How Does Cryptocurrency Trading Work?
Crypto exchange is a service where you can conduct operations with digital assets such as buying, selling, swapping, etc. Most experienced traders use popular platforms such as Binance, Coinbase, WhiteBIT, Huobi, etc. They are all centralized platforms that operate officially and provide high user security. Let’s discuss how to exchange cryptocurrency and what benefits you gain when using centralized platforms.
Steps On Exchanging Cryptocurrency
Here are simple steps on how to trade crypto assets:
- Register in one of the platforms mentioned above
- Pass KYC. For passing verification, you should provide documents to help identify your personality.
- Register a new account.
- Deposit funds to your account. You can do it using your bank card. Most crypto platforms allow buying assets with fiat.
- Find the block “Trade” and open a trading position. Pick an asset you want to buy and one you want to sell. For example, you want to exchange BTC for USDT.
- Pay the transaction fee and proceed with the transaction.
It is not a difficult thing to exchange cryptocurrency. Don’t forget to pay attention to the fee policy. Different exchanges charge different commissions for various types of products.
Why Use Centralized Platforms?
Cryptocurrency trading requires your knowledge of the market and trading strategies, as well as a credible platform that will protect your trades against hackers. Centralized exchanges implement complex mechanisms for protecting users’ investments and multi-layer security for accounts.
Another reason for using centralized exchanges is the variety of tools they offer. Starting with an elementary crypto exchange, you will move to advanced trading using different complex instruments and strategies. So, you will likely want to scale your trading activity and multiply your portfolio. You will need advanced tools like trading with leverage, futures, etc. All these and even more instruments to make a profit are available on large and credible centralized crypto platforms.
