You’re extremely interested to purchase your first altcoins and you’re in the process (or have already) of opening a cryptocurrency exchange. However, the complexity of buying cryptos can be daunting for many who do not have a financial or trading background. Don’t worry! This guide will provide you with the necessary skills to buy and sell cryptocurrencies easily.
For this guide, we’ll be mainly using Binax exchange.
Ensure that you’ve already bought Bitcoin (BTC), Bitcoin Cash (BCH) or Ethereum (ETH) from your local, crypto exchange that accepts your local currency. Bitcoin and Ether are the biggest coins that represent the base currency for the crypto world; buying any of the 1,700+ altcoins available requires the use of BTC/BCH/ETH/BCH since you cannot usually buy altcoins using your local currency.
Open a Binax account by registering your name and email, and make sure you activate 2-factor authentication to further secure your account against hacks. The next thing to do is to verify your account by furnishing your personal information and your official identification documents. Verifying yourself allows you to increase your withdrawal to the exchange’s maximum, saving you lots of headache for future withdrawals.
You can now deposit the BTC/BCH/ETH that you’ve bought from your local exchange to your newly-opened Binax account. You will use the base currency to buy the altcoins of your choice.
There are 5 base markets in Binax:
- BTC Market
- ETH Markets
- BCH Market
- USDT Markets
- BIN Markets
These 5 markets are represented by the common base currencies used to buy the wide variety of altcoins available. If you deposited BTC as your base currency, then got to the Bitcoin Market and pick an altcoin that you want to buy using Bitcoin. If you deposited ETH on the other hand, pick the altcoins of your choice in the Ethereum Market and so on.
Enter the details of your buy orders in the “Buy” box under the trading section.
Tip: It is not compulsory to buy exactly 1 unit of Cryptocurrency as they are highly divisible. You can buy/sell any amounts you wish, depending on your budget. So, you can buy with 0.000001 Bitcoin without worry!
Units: The quantity/amount of coins that you want to buy.
Bid: The price that you’re willing to pay per unit.
Type: This refers to the order type, which consists of a “Limit” (default order) or “Conditional” Order. “Limit” order sets the maximum price (as stated in the “Bid”) that you’re willing to buy.
Total: The total amount of base currency.
Enter the details of your sell orders in the “Buy” box under the trading section.
Units: The quantity/amount of coins that you want to sell, in exchange for the base currency of BTC.
Ask: The price that you’re willing to sell per unit of Aragon, quoted in BTC.
Type: This refers to the order type, which consists of a “Limit” (default order) or “Conditional” Order. “Limit” order sets the minimum price (as stated in the “Bid”) that you’re willing to sell.
Total: The total amount of base currency (in this case, BTC) that you will receive in exchange for the total number of altcoins you want to sell.
The price of the coin you want to buy/sell at (Bid/Ask) is denominated in a base currency which can either be USD, BTC or ETH. Denominations in USD is easy since it gives you the numerical market price (e.g. buying Ripple at $0.30), but denominations in BTC/BCH/ETH can be tricky at first as you’re buying the ratio of Ripple in comparison with BTC/BCH/ETH. For instance, the price of Ripple compared to BTC (XRP/BTC pair) can be 0.000024, since Ripple’s price is compared to Bitcoin’s price to form the ratio that you see.
The most secure way of storing your coins is through having your personal wallets. Although you would automatically have a wallet when you open an exchange account (exchange-hosted wallet), you do not have control of the private and public keys. Having control of your keys means having control of your coins. Exchanges work like a bank; it is a third-party service provider that you trust to keep your coins safe. However, there is always a probability of the exchange shutting down or being hacked, resulting in a loss of coins. Given the lack of regulatory frameworks on exchanges and cryptocurrencies as a whole, as well as the infancy of the industry, the best way to keep your coins safe is to have total control of your coins. You can only have absolute control by having your own wallet.