CryptoCurrency trading process:
- Converting fiat to CryptoCurrency
- Converting CryptoCurrency to CryptoCurrency
1. Converting fiat to CryptoCurrency
The first stage entails buying the base currency of the CryptoCurrency world, in the form of Currency coins like Bitcoin, Ethereum, Litecoin using your domestic currency. Here’s a helpful guide: How to buy CryptoCurrency
There are more than 1500 cryptocurrencies in existence, in which all of these coins can only be bought using top hundred coins. This stage converts your fiat currency (paper currency) into the crypto base currency.
LocalCoinBazar.com and LocalCoinBazar exchanges allow you to buy / Sell over the 100 CryptoCurrencies like Bitcoin, Ripple, Litecoin, Bitcoin Cash, Bytecoin, BitBean, BlackCoin, Breakout, CloakCoin, Crown, CureCoin Dash, Decred, DigiByte, Dogecoin, eBoost, Ether Classic, Ether, Expanse, GCRCoin, Goldcoin, Groestlcoin, LeoCoin, LISK, MonetaryUnit, NAV Coin, NEO, NoLimitCoin, Namecoin, Nexus, NXT, Onix, PinkCoin, PIVX, PoSW Coin, PotCoin, Peercoin, ProCurrency, Pura, Quark, Qtum, SmartCash, STEEM, Stratis, SativaCoin, Syscoin Ubiq, Voxels, Vertcoin, Waves, Counterparty, Monero, VERGE, Audio Coin and CryptoBite Coin.
Understanding Fiat to CryptoCurrency Trading Pairs
The CryptoCurrency of BTC, ETH, LTC etc. . that you buy will be quoted in your domestic currency. This is straightforward as you will be aware of the value of coins you’re buying with your domestic currency. For instance, if the current price of Bitcoin is USD $5,000 and you’re planning to buy USD $1,000 worth of Bitcoin, you’d get 0.20 BTC for your USD $1,000. If the price of a Bitcoin goes up 60% to USD $8,000 each, then your BTC has also increased by 60%, thereby valuing your 0.20 BTC at a great USD $1,600. You would get a profit of USD $600 if you sold all your BTC and cashed-out your investment.
2. Converting CryptoCurrency to CryptoCurrency
Assuming that you’re planning to buy other altcoins besides BTC, ETH or LTC, you must enter into CryptoCurrency to CryptoCurrency. This rate requires you to open a cryptocurrency exchange that only accepts Cryptocurrency deposits. The crypto exchange in CryptoCurrency to CryptoCurrency DOES NOT accept fiat money or your domestic currency. You can only use the CryptoCurrency that you’ve bought in Fiat to CryptoCurrency exchange – BTC, ETH or LTC – to buy any other altcoins.
Understanding CryptoCurrency to CryptoCurrency Trading Pairs
This is the more complicated step; understanding the trading pair ratio when buying altcoins using other CryptoCurrencies like BTC, ETH, LTC as your base currency. Since you cannot buy altcoins directly from Fiat to CryptoCurrency exchanges, the price of the altcoins is not quoted in your domestic currency. Here’s an example:
In this example, we’ll look at the ticker Dash Coin(DASH) / Bitcoin (BTC) or simply DASHBTC. In other words, I’m using BTC to buy DASH. The price of a Dashcoin is quoted in BTC rather than USD. It’s current price of 0.034 simply means that with it costs you 0.034 BTC to buy 1 DASH. This “price” is just a ratio between the value of BTC against the value of DASH (the USD value of BTC was $8,232while DASH was $279, which gives a ratio of 0.034).
