CryptocurrencyInvesting

Making your first cryptocurrency trade

Binance Exchnage placing your first cryptocurrency or bitcoin trade

In this article we’re going to show you how to make your first cryptocurrency trade. With the onset of exchanges, there are plenty of exchanges to choose from. However some will only allow you to buy a limited number of cryptocurrencies using fiat- so you can’t trade or buy other altcoins. Other exchanges will let you trade multiple altcoins, but you cannot purchase using fiat.

This article covers how to do this successfully. We’ll show you exactly how you can buy or sell your cryptocurrency as part of your own trading strategy. We’ll go through how to buy cryptocurrency using fiat all the way to placing your first crypto to crypto trade:

Step 1: Purchase crypto using fiat

Step 2: Set up a crypto to crypto exchange account

Step 3: Transfer crypto from one exchange to another

Step 4: Place your first crypto to crypto trade

We’ve discussed how Bitcoin and cryptocurrencies can be used in a different article.

Read: How to Buy Sell and Trade Bitcoin

Read: Using Bitcoin and Other Cryptocurrencies

Purchase cryptocurrency using fiat

The first step is to purchase your cryptocurrency with fiat money. Depending on which exchange you choose for this you may be able to buy Bitcoin, Ethereum, Litecoin, Ripple, or a whole list of other coins. Usually fiat to crypto exchanges are limited in the number of coins.

In this example, let’s go with Coinbase– as it’s one of the biggest and offered around the globe in over 20 countries.

Step 1: Create account

Go to Coinbase.com and create your account.

 

You will receive an email to confirm you email ID. Once you follow the instructions you will be guided back into Coinbase.

 

Step 1: Verify your account and add payment method

If you have provided you mobile number during the setup then fantastic! That’s a good way to increase security for your account. You will receive a text message on your phone providing a one-time password.

Other exchanges will allow you to setup 2FA- you can use a 2FA app such as Google Authenticator. In that case, instead of receiving a text message, the app will provide a one-time use password.

Step 2: Add a payment method

The good thing with Coinbase is you can buy using a debit or credit card. Most exchange will not allow you to do this.

So go ahead and ad a payment method by clicking on ‘Buy/Sell’ in the menu first.

Add payment method in coinbase

 

Step 3: Buy your first Crypto

Once you add funds into the account, you are ready to buy your cryptocurrency. You have a choice between Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

Simply click on Buy/Sell, and select the cryptocurrency you want to buy, and place your buy order. You should see that you will have BTC in your account in a short while.

If you only want to buy and hold the coins offered in Coinbase, then that’s it. In this case you may wish to consider better and more safer storage methods.

Otherwise, if you want to buy other cryptocurrencies, follow next steps.

We recommend Binance as it is also one of the largest cryptocurrency exchanges while offering a large number of altcoins to choose from. You can also trade in the Bitcoin, Ethereum, Binance, and USDT markets.

So let’s proceed to step 2.

Setup a secondary exchange

 

Step 4: Create a Binance account

Use the following referral link from Blockogy: https://www.binance.com/

or scan the following bar code to signup:

Binance referral ID

Step 5: Enhance your account with Google 2FA

Once again, make sure you add more security to your account by setting up 2FA.

Once your Binance account is setup, it’s recommended to transfer some Bitcoin or Ethereum into here. So let’s do that next!

Transferring exchange to exchange

We want to transfer Bitcoin or Ethereum to Binance. Because Binance let’s you trade in four markets: Bitcoin, Ethereum, USDT, and BNB (Binance’s very own coin).

Step 6: Get the public address of you Ethereum wallet in Binance

Click on Funds then Deposits and search for Ethereum in the window that shows up.

Deposit Ethereum into Binance

Once the results come up, you’ll see an option to Deposit on the right hand side. Click on this to go to the wallet.

 

Deposit Ethereum into Binance

Make sure that you click on the deposit button for Ethereum and no other. This is extremely important!

In the next window, once again, make sure that you are in the Ethereum (ETH) wallet.

You’ll see your public address here. This is the address you need to deposit INTO this wallet.

Binance Ethereum wallet

Step 7: Send Ethereum from Coinbase or other exchange

In Coinbase, go to your account, select Send under Ethereum and paste your address that you copied from Binance.

It’s extremely important once again to select the right wallet in Coinbase. Make sure you select ‘send’ under Ethereum.

Double check the Binance address- make sure no digits are missing. Triple check this if necessary- once you send funds you cannot get them back if you make a mistake.

Complete your transfer.

Wait a few minutes and check that you have received the funds in Binance (may take up to half hour or longer).

 

Pro tip: Always send a tiny test amount first, then repeat the process if everything is successful

Making your first cryptocurrency to cryptocurrency trade

Excellent! so you made it this far. Hopefully you’ve completed the steps as required, and made sure you’ve sent to and from the right addresses. It’s time to make your first trade.

Step 8: Access the exchange

Going back into Binance, you need to access the exchange interface. Select either Basic or Advanced. In our example, we’ll go into advanced. Don’t worry, it’s not any harder than basic. In fact I think it’s a better user interface.

Access the Binance exchange

 

Step 9: Marvel at what lies before your eyes

You will see that Binance offers charts, charting options, as well as chart analytical tools. On the top you will see the coin that is selected. In the screenshot you can see the Litecoin (LTC) is selected. The chart, the price history, and all price stats are for LTC. You can select any other available coin from the drop down as shown.

Binance exchange advanced exchange

To place your order we are interested in the bottom right hand of the screen as pointed out in the image above.

Step 10: Place your first crypto to crypto order

We’re going to buy some Litecoin. You can see that Binance offers three options: Limit, Market, and Stop-Limit.

Limit: This is the standard option to buy or sell LTC at the rate that you specify

Market: This is the option to buy or sell LTC at the market (current) rate

Stop-Limit: This is the option to place conditional buy/sell orders to buy or sell at a certain price once it hits a price you can specify

 

In this example, we’ll just place a Limit Order. The only difference between Limit and Market is that within a Limit Order you can specify the exact price you want to buy or sell at. So if this is above/below market price then your order may be delayed. Your order will be placed in a queue (price book) until the market price reaches your specified price. If you place a Market Order, you can expect your trade to finalise instantly.

 

Placing a limit order in Binance

The above screen shot shows a Limit order being placed for LTC at a price of 0.016260 BTC. All you need to do is either change this price to one you feel is more suitable or leave it at that price. Then type in the amount of LTC you wish to buy (this is number of units of LTC you wish to purchase).

Keep in mind that if you transferred ETH into Binance, then make sure you select the ETH market when you select the coin you want to buy. In that case, the pricing will be in ETH instead of BTC.

Click on Buy when you are ready.

If the market price hits your specified price then the order will go through. Otherwise it will remain in the book until the price hits the specified amount.

Once the order goes through, you will also see it in the Funds screen for Litecoin.

That’s it. Simple. Well done! You’ve successfully made your first trade. Now remember to follow our top tips to building your ideal portfolio of cryptocurrencies.

Remember you can support Blockogy.com. If you decide to follow this guide and open a Binance account, you can use our referral link. You can also donate to Blockogy.com (address listed in footer).

 

 

If you enjoyed this article and found it valuable, then you will enjoy The Crypto Companion: Beginners Guide to Bitcoin and Cryptocurrency. Learn everything you need to about Bitcoin, Crypto, and Blockchain. This is the ultimate resource designed to bring you up-to speed very quickly!

 

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