With cryptocurrency, the traders like to get to know the workings of an online trading system. It is not that the stock market or the commodity market did not make people lean more towards computer literacy for the purpose of online trading, however, cryptocurrency trading caused a paradigm shift in this regard. There was a complete shift from manual to online trading systems with the advent of cryptocurrency trading when it first began in 2009 in full swing. New traders, however, are still interested in learning more about how to get to know the workings of an online trading system. Below we share a step by step guide that shall make the concept of an online trading system clear.
Get to Know the Workings of an Online Trading System
An online trading system that operates by online means fully fledged and there is no need at all to visit your bank or your cryptocurrency exchange. Not even once in the entire workflow! It's just that you must have the requisites in place so you can operate everything from the comfort of your living room. Read the steps mentioned below to get to know the workings of an online trading system:
1. Have a Valid Bank Account: You will need to first of all have a valid bank account with some funds in it so that you can transfer to and from your account for online transactions while you trade your cryptocurrency. Of course you can also trade cryptocurrency for cryptocurrency from the crypto exchange wallet itself, but in the beginning you need to have a bank account to make the first transaction at least. Also, online banking services must be enabled on your account for this purpose.
2. Register on an Exchange: Once you have completed the bank formalities next you need is an account on some cryptocurrency exchange. You can also register on some platforms like executium.com, which lets you trade on multiple exchanges all online, or you can directly register on some cryptocurrency exchange like Kraken and alike. These companies do background checks and verification checks too before they enroll you as a valid trader. The complete KYC is done.
3. E-Wallets: This is the next important requirement for an online trading system in cryptocurrency. Fiat is always converted to crypto tokens that can be sold or purchased from e-wallets. These can be downloaded free of cost from the internet or directly from your exchange’s website. Some exchanges charge a nominal fee for additional safety and security of e-wallets, but once you are a registered trader, they usually never deny an e-wallet.
4. Ready to Go!: With all this setup in place, you are ready to hit it. You can start making online transactions. Orders can be placed on the exchange website and the relevant crypto token is taken from or added to your e-wallet. Once you are ready to withdraw some or all of it to your bank account, or place more funds into the wallet from the bank account, you just have to place such orders on the exchange platform or the reading platform like executium.com where it is even easier.