- Show you how to register on an exchange and which ones are the best
- Show you how to make a trade on an exchange
- Show you a comparison of different exchanges with pros and cons
What is an exchange?
I think the name speaks for itself.. You can exchange cryptocurrencies for other cryptocurrencies on an exchange. It’s similar to trading Forex or Stocks on a brokerage for that matter, there’s an order book and people are placing buy and sell orders for the prices they want to buy or sell for. I will explain how to trade on exchanges in this article. One very important thing to keep in mind, NEVER leave your holdings on an exchange. Always keep them in your own wallet of which you own the private keys. There have been too many cases where people lost their funds and you don’t want to take this risk. I will explain more about this in Step Three – Safe Storage.
How to choose the right exchange?
To be honest this is a difficult question. Some cryptocurrencies are only available on certain exchanges and you might want to sign up for multiple exchanges depending on the cryptocurrency you want to buy. I will explain how to trade on our favourite exchange Binance and give some basic information on how to set up accounts for other exchanges. Also we give a comparison of some exchanges so you can make your own decision. If you want to know where you can buy a certain cryptocurrency, please visit www.coinmarketcap.com and search for the currency, then click on ‘markets’ and you can see what exchanges you can buy it.