Buying and selling cryptocurrencies is done to make profit. The process is made possible through the crypto market, which has trading platforms. However, buying and selling differ, but they involve exchanging one cryptocurrency to another or for money. An example is Bitcoin and Euthereum. You can either buy or sell a cryptocurrency from Bitcoin to Euthereum or vice versa. The transaction is two-way and needs to be from different platforms for the exchange cycle to be successful and profit earned.
For you to be a trader, you require an exchange account. The process of opening an exchange account only requires completing an online form. An exchange comprises an order book which shows the exchange and the cryptocurrency that is in use.
Deposits and Withdrawals
Deposits and withdrawals of cryptocurrencies are made through flat currency methods, making transactions through platforms like PayPal common. Notably, to transfer funds to an account, it must contain the name of the account holder. Therefore, payments from anonymous people are not acceptable. There is a limit on the amount of transactions you can make on each platform. Though banks do not have a limit on deposits and withdrawals you can make, bank cards and wallets have a limit depending on the CFD platform being used.
It is compulsory to have a bitcoin wallet or any other platform that accepts the transfer of cryptocurrencies. You can transfer the funds to your third-party wallet then to the specified wallet by the crypto exchange. When using this method, you need to be extra keen when inserting addresses during the transactions. If you make a wrong address transfer, the exchange platform cannot refund your money.
How to Trade Cryptocurrencies
The process is quite simple after your exchange wallet is credited, you are free to buy and sell cryptos. This is done through trading the pairs which have the deposit currency that you had initially decided. The most popular pairings on many exchanges are done on Bitcoin and Euthereum; you are assured to trade because you cannot lack pairings by using the two.
Trading cryptocurrencies is commonly done through trading by the crypto prices using CFDs where there is no actual seller. You can only purchase or sell contracts depending on the price of the specific cryptocurrency you want.
Cryptocurrency CFDs are traded through online platforms. OKEx is a cryptocurrency exchange platform where you can buy, sell, trade and analyze cryptocurrency CFD’s. A trader must create an account by completing an online form. It is compulsory to verify your address and identity because it is part of the regulations set.
Deposits and Withdrawals in Cryptocurrency CFDs
A cryptocurrency is traded bi-directionally(trades are placed no-matter direction of the market). It would be best if you use the deposit options shown on the platform. However, your CFD trading account must be funded for this process to be made possible. You might be wondering how you will benefit from this; well, the prices vary. Sometimes they are low, and at times they are high. It would be best if you buy when the prices are low and sell when they are high. However, you can trade using the current price or wait until they get to a suitable price for you.
To be part of a cryptocurrency market, you need to be a buyer or seller using an online platform. It is an easy process and does not require much.