How to Trade with Cryptocurrencies
Trading in the cryptocurrency market requires understanding a few unique concepts. Cryptocurrencies are not stocks but share some of the same principles. Storing and securing coins is the responsibility of every investor.
This is one of the most notable differences of cryptocurrencies. Buying, selling, and trading can vary quite differently from one exchange to another. An overview of the most important practices for beginning investors to keep in mind are outlined in this article.
First time investors entering the cryptocurrency market need to understand the differences between a dedicated wallet service and a trading exchange. A good wallet takes extensive measures in its security for the storage of coins.
The Importance of the Wallet Security
Not all cryptocurrency wallets are the same. There are many dedicated wallets that are not linked to an exchange.
All crypto experts recommend securing coins on a dedicated wallet. They also maintain that the safest place for the long-term storage of coins is keeping them offline on a cold storage device.
Exchanges also provide places to hold cryptocurrencies. This may or may not be a dedicated wallet. They are not always designed for long-term storage.
For instance, some hacks have involved exchanges that held a large number of coins off blockchains for the purpose of instant trading and fee reduction.
Ways of Funding
There are several ways to fund a cryptocurrency wallet and exchange fiat money for coins and reverse. Wire transfers, credit cards, and debit cards are all commonly used methods. However, not all are offered by every crypto exchange.
Deposit and withdrawal limits often depend on the amount of information an investor is willing to supply. Bank accounts typically have higher limits than credit cards. However, banking methods require more personal information.
Fees do tend to be lower with bank accounts. There is less risk that a credit card charge will be reversed. The trade-off is that using a banking method to fund a wallet or directly purchase cryptocurrencies can be significantly slower.
Deposit fiat money to a CEX Account and Start Trading
CEX is a trusted crypto exchange. It makes buying, selling, and trading coins easy. There are several funding options. CEX trading support tools include the ability to view currency pairs, analyze price changes, and track trade history. Market depth charts and real-time order book information are also available.
CEX Caters to New Investors
New investors will find trading on CEX easier than other exchanges. It displays cryptocurrencies with long track records. This helps those with minimal experience to avoid a potential scam posing as an ICO.
The cryptocurrencies on CEX also have amassed large market capitalization. While the crypto market is not as liquid as stocks, some coins will offer better liquidity options than others. This aids in quickly finding buyers and sellers on CEX.
The better exchanges and wallets offer two-factor authentication (2FA). This has become a standard in online security. CEX incorporates 2FA when securing its accounts. Users have the choice of either enabling a 2FA app via browser, SMS, or a phone call.
For withdrawals and deposits, CEX requires identity verification. In addition to personal information, supporting documents must meet AML/KYC policies. This is part of anti-fraud measures. Investors can review a detailed verification guide prior to joining. CEX also provides 24/7 support.
Users have the option of interfacing with their mobile devices. This is available for both iOS and Android. The application is accessible from the Profile page.
Cryptocurrency trading can be daunting at first. However, the initial learning curve is not steep. Securing, learning about, and funding a new wallet is made easy by some of the more trusted services like the above companies. Several cryptocurrency exchanges limit the coins they trade to protect inexperienced investors. Changelly is a good exchange to start with. Credit cards can be used to quickly purchase Coins and it has provided this service for a while. Beyond the basics, the learning curve can become more involved in the crypto space. New investors should grasp the fundamentals before investing in higher risk options.