How to Buy and Sell Coins on Crypto Exchanges (Binance, OKX, Huobi, etc.)

1. What do you need to buy and sell coins?

When you decide to invest in cryptocurrencies, the first step is to choose the type of exchange you will use. There are two main types of exchanges available for buying and selling coins: decentralized exchanges (DEX) and centralized exchanges (CEX).

Based on my personal experience, trading on decentralized exchanges (DEX) can be quite complicated for beginners. Therefore, in this guide, I will focus on how to trade on centralized exchanges (CEX). Once you’re comfortable using CEX, you can explore DEX options later.

Centralized exchanges (CEX) are known for their user-friendly interfaces, direct connection to your bank account, and management by third-party organizations (such as Binance, Huobi, OKX, etc.). This means that if you encounter any issues while using the platform, you can rely on the exchange to assist and resolve the problem.

Bank Account

To trade cryptocurrencies on an exchange, you need to have a VND bank account that supports 24/7 transfers and deposits. This ensures you are always ready to trade. Additionally, some exchanges may support electronic wallets like Momo or Zalopay, but a bank account remains the most common payment method.

Identity Verification Documents

Centralized exchanges (CEX) typically require users to provide personal information and verify their identity when creating an account. You should have your ID card, passport, or driver's license ready. These documents must be valid and match the owner’s details, as exchanges will require both document verification and facial verification.

If you choose reputable crypto exchanges, providing your personal information should not be a major concern.

Choosing an Exchange

To select a reliable exchange for buying and selling coins or tokens, follow these simple steps:

• Step 1: Visit Coingecko:: https://www.coingecko.com/vi
• Step 2: Select "Cryptocurrency Exchanges" to view a list of available exchanges in the market. 

• Step 3: Scroll down and select an exchange to start buying and selling coins.

Note: At this step, you should initially choose just one exchange to familiarize yourself with. Prioritize selecting a reputable exchange with fast transaction speeds, support for a wide range of popular coins/tokens, and robust security for your assets.

I have a review article about reliable exchanges for beginners, which you can check out here: Review of Crypto Exchanges

In this guide, I will use Binance as an example to show you how to buy and sell coins, as it is currently the top exchange by trading volume and meets the criteria mentioned above.

2. Guide to Buying and Selling Coins in 3 Simple Steps

Step 1: Buy USDT with VND

USDT is a stablecoin pegged to the US dollar and is used to purchase other cryptocurrencies. On exchanges, you’ll often see trading pairs like BTC/USDT, ETH/USDT, or BNB/USDT, meaning you'll need to use USDT to buy BTC, ETH, or BNB.

I’ll guide you through purchasing USDT with VND first, and then you can use USDT to buy other coins/tokens on Binance as follows:

• Create an account on Binance by following the instructions here.

• In the "Trade" section, click on "P2P" to start buying USDT. In P2P, you can choose between two popular buying methods: "Instant Buy" or "P2P."

Notes: 

• "Instant Buy" is simpler and faster but usually comes with a higher exchange rate and fees compared to "P2P." This option is suitable for beginners or for purchasing small amounts of USDT.
• "P2P" requires you to select a service provider and negotiate with them. Although this method is more complex, it allows you to choose better rates and save on fees.

• Step 3: I will guide you on how to buy and sell using “Instant Buy” as follows: Enter the amount you want to purchase ⇒ select “Buy for Free” ⇒ review the price information and then choose “Confirm Purchase” to complete the transaction.

If you want to learn how to buy using “P2P,” please refer to the detailed guide here.

Step 2: Buy Coins with USDT on the Exchange

After purchasing USDT, the funds will be in your Funding wallet. To trade coins on the exchange, you need to transfer USDT from the Funding wallet to the Spot wallet. Follow these simple steps:

• Step 1: Select “Wallet,” click on “Funding,” and you will see the available balance corresponding to the USDT you just bought.
• Step 2: Click “Transfer,” then enter the amount of USDT you want to move to the Spot wallet.
• Step 3: Click “Confirm Transfer” to complete the process.

Once you have transferred USDT to your Spot wallet, you can start trading by buying and selling coins on the Binance exchange. For example, here’s how you can use USDT to buy ETH on Binance:

• B1: Access the Spot (Spot Trading) section to buy and sell. Binance also offers other services such as Futures (leverage) and Margin (margin trading), but these activities require more complex technical operations and trading knowledge.

   

• B2: Search for “ETH” in the search bar and select the ETH/USDT trading pair. You can click on the “star” icon next to the trading pair to add it to your “Favorites” list, making it easier to monitor for future visits.

   

• B3: Enter the amount of ETH you want to buy, check the exchange rate and transaction fees, then select “Buy ETH” to complete the transaction.

• B4: Wait for the order to be filled, and then the ETH will be transferred to your Spot wallet.

Step 3: Sell Coins on the Exchange

After learning how to buy coins using VND on the exchange, you might be wondering, "How do I sell coins for VND?"

To sell coins, you simply follow the reverse process of buying coins:

• B1: Select the “Sell” option to convert ETH to USDT.

• B2: Transfer USDT from your Spot wallet to your Funding wallet.

• B3: Choose either “Instant Buy” or “P2P” to sell USDT for VND. The funds will be transferred directly to the bank account you initially connected.

I have written a detailed guide on how to sell coins for VND through P2P trading, which you can refer to here: How to Buy and Sell Coins (BTC, USDT, ETH, etc.) with VND on Binance P2P.

3. Essential Metrics for Buying and Selling Coins on Binance

This is the trading interface for coins/tokens on Binance (desktop version), and it includes various sections with the information you need for trading. Let's look at the annotations below.

1. Binance Notifications
2. Trading Volume of the Pair in the Last 24 Hours
3. Sell Orders Book
4. Buy Orders Book
5. Candlestick Chart and Candlestick Patterns
6. Trade Type: Spot/Cross Margin/Isolated Margin
7. Order Type: Limit/Market/Stop-limit/OCO
8. Buy Coin/Token Area
9. Sell Coin/Token Area
10. Statistics for Other Trading Pairs
11. Your Most Recent Completed Trades
12. Market Activity: High Volatility/Trading Activity
13. Open Orders
14. Your 24-Hour Order History

4. Types of Trading Fees When Buying and Selling Coins on an Exchange

When trading on a centralized exchange like Binance, you need to be aware of several types of fees:

• Trading Fee: This is the fee charged each time you execute a buy or sell order. It is typically calculated as a percentage of the transaction amount and can vary depending on the trading pair and your trading activity level on the platform. Binance offers a discount if you pay trading fees using Binance Coin (BNB).

• Withdrawal Fee: This fee applies when you withdraw funds from your Binance account to your cryptocurrency wallet. The withdrawal fee can differ for each cryptocurrency and is adjusted periodically.

• Deposit Fee: Binance usually does not charge a fee for depositing funds into your account. However, it is advisable to check the exchange's fee schedule as there may be special cases where fees are applied.

• Service Fee: These are additional fees you might encounter for using specific services on the platform.

• Maker Fee: This fee is charged when you place a limit order to buy or sell on the exchange. Exchanges may charge this fee to manage the volume of orders and avoid overload.

• Taker Fee: This fee applies when you place an order that matches an existing order in the exchange's order book. Taker fees are often higher than maker fees.

Each exchange has its own fee structure, generally ranging from 0.1% to 0.2%. Currently, Binance is known for having some of the lowest trading fees. Additionally, exchanges often have mechanisms to reduce trading fees based on certain conditions, such as achieving VIP status.

Transaction Fees (Spot) on Binance

5. How to Check Your Transaction History on an Exchange

After completing a transaction, if you want to review your transaction history or audit past trading activities, you can use the “History” feature on the exchange.

Here’s a simple guide to checking your transaction history:

• Go to “Wallet” and click on the “Transaction History” icon.

• Select the time period for which you want to view the transaction history.

• Review the information and click on “Export Data” to download the transaction records.

6. Conclusion

To buy and sell coins using Vietnamese Dong (VND) on an exchange, you need to follow a series of detailed steps as outlined above. First, verify and create an account on the exchange, then connect your bank account. Next, deposit funds into your account and choose the coin you wish to purchase. After completing the transaction, securely store your coins in a cryptocurrency wallet and monitor the market to manage your investments. Always adhere to legal regulations and the exchange’s specific policies to ensure a safe and effective trading experience.

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