A Beginner’s Guide to Trading Digital Assets – Casey Blanche
Trading involves exchanging one digital asset for another, buying and selling digital assets, and exchanging digital assets for fiat. Trading digital assets is similar to stock trading, but markets are open 24/7 around the world. There are currently over 3000 digital assets in existence, some of them are groundbreaking technologies that will change the world, others have no real use case or value.
“Before trading, it is important to do your own research (DYOR) and not rely on the advice of others or jump into investments (FOMO) you do not fully understand”.
In order to trade digital assets you will need to either purchase them directly via credit card or a bank wire on an exchange, mine them and transfer the coins to an exchange, or purchase them at a Bitcoin ATM. When trading, most coins are paired against Bitcoin, Ethereum, XRP or a stablecoin such as USDT (digital US dollar).
You may be asking yourself “why would I want to trade digital assets?”. The crypto world is divided between two camps, holders (Hodlers) and traders. Hodlers have determined that the best strategy for them is to simply hold their digital assets over time, avoiding the stress of watching charts every day, and selling when their assets meet a particular date or price target. Traders have determined that they can earn more than hodlers over time by selling the market pumps and buying market dips. Both strategies are sound, depending on your risk appetite.
“I should warn you that day trading can be extremely stressful, and highly addictive like gambling. You also risk losing a large sum of your investments if you are not experienced”.
Regardless if you are a hodler or a trader, at some point you may wish to exchange the digital assets you hold. For example, you may have mined JSEcoin on your home computer and would like to trade it for USDT. For beginners, I suggest trading with the easy to use ecxx trading app. Before downloading the app, we will need to register an account at- https://www.ecxx.com/regcode/VIvm2Dbv05 After signing up, you will need to activate 2FA security in your account settings to protect your account and complete KYC (KYC is a process in which your identity is checked to prevent fraud). The KYC process can take up to two days for approval. In the meantime, download the ecxx trading app at- https://play.google.com/store/apps/details?id=com.exchange.ecxx&hl=en_US
After opening the app you will see the home screen below; it lists the digital assets with the highest trading volume over the last 24hrs.
In order to trade digital assets on ecxx, you will need to deposit your coins in the exchange “Funds icon” or purchase them with a credit card or bank wire (may be available at the time of publication). Select the deposit icon on the digital asset you would like to deposit and follow the on screen instructions to send your coins to your exchange wallet.
After your deposit is received in your ecxx exchange wallet, you can place limit or market buy or sell orders by selecting the “Trade icon”. A limit order is an order in which you decide to sell or buy coins at a particular price only. A market order sells or buys coins at the current market price. There is the possibility that your limit orders may not be filled if the price of the digital asset never reaches your limit order. Fill in the blanks for your market or limit order amounts and press the corresponding buy or sell button to confirm the order.
By selecting the “Me icon” you can view all of your account information including your deposit and withdrawl history, trade history, open orders, wallet addresses, and place deposit or withdraws of digital assets.
If you have mastered the ecxx trading app, and are looking for more advanced features for traders, you can log into the website based exchange- https://www.ecxx.com/regcode/VIvm2Dbv05 and select the “advanced” option under the exchange icon. This will give you access to Trading View charts, depth charts, and the full order book.
In future articles I will demonstrate how to store your digital assets.
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Disclaimer- I am not a licensed financial adviser and am not accountable for any financial loss or equipment damage.