Cryptocurrencies have taken the world by storm over the last 12 months with such remarkable intensity. Wherever you might live on the earth, this outline presents what you need to know with respect to trading crypto currencies.
At the end of this post, you should be able to tell:
- How to buy cryptocurrencies
- How to sell cryptocurrencies
- How to trade cryptocurrencies.
How to buy cryptocurrencies
You can buy cryptocurrencies anywhere there is an internet access. This is not to say that you cannot also do this at a brick and mortar outlet. However, the easiest method is to do so over the Internet.
Card /Wallet Provider
To use the services of any of these service providers, the process is as follows:
- Register and create an account just like opening up a new email account. It is that simple!
- Verify your account by clicking on the link sent to your mail box
- Set up a two –factor authentication by linking your cell phone to your account
- Upload your ID documents to verify your identity
- Deposit any amount of money to buy the crypto of your choice. You can use your debit or credit card
- Go to the buy tab, click and fill in the units you want to buy
- Confirmation will be sent to your mailbox when transaction is completed
- The crypto units you have bought will reflect in your account balance on the exchange.
If you choose localbitcoins, you will be able to buy cryptos locally. By this, I mean that if you live in London, and you register on localbitcoins, you will be able to get your cryptos transferred to you by someone in London.
The exchange will hold your cryptos in escrow till the seller confirms receipt of your payment. Cash transactions can be done using this method of buying cryptos, but, the risk is high.
What you need to do:
- Go to localbitcoins website
- Register your account and confirm it by clicking on email link
- Once your account is confirmed, you can navigate to your account dashboard
- You will see trade alert on the screen, showing seller listings and amount for each trade
- Click on any listing in your area, and a contact form will open
- Fill in the form and send
- The seller‘s contact details will be accessible by you at this stage using the portal’s messaging app
- The seller will let you know the account name for the transaction
- Use the payment method agreed upon while the localbitcoins payment window is open (90 minutes is all you have)
- You can decide to cancel the trade if you do not want to go ahead with the transaction (before making payment)
- Your cryptos will reflect in your account once the portal admin gets the payment notification from the seller.
How to sell cryptocurrencies
To sell your cryptocurrencies, you can follow the same pattern outlined in the buying procedure. You can sell on the online exchange or use the local bitcoin option.
If you use a service provider like Coinbase, what you need to do is:
- Login to your account
- Navigate to your dashboard‘s sellpage
- Specify the units you are selling
- Enter details of the wallet you are selling from (might be ETH, Bitcoin Cash or Bitcoin)
- Specify the destination (bank account) to deposit the sales proceeds
- After checking the entries you make, click to confirm and sell
- Note that it might take up to 5 working days for your money to reflect in your bank account.
This is the fastest sales remittance method as you will have immediate value for your money once you pass deposit instruction to the buyer except for banking delays.
If you are using localbitcoins, you need to go the site:
- List your sale
- Indicate the units of cryptos you are selling
- Specify your sales price
- Post your entry on the site
- Your units will be moved to escrow by the portal admin
- Wait for buyer’s request
- Review any request you receive
- If acceptable to you, provide your preferred payment mode
- Confirm payment and the cryptos will be released to buyer by the portal admin.
How to trade cryptocurrencies
To trade cryptos is to buy and sell at your pleasure or in deference to the prevailing market conditions. If you noticed that there is a price crash for example, it might be an indication to buy if you realize that it is a favorable window to make some money.
You can also desire to sell your cryptos if you bought at maybe, 1 Bitcoin to 15,000USD, and the price surges to 17,000USD or more.
The essence of trading in cryptos is to buy low and sell high. You can follow the steps in steps 1 and 2 above to trade cryptos.
Buying cryptocurrencies is simple if you register with card providers or use a trading exchange. To sell cryptocurrencies, you also need to utilize the same platform.
Anyone can become a cryptocurrency trader once there is access to buy and sell the wonder coin in a safe and secure manner. At present, Ethereum, Bitcoin, and Bitcoin Cash are the easily convertible cryptocurrencies although the others are also convertible but with a longer transaction completion time.