Cryptocurrency Trading Guide 2024

The easiest way to buy and sell Bitcoin or other cryptocurrency is via a crypto exchange or crypto bank, most coin exchanges and crypto banks provide accounts with a mobile app or online access for buying and selling crypto.

Finding a crypto exchange or bank – Research the market, find an exchange or crypto bank that offers the crypto coins or tokens you are interested in buying or holding. Use a checklist to make sure their service is available in your country and that it is suitable for your needs.

1. Eligibility – Does the provider or service operate in your country? Are you eligible for an account?
2. Investigate charges & fees – What are the associated costs? Crypto coins are bought and sold similar to conventional fiat currency trades or trading stocks and shares. Your crypto exchange will provide an exchange rate for a set trade. Usually for an exchange of fiat currency for crypto / crypto to crypto. Your coin exchange may charge you a flat fee for this, a commission, or they might profit from the rate of exchange they offer for individual trades.
3. Buying coins with fiat currency or with other crypto – Crypto exchanges usually offer a number of options for trading cryptos. The popularity of Bitcoin means it is now an accepted currency to trade for alt-coin (other crypto) like ETH, LTC, XRP, XLM and others.
4. Options for selling crypto coins – Most exchanges allow you to sell crypto coins in the same way you buy them. When you want to sell crypto your exchange will provide a trade offer in a fiat currency or trade offer in an alternative crypto currency.
5. Spending crypto currency – Many exchanges & crypto banks have launched crypto payment debit cards, these cards allow you to spend your crypto just like fiat currency, each transaction uses a crypto for fiat currency exchange. However you might be charged additional transaction fees on top of any exchange rate applied – all fees should be clearly stated by your card issuer.

A search for ‘cryptocurrency exchanges’ online will generate various results, there are numerous cryptocurrency exchanges, plus a growing number of crypto banks & digital wallets that provide cryptocurrency trading services. We have provided details of some of the leading cryptocurrency exchanges in this article. Many of the larger exchanges operate cryptocurrency trading services in multiple regions including the UK, EU & US.

It is generally safer to use an established crypto exchange and one that offers an integrated digital wallet. Always consider a crypto exchange or bank that provides a guarantee or insurance cover for the safety of any crypto holdings you keep with them.

The costs vary from one crypto exchange or service provider to another.
For buyers there is there is usually a trading fee, plus possible charges for payment processing if you use a credit or debit card, plus any relevant taxes applied.

• Trading fees are usually listed as maker and taker fees – Makers are the traders that create orders and wait for them to be filled, orders sit in the market as liquidity until they can be filled, while takers fee’s apply to an order that can be immediately matched within the market, you’re a taker because you take liquidity from the market.
  Marker & Taker fees are usually a small percentage of the trade value usually less than 0.5%
• Payment fees – Any charges applied to your choice of purchase method. If you are using a funded account there is often no payment charge, whereas if you use a debit or credit card card processing fees might be applied. The amount will vary depending on the the crypto exchange or service provider. Payments terms and charges can be found in the trading terms of your chosen exchange.
• Taxes Applied – Depending on your country of residence local taxes will be applied to each trade, these should be clearly stated by your exchange and itemised on each trade and  confirmation receipt.

Buying, selling and spending cryptocurrencies is legal in many countries but they are not considered legitimate currencies by governments, instead they are usually classed as a digital product or commodity. With this is mind crypto coins are not backed up by governments or sovereign banks, in that sense cryptocurrencies are considered as more risky financial assets.

With greater global investment in crypto coins many of the more well known cryptocurrencies now see a good level of market confidence. The rise in Bitcoin shows money can be made from trading cryptocurrencies but you should never forget that crypto assets can rise and fall in value, there is always a risk that you will loose money.

YES – In the UK, US & Europe when it comes to reporting cryptocurrency expenses and profits individual investors must uphold the capital gains tax laws of their country of residence.

Just like trading stocks and shares in the UK, US or Europe any profit made buying and selling cryptocurrencies – digital coins & tokens, must be disclosed on your annual tax return and you must pay any tax liability regardless of where, or how you purchased your digital currencies.

Failure to disclose profit from cryptocurrency trading can result in fines and even jail sentences.

Crypto currencies are not real money in the physical sense, they are purely digital however with growing popularity of crypto currencies and established markets for crypto trading, they do have an asset based value.

Crypto exchanges and digital wallet providers have launched crypto staking products and cryptocurrency payment cards, these developments have enabled individuals to invest, trade, save and even spend cryptocurrencies. Individual crypto coin values are most easily measured against national ‘fiat’ currency (volatility can be very high and there can be large fluctuations in a cryptocurrencies value from one day to the next).