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The cryptocurrency market is receiving a lot of attention, isn’t it? Especially, Bitcoin has risen by more than 200% in just a year, emerging as a notably watched asset class.
Not just me, but many experts predict that the cryptocurrency market will grow significantly larger. Today, we’ll cover the basics of crypto trading, from choosing a cryptocurrency exchange to signing up and trading Bitcoin.
Choosing a Cryptocurrency Exchange
There are numerous cryptocurrency exchanges worldwide, and when selecting one, you should consider the following factors:
- Security: The security of a cryptocurrency exchange is paramount. It’s crucial to check what security measures an exchange has in place, as news of hacks is common. Important security features include two-factor authentication, segregated customer funds, and the use of cold storage.
- Cryptocurrency Diversity: The variety of cryptocurrencies supported by an exchange is also a factor to consider. Ensure the exchange lists the specific cryptocurrencies you wish to trade. Smaller exchanges may only offer a few popular cryptocurrencies.
- Fees: The fees charged by an exchange are an important consideration. This includes not just trading fees but also deposit and withdrawal fees. Choosing an exchange with lower fees can maximize your profits.
- Liquidity: The liquidity of an exchange affects the ease of executing trades. Exchanges with high liquidity enable easier order execution and reduce price volatility.
- Regional Restrictions: Some exchanges may only offer their services in specific regions. Therefore, your choice may depend on your location.
- Regulation and Verification: Choosing an exchange that is regulated by a trustworthy authority ensures safety. Regulated exchanges are required to follow strict rules to protect user assets.
For our trading demonstration, we’ll use Binance, which has consistently ranked at the top among cryptocurrency exchanges for several years.
Signing Up and Identification
Click the button above to sign up for Binance. Signing up through the provided link offers you a fee discount. It’s recommended to use a referral link to enjoy benefits, as signing up without one doesn’t offer any.
Next, proceed with identity verification. Select ‘Identification’ under the ‘Account’ menu. Fill in your country, name, date of birth, and address, then choose the type of document for proof.
Upon selecting the type of identification document and uploading photos of both the front and back sides, a QR code will appear as shown in the screenshot above.
When you scan the QR code with your phone, you’ll be directed to a facial recognition screen similar to the one on the right.
To complete the facial recognition process, focus your face in the frame, open and close your mouth a few times as instructed.
Once this step is finished, the verification process is fully completed. You will receive a confirmation email within 72 hours.
Deposit and Cryptocurrency Trading
After completing the sign-up and verification, let’s move on to trading. To purchase coins, you need to deposit into the exchange. Clicking the ‘Deposit’ button will bring up options such as ‘Deposit Crypto,’ ‘P2P Trading,’ ‘Buy Crypto,’ and ‘Bank Deposit.’
- Deposit Crypto: If you already own cryptocurrency assets, you can transfer them to Binance by obtaining a deposit address provided by Binance and sending your cryptocurrencies to that address.
- P2P Trading: Binance offers a P2P trading platform that allows you to directly buy and sell.
- Buy Crypto: Provides the ability to directly purchase cryptocurrencies with cash.
- Bank Deposit: You can deposit cash through your bank account and use that amount to later buy cryptocurrencies with your cash balance on Binance.
We’ll use ‘Buy Crypto’ with a credit card for our trading. This option allows direct purchase of cryptocurrencies using Visa, Apple Pay, or Google Pay.
I’ll purchase $100 worth of USDT, a stablecoin pegged 1:1 with the US dollar, commonly used as a base currency for trading other cryptocurrencies on exchanges.
After selecting a payment method and entering your card information, confirm the transaction.
Once the payment is completed, 95.72269469 USDT will be credited to your wallet. You can view your purchase and sales history under ‘Orders’ → ‘Flat Order.’ This chapter covered buying USDT, but the process is similar for other coins. We’ll explore altcoins in our next content. Thank you for reading.
Click the button above to sign up for Binance. Signing up through the provided link offers you a fee discount. It’s recommended to use a referral link to enjoy benefits, as signing up without one doesn’t offer any.