Here’s a guide for all you need to know!
Bitcoin’s success story is not a news anymore. Wonders of blockchain technology accompanied by virtual currency are all well recognized now. Virtual currency is the new fiat currency. Be it a medium of exchange for digital transactions or the investment made by the people looking for good returns, cryptocurrency acknowledge a good amount of attention.
In this article we are basically focused on how to initiate transactions to buy crypto coins, how to trade your coins for various goods and services and the available options to swap your coins among various cryptos.
How to buy Crypto Coins
Just like the case of scrips in stock market where transactions are entered by any of the recognised stock exchanges, crypto coins are traded with the help of cryptocurrency exchanges. The crucial point to note here is that crypto exchanges are not regulated by any governing body or special act, which by extension means that no support hold for this market in crises.
There are several crypto exchanges operating on real time (24*7), which should be selected considering different factors like trustworthiness, fees, liquidity etc. Here are few exchanges which dominate the transactions in Bitcoin based on above factors:
- Bitfinex is the worlds’ no 1 exchange trading about 25000 BTC per day
- Bitstamp is the oldest exchange dealing in Bitcoin volume about 10000 BTC per day
- OKCoin is the leading crypto exchange based in china
- Coinbase exchange is the first exchange to initiate regulation proceedings with 8000 BTC being traded on daily bases.
All coins bought by you will reflect in your wallet facilitated by Bitcoin. It is no more a trick to buy Bitcoin with a credit card, debit card or even cash at the exchange platform.
How to make trade with Crypto Coins
If you are looking for trading your Bitcoin in exchange of some goods and services, then this is as simplest utility that Bitcoin offers at numerous online stores. Such transactions can be affected by a simple of a complete or part of Bitcoin just similar to fiat currency.
Trading with cryptocurrencies is entering new dimensions as some of the forex brokers are now starting to accept Bitcoin for currency trading in forex market. Well forex market in itself is the most liquid market in whole world. The added touch of blockchain will facilitate decentralized valuations, enormously high leverage, low cost of trading and high security. We can only imagine the multi fold valuations of derivatives market which will collaborate with Bitcoin in near future.
One word of caution though, the bigger the capital market grows with blockchain, the bigger the risk emerges with potential to cause another great collapse of financial markets.
How to Swap/Exchange Bitcoin for other Cryptocurrencies
For those who see potential in swapping cryptocurrencies for some short-term gain can take advantage of readymade exchange rates offered by various crypto exchanges. You will find trading of BTC to ETH exchange pretty easy being the top two rival cryptos available in the market. Both are highly liquid and offered by almost all crypto exchanges.
Also, if you have set up your wallet with one exchange say Bitfinex, while later you feel like a transfer to wallet of Coinbase, then all you need to do is enter your email or wallet address followed by hitting the SEND button and you are done.
So, we can conclude the discussion like there is no such thing as difficult right from buying a Bitcoin, then using it for buying services or even make some strides in forex/derivates market, then swap it in between other cryptos/exchanges. But the most important thing of all is to make your choice with extreme care regarding the choice of your exchange and the type of transactions you want to engage in. Because crypto market may be set for a high boom, but your growth or downfall will be driven by these factors.