Moving the coins
Welcome to part five of the Cryptocurrencies for Dummies series. We will be looking at how to transfer your currency in today’s edition of the post. We will also be looking at the exchange we will be transferring to and some of the functions it has. Binance is currently the most popular cryptocurrency exchange. I will be showing you guys around this exchange since it is the one that I use the most.
The first step is to sign up on the exchange. Go ahead and use my referral link listed below if you want to sign up right now. Next, supply them with the correct information and authentication of your id. Don’t be alarmed if it makes you wait for some time, security authentication can take a while.
Now we can start transferring your cryptocurrency to your Binance account. Keep in mind that this same general process is used when you want to transfer funds to your wallet instead of an exchange. The first step is to go check our exchange balances and wallets. You can do this by hovering over “Funds” on the main menu and clicking on “Balances”
Here you will find the exchange keys for all the different cryptocurrencies you may store. Here you must find whichever cryptocurrency you want to deposit, go to the right, and hit the deposit button.
After clicking the button, it will redirect you to a page giving your total amounts and a deposit address. Copy the address given and then we will head over to where we are transferring the cryptocurrency from. In this example it will be Coinbase, but it could be any other supplier or wallet too. On Coinbase, head over to the menu and click the Accounts tab.
Here you will find the cryptocurrency you want to send. Simply click the send button and it will give you a field for the deposit address. Paste the address given to you by Binance in this field. I would triple check to ensure you put the correct address into Coinbase just to be safe.
If everything was done correctly, the transaction will go through and soon your funds will be on Binance. Sometimes it may take a few minutes for a transaction to go through, you can check the status on Binance at Funds - Deposits. Some cryptocurrencies may take longer than others to transfer. For example, bitcoin is a cryptocurrency notorious for its transaction times and fees. If you are looking to invest into alt coins, make sure you buy Ethereum or another cryptocurrency with small fees and transaction times.
Exchange layout
You can hover over the “Exchange” option on the menu bar to get to the Cryptocurrency Exchange. Here you will find two options, “Simple” and “Advanced.” In this post we will just be talking about the simple layout. At the far right of the interface you will find the trading pairs that you may view. Here you can favorite the ones you use most often so you may easily find them in the future.
You will find the buy and sell options at the bottom of the interface. It’s important to double check the values you enter when trading currencies. Make sure the price you have for the buy or sell is the same as the market price you want to trade the currency for. For example, when selling iota in the picture above, you don’t want to enter a price less than .00023049 bitcoin.
The exchange has many features that allow you to track how a cryptocurrency is performing. On it you will find the trade history, current orders, volume tracking, and some technical tools. Other exchanges typically have the same type of layout with maybe a few changes.
Binance is my favorite exchange due to the convenient features and the team behind it. The team behind the exchange is passionate about what they do and the future of cryptocurrency. They have been supportive of new innovators in the field and truly care for the community. Check out this blog post from The Next Web if you want to learn a little bit more about moves Binance is making.
Some more information
All though they are convenient, you should not store all your cryptocurrency on an exchange. The only times you should really have them on one is when you are trading or moving between different cryptos. Exchanges have had a rough history of negligence and human error that have led to hacks. Store your cryptocurrencies in cold storage if you want to keep them as secure as possible. The last issue of Cryptocurrencies for Dummies went in depth to the different storage options. Go ahead and check it out if you need a refresher of where you can store your crypto safely.
Other exchanges are also available for you to use if you don’t want to use Binance. Some platforms will offer different cryptocurrency trading pairs. So, if you want to invest in a newer crypto, Binance might not offer it and you have to look elsewhere. The second most popular exchange used is called Bitfinex. Bitfinex is laid out very similar to how Binance is. If you’re interested in getting started out on Bitfinex, then check the link below.
The most common theme of the cryptocurrency movement is decentralization. You might ask yourself, “why do I only hear about centralized exchanges?” You would be right, and there are a few reasons for it. Decentralized exchanges have been in development, and they are still in the preliminary stages. Some example platforms being worked on are OmiseGo and Airswap. These platforms are often difficult to use and have their own limitations. I am still hopeful for the future of these technologies and one day they will most likely go mainstream. If you want to learn more about decentralized exchanges, then check out the post from Mere Head below.
I hope you were able to learn something from this edition of Cryptocurrencies for Dummies. Feedback, comments, and questions are all deeply appreciated!
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This post was created by me for use on http://www.fiducator.com and on @kennynneken.