Cryptocurrency investing has become so popular in recent years after lots of great success stories. The great thing about crypto is that anybody can get involved, as long as you’ve got access to the internet and a bit of money to invest. You don’t need to be rich and you don’t need to be a financial expert. However, you do need some basic knowledge about how to actually buy and sell cryptocurrencies and how to pick the right ones to put your money into.
Before you do anything else, you need to learn what crypto exchanges are and how to use them. This guide will tell you everything you need to know.
What is a Crypto Exchange?
If you want to buy stocks or shares, you have to trade through a broker that deals with the stock exchange on your behalf. When you buy crypto, you need to go through a crypto exchange. You can’t buy cryptocurrencies through a bank or any other traditional financial institution. Instead, there are online exchanges called crypto exchanges where you can buy, sell, and trade various cryptocurrencies. You can either purchase crypto directly with real currency or you can trade one cryptocurrency for a different one.
On these exchanges, you will be able to see the fluctuating prices of different cryptocurrencies. Check out https://www.okx.com/markets/prices/terra-luna for an example of how an exchange looks. By comparing the prices of different cryptocurrencies, you can then make informed investment decisions.
How to Use a Crypto Exchange
So, how do you use these exchanges? The first step is to pick one that you want to trade on. There are lots of different ones out there, each with different fees and transaction times. So, do a bit of research and see which ones you can find. When you pick one, do a quick search online to make sure that it’s legitimate and not a scam site. You can visit here for more info on how to avoid these scams.
Consider what your investment goals are when comparing exchanges. Maybe there is a specific coin you want to invest in? Do you want to focus on one or two coins or spread your money over a large range of cryptocurrencies? Are you interested in long-term or short-term trades? Do you want to learn more about crypto as you invest? When you understand what your goals are, you will find it much easier to pick the right exchange.
When you have found the right exchange, you need to make an account. This is much like setting up a bank account and you will have to provide similar information and identification. Sometimes, you may need to wait a few days before your account is active.
After the account is set up, you can link your bank account or credit card to add funds and start purchasing cryptocurrency. Just make sure to thoroughly research each cryptocurrency before you put your money into it.
Now that you know how to use crypto exchanges, you can get started with some investments!