NOTE: Before we dig too deep into this, let me first remind you that Bitcoin mining and Bitcoin trading are two entirely different things.
Before figuring out which exchange to use, let’s first examine what it’s. Why you may need one. A crypto exchange is a place where you’re allowed to buy and sell Bitcoins or Altcoins, from other people within the bitcoin community, using more mainstream and traditional forms of currency, such as the USD or EUR. Or by using other forms of cryptocurrency. So if you’ve ever asked the question, “How do I invest in Bitcoin?”, then a bitcoin exchange may be your answer!
So how does this Bitcoin Trading system work?
Some of the exchanges will allow you to purchase BTC directly, using your native currency. For example, at Coinbase, after creating an account, you can link your bank account to their website. Whenever you want, you may use their system to easily buy bitcoin online. See the image below, from my Coinbase account:
Not everyone wants to be a miner. Some people would rather just watch the price of the coin they’re interested in. Then once it reaches the desired price, they’d buy it, a fraction of it. That’s the power and beauty of the Bitcoin. You don’t need to own a whole Bitcoin to become an investor. You can own a fraction of a coin. That’s perfectly fine! Now, once you’ve your BTC, you can then use one of the other exchanges to transform your BTC into any kind of crypto coin of your choice!
These other coins are referred to as, “Altcoins“, or simply alts as it’s an alternative coin of the Bitcoin. The price of each Bitcoin and alt is regulated by its users. There are Buy Orders and Sell Orders. These are prices that are set by the community. Let me explain, a little more.
Let’s say that I have .5 Bitcoin (BTC). I want to use that amount of .5 BTC, to purchase DigiByte (DGB). Why DGB? It’s just an example. Let’s say because I followed someone else signals based on TA/FA. How many can I buy? To figure this out, we’re going to need to do some calculations.
Let’s say someone has DGB. Wishes to have BTC instead. They’ll perform a Sell Order. What this means, is that, suppose they’ve 10,000 DGB. I wish to have BTC instead. What they’d do, is figure out how many Bitcoin they feel their DGB is worth. Since BTC is currently worth more than DGB, you should be able to sell a fraction of a BTC to buy a hefty amount of DigiByte. All clear?
I’m looking now at Binance and someone is selling 1 DGB for 0.00000082 BTC. This means that you can buy a lot of DGB for barely any Bitcoin. You don’t need a calculator since you can basically input the amount of DigiByte (or whichever Cryptocurrency) you’re interested in acquiring. In REAL-TIME, the amount of BTC you’d need to spend will be updated, directly on the site! Pretty awesome, right? So if 1 DGB is 0.00000082 BTC, you can just play around with the numbers, until you see how many you can afford.
This is how you calculate. Also, keep in mind that while you’re figuring it out, someone may have offered a better Sell Order price. After you figure out how much you’ll need to spend to get your desired coin, it’s a good practice, from my experience, to copy the amount you need to spend, to your computer’s clipboard, using CTRL+C or Right-Clicking. Then simply REFRESH the browser screen, to see if any better rates are available!
So now, once you’ve done this, you should see how using a Crypto The exchange could be much more beneficial than trying to become one of the greatest bitcoin miners. This all happens pretty much in an instant. There’s no waiting around for your mining results to give you satisfaction!
So that about sums it up. You should now have a clear understanding of why and how using a bitcoin exchange can make your life become much easier than it might be.
Until next time…