cryptocurrency // how to trade
How to trade cryptocurrency
Last step! In order to trade different cryptocurrencies, you need to move your funds to an exchange. I highly suggest Binance, which now has the highest trading volume among the cryptocurrency exchanges. If you sign up using this link, you will get a 5% back on every commission on the website, which really adds up over time.
Once you have your cryptocurrency on Coinbase and have an exchange account, you only need to transfer your holdings from one site to the other.
On Binance (the process is similar for other exchanges as well) navigate to Wallet -> Spot Wallet and find the cryptocurrency you bought on Coinbase. If you bought BTC on Coinbase, look for BTC and click on Deposit, otherwise choose the appropriate coin. You will be presented a Deposit Address which you need to copy.
Now move to Coinbase and click on Send, you only have to paste the address which you want to send money to (the one you copied on Binance): be very careful to paste the right address, or you may lose your money.
Done! Don’t worry if the transaction takes a while. BTC normally takes 20-30 minutes, but sometimes a few hours are needed due to the large amount of transactions. ETH and LTC transactions are usually faster, and you may want to buy one of them instead of BTC if you want your money on Binance quickly (or if you want to save on transferring fees). Grab a cup of coffee and wait until your funds become available on Binance.
Now what? Well, you have your money on Binance and can trade whatever cryptocurrency you wish. Just click on Markets and you will be presented with a huge selection of coins, from this page you can buy or sell each of them.
Under the price chart of every pair you can see the Limit, Market and Stop-Limit tabs:
- Limit: place a buy/sell order at the price you prefer (looking at the panes on the left – current sell and buy orders – may be helpful)
- Market: you automatically buy/sell at the current most convenient market price
- Stop-Limit: allows you to place conditional buy/sell orders
Ideally, you are looking for a low market cap coin which is still undervalued and you believe will become more successful in the future.
I suggest you always do your own research before choosing a coin to invest in, avoid buying impulsively or you will lose money.
Also, don’t buy a cryptocurrency just because you read it or heard it somewhere. You may not lose money the first time but, eventually you will regret it. Trust me.
Don’t randomly pick a coin because its value is increasing. Again, it may work the first or the second time, but sooner or later you will regret it.
Finally, make sure to always place a stop loss. That way, even if the most unlikely and unexpected market change happens, an order will be placed for you even if you are sleeping. There’s really no reason not to place a stop loss.