Crypto Trading

Bitcoin » Cryptocurrency commercialism: Understanding Cryptocurrency commercialism Pairs it Works
This article explains the fundamentals of understanding Cryptocurrency commercialism pairs and the way it works, that represents a key part of Cryptocurrency commercialism.

Delving into the crypto world is extraordinarily daunting, particularly once you’re addressing a theme matter that’s naturally advanced. Not solely does one need to affect the complexities of understanding the technical school behind cryptocurrencies, however, you’d even have to affect the issue in knowing the intricacies of commercialism cryptocurrencies. adore it or not, anyone World Health Organization needs to enter the Crypto world should have a basic understanding of the way to trade. Why? as a result of if you would like to have cryptocurrencies, you want to savvy to shop for or sell them in associate degree exchange, what factors to appear out for and the way to manage your coins, amongst different things. (See more: four Reasons Why now could be the simplest Time for You to speculate in Cryptocurrencies)

Before going into the specifics, it’s vital to grasp the overall summary of the Cryptocurrency commercialism process:

Cryptocurrency commercialism: Understanding Cryptocurrency Trading Pairs it Works
Stage 1
The first stage entails shopping for the bottom currency of the Cryptocurrency world, within the type of Bitcoin mistreatment your domestic currency. Here’s a useful guide: Crypto Guide 101: selecting the simplest Cryptocurrency Exchange.

A base currency is outlined because the common currency against that all Cryptocurrencies area unit quoted in

There area unit quite one,200 cryptocurrencies living, within which all of those coins will solely be bought mistreatment Bitcoin and that they can’t be bought mistreatment your domestic currency. that’s why Bitcoin is taken into account the entrance to the crypto world and so, a base currency for cryptos. This stage converts your edict currency (paper currency) into the crypto base currency. (Read more: Coins, Tokens & Altcoins: What’s the Difference?)

Some domestic exchanges enable you to shop for Ethereum and Litecoin mistreatment your domestic currency. Therefore, ETH and LTC would even be thought-about as base currencies aboard Bitcoin. In fact, ETH and LTC area unit even additional most popular as confirmation times area unit a lot of quicker and that they area unit less expensive to transfer.

Comparison of BTC vs ETH vs LTC (As of one Gregorian calendar month 2018)

Cryptocurrency commercialism: Understanding Cryptocurrency Trading Pairs it Works
Stage one needs you to open a neighborhood crypto exchange that accepts your domestic currency (e.g. USD, CAD, GBP, EUR). additional usually than not, native cryptocurrency exchanges don’t provide a good kind of coins to trade, and that’s the most reason for purchasing the bottom currencies.

If your sole objective is to shop for and hold a base currency of BTC, ETH of LTC, then Stage one is enough. If you would like to shop for the other coins besides those three, then you’d proceed to Stage a pair of. It ought to be noted that in each stage, you shouldn’t store your coins in a very exchange however instead in a personal pocketbook that you just management, thus on secure your coins safely. Here’s a Guide to Cryptocurrency Wallets: Why does one would like Wallets?

Stage 2
Assuming that you’re getting to purchase different altcoins besides BTC, ETH or LTC, you want to enter into Stage a pair of. This rate needs you to open a cryptocurrency exchange that solely accepts Cryptocurrency deposits. not like the crypto exchange in Stage one, the crypto exchange in Stage a pair of doesn’t settle for folding money or your domestic currency. you’ll solely use the bottom currency that you’ve bought in Stage one – BTC, ETH or LTC – to shop for the other altcoins. Here’s the list of variations between a fiat-accepting exchange (Stage 1) and a Crypto-accepting exchange (Stage 2).

Cryptocurrency commercialism: Understanding Cryptocurrency Trading Pairs it Works
Understanding Cryptocurrency Trading Pairs
After understanding the cryptocurrency commercialism method, it’s time to dive deeper into the mechanics of the cryptocurrency commercialism pairs and the way it works.

Prev 1 of 20 Next
Prev 1 of 20 Next

Stage 1
In the 1st stage, the bottom currency of BTC, ETH, or LTC that you just purchase are quoted in your domestic currency. this can be easy as you may remember the worth of coins you’re shopping for along with your domestic currency. for example, if this value of Bitcoin is USD $20,000 and you’re getting to purchase USD $1,000 value of Bitcoin, you’d get zero.05 BTC for your USD $1,000. If the worth of a Bitcoin goes up five-hundredth to USD $30,000 each, then your BTC has additionally inflated by five hundredths, thereby valuing your zero.05 BTC at an excellent USD $1,500. you’d get a profit of USD $500 if you oversubscribed all of your BTC and cashed-out your investment. (See more: Bitcoin vs EL Coins Returns: Comparison of Gains Between Bitcoin & Altcoins Investing)

Stage 2
This is the additional sophisticated step; understanding the commercialism combine magnitude relation once shopping for altcoins mistreatment BTC (or ETH/LTC) as your base currency. Since you can’t purchase altcoins directly from Stage one exchanges, the worth of the altcoins isn’t quoted in your domestic currency. Here’s associate degree example:

Cryptocurrency commercialism: Understanding Cryptocurrency Trading Pairs it Works
In this example, we’ll check out the ticker Monero (XMR) / Bitcoin (BTC) or just XMRBTC. In different words, I’m mistreatment BTC to shop for XMR. the worth of a Monero is quoted in BTC instead of USD. It’s current value of zero.025 merely means it prices you zero.025 BTC to shop for one XMR. This “price” is simply a magnitude relation between worth|the worth} of BTC against the worth of XMR (the USD value of BTC was $14,800 whereas XMR was $370, which supplies a magnitude relation of zero.025). (See also: orientate Privacy Coins: Comparison of Anonymous Cryptocurrencies)

The reason why it will get sophisticated is that we’re accustomed shopping for stuff pegged on our domestic currency, and pegging the altcoins we wish to shop for with BTC needs you to grasp worth|the worth} of BTC in USD at that specific moment likewise because of the value of XMR at that specific moment.

Wide choice of cryptocurrencies on IQ Option trading platform

How to trade Bitcoin and Other Cryptocurrencies
Choose what cryptocurrency you want to buy/sell by clicking the “Open new asset” button (the “+” at the top of the screen) in your trade room.
Choose the the dollar value of cryptocurrency you want to buy/sell from the “Amount” window on the right of the screen.
Click the Buy (green button) or Sell (red button) on the right of the screen to enter your position:
IQ Option trading platform

You can then monitor it in real-time, entering take profit/stop loss orders depending on your trading strategy and preferences. IQ Option currently offers a very wide range of crypto currencies you can buy, including Bitcoin, Bitcoin Cash, Ethereum, Dash, Ripple and 8 others. We plan to add many more in the near future to diversify your portfolio and offer more opportunities in this sector.

Deposit money to your IQ Option account:

Click the “Deposit” button at the top-right corner of the screen;
Choose the desired payment method:
Note that you can replenish your account using not only fiat currencies but also Bitcoins.
Do not forget to check the 3D-Secure box in case you want to withdraw cryptocurrencies later on.
In order to withdraw money from your IQ Option account simply do the following:

Click on the top right dropdown menu and choose “Withdraw Funds”:
Withdraw funds from IQ Option

You will then reach a page where you can select how to withdraw your funds, including credit card, debit card and wire transfer to your account.
Withdrawal

How to Withdraw Bitcoin
You can now withdraw Bitcoin directly from the IQ Option platform (in case you have activated 3D-Secure when charging your account). The process is very straightforward.

Buy Bitcoin through the Cryptocurrency option of the IQ Option trading platform:

Open your portfolio on the left panel of your trade room and locate the Bitcoin open position. Click on it to see the details of the trade:

Choose the withdrawal icon at the bottom of the details list and click on it:
Withdraw BTCWithdraw BTC

General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

Be the first to comment on "Crypto Trading"

Leave a comment

Your email address will not be published.


*

Do you want regular updates?
Click the Allow button below to get our new updates.