How to Buy, Sell and Exchange Cryptocurrencies 2022- GREAT MONETIZE 

How to buy, sell, exchange Cryptocurrencies

Hello everyone all GREAT MONETIZE  visitors today we present for you best method to buy, sell, exchange Cryptocurrencies 2022.

There is a difference between buying/selling Cryptocurrencies on an exchange and trading Cryptocurrencies CFDs on a CFD platform. Both activities are undertaken with the intention of making a profit by trading in the crypto market, but the processes involved are very different. This article describes how to buy and sell cryptos, as well as how to trade Cryptocurrencies CFDs.

Buying and Selling Cryptocurrencies

Buying and selling digital Cryptocurrencies is basically all about using one cryptocurrency, such as Bitcoin, to exchange it for another Cryptocurrencies, such as Ethereum, on a buy or sell basis, working on a Cryptocurrencies exchange. The process involves looking for a Cryptocurrencies pair in order to perform a crypto-to-crypto exchange or exchanging crypto for fiat or fiat currency for cryptos. The transaction is done twice, and in opposite directions to complete an exchange cycle with the goal of profiting from the exchange.

Cryptocurrencies exchange

Trading Venue

The buying and selling of Cryptocurrencies is done on cryptocurrency exchanges. A trader needs to open an exchange account by filling out an online form. Most exchanges feature an order book that will indicate what traders are buying and selling and where they are doing this.

Making Deposits and Withdrawals When Trading Cryptocurrencies

Cryptocurrencies exchanges usually accept deposits and withdrawals in two ways. A small number of exchanges (mostly found in the US and UK) accept fiat currency deposits or a mix of fiat and Cryptocurrencies methods. However, the majority of exchanges across the world accept crypto-based methods of transaction, due to restrictions placed by banks on such exchanges in operating bank accounts. If the exchange only accepts cryptocurrency deposits/withdrawals, the trader must additionally create a third party wallet for the Cryptocurrencies to be used in performing the deposits. The most common Cryptocurrencies used for deposits are Bitcoin, Ethereum and Litecoin.

To deposit funds, one would need to purchase BTC, ETH or any other deposit Cryptocurrencies from third-party sources and have it transferred to their third-party wallet. The funds are then transferred from this wallet to the wallet provided by the crypto exchange for depositing that Cryptocurrencies. If you choose to use this method, you should ensure to enter the wallet addresses properly when conducting the transactions, as any crypto transferred to a wrong address cannot be recovered.

The Process of Trading Cryptocurrencies

Once your exchange wallet has been credited, you can buy and sell cryptos by trading the pairs that contain the deposit currency you have chosen. BTC and ETH usually have the largest number of pairings on any exchange, so you will not be short of what to trade on the exchange. You will be able to use Limit orders (‘Close at Profit’), Stop Loss orders (‘Close at Loss’), or future orders to Buy/Sell your preferred digital cryptos.

WebTrader screen of Litecoin and 3 standing cryptocurrencies: Bitcoin, Litecoin and Ethereum.

Illustrative prices.

Bitcoin exchange

Trading Cryptocurrency CFDs

Trading cryptocurrencies can be done on a speculative basis, usually by trading on the prices of cryptos via contracts for difference (CFDs). Here, the actual cryptocurrencies are not actually owned or exchanged by the trader. The process involves buying or selling contracts based on the price movements of the underlying cryptocurrency in question.

Where Can I Trade Cryptocurrency CFDs?

Trading of cryptocurrency CFDs is done via online platforms of CFD issuers such as Plus500. The trader needs to open an account by filling out an online form. Identity and residence address verification is a compulsory regulatory requirement. Funds can only be deposited onto the CFD trading account using fiat currency methods through various payment methods.

How Are Deposits and Withdrawals Made When Trading Cryptocurrency CFDs?

Brokers that offer cryptocurrency CFDs can only accept fiat currency methods for deposits and withdrawals. Therefore, it will be common to see bank wire options, credit/debit cards and/or e-wallets, such as PayPal, Skrill, and Neteller, being used for transactions on these platforms. Funds must be transferred from sources that bear the account holder’s name, as anonymous funding is not permitted. Third-party payment methods are also not allowed. Each deposit channel has transaction limits. Bank transfers usually have an unlimited capacity for deposits and withdrawals, but bank cards and e-wallets can have limits defined by the CFD provider.

Buy, sell, Bitcoin

The Process of Trading Cryptocurrency CFDs

After your CFD trading account has been funded using one of the deposit options listed on the provider’s website or platform, you can trade cryptocurrency CFDs bi-directionally. In other words, you can benefit from rising prices by buying low and selling high, or you can benefit from falling prices by selling high and exiting low. Vice versa, positions would close at a loss if market prices move against you. You can either trade at current prices, or you can use the function of the future order to trade when the instrument reaches a specified price.

Conclusion

You can engage with the cryptocurrency market in two ways: either by buying/selling on a cryptocurrency exchange or by trading cryptocurrency contracts on an online CFD platform. If you are interested in exploring the latter option, it takes only a matter of minutes to open a demo CFD trading account with Plus500, where you can then select your preferred crypto-based instruments from the wide offering that is available