How does the full lifecycle of a cryptocurrency trading look like?

0

I am new into cryptocurrencies and I am wondering how to trade them. By trading cryptocurrencies I mean:

  1. Transfer fiat currency (ie. USD) from my bank account into some account that enables buying cryptocurrency.
  2. Buy a cryptocurrency like BTC or ETH with fiat currency.
  3. Transfer cryptocurrency back to USD.
  4. Transfer USD back into bank account.

Is there one platform where I could accomplish this full lifecycle of a trade?

From my research I was able to create a cryptocurrency wallet with Atomic wallet. This app allows to transfer USD via credit card into the app and then trade USD with multiple crypto currencies. The fee for transferring USD to a crypto is 12% of the amount. Which does not make much sense for serious trading (I need to pay 112 USD for every 100 USD transferred to Atomic wallet). Are there cheaper ways to trade fiat to crypto?

Additionally, it is only half of the story.

Atomic does not allow to transfer crypto to fiat and send back to bank account. To accomplish this I need to create another account in currency exchange like Bitstamp or Coinbase and verify it with some documents. Then I can trade crypto to USD and finally back to bank account. I did not accomplish this step so I don't know what are the costs of transferring back to bank account.

Apart of this, I've found that some trading platforms, like Ledger Live require particular devices to be bought to be able to trade crypto. Making it useless for other wallet owners.

My question - what are the most convenient (ideally one platform) and cost efficient ways of trading crypto for fiat and back?

I assume that at the moment there is no single platform that does this but at least two accounts are needed to trade. In this case what are best ones according to cost efficiency and market accessibility?

mtx

Posted 2018-12-16T13:47:08.773

Reputation: 109

Question was closed 2018-12-17T03:12:27.170

Answers

1

Depending on where you live there are different options. I would suggest, if in the US, to go with one of the larger platforms like Kraken.com, or CoinBase.com. In these systems you can wire funds (Kraken) or attach to a bank account to purchase currency.

In my experience, CoinBase will be your training wheels. It's hard to see what you're buying/selling as the actual transaction occurs automatically when you click the button. What you see is not what you'll get (unless that changed in the last week). However it is very easy to use.

Kraken will require more verification for additional tiers (work with more value). But you can control the trading. You can set buy/sell limits which means you won't get 1 penny less than what you told it. They have tons of additional trading options if you want to get more advanced as well.

Final note, Kraken supports many more crypto currency options and bought cryptowat.ch over a year ago for a nice live feed of prices across multiple platforms.

Hope this helps you get started!

Edit: I'm not here to judge intentions or viability. The question was "what can i use". Any assumption (including commentary on the current market, political, legal, etc) other than "I'm simply answering the question" would be incorrect.

cleanmarker

Posted 2018-12-16T13:47:08.773

Reputation: 335

Thank you for keeping to the facts and not making assumptions, much appreciated. – mtx – 2018-12-16T21:56:45.473

-2

I honestly don't know what to tell you except:

  1. Don't. You don't know enough about crypto if you're asking this question.
  2. Don't. The market is in a bear market, buying crypto is an extraordinarily stupid thing to do right now.
  3. Don't. Trading takes tonnes of research - you need to know which exchanges are which, what technical analysis is, have a fundamental idea of what a bitcoin is worth to you, and have some tokens/coins you are interested in. If you're asking this question, you don't have any clue what you're doing
  4. Don't. Right now, regulatory bodies that you've never heard of are moving their slow thighs, and slouching towards some dark purpose. Many, many coins are in breach of various legislations, and several exchanges are in breach of various legislations. Do you know which, or what the impact might be of santions?
  5. Don't. You aren't inquisitive enough if you have to ask this question. There are plenty of online resources out there, most of them are run by second-rate snake oil salesmen. If you cannot even find those resources, if you're just going to blindly take what someone gives you, then you're very naive and you're going to lose all your money.
  6. Don't. Trading is much, much harder than engineering. It also requires a different mindset - you shouldn't care about wallets and technical crap, but about what the market thinks is a good idea, business case models, interest rates and pricing strategies.
  7. Don't. It's coming up to Christmas, your money is better spent buying your loved ones nicer presents.
  8. Don't. "I did not accomplish this step so I don't know what are the costs of transferring back to bank account." If you cannot use google enough to search for "withdraw fiat fees EXCHANGE" then you are nowhere near technically capable enough to do trading.
  9. Don't. If you're asking this question on this board, you don't have any friends/acquaintances who are trading crypto. If you don't have anyone to discuss with then you will really struggle to learn the best forums/blogs/sites/tweets to make head or tail of the market.
  10. Don't. Bond yields have inverted. You don't know what that means, why not find out about bond prices and their implications instead?

bharal

Posted 2018-12-16T13:47:08.773

Reputation: 163

Thanks for all good advice. I haven't asked about what are the reasons not to trade crypto currencies, nor written anywhere that I am intending to trade them. My question was how to trade them efficiently with given definition of a trade. I would appreciate answering the question. – mtx – 2018-12-16T21:13:33.597

@mtx i'm not trying to be an ass. But I honestly think you need to go down that rabbit hole on your own, or have a good friend/advisor guide you. There are so many ways to lose money/mess up in crypto trading. I can help you, yes. But if you haven't worked out how to do all the hard research you're setting yourself up for failure from the beginning. I honestly the answer to this one is "please read all the articles/reddit posts/forums/twitter accounts you can. – bharal – 2018-12-16T22:15:49.893

@mtx reddit.com/r/coinbase, reddit.com/r/kraken, bitfinexed on twitter, theblock.com, mike dudas on twitter, preston byrne on twitter - you have a tonne of work to do. we're not even talking TA or fundamental analysis or what a margin is (never ever margin in crypto) or how to read an order book. – bharal – 2018-12-16T22:17:18.210

Asked: 2018-12-16T13:47:08.773

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Active: 2018-12-16T22:09:03.350