Step 3: Start Trading On The Right Exchanges
Yey, so we already went through the process of how-to buy cryptocurrencies and we’re ready to start trading!
First, let’s go over some simple concepts:
- Once you buy coins they’re stored in a digital wallet. If you’re not trading, there are several ways of storing your coins: keep the coins on a web-based service; download a software and store in your computer’s drive; a “vault” service that keeps your coins protected offline.
- For trading purposes you’ll have to have your coins on the exchanges’ wallets.
- Your wallets always have an associated address, an unique hash key, also associated to a QR code.
- If you want to receive or send coins, you just need to use the address. Important: if you send to the wrong address you will loose all your coins, so every time you move your coins, be very careful.
Now that we have this clarified, let’s start trading. For this example, we’re going to use the Binance exchange platform. It has credibility, a lot of coins and volume. Other credible exchanges are: HitBTC, Bittrex, Bitfinex.
Note: Always check if the exchange you’re going has enough volume and if it is credible, as there are a lot of scams in cryptocurrency.
So here we go with the quick tutorial for depositing funds on Binance:
- Go-to Binance.com and sign-up. Use a safe password.
2. Go-to “Funds”, click on “Deposits” and select the coin that you have. If you have Bitcoin, select bitcoin from the drop down menu.
3. After you select the coin you want to deposit, wait for the address to be generated and copy it. Double check that you are copying the right address for the right coin.
4. Go back to Coinbase and go-to “Send”. Paste the address that you’ve just copied. Click “Send Funds”.
5. Go back to Binance. Soon you’ll see “Pending Deposit” with the funds that you’ve just sent. Wait a little longer and the process will be completed.
Congrats! You’re now ready to start trading.
There’s a lot of info available on exchanges, digital wallets and storage. We cover these and more on our platform. Check out what our crypto community members are saying.
Next article: “Step 4: Find The Best Coins To Trade”