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Transacting with crypto the newbie way

crypto

Talking about transacting with crypto the newbie way. You may have picked interest in crypto and would want to take a swipe at it. Transacting with crypto includes but not limited to buying and selling crypto with fiat currencies, transferring your tokens from one wallet to another and exchanging a token to another.

There are mediums and platforms that handle these transactions. Let’s take them as banks that store your fiat and enable you to transact with them or a digital money platform like PayPal. In crypto, tokens are stored in wallets. You can read about wallets and the favorite wallets to use.

Another required medium are exchanges. They enable you to swap tokens to other tokens or fiat. Centralized exchanges are more flexible because you can store your tokens in their secured inbuilt wallet, trade it with fiat and swap to other tokens. Decentralized exchange platforms can only swap your tokens to another token and will require you store your tokens in software or hardware wallets. you can read about exchanges and the favorites to use.

Now to the main issue of transacting with crypto, I’ll explain how to swap tokens with fiat, transferring tokens and exchanging them.

Swapping tokens with fiat currency:

Let’s explain this as buying tokens like bitcoin or tron with dollar and selling them in exchange to get the same fiat. The main requirements includes

  1. a verified account with your favorite cex i.e. centralized exchange platform like Binance,Okex etc
  2. a credit card with funds. Visa or MasterCard is preferred. You can also make use of your loaded bank account that can transfer funds. You’ll need this for money transfer if you don’t want to make use of your credit card.
  3. A Smartphone or pc with internet connection

That’s it, login to the exchange account through the app or website. You’ll see a top up option where you can top up your account with fiat. Dollar is the universally accepted currency. You’ll see other currencies that you can choose from. Top up using your preferred payment method.

Alternatively, you can use the p2p option to exchange your fiat directly to your desired fiat. Supported tokens include usdt, bitcoin, ethereum and others as determined by the platform.

You’ll sell your tokens using the same method. You either use the platform to swap your token for fiat and get the money directly in your preferred payment option or use the p2p option.

coin stats
Coin stats on okex.com

Transferring tokens

You can also transfer your crypto token from one wallet to another. let’s say from your binance account to your metamask or tokenpocket wallet. Follow the procedures below

  1. Locate your tokens in the asset section of your source wallet
  2. Note the network you want to transfer across and copy the matching receiving address. You can transfer ethereum tokens across the ethereum network only. Let’s say you want to transfer usdt erc token, copy the same erc receiving address and send. Sending Erc usdt to Trc usdt will lead to loss of your token so you need to be very careful with this.
  3. Click transfer in your source wallet, select the preferred token and paste the matching address. Click send and approve your transaction to transfer your token. You’ll be required to pay a transaction fee which is called gas fees. Cex platforms will require you to input verification codes for security measures.

Swapping tokens for tokens

You can exchange a token to another token let’s say you want to swap bitcoin to tron or usdt. Crypto tokens are listed in pairs especially in Cex platforms. Usdt is the most popular pair for tokens so youll see trx/usdt, btc/usdt pairs and so on.

 Let’s exchange trx to usdt. Locate the trx/usdt pair, click buy or sell, input your desired amount and desired trading price and tap the buy or sell button. You can also use the limit option if you want to buy at market price.

For Dex platforms, select the source token i.e. trx and select the destination token let’s say usdt, click on your desired amount and set slippage if required and click swap. If the token is not listed by default, you can add it using the contract address.

Remember that all transactions require gas fees so you need to keep aside some tokens to cover that. That’s basically how to transact with crypto tokens. You can attempt to swap a little token to get a practical view of it or watch some videos. Let me know your thoughts below.

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