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Getting started with crypto currency: beginners’ guide

Over the years, the popularity of Crypto currency has increased – from schools and colleges to rural settlements in Africa and the world over.

A crypto currency is a digital currency that is valid for transactions; using codes that provides security for online buying and selling of goods and services.

Many people trade these currencies for profit or hold as investment, seeing it’s been considered as part an asset class.

Buying and selling of crypto currencies like DOGE, ETHERUEM and BITCOIN can be done using an exchange platform like Binance.

A crypto currency exchange is a digital shop where crypto currencies are bought and sold. The usual way of making profit is buying low and selling when the value of the coin rises.

Purchasing your first coin or token requires using a fiat currency (like Naira, Dollar or Pounds) to exchange or convert to the exact value of the crypto currency.

This means that to buy a cryptocurrency, a buyer exchanges Fiat currency with a seller who sends the exact value of the cryptocurrency to the wallets of the buyer.

This is termed peer to peer crypto exchange. Here, a buyer transfers funds to a seller who transfers Crypto to the receiving Wallet without third-party interference.

Cryptocurrency can also be used to purchase other cryptocurrencies. They are called trading pairs. It allows a crypto assets to be compared to another crypto asset. Trading pairs are cryptocurrencies that can be traded, converted to and exchanged for one another on the crypto market.

A user can analyze the ‘rise and fall’ of a crypto asset in an exchange using a trading chart. Reading a chart is critical to understanding the market. The color of a chart displays gains and loses using green and red candlestick; it also signify whether you are in a bull or a bear market over a time span.

A bull market signifies a potential gain at the long run; a beer market signifies a potential loss of the value of a crypto asset.

Do you want to develop your knowledge on trading using Binance exchange, join the telegram channel . #BinanceAfrica

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