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Coindirect recently completed its 3 pronged product line with the launch of its advanced exchange. There are now 3 ways to buy cryptocurrency on Coindirect, depending on which country you are in.
In this guide, we will first share all the 3 ways in which customers can buy cryptocurrency on Coindirect and later, explain how our advanced cryptocurrency exchange works.
3 ways to buy cryptocurrency on Coindirect:
- Peer-to-Peer Marketplace – this is a person-to-person cryptocurrency exchange where users can set up offers to buy and/or sell cryptocurrency, using their most convenient payment methods that are supported in their country. For example, a Coindirect customer based in Kenya can buy and/or sell Bitcoin in Kenyan Shilling and pay using M-Pesa.
- Cryptocurrency Wallet (Instant Exchange) – Coindirect’s cryptocurrency wallet can be used to make instant purchases (via conversion) of any of the 42 cryptocurrencies supported on our platform. For example, if you have Bitcoin (BTC) stored in your Coindirect wallet, you can use your BTC to buy DOGE (Dogecoin). If you are based in South Africa, you can make fiat purchases by depositing money into your ZAR wallet. You can then use ZAR to instantly purchase any of the 42 cryptocurrencies supported on our platform.
- Advanced Cryptocurrency Exchange – the Coindirect cryptocurrency exchange supports 15 trading pairs that trade between ZAR, BTC, ETH, XRP, LTC, BCH and USDT pairs. In order to use the exchange, you need to have cryptocurrency or ZAR in your Coindirect Wallet. You can seamlessly deposit all the cryptocurrencies traded on the exchange. This can be by either sending the coins to your Coindirect Wallet from any external wallet or purchasing the coins from our P2P Marketplace or using our Wallet.
Why Use The Advanced Exchange over the Wallet or Peer-to-Peer Marketplace
- Lower prices: Cryptocurrency prices on the cryptocurrency exchange may be cheaper.
- Buy at low rates without keeping track of the market: you can set up a buy order so that you do not miss out during a price-drop overnight while you are sleeping. A buy order will automatically buy your selected amount of cryptocurrency value; though, you will need to have funds in your wallet.
- Sell when price is high with sell orders: if the price of a cryptocurrency increases to a certain point, you can set up an order to automatically sell.
How to buy cryptocurrency using the exchange
- Sign up for a free Coindirect account, complete your user profile and verify your account.
- By visiting the exchange page – https://exchange.coindirect.com – you will automatically be taken to the exchange dashboard with a custom selection of the BTC-ZAR pair. However, you can select your trading pair of choice by simply clicking on the pair dropdown. For example, if you want to buy BTC with ZAR, you need to select BTC-ZAR; if you want to buy ETH with ZAR, you need to select ETH-ZAR. If you are not from South Africa, you can choose to trade between any crypto-to-crypto pairs, such as USDT (pegged to US Dollar) which can be traded against BTC, XRP, LTC, BCH and ETH.
- In this tutorial, we will use a USDT pair as cryptocurrency prices are usually expressed in USD.
Limit Order – when you do not want to buy a cryptocurrency at the current market price (the current price at which a cryptocurrency is trading) but instead, want to place an order when the cryptocurrency reaches a specific price. For example, Litecoin (LTC) is currently valued at $54.69 and you want to buy a certain amount of LTC when it drops to $50.
To place this order, simply type the amount of LTC you want to buy into the block labelled “Amount” and type “50” into the block labelled “Limit Price”. You will then receive a quote labelled “Total (USDT)”. This is the amount of USDT that it will cost you to buy the requested amount of LTC. The order will only be executed should the price of LTC drop to 50USDT or below, and if there is a sell offer at that price.
Market Order – buys your desired amount of cryptocurrency at the current market price. This is done by moving up the order book until the total amount you have requested is filled.
For example, take a look at the order book above. The red numbers at the top are the sell orders and the blue numbers at the bottom are buy offers. If you wanted to buy 4LTC via the Market Order, you would be buying 2LTC at the price of 54.60 USDT and 2LTC at the price of 54.61 to fill your order; as only 2 LTC is currently available for the price of 54.60. If you are buying more LTC, you will keep going up the order book until your order is filled.
To buy a specific amount of cryptocurrency immediately, click on the lowest sell offer listed in red in the order book section on the right. This price is automatically placed in the limit price row.
Currently, there are only 2LTC available for 54.52 USDT. Thus, in order to buy 2LTC or less than 2LTC, you would need to type in your desired amount of LTC, view your quote labelled “Total USDT)” and then press “BUY LTC” on the blue button.
If you put in a limit order for a price while there is no sell offer at that price, your buy offer will go into the order book and will happen when the price reaches your limit order price.
Selling cryptocurrency using the exchange
Selling cryptocurrency works in almost the same way as buying cryptocurrency. However, rather than looking at the sell offer numbers in red, you look at the buy offer numbers in blue.
A limit sell order will only sell once a price reaches the amount you specify or above; whereas a market sell order will sell at the current market rate. Always be careful with market orders, as there are often major price differences.
Disclaimer: This article should not be taken as financial advice. Never invest what you can’t afford to lose as the cryptocurrency market is volatile. Always research as much as possible before buying any coin.