How to Buy and Sell Cryptocurrency: Complete Guide

How to Buy And Sell Cryptocurrency: Your Comprehensive Guide to Crypto Trading

Cryptocurrency does not sound like something from scientific fiction anymore, it is the pillar of our reality and one of the most ambitious investments these days.

This comprehensive article will guide you through all the key points that you must consider if you are starting your journey of crypto trading and want to know how to buy and sell cryptocurrency.

Cryptocurrency was first introduced fifteen years ago, and it is digital money that does not depend on banking systems or governments. What should be considered before learning how to buy and sell cryptocurrency?

• Make sure you are familiar with the basic concepts of what is crypto, how it operates and what are the popular cryptocurrency types. Research is the key to success, read as much as you can, and select the type of crypto that corresponds to your goals.
• Verify your finances and get them in order: always have some extra money set aside for safety reasons and double-check that your debts are paid or manageable.
• Set up a digital wallet that you for storing your crypto assets. This step also requires some informational groundwork, as wallets come in different shapes and sizes, and you need to choose a reputable option with secure storage. You can choose between hardware, software or online wallets.

After you have completed the initial steps, it is time to dive a little bit deeper and start researching the notion of ‘cryptocurrency exchanges’. Cryptocurrency exchanges are similar to widespread marketplaces, where you sell and buy crypto. When choosing among hundreds of options, consider certain factors like transaction fees, cryptocurrency range, security, liquidity and user experience.

Registration and account verification: the process is quite similar to registering on a social media network. However, for your account to be valid, you will have to produce official ID. More often personal accounts are needed if you are trading on centralized platforms (CEX), whereas decentralized platforms (DEX) require you to provide a wallet address and do not require as much personal information. Account funding: you will not be allowed to trade if the account is empty – you will simply have no funds to complete the transaction. The account must be funded either with fiat currency like euros or dollars, or another cryptocurrency, but this process may be different in various exchanges.

If you are using one of the centralized platforms, then the process includes linking your card directly to the exchange and depositing the money straight from your bank account. Decentralized platforms are operating in a slightly different way: no fund transfer to an exchange account is required, but you will have to use your digital wallet to transfer crypto to the DEX platform. Some decentralized platforms only allow transactions between a cryptocurrency pair, although several platforms handle transactions with fiat money.

Placing an order: now the time has come to finally start trading your first crypto either through CEX or DEX and understanding the process of how to buy and sell cryptocurrency on a deeper level. The operational principles differ between these two types of platforms.

• CEX – operates through several types of placed orders
• DEX – you handle transactions directly with other users; automated market-making (AMM) algorithms are often available. Decentralized exchanges provide you with control over all your funds, as you are having direct transactions between your wallet and the contract.

The main difference between the CEX and DEX operational principles comes around when you are executing the crypto purchase. On a CEX platform, after the transaction is complete your newly purchased cryptocurrency appears in the exchange account. Make sure that you secure your assets by storing them in your digital wallet.

DEXes have a different operational principle, and the transactions are handled directly between the wallets. After the purchase has been executed, your crypto asset is immediately transferred to your digital wallet. This provides more security to the currency, as it is being safely kept away from any potential threats.

Selling crypto and placing a sell order: always make sure that you evaluate the market conditions before you decide to sell your assets. Remember, that you are in the crypto trading for the gain and not for the loss.

If you are trading on a centralized platform then the selling process is quite similar to buying: you are placing an order and waiting for it to be executed. CEX uses several types of orders that the traders place depending on their goals. When trading on DEXes, your digital wallet is directly linked to the platform, you have to specify an amount of crypto you are willing to sell, and the transaction is ensured to be transparent and secure.

Sale execution: the amount of crypto you have sold will be withdrawn from your exchange account. DEX platforms execute the sale between your digital wallet and the smart contract, and the results of the deal will be reflected in your wallet balance right away.

Other essential key factors to consider:

• Always monitor market conditions and timing to make sure that the transaction will be secure and profitable
• Set investment goals before making any buying/selling decisions
• Secure your digital assets and the safety of your wallet: have strong passwords, do not give anyone your details
• Try and diversify your crypto investment portfolio for successful risk management
• Research and stay informed about the latest market strategies

We hope that this comprehensive guide on how to buy and sell cryptocurrency will give you an insight into the exciting world of crypto trading and will become a starting point for further exploration of the investment world. Visit https://ellyx.com/ to learn more about the crypto investment options.