Buying and selling crypto
Hello again, let’s dive straight in following on from yesterday’s piece about how to gain access to the extensive number of cryptos…
Let’s take a look at an example of using one crypto to buy another…
Let’s say you have a tenth of a Bitcoin, which for the sake of this example I’m going to say is worth $1,500 (meaning one full Bitcoin is $15,000). And you want to buy Ripple, which we’ll say is $1.
You should be able to buy approximately 1,490 ripple, factoring in trade fees. When you put in that order, you’re going to buy either the bid or the ask price. Usually I would buy the ask price with a limit order. If the margin’s not moving too fast, your order will get filled.
So the Bitcoin in your account will get depleted to about zero. The ripple in your account will be updated and now you’ll have the 1,490 Ripple.
That’s how you buy these other currencies.
Next we’ll cover how to sell and cash out of these cryptocurrencies…
Essentially, we’re working through the “buy” process in reverse. Here’s an example…
Let’s say you bought the crypto Golem with your Bitcoin for $0.20 and now it’s trading at $0.40.
You’d sell your Golem first on an exchange to go back to Bitcoin. Then you’d send your Bitcoin to a fiat gateway like Coinbase. From there, you would sell it for fiat (cash) and have it wired to your account.
Unfortunately, because of regulation, it is a somewhat lengthy process. But the more you trade, the more likely you are to get the hang of it.
Popular Crypto Exchanges
There are multiple big exchanges to choose from. Here are the most popular and highly rated:
Fees: 1.49% conversion fee.
Currencies Supported: Bitcoin, Litecoin, Ethereum, Bitcoin cash
Fees: Trading fees based on volume.
Currencies Supported: Bitcoin, Ethereum
Fees: All trades are charged 0.25% of the profits of the trade.
Currencies Supported: Bitcoin, ubiq, Litecoin, blackcoin, dash, Ethereum, gambit, plus 190 more.
Fees: 0.1% trading fee.
Currencies Supported: Bitcoin, cardano, dash, tron, plus many more.
Fees: A 0.25% taker fee for all BTC books.
Currencies Supported: Bitcoin, Bitcoin cash, Ethereum, Litecoin
Fees: Fees are charged on a per trade basis.
Currencies Supported: Bitcoin, Bitcoin cash, dash, eos, gnosis, tether, plus more.
*While every effort has been made to keep our information as up-to-date as possible, data may be subject to change.
So make sure to check before you sign up with any crypto exchange.
Disclaimer: Agora Financial UK does not earn any commissions or kickbacks for recommending any particular platform. This is simply a guide to help you better understand the steps involved in buying cryptocurrencies, so please do your own additional research before selecting an exchange.
I hope you find this information useful, it has certainly served me well.