BEST SITES FOR TRADING CRYPTOCURRENCY
You want to trade cryptocurrencies? Here you will find an overview of the best platforms where you can find all the information and explanations you need to get started.
Buying cryptocurrency to pay online is convenient, but many people are also interested in making money with cryptocurrency. This works by trading cryptocurrency for a higher price or buying it for a lower price. For those who have never traded before, it can be a bit overwhelming. That is why you will find a brief explanation about cryptocurrency trading here. Also we will provide you with advice about the best crypto trading platform available.
What is cryptocurrency trading?
By trading of cryptocurrency we mean trading coins on an exchange. As with ordinary euros and shares, a crypto currency can rise or fall significantly in value. Trading in Bitcoin and other currencies has become increasingly popular over the years. The main difference with the traditional exchange is that the cryptocurrency exchange has no opening and closing times. Trading continues 24 hours a day, 7 days a week. So you can also trade on weekends.
Trading is never without risk: safe cryptocurrency trading
Ahead of time: trading is never without risk. On the regular stock market, you can lose money when you invest or trade, and that’s no different with cryptocurrencies. When trading cryptocurrencies, you can experience strong price changes. We also call this volatility. The price of a cryptocurrency can rise in a few minutes and then fall again.
Just like when trading on the stock market, it’s advisable to only invest money you can’t afford to lose. Converting a large share of your savings into crypto and trading with it is not a good idea. You can lose a lot, but you can also win a lot. If you are going to trade anyway, decide for yourself what good choices are if you are going to buy or sell. By making a kind of sheet with a how-to, you avoid making decisions based on emotions.
How to start trading cryptocurrency?
Now that you have a bit of an idea of the market, and you understand the risks, you can start crypto trading. You do this by creating an account on an exchange. An exchange will always ask you to verify your identity. This might feel like an invasion of your privacy, while cryptocurrencies seemed so anonymous. Don’t worry: the exchanges handle your data in a safe way. It is the only way for an exchange to keep it safe.
Once your account is approved, you’ll find an exchange wallet, among other things. This wallet also has a wallet address. This is where you send the crypto coins. It is a wise decision to keep another wallet in addition to your exchange wallet. You can think of a hardware wallet, a software wallet or a paper wallet. Do you own a lot of (different) crypto? Then it is best to choose a hardware wallet. This is where you store the coins that you do not want to trade.
Before you start trading, think carefully about security. For example, enable multifactor authentication. You then give your account an extra layer of security, so that malicious persons can’t just log in to your account. To log in, not only a password needs to be entered, but also the code that is sent to, for example, a mobile phone. In order to steal coins, malicious persons must also be in possession of your mobile phone. It really happens that exchanges are hacked and then you don’t regret this choice.
Now that you are fully secured and have everything ready, it’s time to buy crypto coins to trade. In practice, we see that many traders enjoy starting with Bitcoin. This is because you can trade Bitcoin to almost all other currencies. Usually it is possible to buy Bitcoin on the exchange itself, but you can also buy the currency from other providers. Upon purchase, you can send the Bitcoin directly to the address of your exchange wallet. Once the transaction has been approved, the coins will appear in the wallet on the exchange and you can start trading.
Crypto trading on a Cryptocurrency trading platform
Bitvavo is called the first real Dutch crypto-exchange. The handy thing about Bitvavo is that you can immediately exchange euros to cryptocurrency. Although it is called Bitvavo, it is not only suitable for Bitcoin. You can buy 47 other cryptocurrencies. Once you have exchanged your euros for cryptocurrency, you can start trading.
Start trading by creating an account on Bitvavo. This is done by going to the Bitvavo site and clicking the Get started button. You will be asked to register. To register, enter your personal information and choose a password,
You will receive an e-mail with an activation link. By following this link, your registration will be verified. After this you can log in to purchase cryptocurrencies. There are still some details required, such as an ID card, passport or driver’s license. This will legitimize your account. It is an extra layer of security for the exchange.
To legitimize your account, click on your account name, and then click on ‘Verification’. At ‘Identification verification’ you can choose the document type and upload the photo of your identification. After a while, you will see ‘Document processed’. Click on ‘Continue’ to complete your verification.
Once you’ve cleared your account, you can add euros to your account and convert to virtual currencies. At Bitvavo, you can make a SEPA bank transfer from the Netherlands or choose iDEAL. The money is then directly in your account, without any transaction costs. To deposit money, go to the dashboard, click on ‘Portfolio’ and click on ‘Deposit Euro’s’. Indicate how much you want to deposit and pay for the transaction.
Another cryptocurrency trading sites with a very user-friendly platform and dozens of cryptocurrencies to trade is Kraken.
From euro’s to cryptocurrency
When there is money on the account, cryptocurrency can be purchased. Go to ‘dashboard’, click on the name of the currency and navigate to the buy and sell screen. At ‘You pay’ the user enters the amount he or she wants to purchase. You will immediately see how many euros will be exchanged to crypto coins. This often involves trading costs. By clicking on ‘Buy’ the purchase is confirmed.
To actually trade cryptocurrency, go to the dashboard and click on the coins you want to trade. In the tab ‘Trading’ you can click on ‘Withdraw’, so you can fill in how many coins you want to trade. By clicking on ‘Confirm transaction’, the transaction will be definitively sent.
Trading with Binance
To start trading at Binance, first create an account on the Binance website. Click on ‘Register’ at the top right and enter an email address and password. Choose a unique password, read the terms and conditions carefully and complete the registration. After solving a puzzle, you will receive an activation link on your email address to confirm the account.
The nice thing about Binance is that it has a standard security feature. Users who do not use extra verification are allowed to withdraw and trade up to 2 coins per 24 hours. If you want to trade more, you will have to verify yourself by sending the proof of identity and a picture of yourself.
Start depositing coins, such as Bitcoin or Ethereum. You can see Binance as some kind of exchange office. So to start with, you first need to deposit credit from your wallet to your Binance account. This is done by logging in, clicking “Wallet” and then tapping “Deposit”. A dropdown menu will appear where you can search for the coin you want to deposit. A unique wallet address will be generated automatically.
To convert euros into cryptocurrency, you need to have an account with a broker. The aforementioned Bitvavo is often used in the Netherlands, because it has a possibility to pay with iDEAL. From Bitvavo, for example, you can transfer your coins to your Binance-wallet.
Safe cryptocurrency trading is not difficult with Binance. You log in, go to the portal and click on ‘Exchange’ and then on ‘Basic’. A dashboard with various information will then be displayed. For example, extra information about the coin, the current price development and the assortment is shown. At the top right, users can click on a coin to trade. The overview of the selected coin will open. Go to the ‘Market’ tab and enter how many coins you want to buy under ‘Amount’ (under ‘Buy’). To sell, you can use the ‘Sell’-deal. There you fill in the amount of a certain currency to be sold and exchange it for Bitcoin or Ethereum, for example.
If you want to exchange your crypto coins for euros again, you can do so by following the steps above. After buying and selling, go to ‘Wallet’ and click on ‘Withdraw’. Search for the exchanged coins and start a sales order at, for example, Bitvavo. You will receive a wallet address from the chosen broker. Fill this in at Binance under ‘Recipient BTC address’. Indicate how much has to be transferred and click ‘Submit’. The Bitcoin or Ethereum will then be sent to the selected broker, where you can exchange your virtual coins for euros.
Automated cryptocurrency trading
Don’t you feel like acting actively yourself? Then there is a possibility for automated cryptocurrency trading. This can be done by means of a so-called trading bot. This works with an API key: a kind of secret key that connects the cryptocurrency exchange on which you want to leave the crypto trading to a robot that trades automatically. You give the robot permission, as it were, to trade on your behalf.
A crypto trading bot has learned how coins can be traded and what – in theory – would be the most beneficial method. The bot buys a coin and sells it when you can get a higher price for it. But, beware: a trading bot is often smart, but not flawless. So you can still lose your deposit.
A more safer way of making money with Bitcoin is by staking it. You simply keep it untill it’s worth more and sell it again