Please note: Before you can start to trade you have to buy your first cryptocurrency and have to sign up to one of the exchanges. If you have done this please keep on reading.
Finding your Deposit address
If you want to start trading, you need to put the cryptocurrencies you bought elsewhere into the exchange you use. I will explain the process with Ethereum bought on Coinbase to buy NEO on Binance, but the process is the same on all platforms. It might seem difficult if you do this for the first time but you will get the hang of it soon enough. First we want to deposit our cryptocurrencies into Binance, so we have to find out exactly what address to send our funds to. Log into your Binance account, click ‘Funds’ in the top bar and then ‘Deposits Withdrawals’.
Next you will see below screen, this is showing the balances of all your cryptocurrencies and each one has it’s own specific address. Sending the wrong currency to the wrong address will cause you to loose your funds so please be careful with this.
Now we want to take the Ethereum we bought in the First Steps from Coinbase and send it to Binance so we need the Ethereum address of our Binance account. Scroll down the list in your ‘Deposits Withdrawals’ page on Binance until you see Ethereum. Then click ‘Deposit’ and you will see the below screen. The address shown on the left is your Ethereum address and you have to deposit Ethereum to this address to be able to start trading.
Transferring your funds to the exchange
Now we are assuming your first Cryptocurrency was bought on Coinbase but it works the same with any other platform. Log back into your Coinbase / Lykke / XXX account and go to your Ethereum wallet. In Coinbase there is a button that says send, in Lykke there is a button called , in other exchange it’s called withdraw (for when you want to send your funds from one exchange to another). Like we said, it works pretty much the same everywhere but we will show the process from Coinbase with the below image. Take the Ethereum address from Binance (see above picture) and copy it. Now put it in the ‘Recepient’ box on Coinbase. Then fill in the amount that you want to send. In Coinbase you have a ‘Send Max’ button which is quite useful. Please double check the address to which you are sending is really your own address from Binance!! If there is a mistake in this address you send your funds to someone else! If you are sure everything is correct then just press ‘Continue’ and confirm the transaction!
Please note: Transactions like these will incur some network fees, those are calculated automatically so there is not much that you can do about this. As I explained before Bitcoin has very high fees and is very slow, so you are probably better of making transactions with Ethereum (though it has lately slowed down a lot as well) or Bitcoin Cash.
Normally transactions should be showing up within 10 minutes with Ethereum and Bitcoin Cash, but as you can see in the above picture delays can happen and it can take a few hours depending on how busy the network is for the cryptocurrency you make the transaction in. You can always track your transaction and see what is going on in case it doesn’t show up after a long time. As long as you put the address correctly then it should be arriving no matter what so don’t panic if it takes a while. After a while your funds should show up in Binance’s ‘Deposits Withdrawals’ page under Ethereum and the 0 should change into the amount that you sent through:
Making a trade
Next we can make our first trade. On the top left of the menu on Binance there is a button called ‘Exchange’. We don’t want too make things too difficult so click on ‘Basic’. Next you will get to the below screen where a chart, the orderbook and all order info is shown. Since we have bought ETH and want to buy NEO with our ETH, we will have to search for NEO on the right side under the ETH tab. As you can see NEO/ETH pair shows up, click it and the NEO/ETH chart will show up. It works the same with any pair. Now to place an order we have to focus on the area in the middle under the chart.
Here we have three options to place orders. We will start with the most simple option and probably the only one you should be using in the beginning.
Click on the ‘Market’ tab, the middle one. This will automatically set your order to buy (or sell) at the best possible market price currently available.
This way you cannot make any mistakes and you can just put in how much you want to buy. Let’s say we want to buy 1 NEO, then we fill in 1 and click Buy NEO, and then the trade automatically confirms as long as we have enough ETH to buy 1 NEO. You can also change it around and use the % buttons to sell say 50% or 75% of the ETH you hold for NEO. If you click the % buttons it will show how much NEO you will get for the amount of ETH you put in. Now just click the Buy NEO button and poof, your order gets fulfilled!
Congratulations, you have made your first cryptocurrency trade 🙂
Other order options
Other than the Market Order you can also put a Limit Order or a Stop-Limit order. A Limit Order is just an order that doesn’t execute immediately at market price, but at the price you want to set. So say the current price is 0.1 ETH per NEO, and you want to buy it only when the price is a bit cheaper at 0.095 ETH per NEO, you put your Limit Order at 0.095 and then press Buy. This will put your order in the order book and it will stay there until it gets down to 0.095. If it goes up, your order never gets triggered and it will remain there. The good thing is you can leave the order and go do something else and if the price comes down to your order price the trade is automatically made.
A Stop-Limit order is a bit different from a regular Limit Order. Binance put a nice explanation with an example here so instead of me explaining this it’s better to read up on Binance’s explanation.
Now after buying your first cryptocurrency and making some trades you have to figure out how to safely store your cryptocurrencies. Leaving them on the exchanges leaves you vulnerable and when the exchange gets hacked you can lose your funds. We will explain how to safely store your cryptocurrencies in Step Three.