Crypto trading is the process of exchanging one digital asset to another with the purpose to generate income. Since crypto assets are not regulated and issued by central banks, there is no central body that would regulate their prices, so they are incredibly volatile and move up and down along with the market trends. Other factors, such as the supply/demand ratio, investor sentiment, etc. affect the market of digital assets. Amid the market’s upward and downward trends, traders do their best to make a profit, using different trading tools and following trading strategies. Strategies allow for generating income within one day or even in a few minutes, but it requires practice. It all comes down to basic crypto exchange, which we will discuss below.
Where Can I Trade Crypto?
There are many platforms on the Internet where you can buy crypto online and trade it. A cryptocurrency trading platform is a service for buying, selling, and exchanging digital coins, with the addition of many trading tools such as staking, futures trading, margin, spot, p2p, etc. Functionality varies from platform to platform. The most extensive range of tools is offered on centralized exchanges (CEX). They operate officially and ensure a high level of user safety. Decentralized platforms offer a limited number of features; however, they are also common in the crypto field.
How Does Trading Cryptocurrency Work on Centralized Platforms?
CEXs functionality look common. Let’s take the WhiteBIT exchange as an example. So how to exchange coins on WhiteBIT:
- register an account;
- pass KYC (or do not pass if you do not strive to access advanced trading tools);
- transfer coins from your wallet to the WhiteBIT account;
- enter the “Trade” block.
- Pick a trading pair. A pair is two assets that are exchanged among themselves.
For example, you have BTC and want to buy SOL. Pick BTC and SOL coins in the calculator and see how much BTC it will cost to buy SOL. Pay the fee, and receive SOL coins in your account.
Buying crypto with fiat is the same easy. After registering an account, it is necessary to pass KYC. Then attach your bank card and move the needed sum to your account. Then pick a traded pair USD – BTC, EUR – BTC, or any other available currencies and proceed with the transaction similarly as described above.
