Buying and selling cryptocurrencies though not similar to traditional stock exchanges, are simple and easy. Various bitcoin investments have made this task even easier. With the increasing demand for crypto trading, new crypto exchange is opening and the existing exchanges are upgrading their features day after day to make their interface more convenient for people.
However, all these exchanges have almost the same functionalities and you can buy and sell different cryptocurrencies through them with your fiat money as well as other cryptocurrencies. Read on to know more in detail about cryptocurrency exchange platforms.
Cryptocurrency exchanges are online platforms that facilitate buying, selling, and holding cryptos through them. These platforms are generally two types that have different ways of trading cryptos.
1. Centralized Exchanges:
These exchanges are controlled and regulated by third-party and that is why they are known as centralized crypto exchanges. As a result of it, these exchanges are convenient to use but charge more transactional and regulatory fees from the users.
2. Decentralized Exchanges:
Decentralized exchanges are not controlled by any third party. They are like an open marketplace for uses where buyers and sellers can connect directly and make trading. Transaction charges in these exchanges are lower than in centralized exchanges but they are a bit difficult to use for new investors.
Trading Bitcoin On Crypto Exchange Platforms: Things To Consider
Before buying and selling bitcoin from either centralized or decentralized exchanges you need to consider some factors to make uninterrupted trading.
Availability of Cryptos:
One of the most important things you need to check is the availability of various cryptocurrencies in the exchange that you have chosen to use. For a diversified portfolio you need several cryptocurrencies other than bitcoin and whatever cryptos you want to add to your portfolio must be available to buy and sell on this exchange platform.
Reliability of The Platform:
As exchange platforms are based online fraudulent activities can happen if you wrongfully get trapped on an unreliable platform. Always check the clients’ reviews and other credentials before registering with a crypto exchange. If possible, visit their official address and gather information about their rules, regulations, and work process. However, for this instance, you can go for https://bitcoins-digital.com which is a genuine platform and is used by many experienced traders.
Buy and Sell Method of Bitcoin in Crypto Exchange:
As we have already said, buying and selling bitcoin through crypto exchanges are very easy. They include the following steps.
Trading Bitcoin in a Centralized Exchange:
- The first thing you have to do to buy bitcoin through a centralized crypto exchange is to register with the exchange. In this process, you may need to share some of the IDs that you need to verify here.
- After verification of IDs, a bitcoin account will be opened on the platform that will be your trading account.
- Now, you have to have some money in the account to make your first purchase. For that, link this trading account to your bank account and transfer some funds to this trading account.
- Once you have funded this account you can decide how much many bitcoins you want to buy and after selecting some of this necessary information you can press the buy option to make the purchase.
- For selling your bitcoins also the same process is applied and you have to press the sell button.
- Here buying and selling are done in two ways and you can select any one out of them. You can either choose to go for a market order or a limit order.
Trading Bitcoin in Decentralized Exchange:
In decentralized exchanges, you have to make posts of your buying or selling bitcoins with your offered prices. Once a buyer or seller is interested in the offer they can contact you. After a deal is agreed both of you can share your bitcoin address and bank details. After that, you will be sending the bitcoins and receive the money from the buyer or vice-versa.
Buying and selling bitcoins through crypto exchanges includes these easy steps. However, don’t forget to consider the factors talked about above before choosing a crypto exchange to avoid any fraud or to make your trading smooth. Finally, choosing the right trading platform will help you in making your trading experience hassle-free.
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