Buying and selling cryptocurrency: simple rules
- Written by Anna Koretskaya
There are several ways to buy crypto online:
* Simple exchange
* Centralized exchange
* Decentralized exchange
Simple exchanges are small sites that enable swapping crypto coins. Asa rule, they offer only a limited number of assets. Beginner traders should rather avoid such platforms because some of them turn out to be fraudsters. Experienced investors know how to identify a trustworthy simple exchange. So before using one of them, better read reviews carefully, or better start your trading journey with one of the official and large platforms.
Decentralized exchanges operate as intermediaries between users. Buying and selling cryptocurrency occurs from users' wallets, the funds don't stay in the exchange, and it is not responsible for their safety. Decentralized platforms offer many trading pairs and usually provide the best rates in the market.
Centralized exchanges are large platforms that operate officially and provide safety for clients' data and finds. Why data? When registering on a centralized platform, users provide their documents for checking. It is done with the purpose to protect the platform from illegal activities. Once such is noticed, an account is blocked. So centralized sites are recommended for novice traders, for they are much more secure than other options to buy cryptocurrency.
An example is the WhiteBIT crypto exchange. It stores 96% of users' investments on cold wallets, which leaves no chances for hackers to access them. Besides, every client can configure a two-factor authentication and protect one's account from third parties.
How to make a profit from crypto trading
Many beginners are wondering what cryptocurrency to buy to make a profit. Better pick the most popular crypto coins rather than unknown small projects that can fail and turn to dust after a while. So keep track of the most common currencies.
The essence of trading is to buy at a lower price and sell at a higher price. However, things are not that easy. The crypto market is highly volatile and requires quick reactions and knowledge. To learn more about how to make money, learn trading strategies and don't forget to take action with a cool head, never invest the last money, and always adhere to the strategy you have chosen.
