Exchanging cryptocurrencies at the right time can become a valid source of income. However, before you start analyzing the crypto market, you need to select the best tool to conduct your transactions. The most important thing you should pick is the crypto exchange, so continue reading our four-step guide to learn more.
What Is a Cryptocurrency Converter?
A cryptocurrency converter is an essential tool on many online crypto exchanges. It tells you how much your source crypto (the currency you own) is worth in your destination crypto (the currency you want to buy).
For example, if you own BTC and want to buy ETH, you just need to enter the amount of BTC and see its current worth of ETH. Of course, many converters can actually make the transaction and exchange your BTC to ETH or whichever crypto you’re exchanging.
Step 1 – Examine and Compare Convertors for Following Parameters
Here’s what you need to pay attention to before actually selecting the exchange that fits you.
- Jurisdiction. Check whether the platform of your choice is available in your country or area.
- KYC verification. Learn how much information you’re required to become a verified trader. Some platforms feature detailed KYC processes, while others let you trade anonymously.
- Ease of use. Is the calculator difficult to use? Can you navigate and find all available trading options easily? If you’re new to the world of crypto trading, you should aim for more beginner-friendly options.
- Asset choices. Which cryptocurrencies are available for trading? Can you buy crypto for fiat?
- Security. Are there any security protocols in place? How secure is the platform you’re reviewing? Were there any security breaches in the past?
- Reputation. Read more about the platform you’re reviewing on crypto trader forums and social media to learn about the overall sentiment towards it.
- Trading fees. What’s the share that the exchange takes for itself when you make a trade? Make sure to aim for the best price/quality ratio rather than going for the lowest fees.
- Customer support. Does the exchange feature customer service? How helpful and responsive is it? Can you get in touch via live chat or phone?
- Tech infrastructure. What underlying technologies does the platform use to make crypto trading possible? Is it reputable?
- Deposit and withdrawal limits. How much can you deposit or withdraw on the exchange of your choice? What are the single-transaction, daily, weekly, and monthly limits?
- Crypto calculator. Does the platform use a crypto calculator, and how helpful is it for your trading strategy?
Step 2 – Use Cryptocurrency Calculator Online
Before actually making an exchange, you first need to see the offered prices for the cryptos you want to sell, and there’s no better way to do it than using a convert crypto calculator. It’s essentially the same thing as a converter, except that the calculator only tells you the price before the actual swap takes place.
Step 3 – Start Converting Your Cryptos at the Best Exchange
Once you select the best exchange for you, it’s time to start trading cryptocurrencies. This process is more or less difficult, depending on the platform of your choice. If you select a decentralized exchange, such as Godex.io, you won’t even have to open an account in order to make a trade. Instead, your only job will be to select the two cryptocurrencies you want to swap and insert the amount you want to buy and sell. Godex will do the rest for you and send funds directly to your crypto wallet.
Step 4 – Receive Your Desired Cryptocurrency
Once the conversion is complete, you’ll get the crypto you want. If you’re using a centralized exchange, your cryptos will be in your exchange balance, so you’ll have to manually withdraw them to your wallet. Most decentralized exchanges, including Godex, will just swap the cryptos directly and load the desired currency into the indicated wallet address.
When Is the Best Time to Exchange Cryptos?
Here are some of the essential tips to take into account when trading cryptos.
- Buy when low, sell when high.
- Come up with a long-term trading strategy instead of trading without any system.
- Diversify your portfolio by investing in several different cryptocurrencies.
- Don’t let emotions take over and make impulse trades.
- Stick to the best online exchanges to get the best prices and avoid scams.
To sum up, trading cryptocurrency can be a great journey if you’re using the right tools, and the first one you should start with is a crypto exchange. There are plenty of things you need to consider before making your final choice, so make sure to do your research before starting to swap coins. If you’re new and want to make your first swap, we suggest starting with beginner-friendly platforms such as Godex.