The nascent crypto market always has barriers for newcomers. Therefore, the following article will guide how to buy and sell coins for newbies so that they can easily participate in investment activities in the crypto market.
Things to Prepare Before Trading Coins
Before you start trading coins, you need to determine the type of coin/token you want to buy and check which exchanges it is listed on. You can view the details of the coin/token you want to buy on CoinMarketCap and CoinGecko.
Then, scroll down, and CoinMarketCap will display the exchanges that allow buying and selling the token. In this article, I will use the centralized exchange (CEX) Binance and the decentralized exchange (DEX) PancakeSwap V3 to guide you on how to buy and sell coins.
Generally, the process of buying and selling coins on CEX or DEX exchanges is relatively similar. Therefore, users do not need to worry too much about the differences in buying and selling on each exchange.
Read more: Top 6 reputable exchanges in the crypto market.
In addition to buying and selling on DEXs and CEXs, users can also trade OTC (over-the-counter), which involves buying and selling coins through an individual. However, users need to choose a reputable person to ensure they are not scammed.
For those who need to buy and sell OTC, you can contact @huyenoanhpham – the OTC trading admin of Ninety Eight
After determining the token you want to buy, you need to prepare the following:
Bank Account, Momo, or E-wallet
If you want to participate in the crypto market, having a bank account or e-wallet applications linked to a CEX exchange is a must. Usually, basic coins with high liquidity like USDT, BTC, ETH, and USDC can be purchased through a bank account/e-wallet.
Currently, most centralized exchanges support linking with all banks in Vietnam along with some popular e-wallet applications such as Apple Pay, Momo, and ZaloPay. However, users should note that they should link to bank accounts that support Internet Banking or Mobile Banking to be able to transact online.
Cryptocurrency Wallet to Store Coins
Users should equip themselves with 1 or 2 Web3 cryptocurrency wallets for the purpose of asset security, easy participation in DeFi applications, and in case the CEX exchange collapses or closes. In addition, DEX exchanges and dApps such as Lending/Borrowing, NFT, etc., all require users to have a Web3 wallet to connect.
Below are a few types of wallets that are easy to use and convenient for users:
- Ramper: A Web3 cryptocurrency wallet with Social Login technology, with the advantage of being easy to use and friendly for newcomers to the crypto market.
Guide to Buying and Selling Coins on a CEX
Buying USDT with VND
USDT is a stablecoin with a value that is always stable at 1 USD. Therefore, to avoid problems related to changes in token value during the buying and selling process, users should participate in the market using stablecoins such as USDT, USDC, etc.
Step 1: Users create a Binance account according to the instructions here and link their bank card.
Note: Users must link their own bank card, with the account name matching the information on the Citizen Identity Card that the user provides to the exchange. If the user links a bank card with the wrong name, it will be difficult for the user to buy and sell on CEX exchanges.
Step 2: Select “Wallets” in the bottom right corner of the screen, then select Funding and click P2P.
Step 3: Users select the merchant they want to trade with and click Buy. In addition, pay attention to the Completion Rate when trading. This is an indicator reflecting the percentage of successfully completed transactions of the merchant. The higher the rate, the easier it is for users to successfully complete the transaction.
Step 4: Users select the amount and click Buy USDT. Then, users need to make a transfer on their bank account.
Note: Users should make the transfer with the content as requested by the seller. Usually, the content will be the transaction code displayed on Binance, which can be found in the “Order Number” section.
Step 5: After completing the transaction, users return to the Wallets interface, select Transfer, and transfer from Funding to Spot, Futures, or Options (depending on their needs). Then, enter the amount and click Confirm Transfer.
If the user wants to sell, click Transfer to transfer the money to Funding and click P2P to start selling coins.
Buying coins with USDT on the CEX
After transferring, the user selects Markets at the bottom of the screen
Select the USDT trading pair and continue by clicking Buy. Here, users can buy coins in two common order types:
- Market: Buy at the current market price. Market orders are usually filled immediately and are always prioritized over pending limit orders.
- Limit: Allows users to set their desired buy/sell price. Limit orders are only executed when the market price reaches the preset limit price. For example, if the user sets a limit price of 0.21 USD, the order will only be filled when the market price reaches 0.21 USD.
After choosing the order type, users enter the desired amount and click Buy.
Similarly to buying, selling tokens follows the same steps as above, but instead of choosing Buy, users select Sell.
Also, when trading on a CEX, users usually incur relatively small fees, but users should pay attention to ensure that transactions always go smoothly.
Guide to Buying Coins on a DEX
Before participating in trading activities on a DEX, users need to buy tokens on CEXs and transfer the tokens to their personal wallets. Below are the steps guiding you to transfer tokens to your wallet and participate in trading on a DEX.
Step 1: Transfer USDT to your Web3 wallet
After buying USDT on a CEX exchange, users go to Wallets and select Withdraw.
Next, on the Withdraw interface, users select USDT and click Send via Crypto Network.
Finally, users enter the wallet address, select the network, and continue by choosing the amount of USDT to send. Users should double-check that the wallet address is correct. If the wrong wallet address is entered, the assets will most likely be lost permanently.
In addition, each network will have different fees and withdrawal limits, which users should also note and carefully read to suit their transaction needs.
Each exchange allows users to withdraw tokens on many different networks, but the available withdrawal networks vary depending on the exchange. For example, C98 on Binance can only be withdrawn on the Ethereum and BNB Chain networks, while on the BTSE exchange can be withdrawn on 3 networks: Ethereum, BNB Chain, and Viction.
Step 2: Buy coins with USDT on the DEX
After having funds in their wallet, users log in to their desired dApp. I will choose the PancakeSwap dApp as an example.
First, users log in to the PancakeSwap website and click Connect Wallet in the top right corner of the screen. Then the screen will display the wallets that have been integrated with the exchange; I will choose the Super Wallet as an example.
In this article, I prioritize using a desktop to log in to the dApp because the interface on the computer is easier to use than on the phone. The operations on the mobile version are similar to those on the computer.
Then, select Trade in the left corner of the screen and continue by choosing Swap. PancakeSwap will change the interface, and users continue by selecting the USDT pair
Dưới đây là đoạn văn đã được dịch: [When users trade on DEX exchanges, they need to pay attention to the following:
- Network token: Users need to have the network’s native token to pay transaction fees. For example, BNB Chain requires BNB tokens for fees, and Ethereum requires ETH for fees. Usually, transaction fees will depend on the network and range from about 1 USD to 10 USD.
- Slippage (Price Impact): This is an indicator showing the percentage difference between the actual price and the price the user has to pay. The higher the slippage, the more loss the user has to bear. Usually, a reasonable slippage should only fluctuate from 1% or less.
Then, users select the amount of they want to buy and click Swap. Finally, click Confirm on the wallet.
Also, if users are using a mobile phone, they can log in to the Super App. Then, users select Browser, search for PancakeSwap, and connect their wallet.
Types of Fees When Buying and Selling Cryptocurrency
Transaction fees for buying and selling on CEXs depend on the regulations of each exchange and usually range from 0.02% to 0.3%.
Here are the types of trading fees on CEXs:
- Maker Fee: The fee charged when users place limit orders to buy or sell on the exchange.
- Taker Fee: The fee charged when users place market orders to buy or sell on the exchange. Usually, the taker fee is higher than the maker fee by about 0.01%.
CEXs have relatively low fees and are suitable for newbies. Conversely, trading on DEXs often has higher fees for beginners. Specifically, the types of fees when trading on DEXs include:
- Gas Fee: This fee depends on the blockchain the user is using. For example, the BNB Chain network has fees ranging from 1 USD to 2 USD, while the Ethereum network ranges from 10 USD to 30 USD.
- Platform Fee: The fee users pay to the platform. This fee varies depending on the platform.
- LP Fee: The fee users pay to liquidity providers. Usually, the LP fee depends on the DEX and the token pair that the user chooses to trade.
Some Frequently Asked Questions When Buying and Selling Coins
Is buying and selling coins illegal?
Vietnam currently does not have specific regulations and a legal framework for buying and selling coins. However, according to Clause 6, Clause 7, Article 1, Decree No. 80/2016/ND-CP Amending, Supplementing, and Annuling a Number of Articles of Decree No. 101/2012/ND-CP, users are not allowed to use cryptocurrency as a payment method.
If buying and selling P2P on CEXs and have not received coins from the merchant, what should users do?
In the event that the user has transferred the money and the merchant has not yet paid the coins, the user can file a complaint by contacting the customer support of the CEX exchange.
Does P2P trading incur transaction fees?
Currently, most CEX exchanges such as Binance, OKX, Bybit, etc., do not have transaction fees when participating in P2P trading.
Should I use a CEX or DEX when buying and selling coins?
In my personal opinion, CEX exchanges are suitable for the majority of newcomers when buying and selling coins, with advantages such as a user-friendly interface and high liquidity.
Conversely, DEX exchanges are suitable for people who already have knowledge of crypto, due to high transaction fees and difficulty of use. However, the advantage of DEX exchanges is that they support buying and selling many coins, providing flexibility for users’ portfolios.
Read more: How to manage your crypto portfolio.
