KuCoin Academy Lesson 8|“I Have Bitcoin Now, How Can I Convert It To Other Cryptos?”
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We are now launching the KuCoin Academy program, covering topics from crypto basics to trading knowledge. After learning each lesson, you will be able to complete a quiz to earn reward points!
In the first week, we said that the most convenient and easiest way to get crypto assets is to directly purchase them through an exchange. In addition to knowing how to buy cryptocurrency using fiat currency, you also need to know how to make transactions between cryptocurrencies if you want to become a senior crypto investor.
In KuCoin Academy lesson 8, we will demonstrate how to buy more kinds of cryptocurrencies
Contents:
*What is Spot Trading?
*The Difference Between Different Accounts
*How to Make a Spot Trade
*What Types of Orders are There?
*Trading Fees
1. What is Spot Trading?
Spot trading also is called crypto-to-crypto trading, referring to trades made between cryptocurrencies. Simply put, you can use one type of crypto asset to directly exchange for another type of crypto asset.
Exchanges between different cryptocurrencies will form a trading pair, which reflects the exchange ratio between the two tokens. For example, if USDT is used to exchange ETH, an ETH/USDT trading pair will be formed. This trading pair represents how much USDT can be exchanged for 1 ETH.
If you want to conduct spot trading on KuCoin, you need to transfer the assets from your main account to your Trading account first.
2. The Difference Between Different Accounts
On KuCoin, there are 4 types of accounts: the Main Account, Trading Account, Margin Account and Futures Account.
The Main Account is mainly used to store crypto assets, with deposits and withdrawals of crypto assets being conducted in the Main Account. The assets in the Main Account cannot directly participate in spot trading, margin trading or futures trading.
Trading Account: The assets in the trading account are only used for spot trading.
Margin Account: The assets in the margin account are only used for margin trading.
Futures Account: The assets in the futures account are only used for futures trading.
KuCoin supports cryptocurrency deposits to Main account, Trading account or Margin account, users can choose the related accounts for deposit on the deposit page.
Cryptocurrency purchased by the users through their local currency will be stored in the Main Account by default. If you want to trade among cryptocurrencies, you need to transfer the assets from your Main Account to your Trading Account. The crypto assets can be transferred back and forth between the Main Account and the Trading Account without any transaction fees.
3. How to Make a Spot Trade
Crypto assets are very simple to trade on KuCoin, as demonstrated here with the KCS/BTC trading pair.
1. Log in to www.kucoin.com, and click on the “Spot” tab.
2. You will enter the trading market. Depending on which tab you click on, you will see different markets. The options are Bitcoin (BTC), KuCoin Shares (KCS), Stable Coins (USDⓈ), and ALTS (including Ethereum (ETH) and Neo (NEO)). Not all tokens are paired into every market, and the prices may vary depending on the market you are looking at.
If you would like to use BTC to buy KCS, please select the BTC market and use the search box to find KCS. Click on it to enter the KCS/BTC trade pair interface.
3. Before trading, you are required to enter your trading password for security. Once you enter it, you will not need to enter it again for 2 hours. It is highlighted in the red box below.
4. KuCoin offers four order types for customers. The following is a detailed description.
4. What Types of Orders are There?
On the trading market page, you can see different order types, including limit, market, stop limit, and stop market. With flexible use of different orders, you can better complete the transaction and make profit.
1. Limit Order: A “Limit Order” is an order placed to buy or sell a specified quantity of assets at a specified limit price or better. This involves setting the ideal commission price and quantity.
For example, if the current market price for KCS is 0.96289 USDT and you plan to buy 100 KCS when the price drops to 0.95 USDT, you can place the order as a limit order.
Operation steps: Select “Limit Order” on the trade portal/interface, enter 0.95 USDT in the price edit box and 100 KCS in the quantity edit box. Click “Buy KCS” to place the order.
2. Market Order: A “Market Order” is an order placed to buy or sell a specified quantity/amount of assets at the best available price in the current market. In this case, the commission price is not set; only the order quantity or amount is set, and the purchase is made by the set quantity or amount after the purchase.
KuCoin performs the Immediate Or Cancel (IOC) strategy, the following link is the related details: https://www.kucoin.com/news/en-kucoin-trading-system-upgrade-notice-200310
For example, if the current market price for KCS is 0.96263 USDT and you plan to buy a sum of KCS valued 1000 USDT without setting prices, you can place the order as a market order. Market orders will be completed immediately, which is the best way to buy or sell quickly.
Operation steps: Select “Market Order” on the trade portal/interface and enter 1000 USDT in the amount edit box. Click “Buy KCS” to place the order.
3. Stop Limit Order: A “Stop-Limit Order” is an order placed to buy or sell a preset quantity of assets at a preset limit price when the latest price reaches the preset trigger price. This includes setting the ideal commission price and quantity, as well as the trigger price.
For example, if the current market price of KCS is 0.9629 USDT, you assume the support price is 1.0666 USDT and that it would not continue to increase when it breaks through the support price, then you could sell it when the price reaches 1.065 USDT. However, as you are likely not able to follow the market 24/7, you could place a stop-limit order to limit the losses.
Operation steps: Select “Stop Limit” Order, enter 1.0666 USDT in the stop price edit box, 1.065 USDT in the price edit box, and 100 KCS in the amount edit box. Click “Sell” to place the order. When the latest price reaches 1.0666 USDT, this order will be triggered and the order valued 100 KCS will be placed at a price of 1.065 USDT.
4. Stop Market Order: A “Market Stop-Loss Order” is an order placed to buy a preset quantity/amount of assets at the current market price when the latest price reaches the preset trigger price. For this type, the commission price is not set, only the trigger price and the order quantity or amount are set.
For example, if the current market price of KCS is 0.96285 USDT, you assume the support price is 1.0666 USDT and that it would not continue to increase when it breaks through the support price, then you could sell it when the price reaches the support price. However, as you are likely not able to follow the market 24/7, you could place a stop-limit order to limit the losses.
Operation steps: Select “Stop Market” Order, enter 1.0666 USDT in the stop price edit box, and 100 KCS in the amount edit box. Click “Sell” to place the order. When the latest price reaches 1.0666 USDT, this order will be triggered and the order valued 100 KCS will be placed at the best market price.
5. Trading fees
On the KuCoin Spot trading and margin trading markets, the trading fee is 0.1% of the transaction amount, but the trading fee is also affected by the user’s VIP level. The higher the VIP level is, the lower the trading fee is. For more information, click “ Fee” at the bottom of the official website. In addition, you can enjoy a 20% discount if you use KCS to pay trading fees.
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