Cryptocurrency exchanges are a great place to convert one coin to another or a coin into fiat. It also is a place teeming with brisk business. However, cryptocurrency exchanges are not safe. When using them, then consider employing a cryptocurrency mixer as well.
Everyone in the cryptocurrency space is well aware of the caution that goes round that exchanges are not a safe place to leave your coins. This is true. However, for dealers that trade in small amounts of cryptocurrencies at any one time, it is pointless investing in the expensive gear and secure vaults such as the Trezor Bitcoin wallet.
So, if you belong to this category of traders, or if you have to shift your coins to and fro, what are the security options available to you?
Well, over time, bitcoin mixers have come in handy in securing transactions and heightening privacy. However, for cryptocurrency dealers that are using exchanges to facilitate their deals, the process may not be as straightforward as it applies to coin users that are sending coins to others or those that buy goods and, or services online.
This narrative will look at how to apply bitcoin mixers when dealing cryptocurrencies through online exchanges.
First, I will take you through the process of getting Bitcoin or other cryptocurrencies from the exchanges using fiat. Then I explain the process of trading; you may call it a crash course on trading for beginners, if you may. Then, I will tell you the security precautions you should observe when trading.
Buying Bitcoin and Cryptocurrencies from the Exchanges Using Fiat
Many people are now making money by trading cryptocurrencies. And, it is a flourishing business considering the volatile nature of crypto coins. So, I understand you desire to join in and have a piece of the pie for yourself.
There are a number of cryptocurrency exchanges that will allow you to exchange your fiat for coins. The said platforms are:
In all these exchanges, the process of buying cryptocurrencies using fiat is pretty straightforward. You start by creating an account. Them you will have to deposit money into the said account via a bank transfer or wire transfer. Do note that these two methods are not instant, and there are bank charges associated with the transactions. It is wise to ask the bank for details.
The exchanges also levy certain commissions to these transactions. OKCoin, however, does not charge for depositing or withdrawing money from the platform, and it has some of the most competitive fees. Furthermore, the trading fees get progressively low as the volume of a trader’s deals increase.
An important point to note is that Bittrex is not regulated, so buying and trading cryptocurrencies on the exchange comes with additional risks. Coinbase and the others are regulated and operate under consumer protection laws.
A few of these exchanges provide the option to buy coins using online wallets such as PayPal. However, it is important to find out whatever conditions are attached to such transactions before you proceed.
Trading Cryptocurrencies in Exchanges
Cryptocurrency trading, like any activity, employs different tools and strategies. While these may differ from platform to platform, having a good grasp of them is important as they will affect your success in the long term.
Importantly, you need to master the fundamental and technical aspects of the coins that you will be trading. Here, I highlight some of the tools and strategies you will apply.
For starters, you need a secure wallet and a cryptocurrency listing.
Ledger and Trezor provide the best hardware wallets for keeping your crypto safe. These tools have evolved from intriguing accessories to essential means of securing coins. They store the various cryptographic keys of your cryptocurrency wallets using military-standard encryption, and they must be accessed physically for the data contained therein to be extracted.
This online resource that was launched in 2013 is the preferable destination for cryptocurrency data. The site lists more than 2000 different cryptocurrencies, providing both volume and price data in real time.
Nothing captures the trends, price swings, and market capitalization in the cryptocurrency space better than charts. And for these, you have Tradingview. The platform allows users to explore the charts not only for research purposes but also for weighing various options for different strategies.
Pumps refer to the rapid price increase of an asset followed by an equally declined fall. Waiting for a pump to peak and shorting soon afterwards increases the likelihood of profiting from the asset.
Refers to the amplification of the trade size without putting in a corresponding amount of investment. Say, you leverage BTC worth $1,000 by 1:10, in the markets, your trade is worth $10,000. If the price spikes by 10%, you will have made $1,000 in profits.
Long-term traders can apply other elaborate strategies such as accumulation and diversification.
Cryptocurrency Mixing as a Measure of Protecting Assets
Because trading in cryptocurrency can be very profitable, traders soon become the targets of scammers that want to reap where they have not sown. To be on the safe side, it is wise to mix your coin stashes when bringing in taking them out of the exchanges.
Cryptocurrency mixing refers to the process of passing crypto through a Bitcoin mixer or tumbler in order to disguise your transactions. There are many credible cryptocurrency mixers available online. What these tools do is to mix your coins in a pool containing other coins to make the chain of transactions difficult to trace.
Trading cryptocurrencies requires security. While hardware wallets are great for holding your coins when you are not trading, the ball game is a whole lot different when you transfer your wealth to the trading floors. You need to exercise precaution in order to conceal your dealings. Doing so will ensure that no one can trace your wallets or even decipher the amount of coins contained therein. Cryptocurrency mixing is your best shot in heightening security.