Chapter 01

How to Trade Crypto On Binance

If you are interested in buying or selling a cryptocurrency, there are few better places to look than one of the world’s largest cryptocurrency exchange by trade volume, Binance.

Founded in 2017 by Changpeng Zhao – who earned the number-one spot on BitcoinMonsoon's 2018 Most Influential list – Binance rose to prominence during the historic crypto market-wide bull run in 2017 by supporting a wide array of cryptocurrencies in what was, and perhaps still is, one of the fastest and most reliable trading platforms.

In fact, Binance became so popular, so quickly that CZ and Binance both became worth more than $1 billion in less than one year, officially making it one of the first companies to achieve "unicorn" status in the cryptocurrency industry.

Yet despite its reputation as a destination for crypto traders, it's not exactly easy for users who lack a traditional trading or investment background to navigate their way around.

In this piece, we take a step-by-step look at how to use Binance and conduct a trade on the exchange.

Signing up

First thing's first, you’ll need to create an account. Anyone is able to sign up since Binance does not require customer information, but by doing so "you acknowledge and declare that you are not on any trade or economic sanctions lists" as per its Terms of Use.

This includes citizens of the member countries in the UN Security Council Sanctions list, the Office of Foreign Assets Control of the U.S. Treasury Department (OFAC), among other groups.

The terms also state each user must be at least 18 years of age. Binance reserves the right to cancel or freeze any account If the terms are disobeyed.

If the restrictions do not apply to you, to sign up simply navigate to the homepage and click register.

You will then be asked to enter a minimal amount of personal information such as your email address, password, and a referral ID if you have one.

As per Binance's referral system, you will receive 50 percent of your referrals trading fees.

After you fill in the required fields, click "Register" and complete the captcha, a confirmation link will be sent to your email address.

Once the link is clicked, your Binance account is ready to be used.

Deposit Funds

Now that your account is activated, but before exploring the rest of the exchange, you’ll need to add funds to your account if you wish to buy or sell any cryptocurrencies.

Pay with credit card

Binance has a feature that allows users to purchase certain cryptocurrencies directly with their Visa or Mastercard credit card. If you are a qualified candidate, navigate to the "Funds" tab and select "Buy With Credit Card."

You will then be required to enter the purchase amount of the desired cryptocurrency and whether you will be paying with the US dollar or euro. Cryptocurrency purchases by credit card are limited to BTC, ETH, and LTC at this time.

There is a minimum processing fee of $10 or 3.5 percent of the total order - whichever is more expensive. After completing this step, you will need to confirm your billing information, email address as well as your identity.

A valid government issued form of ID is required to be submitted to confirm your identity.

Once all of the required steps have been completed, the newly purchased cryptocurrency should reach your Binance wallet within 10-30 minutes.

Deposit from wallet

You can also make a deposit by sending funds from a separate cryptocurrency wallet into your Binance account.

In order to do this, navigate to the “Funds” tab once again and click “Balances.”

On this page, you will see all of the cryptocurrencies available for trading on Binance. To deposit the corresponding crypto into any of these, simply click the “Deposit” button next to the crypto asset of your choice.

Next, either scan the QR code from your cryptocurrency wallet or paste in the address and then send.

Once that’s complete, wait for the transaction to process and you’ll be ready for trading.

Placing a trade

Let’s go back to the home page now that your funds are ready to be used.

Here, you will again see all the cryptocurrencies that are tradable on Binance and their respective markets.

For this example, let’s say you previously deposited 0.0024 BTC (~$10) into your account and now wish to trade it for NEO.

First, you’ll need to find the right NEO market.

Since you want to spend BTC in order to get NEO, click the "BTC Markets" tab and then type NEO into the search bar.

Click the appropriate row and the page where trading takes place will open.

Trading module

This page may look intimidating, but you can easily get the hang of it with a bit of practice.

Plus, most cryptocurrency exchanges have a similar trading interface so what you remember here, in all likelihood, will be relevant elsewhere.

The left section of the screen is known as an order book.

Here, you will see all active buy and sell limit orders. A limit order is simply an order that will only be placed at the user’s desired price, given there are buyers or sellers interested at that level.

If you would like to learn the “in’s and out's” of an order book, check out our comprehensive guide, but for now all you need to know is that the top of the order book (red) is where the limit sell orders wait to be filled and the bottom section (green) is where the limit buy orders wait to be filled.

The right side of the page is more simple – the above section shows the other cryptocurrencies that can be traded and the lower section shows the public trade history of the market currently being viewed.

Trade example: Buying NEO

The center of the page is where the real magic happens.

Here lays a chart feature that shows real-time price action and technical analysis indicators. Just below the chart is where you will actually execute the trade, so let’s buy some NEO.

If certainty of execution is your priority, select market order. If you are interested in only buying at a specific price level, select either limit or stop-limit order.

For the purposes of this example, let's place a market order, which will be placed immediately at current market prices.

Now, just enter the amount of BTC desired to be spent and how much NEO you want to purchase. Binance has a useful shortcut for entering the purchase amount and it is based on a percentage of your bitcoin balance (or any other appropriate trading pair).

Let's spend 50 percent of the BTC balance so there is some left over, perhaps for another trade.

The last step is to click the big green button “Buy NEO.” Since this is a market order, the trade for 0.58 NEO should have completed instantly, but that is most likely not the case if you selected limit or stop-limit order.

To check on the status of your order, look towards the bottom of the page where it says “Open order.” As the title would suggest, if your order has not yet executed, in other words, is still “open,” it will appear in this box until it has either been canceled or filled.

When it has been filled, it will show up in the lower box highlighting your 24-hour order history, just as how this order has below.

In order to sell, simply follow this same process but execute a market or limit sell order.

Withdrawing funds

While Binance does have a decentralized exchange in the works, the existing platform is centralized and susceptible to hacks like many other websites, so it’s recommended funds are only held on the exchange for as long as necessary.

In order to withdraw, navigate back to the “Balances” page. If you would like to see only the cryptocurrencies you have a substantial balance in, check the “hide” box.

Now select the withdrawal button in the NEO row and have your destination address or QR code handy. Paste the address and select how much you want to withdraw.

Last but not least, click submit and wait for the transaction to complete.

Binance Launchpad

The Binance Launchpad is a token launch platform exclusive to Binance and plans to offer token sales for new projects.

Binance handpicks which tokens to launch based on a number of factors including project maturity, scalability and adoption readiness, team quality and the ability of the project to benefit the broader cryptocurrency ecosystem.

To ensure the sales are being conducted in compliance with regulatory regimes around the world, each user must verify his or her Binance account.

Completed token sales, as well as those scheduled for a future date, can be seen on the home page of the Binance Launchpad. It's worth noting that the token sales operate on a "first come, first serve" basis and usually sell out in just minutes, so be sure to do your due diligence.

If you successfully participate in a Launchpad token sale, the tokens will be automatically credited to your Binance account.

Security

Like most modern cryptocurrency exchanges, two-factor authentication (2FA) is enabled on Binance and is highly recommended to be set up in order to add an extra layer of protection to your account.

In order to do so, navigate to your account summary by clicking the user avatar in the top right of the home page.

Once directed to your account page, a prompt will likely appear suggesting you to enable 2FA, which happens to automatically pops up when a new user accesses this page.

Binance allows two methods for enabling 2FA, via SMS or Google Authenticator.

With the SMS version, simply enter your mobile phone number and the verification code sent to the corresponding phone and you will be all set.

If Google Authenticator is your 2FA of choice, download the mobile application, open it and scan the QR code provided by Binance. Next, you will be asked to write down a 16-word recovery phrase to be used as a backup in case you lose access to this google authentication.

Lastly, you will be prompted to enter your account’s login password and the authenticator code found in the Google Authenticator mobile app. Once complete, this form of 2FA security will be complete.

Pros and Cons

Pros

  • If you're constantly on the go, Binance’s mobile application may be perfect for you. It's compatible with iOS, Android, as well as Mac and PC operating systems so just about anyone can place a trade or monitor their account from virtually anywhere.
  • Binance offers a large selection of tradeable cryptocurrency markets. As of May 1, 2019, 467 different markets are supported on the exchange.
  • Binance has it own native exchange token, BNB, which can be used to supplement trading fees and boost the overall liquidity on Binance.
  • Binance was a pioneer of the Initial Exchange Offerings, and It’s Launchpad facilitates sales once a month for those who are interested in being early holders of new tokens.
  • Higher trading volume that most other cryptocurrency exchanges.

Cons

  • If following government regulations like that of the US is important to you, then you may want to try out exchanges such As Coinbase or Gemini, because at this point Binance is still an unregulated exchange.
  • Many of Binance’s markets, specifically those of the lesser known altcoins, offer low liquidity which can make trading large altcoin positions difficult.
  • The somewhat complex user interface can be challenging for novice traders and investors to adjust to.

Images via Binance website

Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 02

How to Trade Crypto On Bitfinex

A cryptocurrency exchange based in Hong Kong and founded in 2012, Bitfinex is one of the market’s largest and most liquid exchange services providers, has long attracted a clientele drawn by its offerings of leverage and more advanced trading tools.

An early market entrant, Bitfinex has experienced the bumps and bruises that accompany such distinctions. In August 2016, it lost 120,000 bitcoins (worth $72 million at the time) in a hack that resulted in user account balances being reduced.

In June of that year, it was further fined by the U.S. Commodity Futures Trading Commission.

Still, Bitfinex battled back, issuing a cryptocurrency to users that represented their claims on crypto lost in the hack in an innovative first. (It would buy back all those tokens by April 2017).

As a result of its perseverance, Bitfinex has boasted some of the highest recorded trading activity, handling anywhere between $90-500 million a day. This makes the exchange highly liquid in addition to offering a sizeable collection of tradable crypto assets.

Today, you’ll either need to have some cryptocurrency ready to send to your new account from another major exchange such as Binance or Coinbase or be prepared for a large bank wire transfer in order to get the ball rolling.

Luckily for the more entry-level traders, Bitfinex recently removed it’s $10,000 equity minimum for account creation, so users can now gain access to the exchange no balance requirements at sign up.

Signing up

Head over to the Bitfinex website and go through the signup process by fulfilling your basic information such as your name, email and desired password.

Run through the process of verifying your account with the email link provided and begin to familiarize yourself with the platform.

ID verification

No ID verification was required upon initial sign-up and it is possible to send funds to the account but requires $10,000 USD in liquidity in order to use their platform, limiting it to large-scale investors.

The process of verification is simple however and requires any form of legal documentation with your current name and address as well as your driver's license to confirm your identity.

Note: Verification can take up to 48-hours.

Once you have signed up and logged in you’ll want to set up your two-factor authentication (2-FA) which enables an additional layer of security by requesting a code from your smartphone upon every log in.

Security

Locate the “Security” tab in the top right corner of your screen and then on the new screen find “Two-Factor Authentication” which will take you to the QR code that you’ll use to scan via the Google Authenticator application on your smart device.

After completing the process you will be sent an email link to verify and finalise your 2FA.

You’re now ready to stock up some funds for trading.

Depositing Funds

Click on the “Wallets” tab in the top-right corner of your screen, here you will see a list of two available assets to withdraw from or deposit into, as a new account we can only access bitcoin.

In our example, we decided to send a fraction of a bitcoin (BTC) to our wallet address which was located by clicking on the down arrow labeled underneath “deposits/withdrawals”.

You’ll be taken to a new screen that provides your unique wallet address which can be produced anytime you’re on this page.

Trading

Once you’ve sent over the funds to your account either from another exchange wallet or bank wire transfer, click on the desired asset on the left hand of your screen with a list to choose from.

Here’s a list of the USD pairings available for you to trade. If you’d like to buy BTC for example,  click “BTC” and you will be directed trading interface.

On the trading page, you’ll see the asset’s price chart, order book, order buttons and a list of all other assets in the BTC markets to your left.

Choose the amount of bitcoin you’d like, in our case we selected “1” in the quantity field, chose “Market” from the drop-down menu and hit “Exchange Buy.” Presto, you’ve now purchased your first bitcoin at market price on the Bitfinex exchange!

There are quite a few different options to trade including setting a stop limit, which triggers an event sell/buy depending on price crossing a particular threshold.

A stop-limit order is a conditional trade over a set timeframe, let's say an asset is currently trading at $15.00. You'd like to sell the asset if it reaches or goes below $14.00, but only if the security can be sold for $13.00 or more.

You can place a Stop-Limit order by setting the Stop Price to $29.00 and the Limit Price to $28.00. There’s also margin trading which allows you to borrow more than you currently own using your crypto as collateral, this is also known as leverage.

Trading on margin is borrowing money from a broker or exchange to purchase assets/stocks.

Margin trading attracts a higher profit potential than traditional trading but also greater risks.

Withdrawal

The act of withdrawing your funds is simple.

Once you have decided to take profit or close your positions and you would like to transfer off the Bitfinex exchange, click on “Withdraw” in the top-right corner of your screen and select from the list of cryptocurrencies the one you’ve just traded on the platform with.

In our case, we were trading with bitcoin (BTC) and decided it was time to take a 2 percent profit.

We chose bitcoin amongst the list and entered another separate wallet address that we owned.

Sometimes the process can take up to a week if the exchange is going through difficulties such as recent events that have seen a 5-day limitation on fund withdrawals.

Which looks like this:

Tip: Litecoin and XRP offer quick speeds when transferring funds from the exchange to a separate wallet address.

Pros and Cons

Pros

  • Established Exchange that generally features high trading volume
  • A highly intuitive and easy-to-navigate platform that imitates a lot of other major exchanges in their user interface lessening the burden on usability.
  • It offers leveraged trading which can be both a pro and con considering the risks involved.

Cons

  • Requires a minimum $10,000 USD liquidity in your account in order to use the platform
  • Recent events have increased skepticism among the crypto trading community throwing into question its authenticity and legitimacy.
  • Sometimes trades at a premium to other exchanges such as bitcoin being $309 different in value when compared to prices on the Coinbase or Kraken exchanges.
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 03

How to Trade Crypto On BitMEX

Bitcoin Mercantile Exchange (BitMEX) is a “crypto-products trading platform” founded in 2014 by a group of former bankers behind HDR Global Trading Limited and is currently operating in Hong Kong while being registered in Seychelles.

BitMEX is probably best known for its margin lending capabilities, which allow its users to conduct a leveraged trade as high as 100 times, significantly amplifying the profit potential as well as potential losses.

With large daily trading volumes (usually between $500 million - $1 billion) and over 10 million users accessing the site every month, it's safe to say BitMEX is one of the most liquid cryptocurrency trading platforms on earth.

There are no trading limits on BitMEX aside from an over 18 years age restriction, however, users should also be aware that BitMEX does not currently offer support or registration for U.S citizens due to ongoing legal compliances.

See below for a step-by-step guide on how to place a trade on BitMex

Signing up

Users will need to register with the website in order to create an account and provide a genuine email address to start the registration process.

In the top right corner click on ‘register’ and fill in the blanks including your email, desired password, country of residence and name, select “I accept the terms and conditions” and click register.

Open up your email and click on “verify email,” the process should take you from your email application to a webpage that opens onto the exchange (we will come back to this shortly).

Instead of diving straight into trading, let us first assess your security and deposit funds into your account so that you may begin doing so.

Security

In the top left corner, select “account” and then navigate to the left window pane and select “my account,” this will bring you to a new page with the ability to now setup your Two-Factor Authentication (2FA).

In the section labelled "security", you will see a dropdown menu providing you with an option to scan the barcode using an application of your choice, select “Google Authenticator.”

This barcode provides you with a unique code specific to your account for you to use via Google Authenticator.

Note: On this page, you can also select to change/update your password should you so choose in the future.

You will then be signed out and forced to re-enter your login details except for this time you will need your 2FA security key as well.

Depositing Funds

Once your security has been configured, head over to the "Deposit" page located in the lefthand window pane under “Wallet.” If you aren’t sure where that is located, click on the tab labeled “Account” then check your left window pane and it should be located to the top left.

BitMEX does not charge for withdrawals or deposits, instead, it charges a network fee based on the size of the transaction, but take note that the exchange only accepts deposits in bitcoin (BTC) and serves as collateral regardless of whether or not the trade includes BTC.

Warning: Do not send Litecoin, Bitcoin Cash, or Tether to this address. Any unsupported coins sent here will be lost.

On the ‘Deposit’ page you will notice a code at the bottom (marked black), use that as your default BTC deposit address where you will send funds from another wallet to this one.

Placing a Trade

The “Trade” tab in the top left corner brings you to the exchange page from which you can conduct your trades. Directly underneath that tab, there is a list of coins ranging from left to right representing the available tokens for trade on the exchange.

The order book shows three columns – the bid value for the underlying asset, the quantity of the order, and the total USD value of all orders, both short and long.

While on the far left you have a choice to either long, a particular asset or short it, for now, you should concern yourself with the spot price of assets rather than dabbling in any leveraged trades or futures markets.

Directly under the BitMEX logo on the trading page, you will see a tab named “market” click on that in order to perform a trade on the spot market. In our example, we had bitcoin selected and set our buy order at $1 USD for a spot position and executed the trade, at the time of writing we received back 0.0002 BTC.

Congratulations! You’ve now successfully purchased your first bitcoin on the BitMEX exchange, to sell simply input the same amount of BTC you received when you first bought it.

There is also an option to modify the window panes to display information that's relevant to you.

By choosing to remove certain windows you can streamline your information flow to increase the quality and relevance of the data you are receiving.

Intro to Leverage trading

BitMEX allows its users to leverage their position and presents the ability to place orders that are bigger than the users’ existing balance.

This could lead to a higher profit in comparison when placing an order with only the wallet balance this is known as “margin trading.” The platform allows users to set their leverage level by using the leverage slider with a maximum leverage of 1:100 being available for bitcoin and bitcoin cash SV only.

Note: BitMEX fees are much higher than on conventional exchanges because the fee applies to the entire leveraged position. So, a $1,000 trade on 100x leverage could end up costing more than $100 in fees.

Withdrawals

So, now you’ve made a trade and taken profit and want to transfer those funds to another wallet or exchange to cash in.

Click on the “Account” tab located in the home bar and select “Withdraw” highlighted in blue.

Here you will find the option to send to a particular wallet address, the specific amount in bitcoin (XBT) as well as the desired network fee.

Enter your 2-FA code we setup earlier and click “Submit” located at the bottom of the page.

Bitcoin transactions are prioritized on the network by fee meaning the higher the fee the faster the withdrawal process takes to complete.

Note: BitMEX recommends a minimum fee of 0.001 and requires at least 0.0009.

Futures contracts and perpetual swaps

A futures contract is an agreement to buy or sell a given asset in the future at a predetermined price. On BitMEX, users can leverage up to 100x on certain contracts.

Perpetual swaps are similar to futures, except that there is no expiry date for them and no settlement. They also tend to trade close to the underlying index price, unlike futures, which may diverge substantially from the index price.

BitMEX can, therefore, be complex and difficult to navigate at times if you are uncertain how these financial instruments operate but also possesses the potential to maximize your earnings through futures markets, leveraged trading and perpetual swaps.

Just be sure you know what you are doing.

Pros and Cons

Pros

  • A Highly liquid platform, well within the top 10 exchanges by reported global derivative volume.
  • Best known for its leverage trade option as high as 100 times, which can act as a risk management tool and amplifier for potential profit
  • Limited ID verification required to begin trading immediately.

Cons

  • Due to ongoing legal compliances BitMEX does not currently offer support or registration for U.S citizens.
  • BitMEX can be complex and difficult to navigate at times if you are uncertain how futures markets or particular financial instruments operate.
  • Leveraged trades can incur considerable risk, especially to those less experienced and should not be approached lightly.
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 04

How to Trade Crypto On Bitstamp

A key player in the first generation of cryptocurrency exchanges, Bitstamp’s largest competitors for many years were mostly exchanges that no longer exist today.

Now eight years old, Bitstamp has currently amassed over 3 million users, largely in Europe.

Once based in Slovenia, Bitstamp is now regulated by the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financie, a distinction it achieved in 2016.

Like many other early exchanges, however, Bitstamp has suffered from being early to the crypto market, most notably a January 2015 hack in which it lost 19,000 BTC (worth nearly $115 million at current market prices).

It’s also struggled somewhat to define a clear identity among major exchanges, with its narrative neither defined by multiple rounds of venture capital from major investors (like Coinbase or Kraken) nor a grassroots-led litany of cryptocurrency trading options.

This means if you have an interest in trading a select few cryptocurrencies from one of the more established exchanges in the industry, and are based in the regions in which it offers services, Bitstamp might be the best option for you.

Below we’ve broken down how to conduct a trade on Bitstamp in a step by step process.

Signing up

The first step in using any cryptocurrency exchange is signing up and getting your account activated.

To do this, simply navigate to Bitstamp.net and either select "Get started" or "Register" on the landing page. You will then be prompted to select whether your account will be for personal or corporate use. It's important to note that not all exchanges enforce the same terms of use policy, so simply because you are allowed to use exchange A in your jurisdiction does not automatically mean you will be allowed to use exchange B. Bitstamp’s terms of service can be found here.

The personal information requirements also differ amongst exchanges during the signup process.

ID verification

With Bitstamp, the personal information required to verify your identity is quite extensive compared exchanges like Binance that only require for your name and email address to create an account.

Bitstamp’s registration process is more rigorous due to the fact it abides by KYC and AML policy. You will be required to enter  such information as your address of residence, US citizenship status, photo ID document as well as a document to prove you residence.

Security

Like most cryptocurrency exchanges, or at least those taking extra measures to secure user accounts, Bitstamp has option 2-factor authentication (2-FA).

To enable this feature, the user will need to navigate to the main account dashboard and select “security” from the left-hand side of the page.

To proceed, the user will need to have Google authenticator installed which will present a six-digit code when paired with his or user Bitstamp account. 

Next, simply enter this code and the account will now be secured with another layer of protection. Once enabled, the user will need to enter this six-digit code shown in the app during each login attempt.

Depositing Funds

Once your account has been verified, all trading functions will be accessible but funds will need to be deposited in order to do so.

A feature more exchanges are beginning to incorporate is the ability to purchase cryptocurrency directly on the exchange via credit card payment.

Bitstamp has enabled this feature (link to CC how to) and currently allows the purchase of BTC, XRP, LTC, ETH and BCH with USD or EUR. To begin this process, click the "Deposit" tab towards the top of the screen and then select "Credit Card" in the left sidebar.

Note: If you would like to purchase funds and add them to your account as quickly as possible, this route is a much better option than buying through a separate fiat onramp and then sending the funds to Bitstamp (as long as you are willing to pay a credit card processing fee).

Alternatively, deposits can be made via bank transfer or with Bitstamp’s supported cryptocurrencies, which can be selected in the same sidebar on the left side of the "Deposit" page.

Similar to most exchanges, when the option to deposit a particular cryptocurrency is selected, you will be presented with your deposit address and its associated QR code. Using a mobile wallet to scan the QR code is most likely the fastest and easiest way to send funds, but the address can also be copy and pasted.

Placing a trade

Trading Interface 1) Basic

First, click the “Buy / Sell” tab in the top menu to be directed to the trading interfaces.

Bitstamp is unique in that it allows users to trade cryptocurrencies in a variety of ways that appeal to both users with novice and advanced levels of trading expertise.

The simplified trading interface essentially allows the user to place the same type of orders as the advanced interface but presents the features in a more beginner-friendly way without a live price chart and a full order book that can be distracting or intimidating to new cryptocurrency buyers.

On the simplified trading page shown below, the user has the option to conduct five different trade types as follows:

  1. Instant order - Aimed towards a fresh beginner, an instant order will be placed at the current bid or ask price, and if there is not enough liquidity available at that price level to satisfy the order, Bitstamp’s trading engine will reposition the order instantaneously to the current order book offer.
  2. Limit order - This is a standard limit order in which a user enters how much and at what price he or she wishes to buy a cryptocurrency. The order will be executed at the desired price or better if enough liquidity is available to fulfil the trade.
  3. Market Order - Simply enter the amount of the cryptocurrency you wish to purchase and the trade will be executed at the current market price, in other words, the last traded price.
  4. Stop order - Similar to a market order, the stop order is designed to be executed at the user’s desired price when the market price reaches the desired level. The difference is that the user enters the price he or she wants the trade to be triggered at as well as the price he or she wants to buy or sell order.
  5. Credit Card - Last but not least, a user can select the credit card payment option. Please note cryptocurrencies can only be bought with credit cards on Bitstamp, there is no way to sell a cryptocurrency and have the funds be directly sent to a credit/debit card.

Trading Interface 2) Advanced

If you are comfortable using a more professional trading interface, the “Tradeview” is the place for you. The full-featured “Tradeview” interface can be accessed by clicking the “Tradeview” tab in the upper right corner of the page.

As with most advanced cryptocurrency trading interfaces, there are 5 key components:

  • Trade History - A history of recently executed trades can be found on the leftmost part of this trading interface. 
  • Depth chart - This tool visual represents order book data so you can easily see what price levels contain a high or low concentration of orders.
  • Orderbook - Here you can see all the limit orders waiting to be filled. Wondering how to read it? See our detailed instructional guide here.
  • Price chart - The price chart displays the live price action of the cryptocurrency selected.
  • Order executor - Here you will decide whether you want to open a limit, market or instant order with the desired amount and price if limit or stop was selected.

Withdrawing funds

So if you’ve made your trade and now would like to remove your funds from the exchange, the next step is to go through the withdrawal process.

In order to begin, click the “Withdraw” tab as seen below.

Next, select the withdrawal method you’d like to engage in. Bitstamp allows funds to be withdrawn to an external digital wallet and EU or international bank.

Similar to the depositing process, you will be prompted to enter or confirm your banking information if withdrawing via an EU or international bank, or your destination wallet address and withdrawal amount if withdrawal via cryptocurrency is selected, as is shown below. 

Last but not least, select "2FA 7 Withdraw," enter your 2FA code, click "Confirm" and your funds will be on their way.

Pros and Cons

Pros

  • Highly liquid exchange with over 3 million users; the main portion coming from Europe.
  • While subject to an exchange hack back in January 2015, Bitstamp has since built upon its reputation as a highly secure and transparent platform.
  • Simple and intuitive user interface with features for both novice and professional traders.
  • Bitstamp is now regulated by the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financie, a distinction it achieved in 2016.

Cons

  • Cryptocurrencies can only be bought with credit cards on Bitstamp, there is no way to sell a cryptocurrency and have the funds directly sent to a credit/debit card.
  • High credit/debit card fees
  • Does not offer USDT trading pairs
  • Just 5 different cryptocurrencies are supported
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 05

How to Trade Crypto On Bittrex

US-based cryptocurrency exchange Bittrex is one of world largest cryptocurrency exchanges, often finding its way into the top 3 US exchanges in terms of trading volume.

Based in Seattle, Bittrex is also one of the largest suppliers of alternative cryptocurrencies, which currently lists hundreds of different coins to choose from.

Founded in 2013 by Bill Shihara and two business associates, all of whom worked previously at Microsoft, helped shape Bittrex into the renowned exchange it is today.

Bittrex is an intuitive and easy to navigate exchange platform that provides simple solutions to all your crypto needs, let's dive right in.

Signing up

Note: Due to geoblocking you may be redirected to the international landing page.

Upon signing up you will be prompted to enter an email address and desired password before you receive a link to verify your account in your email inbox.

Once you have verified your account, you will then be asked to read the Terms of Service and Privacy Policy before proceeding, read and click ‘Accept The Terms’ and you’ll be directed to your account management settings.

Security

Go ahead and enter your personal information inside the ‘My Profile’ tab under ‘Account’, ensure you fill all details correctly.

Underneath you will see ‘Identity Verification’ click on that and start the process.

From there you will be asked to provide identification in the form of official government ID such as your passport or driver’s license.

Once you have submitted the appropriate documentation for the process you will be redirected to another page to await verification, which takes about 10 minutes.

Hint: Try hitting the refresh button in your browser when you have been redirected to the waiting screen (10-minute wait), so as to be able to check the status of the verification process. You should get approved after 4-8 minutes of wait time.

Once you have been approved that’s it, for now, add funds to your wallet to start trading.

Loading up your wallet

Under the “Wallet” tab you will discover your account balance summary along with a list of coins you are looking to withdraw from and deposit to the Bittrex exchange.

In the blue search bar we typed in bitcoin’s ticker BTC and saw the option to ‘deposit’ or ‘withdraw’ funds, click ‘make deposit’ (green icon).

You will then be taken a new screen asking you to ‘generate a new wallet address’ select that option. This can take time so just be patient and don’t refresh your page.

Once completed you will receive an automatically generated wallet address that you will need to use to transfer your bitcoin funds to, from an existing exchange wallet to your Bittrex wallet address (ensure you enter all address details correctly).

Hint: If you are wishing to load USD to your account so that you can trade in fiat pair, you can choose to file this form request, which could take some time getting verified, just be mindful of the $1000 minimum limit.

Once you have made a deposit i.e bitcoin or fiat, from another exchange, you are ready to begin trading on the Bittrex exchange.

On the exchange

In the top right corner on the main Bittrex website, you will see a tab named ‘Markets’, select that and you will be directed to the page (shown above) where you will be able to choose from your favorite token/coin and pairings.

After you have selected your desired token/coin, you will be brought to the markets exchange page where you can see the price chart, order book for both buy and sell as well as the list of assets with percentage changes on the left-hand side of the screen.

You can choose to enter a specific amount for your particular asset, in this case, we selected USD-BTC pairing with the order type set to default.

Next, choose your quantity and select ‘bid price’ from the drop-down menu then select “Good til canceled”.

“A Good-Til-Cancelled (GTC) order is an order to buy or sell a token that lasts until the order is completed, expired, or canceled.”

Meanwhile:

“An Immediate-Or-Cancel (IOC) order is an order to buy or sell a token that must be executed immediately. Any portion of an IOC order that cannot be filled immediately will be cancelled”.

Finally hit “Buy Bitcoin” and there you have it, you have now successfully purchased digital assets via the Bittrex exchange.

Security

Lastly, but definitely not least of all is the Two-Factor security feature on Bittrex that you should familiarize yourself with and use to authenticate your account further.

Two-Factor Authentication (2FA) is a feature that asks you to confirm your identity from two separate points (usually mobile and computer) by sending a code via an application such as Google Authenticator (located on the iTunes and Google play stores).

Simply download the application to your mobile and scan the QR Code that is provided to you under “Settings” > “Site Settings” > “Two-Way Authentication” then enter the code you received from your phone, at the bottom of the page.

Withdrawals

The process for withdrawing your funds is similar to when you first deposited them.

In the top-right hand corner of the screen click on "Wallets" and from the list select the cryptocurrency you are wishing to withdraw.

Select the red balloon with a red up arrow that says "Withdraw" when you highlight it.

Enter another wallet address (the one you wish to offramp to for example) and enter the desired amount then hit "Withdraw".

Pros and cons

Pros

  • Bittrex is considered one of the world’s most stable and secure exchanges, boasting a large array of crypto assets to choose from, making it one of the more popular platforms of choice.
  • Highly secure platform with familiar user experience to that of its competitors, making the switch between exchanges, seamless.
  • Bittrex draws its wealth of experience and knowledge from a pool of talented developers and businessmen.

Cons

  • You will need to submit a somewhat lengthy form in order to be granted access to trade and purchase USD.
  • A minimum amount of $1,000 is required on top of the form in order to be able to start using USD.
  • You are having to file a form and await pending decisions by the exchange, which could prove costly to those wishing to create a new account and enter into a position quickly.
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 06

How to Trade Crypto On Coinbase

Based in San Francisco California, Coinbase may have achieved the strongest brand recognition amongst cryptocurrency exchanges since its founding in 2012 by Brian Armstrong and Fred Ersham.

It has since grown from a small-medium enterprise (SME) into something much larger, employing more than 500 people and growing rapidly over its seven-year history, to where it stands today garnering an $8 billion valuation.

In this step-by-step guide, we will take a look at how to set up your account on Coinbase, how to purchase cryptocurrency using your fiat loaded funds and how to send/receive funds as well as the various key security features you should be aware of.

Signing up

In the top right corner click on “Sign Up” and fill in your basic information such as name, email, and password then select “I’m not a robot” and “Create Account”.

Unlike Binance, which does not require a KYC verification, Coinbase specifically requests that you go through its identity verification process before making your first purchase.

Their user agreement specifies age limitation (18+), KYC requirements and fees, so be certain to check it out to ensure you meet their legal and policy standards.

Upon signing in for the first time you will be prompted to enter your desired payment method to start purchasing cryptocurrency from the exchange.

This is where you can link up your credit/debit card (don’t worry, you won’t be making any purchases just yet, nor will you be charged a fee) but it is good for now to get out of the way since the system prompts you to input your details automatically upon the first log in.

When you have finished entering your card details on the pop-up screen you’ll notice that the next section is asking you to verify two pending holds.

Log in to your banking application/website and view your transaction history to see how much is pending from “Coinbase UK“, then enter the two highest values in the pop-up screen to verify your card.

Once you have established your payment method, enter a mobile number as part of the security process for your account.

This is important because you need to send a verification SMS to your mobile phone in order to confirm your account and make important changes later on.

ID Verification

After you have set up your account and attached your payment method via the system’s automatic prompt, you will need to verify your identity before you can make a purchase.

This is set up in order to ensure maximum buyer protection and to help guard against identity fraud while increasing overall security.

It is important you take time setting up your other security features such as two-factor authentication (2FA) (more on this later).

The first time you click the “Buy/Sell” tab located directly next to the “Dashboard” tab you will be prompted to submit formal ID.

You can choose between your passport or drivers license; for the purpose of this guide, we chose to select a drivers license.

The system should be compatible with most countries’ automotive registries and thus verification via this method should take as little as 5 minutes.

Once you have been verified you will receive an email notification telling you that you are ready to start making your first digital currency purchase on the exchange.

Security

Under the “Settings” tab click “Security” located just below that and you will see a button labeled “Enable Authenticator”. Two-factor authentication (2FA) refers to an additional layer of security whereby the user is required to provide a code sent to their phone via SMS and/or an authentication app. Google’s well known “Authenticator” app located in the Google Play store and iTunes is free to download.

Upon clicking the “Enable Authenticator” you will be sent an SMS with a code to input.

Next, scan the barcode with your mobile with the aforementioned “Authenticator” app open.

A secret code will also be provided so be sure to store that on a portable storage unit, away from prying hands.

Once complete you will be sent a final SMS informing you that your 2FA has changed, from here on out, it will nigh impossible for individuals to crack into your fund.

Depositing Funds

Unlike certain exchanges which require a larger fixed lump sum payment each time you want to load funds to your account, Coinbase supports any specific amount you wish to deposit in your local currency (just be mindful of the fees involved).

The exchange also currently offers up to 9 different cryptocurrencies to choose from including bitcoin (BTC), ether (ETH), litecoin (LTC), bitcoin cash ABC (BCH), Zcash, BasicAttentionToken (BAT), USDC, 0x (ZRX) and ether classic (ETC).

To make a purchase head over to the “Buy/Sell” section, located by clicking the tab in the menu bar.

In this example, we used $100 to purchase bitcoin, which in turn gave us 0.02017936 BTC to trade or send to another address.

As simple as that you now own a fraction of bitcoin stored locally on the exchange which can be traded to various other wallet addresses.

The process for selling your crypto is the same as is buying, however, you will need to enter the specific cryptocurrency amount before you can convert all of your funds back to fiat.

The Dashboard

The “Dashboard” provides key information relating to your portfolio, recent activity as well as your total balance and is your ‘go-to’ page for viewing a quick summary of the markets.

The “Your Portfolio” section illustrates how much you currently hold including the total balance while the “Following” section up above, displays recent market activity.

The “Tools” section provides you with a collection of addresses. New addresses are automatically generated for each payment on Coinbase and stay associated with your account forever (so it is safe to reuse them).

Granted, a lot of the charts and additional information feels quite limited when compared to that of Binance or the Kraken exchanges but with Coinbase’ seamless approach and easy to navigate user experience (UX) it could be the one for you.

Limitations

As such, Coinbase does not currently offer the service to sell their crypto in particular countries so be sure to check out the list, because once you have purchased crypto on their platform you will be unable to convert back to your local currency if unsupported.

Withdrawal

A cryptocurrency on/off ramp is an exchange that provides a service to convert crypto back to fiat and vice-versa, whereby traditional fiat is directly credited back into your bank account at the press of the ‘sell’ button.

All you need to do is locate an exchange relative to your country that supports such a service and enter your wallet ID from that exchange. For example, Australians can use BTC Markets as a way to convert crypto back into Australian Dollars (AUD).

In the case of wanting to transfer funds to an offramp, you will need to locate the wallet address of that particular exchange.

This shouldn’t be too hard to find, provided you have an account set up and a wallet address to send to.

Once you have the address from the other exchange, navigate to the crypto you recently purchased, located under Coinbase’ “Accounts” tab in the menu header.

Enter the wallet address and click send and that’s it, you will now receive your funds via the other exchange with the ability to convert from your crypto back to your local currency.

Reminder: Transfers between exchanges can take anywhere between 1-10 minutes (depending on the crypto you’ve chosen)

Pros and Cons

Pros

  • A simple and intuitive platform that features a beginner-friendly user design.
  • Great for those just getting started in cryptocurrency and want as little fuss and hassle as possible.
  • Coinbase supports any specific amount you wish to deposit, making dollar cost averaging attractive and easy.

Cons

  • Coinbase does not currently offer the service to sell their crypto in particular countries. Once you have purchased crypto on the platform you will be unable to convert back to your local currency if unsupported.
  • Higher fees than other exchanges on offer.
  • Limited cryptocurrency trading options and assets.
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 07

How to Trade Crypto On Gemini

Gemini aims to take the “Wild West” out of the cryptocurrency industry by providing its users with a set of safety and legal standards not reciprocated by many other trading platforms.

Founded by brothers Cameron and Tyler Winklevoss in 2014, the investors who sued Facebook CEO Mark Zuckerburg in 2008 for idea theft, Gemini was one of the first cryptocurrency exchanges to be fully regulated in the U.S. through the acquisition of a banking charter in 2015.

This means users must reside in the U.S., Canada, South Korea, Hong Kong or Singapore, and adhere to the know-your-customer (KYC) requirements in order to trade on the platform.

At times, this approach has meant that Gemini has focused on ensuring its regulatory position, and it has, at points, lacked the liquidity of other U.S.-based exchanges.

At the time of writing, Gemini is not ranked in the top 100 cryptocurrencies ranked by trading volume and offers a short list of five tradeable cryptocurrencies.

Still, the exchange has an intuitive design and is taking an active role in the cryptocurrency and blockchain industry aside from just facilities trades. In 2018, Gemini launched its own US-dollar pegged stablecoin, the Gemini Dollar (GUSD), designed to reduce friction in its trading experience and also secured the designation as a regulated custodian two years prior.

Signing up

First things first – click the register button on the center of the landing page to begin the account creation process.

You will then be prompted to select whether you would like to open an account for personal use or if the account will be representing an institution.

If for personal use, you will be prompted to enter preliminary personal information such as your state of residence as well as full name and email address where you will be sent a confirmation email.

Security

check Once the email confirmation link has been clicked, you will be redirected back to the Gemini website. A prompt will then appear asking for your mobile phone number to be used as part of the two-factor identification (2FA) security measure. With Gemini, this measure is a requirement for successfully creating an account.

ID verification

Identity verification is required on the Gemini exchange. First, the user will need to enter his/her Social Security Number as well as the date of birth.

Next, information such as the address of residence will need to be provided and lastly a picture of your personal ID card such as a valid driver's license.  

Once all the required information has been submitted, Gemini will evaluate the documents and respond via email when the verification process is complete.

Depositing Funds

Now that you’ve created an account and passed the security and identification requirements, you can add funds to the account to begin trading.

To do this, hover the mouse over the “Deposit into Exchange” tab within the “Transfer Funds” tab and select whether the deposit will be made via wire or bank transfer, or whether you want to deposit one the supported cryptocurrencies directly.Bank transfer: With this method, you can link a personal bank account to Gemini so funds can be directly transferred from your bank to the trading account.Funds withdrawn via this method typically take between 4-5 days to fully clear into Gemini. If you would like to deposit more than what the bank transfer (ACH) limit, selecting depositing via wire transfer is the best alternative.

Wire transfer: Gemini also allows you to deposit via wire transfer. This option allows you to send more funds than the Bank ACH Transfer requires. Wire deposits will require you to contact your approved bank on file and have funds sent to Gemini.Users will also need to fill out the form above to get the necessary instructions on the wire transfer.

Deposit Crypto: Just like any other cryptocurrency exchange, Gemini also allows deposits via cryptocurrency, which is most likely the fastest and cheapest deposit method.

To do this, you will need to already possess one of Gemini’s supported cryptocurrencies in an external wallet.

To send funds to the Gemini account, you can simply scan the QR code or paste the withdrawal address into the destination address on the external wallet and the transfer will complete shortly once it has been confirmed on the blockchain.

Trading on the exchange

When using Gemini’s standard trading interface, six different order types can be facilitated. Since some differ from those order types found on other exchanges, Gemini has created a helpful primer to explain each type in detail which can be found here.Advanced trading options:

Aside from trading the various order types above via the continuous order book, Gemini also offers what they call ‘block’ and ‘auction’ trading.

  • Block trading
    • This option enables the user to be matched with buyers or sellers outside of the auction or continuous order book. This allows for larger trades to be facilitated by way of sourcing more plentiful liquidity.
    • Since this method is geared towards larger investors institutions, there are minimum block trade quantities, which are as follows; 10 BTC, 100 ETH, 200 ZEC, 500 LTC, 100 BCH.
  • Auction trading
    • Gemini holds cryptocurrency auctions every day at the same time for certain pairs of its support cryptocurrencies. This enables an alternative method for price discovery with no counterparty risk since auction trades settle immediately from pre-funded accounts.

Withdraw Funds

Similar to Gemini’s methods for depositing funds, the exchange allows withdrawals via bank and wire transfer as well as with cryptocurrencies via digital wallets.

To complete one of these withdrawal types, simply navigate to the “transfer funds” tab and select the withdrawal method of choice.

If bank or wire transfer is selected, first enter the bank or wire destination and the amount of currency desired to be withdrawn.

If a cryptocurrency withdrawal is selected, again, simply paste or type the receiving wallet address and the quantity of whichever cryptocurrency to be withdrawn and finally click “complete withdrawal.”

Pros and cons

Pros

  • Gemini excels at providing its users with a non-intimidating user interface that welcomes new traders
  • Backed by institutional grade security 
  • Gemini's mobile application adds another layer of convenience to its traders who may prefer trade on the go

Cons

  • Gemini’s intuitive design is surely a ‘pro’ to traders who enjoy experimenting with innovative trading interfaces, but the unique design and trading methods more of a 'con' than a 'pro' to users with traditional trading experience
  • No interactive price charts to view live price action
  • Minimal amount of supported cryptocurrencies for trading
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 08

How to Trade Crypto on Huobi

Founded in 2013, Huobi is a Singapore-based global cryptocurrency exchange that has perhaps evolved more than any other major exchange in its time in the market.

Meaning “currency” in Mandarin, Huobi today still consistently ranks as one of the world’s top 10 largest exchanges by trade volume. Yet, at times in its history, Huobi was among the very top exchanges in terms of volume, liquidity, and prestige.

As part of China’s vaunted “Big 3” crypto exchanges (along with OKCoin and BTCC), the group of companies accounted for nearly 90 percent of bitcoin trading prior to regulatory crackdowns in the country, formerly the industry’s largest and most active market.

Not to be deterred, Huobi has shifted its business model to enable more crypto-to-crypto trading, launched services in the U.S. and abroad and is innovating with newer decentralized and peer-to-peer exchange trading models.

While it does serve an international clientele, Huobi has a focus on Asian markets, with offices in Japan, Korea, and Hong Kong as well as a head office in Singapore.

Signing up

To begin, head over to the Huobi Global website and click on “Sign Up” in the top right corner of the screen. Next, run through the process of entering your basic information such as your email address, nationality and desired password then await the verification email.

Note: Be sure to enter your correct nationality as you will be unable to change this later on.

Before you send funds to your account and begin trading, it is important to set up your security to ensure against potential hacks.

Security

The exchange features a User Protection Fund Initiative with 20 percent of its net revenue from yearly trades going toward funding the buyback of Huobi Tokens (the exchange’s native cryptocurrency).

It also has a service called Huobi Security Reserve. As part of this, the exchange plans to store 20,000 BTC for insurance. This preventative measure is intended to help Huobi reimburse users in the case of any future hacks.

In the top-right corner of your screen, you will see a person icon, highlight it and select “Account & Security” from the dropdown menu. On this page, you’ll find information relating to your account including your unique ID and login history.

Scroll down to where it says “Two-factor Authentication” (2FA) and choose to link your mobile number to the account first.

You’ll need to verify through an SMS message and then an email code in order to finalize the process.

Do the same for the Google Authenticator link as well and follow the instructions on the screen.

You’re now ready to send yourself some crypto.

Depositing Funds

In the top-right corner of your screen, you will see a tab labeled “Balances.” Hover over that and select “Deposit and Withdraw”.

From here, you can choose from a list of digital assets in which you will send and receive a particular coin. In our case, we decided to send over 10 tethers (USDT) to play with by selecting “deposit” along the same line where the asset is listed.

You will notice your “Deposit Address” consisting of a string of numbers and letters, you will use that to input into another exchange that offers fiat on-ramping unless of course, you wish to proceed with “Over-The-Counter” (OTC) trades and purchase bitcoin directly using PayPal or Alipay.

Note: If you decide to send cryptocurrency to your Huobi deposit address make sure you are sending the exact same asset from one exchange to another or risk losing all your funds.

Trading on the exchange

Click on “Exchange” in the top-left corner of the screen, which will then take you to the markets page featuring an order book, price chart as well as the various buy/sell/stop limit options.

Since we already had 10 USDT sent over we only needed to make a spot price purchase.

Select “Market” in the buy/sell section and then select “100%” this will ensure that you hold 100 percent of your funds (USDT) in bitcoin.

Other ways of using this may include dollar cost averaging whereby you purchase a portion, say 25 percent, over a periodic regular schedule or when it passes above or below key price levels as defined by yourself and your research.

Withdrawals

When you’ve decided its time to take profit and send your funds to a suitable off-ramp exchange locate “Balances” in the top-right hand corner of the screen and click “Deposit and Withdraw”.

Highlight the coin you wish to send from the list and select “Withdraw” along the same line as the name of the coin.

Enter your desired wallet address and amount then select “Withdraw” at the bottom of the page.

Note: Transfers between addresses can take up to 24 hours but usually completes within 5-30 minutes depending on the crypto asset

Pros and Cons

Pros

  • A bountiful amount of supported cryptocurrency markets (over 400 at the time of writing)
  • User-friendly interface for both novice and more experienced traders
  • Has a native exchange token, Huobi Token, which can be used to supplement trading fees as well as a boost for Huobi’s overall liquidity
  • Fiat trading available for BTC, ETH, and XRP

Cons

  • Tether (USDT) is the only supported stablecoin
  • Limited trading options including no leveraged trading or instruments to support a market short.
  • While it used to be considered a “Top 5” global exchange by volume and prestige, that image has since declined slightly with an oversaturation of global crypto exchange options in 2019.
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 09

How to Trade Crypto On Kraken

Kraken is one of the world’s oldest and best-known cryptocurrency exchanges and has built upon its reputation for both security and as a leader in bitcoin to euro trading volume.

Founded by Jesse Powell in July 2011, the exchange offers 47 market pairs with seven base currencies ranging from the US dollar to the British Pound.

Kraken is also one of the few cryptocurrency exchanges to offer both margin lending with up to 5x leverage on trades and futures trading to US-based customer. At this time, international users can partake in margin lending but do not have the ability to participate in the futures market.

Now, let's dive into how you can facilitate a trade on Kraken in a step-by-step process.

Signing up

On the Kraken landing page, in the top right corner, you will find the “create account” link tab which will request some general information including your email address and a desired password.

Enter your details and await the confirmation link to be sent to you.

Note: A confirmation email should arrive within 1-5 minutes, but if it doesn’t, check your junk mail folder.

Upon successful login, you should be taken to an overview of your account, with information relating to your trade balance, position size and more.

In the top left corner along the navigation bar, you will see 3 options including Overview (see below), Prices and Support, ensure you are on the Overview tab.

Kraken’s platform is fairly intuitive and easy to navigate, providing you with a variety of tools to get you started on your crypto journey, but first, you need to ensure your hard earned funds are secured.

Along the top you will see a list of options ranging from ‘overview’ through to ‘trades’, here you will find the tab labelled ‘security’.

Security

On the security page, you will notice a ‘two-factor authentication’ (2-FA) on/off switch, slide it on and click on “authenticator app”, go through the process and save your progress when you’re done.

Note: You can find Google’s fully supported authenticator app here, that will allow you to scan the barcode using the application on your smartphone.

Next, we want to enable a master key so that if you ever lose your password or 2-FA you can still access your account through your master key.

Navigate to where it says master key and slide it on, complete the same process as what you did with your 2-FA by scanning the barcode, it should save in your app as ‘Kraken master’.

Finally, you want to enable what’s known as a ‘Global Settings Lock’ (GSL), an additional security feature that helps protect against phishing attacks.

A yellow banner should be displaying itself every time you’ve been clicking on security, advising you to update your global settings lock, so go ahead and update it, it's worth it.

When you’ve completed the setup for GSL slide it off as we will need to increase the level of access on your account and that requires changes to be made to your verification with GSL turned off.

Use the master key that you set up by entering the code from ‘Kraken Master’ in Google’s authenticator.

Once you've switched GSL off, head over to ‘get verified’ located along the same line as the settings tab.

Kraken also features a tiered list that provides traders with greater freedoms the higher up the tiers they ascend, however, you will require more official documentation the higher you go.

At the bottom of the page, you will be asked to enter some additional information including your full name, date of birth and mobile number.

The entire process should be instantaneous, with the added benefit of being able to trade right away.

ID verification

Find the "Get verified" tab along the top then choose from the list of 3 following options with each subsequent option requiring more complex verification processes along the way.

For simplicity, we chose the "Starter" option due to its low requirements and account limits that suited our needs.

Most traders will choose between "Starter" and "Intermediate" due to the low barriers of entry and manageable requirements.

"Pro" speaks for itself and is the preferred option for institutional traders or large investment funds.

Depositing Funds

Head over to the ‘funding’ tab along the same line as ‘security’ and ‘get verified’.

You will be asked to accept acknowledgment that Kraken cannot be held responsible for the loss of funds.

Once you’ve accepted, choose the coin you intend to send to your wallet from the list of supported cryptocurrencies located on the left side of the page. In our case, we selected bitcoin (XBT) and then clicked “generate new address”.

A deposit ID will then be generated and you can use this address to send funds to it (from another wallet or exchange).

Note: You must verify your account to at least tier 2 in order to trade, deposit or withdraw fiat currencies on the Kraken exchange, so be sure to check out the requirements here.

You can trade between all currencies, but account funding is limited to digital currencies only for anything below tier 2.

Placing a trade

Under ‘trade’ and then the ‘new order’ tab you will be able to conduct a trade buying at spot price or setting a limit order.

Spot or market orders simply refer to a quick and easy process by attempting to purchase the asset at its best price and fulfilling the order as soon as its executed.

A limit order refers to a triggered event that only buys or sells the asset when it reaches certain conditions such as your target price.

Limit orders are great for those wishing to target a particular entry or exit position.

For the sake of simplicity, we entered 0.00025 BTC (the amount of bitcoin we desired), selected ‘market’ and then clicked ‘buy’.

There you have it, you have successfully purchased crypto on the Kraken exchange.

Withdrawing funds

Kraken allows withdrawals via both cryptocurrency and bank or wire transfer. In order to move forward with this process, the user will need to navigate to the “funding” tab on the main account dashboard and select “withdrawal.”

When either bank or wire transfer is selected, the user will be required to enter both the destination bank or wire account as well as the funds desired to be withdrawn.

It’s important to note, Kraken does have withdrawal amount minimums and processing fees.

As shown in the table below, withdrawal minimums for fiat currencies can range from $20 - $50,000, 5 EU or 50 CAD.

To withdraw cryptocurrency directly, the user can select the desired cryptocurrency from the right-hand side of the page and then enter the destination wallet address and the number of funds to be sent.

Pros and Cons

Pros  

  • Provides a secure platform and a lower fee structure than Coinbase
  • Appeals to both individuals and institutions with features ranging from limit orders to pre-defined trigger trades
  • Margin lending and futures trading is available to US customers

Cons  

  • Kraken has some work to do if it’s to improve its overall user experience, particularly on the trading interface
  • Clear lack of extensive customer service options
  • New registrations may have to wait for over a week for accounts to be fully verified
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 10

How to Trade Crypto On Poloniex

An exchange that dates back to the colorful early days of cryptocurrency, U.S.-based Poloniex has had a long journey to its current version.

Acquired in a $400 million deal by Goldman Sachs-backed Circle in Feb. 2018, it does not allow users to trade government currencies for cryptocurrency. But while less appealing for beginners today, early on it was the main differentiator for the exchange.

Not only was Poloniex one of the first to offer crypto-to-crypto trading, it made a business out of quickly adding any and all cryptocurrencies for more seasoned traders.

During that time it also established a reputation as an honest business, but ended up losting 12 percent of its bitcoins in a 2014 hack, only to repay customers in full later that year. 

Today, Poloniex is part of a broader plan by Circle to enter the more regulated cryptocurrency exchange market that also includes Gemini, Coinbase and itBit.

How does it stack up on usability? Let’s dive in:

Signing up

Head over to the Poloniex website and:

  1. Click ‘Sign Up’ and enter your personal information
  2. A confirmation email should be sent to you, just double check your junk mail should you not receive it in 5-10 minutes.
  3. Run through the process of entering your basic information such as name, date of birth, email and desired password.

Because Poloniex only offers trading in cryptocurrencies, its know-your-customer and anti-money laundering requirements are less onerous.

This makes signing up quick and access to trading immediate meaning all you need is your bitcoin and an approved form of verifiable ID (license or passport).

Note: Creating multiple accounts with the intention for sole ownership could result in a ban from the exchange, you may need to link multiple accounts together.

Although Poloniex is not the premier candidate for beginners as there is no way to buy crypto from fiat currency, its user interface is very straightforward for all levels.

ID Verification

To begin trading you will need to verify your account with a government-issued document/form of ID so that you may receive your funds that you send yourself.

  1. We used a driver’s license and the camera on our Macbook to take a picture of our ID before submitting it and waiting 10 minutes for the verification process to approve us.
  2. We then set up two-factor authentication to enhance our security even further, making it impossible to log into your account remotely without a code sent to your phone first.
  3. In the top bar along the menu next to your account settings there should be an image of a spanner, highlight that and then select “two-factor authentication.”

Security

Now would be a good time to write down your 16-Digit Key in case you fail to log into your account using the 2FA method (its located just below the QR code, displayed in red font).

Download Google Authenticator and scan the QR code displayed on your screen, then enter the code your phone provided you onto the Poloniex website.

And there you have it, you are now ready to send crypto to your wallet.

Depositing Funds

  1. Highlight “Balances” in the top-right next to where you accessed account settings and then select “Deposits and Withdrawals”
  2. Select an asset you are wishing to send to this wallet address (in our case we used BTC) and choose ‘deposit’ from the corresponding list.
  3. The address provided will be your own unique ID

IMPORTANT: Send only BTC to this deposit address. Sending any other currency to this address may result in the loss of your deposit!

You can send funds directly to your Poloniex wallet so long as it’s a cryptocurrency on the approved list.

Placing a trade

The markets exchange page is where you can see the price chart, order book for both buy and sell as well as the list of assets with percentage changes on the right-hand side of the screen.

A notice board, quite unique to the exchange, details major crypto events of the day and exchange related news for quick decision making.

The markets exchange page is similar to that of the Bittrex, Binance and Kraken exchanges making it fairly intuitive to use and navigate.

Trading is relatively easy on Poloniex provided you have set up your funds through a deposit transfer and offers the standard stop-limits on all trades.

Adding a stop-loss or stop-limit adds a triggered event of either buying or selling an asset (depending on the option selected) allowing a trader to be away from their computer should price rise or fall from the chosen price level.

You can also partake in margin lending for residents outside the U.S.

When you lend to margin traders on Poloniex, you're lending to people who are attempting to enhance their trading returns by using their existing Poloniex account balances as collateral to borrow more crypto.

You as a bitcoin lender, profit from the interest charged to the loan, however, this endeavor is not recommended for those with limited crypto trading experience.

Withdrawals

Once you’ve decided it’s time to withdraw your funds and transfer them off the exchange to another wallet address, click on “Accounts” in the top right corner then select “Deposits and Withdrawals”.

From there, find your chosen coin and click “Withdraw” along the same line toward the far right-hand side of the page.

Fill in your private wallet address and the amount you’d like to send then hit “Withdraw” at the bottom in blue.

Pros and Cons

Pros

  • World first to add crypto-crypto trading and supports a vast array of cryptocurrency assets on the exchange.
  • Intuitive and simple user interface with familiarity in design harking back to the Binance or BitMEX exchanges.
  • Poloniex only offers trading in cryptocurrencies, therefore, its know-your-customer (KYC) and anti-money laundering requirements are less onerous.

Cons

  • Only trades in crypto-crypto pairs including USDC, subjecting users to additional counterparty risk and volatility.
  • While Poloniex does offer margin trading for some users, it prohibited for users based in the US for the time being.
  • Low liquidity. At the time of writing, only 7 of Poloniex’s markets trade with more than $ million in 24-hour trading volumes and more than 80 trade with less than $50k of 24-hour volume.
Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Chapter 11

Understanding Bitcoin Price Charts

Whether you already own bitcoin or plan to get some, sooner or later you’ll want to know how much the cryptocoins are worth when converted to your currency of choice.

Later, you may want to know whether to hang onto your coins or to sell them – hopefully making a little profit in the process. However, analyzing price charts and understanding trading terms from the financial world can be rather daunting, especially for the beginner.

This guide serves as a useful primer of the basics.

What is bitcoin’s current price?

The best place to find out the latest price of bitcoin (currency symbol: BTC or XBT) is the exchange you bought them from (Bitstamp, Bitfinex and BTC-e being the most popular exchanges at the moment), or Coindesk’s own Bitcoin Price Index.

Knowing bitcoin’s current price is one thing, but pretty soon you’ll want to know where prices will go in the future.

Methods for predicting price trends

Forecasting price movements of anything traded at an exchange is a risky probabilities game – nobody is right all the time. Many traders have lost lots of money, if not their life savings, into such attempts.

The two main approaches to predicting price development are called fundamental analysis and technical analysis. While fundamental analysis examines the underlying forces of an economy, a company or a security, technical analysis attempts to forecast the direction of prices based on past market data, primarily historical prices and volumes found on price charts.

Where to find bitcoin price charts

To perform technical analysis on bitcoin price and volume history, you’ll need bitcoin price charts that display data in a more readable manner than just plain number tables. Good places to start are the charts on Coindesk’s Bitcoin Price Index.

To start with: a simple price chart

The most basic type of price chart displays prices as a line:

[caption id="attachment_88750" align="aligncenter" width="630"]coindesk-bpi-chart Coindesk Bitcoin Price Index chart[/caption]

Closing prices of any given period of time (a month, a week, a day, one hour, etc) are used to draw the price line. This kind of chart can be used to get a quick overview of what prices have been doing lately, but traders need more data to draw their conclusions.

Trader’s choice: the candlestick chart

The most widespread type of chart among traders is the candlestick price chart, as seen below:

[caption id="attachment_88760" align="aligncenter" width="664"]Coinstackr Price Charts Coinstackr bitcoin price chart[/caption]

Candlestick charts display more data than just the closing price: each 'candle' shows the opening price, the lowest and highest price of the given time-period as well as the closing price.

In addition, the color of the candle body indicates whether the closing price was higher than the opening price (usually a green bar, called an 'up-bar’) or lower than the opening price (usually with a red body, called a 'down-bar’).

[caption id="attachment_88770" align="aligncenter" width="469"]Image via Wikipedia Image via Wikipedia[/caption]

The candlestick chart belongs to the family of OHLC (open high, low close) price charts, but there’s a multitude of other chart types/styles to suit any advanced trader’s preference.

Another type worth mentioning is the non-time based (NTB) range chart. Beginners may find them less intuitive and more difficult to grasp, however.

Candlestick price charts contain a lot of useful information for the skilled trader’s eyes, such as whether a candle’s spread is wide or narrow (illustrates the difference between high and low prices), where the closing price is relative to the high and low etc.

Together with the patterns that groups of candlesticks form, this is what traders base their trend biases on: either bullish (rising prices), bearish (falling prices) or ranging sideways.

Some popular platforms with many of these features are Bitcoinity, Bitcoin Wisdom, Zeroblock and TradeBlock.

Where to go from here

Now that you’ve had an introduction to reading (bitcoin) price charts, a good idea would be to start following bitcoin’s price development on a daily basis. You will inevitably start noticing certain regularities on the charts – most probably the trending behavior of prices. Later on you might remember that this was the point in time where you were drawn into the art of technical price analysis.

This guide was contributed by .

More Services for Traders

Service About Features
Bitfinex is a trading platform for Bitcoin, Litecoin. It allows margin trading and margin funding. Users who sign up through us get a 10% fee discount for 1 month. SIGN UP
BitMEX BitMEX claims to be Bitcoin's fastest derivatives echange. Up to 10x leverage. 10% fee discount for 6 months. SIGN UP
Magnr As well as a trading platform, magnr offers a savings account for bitcoin. Up to 10x leverage. Uses multi-sig wallets. SIGN UP
Magnr Etoro is a social trading network which allows you to invest in a bitcoin CFD. Etoro usually offer credits to new users upon their first deposit. SIGN UP
The table above is an advertising unit. To add your exchange, please contact our advertising team.

 

Where to Buy and Sell Bitcoin

Exchange About Based
coinbase Coinbase operates one of the most popular wallets and is an simple way to buy bitcoin. $5 bonus on sign up. USA BUY BITCOIN
localbitcoins Localbitcoins matches buyers and sellers online and in-person, locally worldwide.  Finland BUY BITCOIN
BitQuick claims to be one of the fastest ways you can buy bitcoin. USA BUY BITCOIN
CoinCorner allow purchases with credit and debit cards for verified users. Isle of Man BUY BITCOIN
Bitbargain has a vast range of different payment options for UK buyers. UK BUY BITCOIN
Xapo Xapo is Known for it's ease of use and bitcoin cold-storage vault. USA BUY BITCOIN

For more options, please see our guide to buying bitcoin.

Disclosure Read More

The leader in blockchain news, BitcoinMonsoon is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. BitcoinMonsoon is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.