Blockchain and the cryptocurrency space is currently booming rapidly and there are new people around the globe every day who are searching for how to trade digital currency.
Cryptocurrency has helped many people generate a good amount of revenue through trading and that’s the reason why there is an increase in the number of people who want to get involved in cryptocurrency trading.
Considering that you’re a beginner in the cryptocurrency domain I’ll explain in brief how to trade digital currency so that all the parts about cryptocurrency trading is easily understood by you.
Types of cryptocurrencies
Not all digital currencies are cryptocurrencies. Bitcoin is the only one which is considered as a cryptocurrency and all the other coins which have been launched after bitcoin are know as alternative coins or altcoins.
There are hundreds of altcoins available for buying, selling and trading in the top exchanges and trading platforms. The most popular ones are Bitcoin, Ethereum, Litecoin, Ripple etc. And they can easily be bought and sold in the cryptocurrency exchange.
The other altcoins which are not much popular are usually available in the trading platforms. If you don’t find the altcoin you are looking to buy in the cryptocurrency exchange. You can easily find it in a few trading platforms.
Below is a list of the top cryptocurrency and altcoins present today which you can buy. There are around hundreds of them available and I shall only list the top 30.
- BCash/Bitcoin Cash
- Ethereum Classic
- Bitcoin Gold
- Binance Coin
- VeChain (VET)
How to buy the digital currency
Before you can start trading a digital currency you need to buy it. Trading platforms don’t usually sell cryptocurrencies. So you’ll have to buy it from a cryptocurrency exchange and then send it to your trading platform to trade.
Though there are a few trading platforms which only sell bitcoins and not the other altcoins. If you want to trade using bitcoin then you can buy from the particular trading platform you like and you can start trading there itself.
If you want to trade using other altcoins then you’ll have to buy it from any of the below-mentioned cryptocurrency exchanges and then send it to your trading platform for trading.
Just visit a cryptocurrency exchange from the list above and complete the registration formalities. Once you verify your account you will be able to buy any cryptocurrency.
Cryptocurrency trading platforms
These platforms help you to trade cryptocurrencies with another cryptocurrency. In some trading platforms, you can also trade it for USD, EUR etc.
You’ll have access to a trading engine and a few tools and charts to help you in trading. Using the trading engine and tools you’ll be able to execute trades in real time. Below are the 5 best cryptocurrency trading engine which you can use from any country.
To get access to the trading engine and the tools, Complete the registration process. Once you verify your identity you’ll be able to trade using the platform.
How to trade digital currency
In order to trade digital currency follow the below steps:
1. Buy cryptocurrency or altcoins from a cryptocurrency exchange.
2. Create an account in a trading platform and now send the cryptocurrency from the cryptocurrency exchange to the trading platform using your wallet keys.
3. Once you have received your cryptocurrency in the wallet of the trading platform, navigate to the trading engine and click on the cryptocurrency you want to trade with.
4. Now scroll down. You’ll see buy, sell and trade option with a few charts listed. Enter the number of cryptocurrencies you want to exchange or trade and complete the transaction using your digital currency stored in your wallet.
5. Once the transaction is complete. You’ll quickly receive the traded coins in your cryptocurrency wallet.
How to sell the digital currency
If you want to sell your cryptocurrency. First, you’ll need to transfer or send it to a cryptocurrency exchange (the exchange from where you bought cryptocurrencies) if not you can choose any of the exchange to sell.
Just send the coins from your trading account to a wallet in a buy, sell exchange. Visit the dashboard of the buy, sell exchange and navigate to sell cryptocurrency. Enter the number of cryptocurrencies you want to sell and you’ll receive your funds in your account quickly. Later if you want you can transfer it to your bank account.
I believe I have elaborated the entire process on how to trade digital currency. If you’re a beginner the process might seem a bit long. But, it actually takes just a few minutes to complete all the procedures.
Just begin with any of the cryptocurrency exchange and buy the coins first. Then select a trading platform and send your cryptocurrency to the account and you can begin trading.
If you have any questions regarding how to trade digital currency. Then ask your questions in the comments below.