Cryptocurrency is not just a new digital currency but also a way of transforming our outdated global finance system. Platforms like The official website offer numerous trading options and help you start your bitcoin trading journey without any dedicated training. Moreover, the best cryptocurrency exchange platform for investing in crypto is a legit way to be involved in this emerging market, and the list of available exchanges goes on and on.
Blockchain technology represents one of the most significant revolutions in modern history because it promises significant improvements over traditional systems. Yet, while blockchain’s usefulness has been tweaked as more and more industries worldwide have come to fruition with its use, it remains difficult for many people to understand how it works simply due to its abstract nature.
Most cryptocurrency activities, for example, trading, financing, and investing, take place on digital currency exchange, and most novices don’t know how to utilize this exchange for investment purposes. So, let’s discuss how you can use a cryptocurrency exchange to invest in digital currencies.
What is a Cryptocurrency Exchange?
Cryptocurrency exchanges are where you can convert your fiat currency into a digital currency and trade it for other currencies to invest in or buy other crypto assets. Exchanges enable you to invest in various ways, including stocks, ETFs, bonds, futures, and commodities.
The best way to learn how to use cryptocurrency exchange is by visiting our exchange review website. You can consult with your financial advisor first if you carry significant capital to invest in before utilizing any exchange platform for investing in cryptocurrencies.
How to Use a Cryptocurrency Exchange for Investing in Crypto?
1. Look for an ultimately secure exchange
One way to verify a cryptocurrency exchange’s security is by finding out if it uses a cold storage system, which means that your funds are held on a secure offline wallet. You can also check if the exchange uses multi-signature wallets, meaning that multiple individuals are in charge of your wallet’s security and money.
The best way to find out how well an exchange works is by reading reviews from its users and if there are any cases where the exchange has been hacked or stolen.
2. Create an Account on your desired secure exchange
The account creation process requires you to provide basic information like name, email address, phone number, and address.
3. Know Your Customer Exchange
The exchange will have you verify your identity by either providing a copy of your ID or a photo of yourself holding the ID card. KYC is not completed in seconds and depending upon the verification mechanism and criteria of the digital currency exchange; it may take 10 to 3 days.
KYC is to be done for everyone, including foreign users or those who wish to receive a fiat currency (i.e., USD, EUR) as payment, and thus they go through this procedure.
4. Select the payment option
You may also be asked to enter the bank account number where you want your payments to be made. This step is essential to transfer or deposit the funds or money into your account. The amount may vary, but, in most cases, you will only need to fund an equivalent of $10-$20 or less to start trading on a cryptocurrency exchange. Unfortunately, few reputed cryptocurrencies exchange allows you to pay for your order after the order is executed.
5. Click on the “buy bitcoin” button
You have finally arrived at the trading screen where you can choose and click the “buy bitcoin” button.
How to Trade on a Cryptocurrency Exchange?
1. Choose your desired digital currency
To begin trading, you must first choose the digital currency and its value in dollars or other fiat currency. However, before you do so, it is crucial that you first learn more about different cryptocurrencies to avoid making mistakes. For example, if there are two coins with similar prices and value, traders may sometimes decide on one over another simply because they are more popular or well-known than their counterparts.
2. Purchase and sell digital currency at your preferred exchange
The cryptocurrency exchange will then direct you through a series of screens in which you can choose the crypto that you want to buy and how much. You will then be given a counter where you can input the number of units you wish to purchase.
This amount may vary depending on the type of cryptocurrency, but it is not necessarily inclusive. After adjusting your order, click on the “buy” option if there are available funds and hit the “Ok” button, which is located on the right side, to complete your trade.
3. Exchange your digital currency back to your desired fiat currency
To trade back your cryptocurrency, you need to sell it. To do so, you must choose the correct digital currency and the amount you want. After adjusting your purchase, continue through all the steps until you reach the final confirmation page, where you can click on the “sell” option and complete the process.