Guide to Buy, Sell, Transfer Cryptocurrency

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Since the launch of Bitcoin in 2009, it has not only transformed the financial sectors but also other significant sectors like information technology, health care, retail, tour and travel, automotive and many more.

However, owning cryptocurrency might sound fascinating but how to buy, sell, trade and transfer cryptocurrency must be handled with extreme caution. Below, you will find a brief explanation and steps of owning cryptocurrency.

How to Buy and Sell Cryptocurrency?

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To deal with cryptocurrency trading, you must first explore how and where to purchase cryptocurrency. Here is the list of simple steps to buy crypto.

  1. Choose from which option to buy.
  2. Set up your account.
  3. Fund deposit into your account.
  4. Purchase the cryptocurrencies.
  5. Store crypto to avail it.

Now we will see the detail of these steps.

Step 1. Choose from which option to buy.

You must choose a platform or service to buy the cryptocurrency. The two most common platforms are:

  • Cryptocurrency Exchanges
    • Centralized exchanges
    • Decentralized exchanges
  • Crypto Brokerages

A crypto exchange is an online marketplace where you can buy cryptocurrencies for other digital currencies. It functions like the stock market where you purchase or sell your stocks.

Instead, crypto brokerages promote cryptocurrency trading by acting as intermediaries between buyers and sellers on cryptocurrency exchanges. In other words, customers do not engage in transactions that respond to market conditions.

In this case, the price is determined by the broker. Crypto exchange is the most feasible option for beginners, so we will discuss it only here for your understanding. Comprehensive guidance on crypto exchanges is discussed later after these steps.

Step 2: Set up your account.

After selecting the appropriate cryptocurrency exchange, the next step is the set up your account here. In addition to the regular account verification methods (email, phone, etc.), registering an account on an exchange often requires submitting identification papers such as a photo of your driver’s license or passport.

Step 3. Deposit funds into your account.

You need to deposit money into your cryptocurrency exchange account as there is a cost involved with implementing security measures such as encryption. At this time, only fiat money can be used to purchase cryptocurrencies. There are several methods to add funds to an account.

Connecting an existing bank account is the most typical method of funding an account. You should link your bank account to facilitate deposits and withdrawals. Although validating your bank account is an additional step that may take some time initially, it eventually simplifies the process of acquiring cryptocurrency.

Depending on your exchanges, the steps necessary to add a bank account vary from exchange to exchange. The option to link your bank account will usually be found under the program’s wallet, deposit, or bank account portion.

Step 4: Purchase Cryptocurrency

After adding money to your crypto exchange account or linking your bank account, you are ready to make purchases using cryptocurrencies. To make a purchase, just fill out a form with your credit card information and submit it for processing. A purchase order accepted at the current market price will be fulfilled. Now, you are the owner of the cryptocurrency. There is no complexity involved if you follow such steps.

The next step is where to store your cryptocurrencies as your asset. You need digital wallets to store crypto, just like physical wallets to store fiat currencies. Let’s see what it is, its role, and its types.

Step 5: Store crypto to avail it.

The acquisition of cryptocurrency is not the final objective. After creating an exchange account, you will have much more options for buying, selling, and storing cryptocurrency. You must retain money in your exchange account to engage in fewer transactions. However, storing in the wallet is preferable to retaining your crypto exchange account.  There are two types of wallets:

  • Software wallets (sometimes referred to as “hot” wallets)
  • Hardware wallets (also referred to as “cold” wallets)

The phrase “hot wallet” refers to a particular cryptocurrency wallet in which the user’s money is stored and accessible through the internet instead of locally on a single device. A “cold wallet” is a wallet for cryptocurrencies that are disconnected from the internet. However, they are a more secure method of securing digital currency and non-fungible tokens from theft than offline storage, making them less than ideal for regular trade. Now, you can quickly sell crypts and trade them.

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Popular Crypto Exchanges

Below are some of the most popular crypto exchange platforms to buy, sell, trade or transfer cryptocurrency.

Coinbase

Coinbase is a specialized platform for trading cryptocurrencies, where you can buy, sell, and trade cryptocurrencies like Ethereum, Solana, Tether, etc. There are more than a hundred various virtual currencies accessible for trade. Your funds will be held securely, and you will have access to them anytime. The exchange imposes significant commission fees. Although the Pro platform saves you money in the long term, it still charges a spread markup of around 0.5% and a transaction fee for every trade you execute; the precise amounts vary based on the size of the transaction and the source of funding.

Binance

According to CoinMarketCap, Binance is the biggest cryptocurrency exchange globally. Following its 2017 debut in China, the platform relocated its servers and operations to Japan, anticipating a ban on cryptocurrencies in China. Due to heightened regulatory scrutiny, Binance was banned in the United States in 2019. Binance.US, a subsidiary of the largest cryptocurrency exchange, is now accessible in 45 states. The Binance.US is a significant cryptocurrency exchange that offers low costs and a comparable user experience to Binance itself. Despite this, the corporation has a complex history and dubious prospects.

Webull

Despite being less well-known than Robinhood, another commission-free trading platform, Webull offers a competitive product that includes cryptocurrency trading. Webull does not charge any transaction fees for cryptocurrency transactions (or other trading involving equities or ETFs), but it does mark up the spread by 100 basis points (1% of the price) on both sides of a trade. Several digital currencies are accessible for trade, including cryptocurrency, Ethereum, and Cardano. Webull is a broker worthy of attention because of its revolutionary charting features and superior mobile software.

Robinhood

When purchasing cryptocurrencies on your own, Robinhood is an excellent choice. Despite introducing a markup as a spread, Robinhood’s zero-commission trades are still quite competitive. If you have interests other than cryptocurrency, you may continue trading stocks and ETFs for the same minimal fee. Despite Robinhood’s refined UI, investors seeking every available function will be disappointed.

Etoro

The trading of cryptocurrencies on eToro is free, but a spread is imposed based on the underlying currency. A markup of 75 basis points is applied to cryptocurrency, while a premium of up to 500 basis points (5%!) may be imposed on less popular cryptocurrencies. CopyTrader is an eToro service that enables users to imitate the trades of traders they are watching. Before committing to this method, you should do a study.

Crypto.com

Crypto.com supports the most significant number of currencies and tokens, over 300. There are about 80 different currency combinations that are indicated as acceptable. Users’ cryptocurrencies are stored offline in cold storage, and Crypto.com brags that it has $750 million in crypto insurance. The exchange ensures its clients that their cryptocurrency reserves are secure in offline cold storage since it produces the private keys to the online custodial wallets where withdrawal money is stored.

Transfer Crypto Using Trust Wallet

Trust Wallet offers a vast array of the most well-known digital currencies. All facets of cryptocurrency administration are addressed, including buying, selling, and trading various cryptocurrencies, blockchains, and digital assets.

Trust Wallet uses your cryptocurrency assets by staking them at a rate of interest you choose. The certified proof-of-stake stamp of the program enables you to receive dividends on your cryptocurrency holdings. This feature guarantees that your cryptocurrency holdings will always generate a profit in the future. On some of the existing exchanges, it may be difficult to buy cryptocurrencies. Nonetheless, Trust Wallet makes it simple to begin trading cryptocurrency using a credit card immediately.

How to transfer crypto coins using Trust Wallet?

The Trust Wallet app enables you to transfer cryptocurrencies in the following way:

  • Launch Trust Wallet on your mobile device and log in with your credentials.
  • Choose “Receive” and enter your wallet’s address when transferring funds; you may alternatively scan the QR code shown.
  • The sender must input this code or address to deposit funds into your wallet.
  • To see a history of your wallet’s transactions, choose the “Transactions” tab and, after the money has been placed, click the “Confirm” button after the money has been placed.

How to receive payments using Trust Wallet?

Traders may use the Trust Wallet application to make and receive immediate payments by following these steps:

  • Login into the Trust Wallet application on your mobile and click the “Send” button.
  • You have to input the recipient’s wallet address, or by scanning the QR code, you can skip inputting the wallet’s address.
  • Once the amount to be paid has been entered, click “Next.”
  • Check your transaction details and gas price.
  • Click the “Send” button to conclude.

Note:

Investing in cryptocurrency involves a lot of risks. Before deciding to invest in any cryptocurrency, do complete thorough research and due diligence to fully understand how to buy, sell, trade and transfer cryptocurrency. This article does not contain any investment advice but for information purposes only.

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