Ahmad Dhaher asked 1 year ago

Im new here and Im still confused as this work. Im wondering if someone explain to me the process:

  • Do I need to open a wallet first then open account with an exchange in order to buy/sell or it is all in one place ?
  • If I want to open a cold wallet (hard written paper ) , what next I need to do to start buy/sell ?
  • When i sell (BTC or ETH) do I need to find a buyer first or it works similar to stock where I can get my money back right away.  Thank you.
1 Answers
Zsofia Elek answered 1 year ago

Hi Ahmad, 
You can buy and sell cryptocurrencies on exchanges, where the orders are matched automatically by the platform so you do not need to find a buyer to your coins. Also these exchanges open a wallet for you at the same time you are signing up for opening the account. However, it is not advisable to store Bitcoins on exchanges for safety reasons, for those as you mentioned a cold wallet is a better solution. When you store your Bitcoins in a cold wallet, you have to transfer them first to an exchange to be able to trade with them. So only store that much in an exchange wallet which you use for trading. 

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