How to buy WAXP

Buying any cryptocurrency is something the Crypto veterans forget how confusing, scary and difficult it can be. If you are not used to the trading interfaces, they can be rather overwhelming to utilize. 

Here you will not learn how to be a master of crypto trading, but rather learn the basics of how you can buy WAXP, or any other cryptocurrency. You will also have help with how you can move WAXP from and to an exchange if you want to withdraw it to your account, or sell it for something else. When it comes to WAXP, you will be able to buy it in many ways, we will focus on using an exchange and also directly with credit card. Using credit card is convenient, but it usually comes with a bit higher price. So if you intend to buy a large sum, you are likely better off utilizing an exchange. More on that later on.

A short dictionary to help you

  • Cryptocurrency Exchange
    • A place for you to buy, sell and trade Cryptocurrencies
  • Centralized Exchange
    • Operated by an entity like a company. They usually have a more user friendly service and you are able to hold many different cryptocurrencies in your account.
  • Decentralized Exchange
    • An Exchange where you control your private keys. Tend to be only crypto-crypto trading.
  • Withdraw Crypto
    • Transferring Crypto from an exchange to your blockchain wallet.
  • Deposit Crypto
    • Transferring Crypto to an exchange.
  • Fiat Currency
    • Government backed currency, what most people refer to as Money.
  • Cryptocurrency
    • A cryptographic secured digital currency, such as Bitcoin, Ethereum, WAXP etc.

How to buy WAXP from an exchange

First thing you need to do is to sign up to one of the exchanges that has WAXP listed. All cryptocurrencies are not listed on all exchanges, so you will have to use one that supports WAXP. An up to date list can be found on coingecko. Depending on where you live, some of the exchanges might not be open for you to use. At the time of writing this, the 4 major exchanges you can look at are:
- Binance - https://www.binance.com/en
- Crypto.com - https://crypto.com/
- Bittrex - https://global.bittrex.com/
- Huobi - https://www.huobi.com/en-us/

The interfaces of the exchanges may differ a bit, where the buttons are located, where you find deposit addresses and how you withdraw your crypto. But once you understand how to use one of them, you will be able to use all of them. The process is the same.

Process to use any exchange

  1. You need to sign up for an account
    1. This process often require a KYC (Know Your Customer) process, This is a verification process of your ID, something that is required by the Anti money-laundering law. Basically you send in a photo copy of your ID and often a 2nd source of proof.
  2. You need to fund your account
    1. To buy any crypto, you will require some source of funding, this can be a cryptocurrency or fiat currency. The major exchanges usually support direct bank transfer and/or credit card.
  3. You will need to find out which trading pairs the cryptocurrency you want to acquire.
    1. Exchanges list so called trading pairs. The pair is what you can use to trade for the crypto you want.
      1. E.g. WAXP/USDT, WAXP/BTC, WAXP/USD are 3 common trading pairs for the WAXP token. These 3 pairings means you can use Bitcoin(BTC), Tether(USDT) or $USD to acquire your WAXP.
      2. The same also works the other way, if you want to sell your WAXP, you can do it for the listed trading pairs.
  4. You need to put in a trade order to get the crypto you want
    1. When it comes to trade orders, you have many options. In this we will only cover Market order and Limit order.
    2. Market order
      1. A market order is an immediate buy on the current market price based on the existing order book of that exchange. If you buy a large amount this might result in a spread of the price that impact what you pay.
      2. It's fast, simple and convenient, and perfectly fine way of trading.
    3. Limit order
      1. A Limit order is a set price, your trade order will be added to the order book until you have a match from another person.
      2. The benefit of this is that you are able to put in orders higher or lower than the current market.
        1. If you think the market will go down over time, and you are not in a rush, you can put in buy orders below the current market that will execute if the cryptocurrency drop to your set levels
        2. If you think the market will increase over time, and you want to profit from that increase by selling, you can put in a sell order above current market price that will execute if the cryptocurrency increase to your set levels.
  5. Now that you have your cryptocurrency, you have 2 main choices
    1. Withdraw the cryptocurrency from the exchange
      1. This has a small fee associated with it.
      2. It's how you can get the cryptocurrency to your account/wallet
      3. You will have to do this if you want to store it on a hardware wallet, or use it for example to buy NFTs.
      4. The risk of this is that when it leaves the exchange, it's 100% your responsibility to secure your funds. If you lose access to your wallet/private key, or get hacked/scammed. That is on you, no one can save you
    2. Leave the cryptocurrency at the exchange
      1. This is convenient if you intend to trade it again.
      2. It's most likely insured by the exchange entity in case of hack.
      3. The risk is that if the company behind the exchange has bad intentions, or legalities change in the region they are located, they might close down on a short notice, steal the crypto, or get hacked without being able to cover your loss. These examples has happened in the past. Doesn't mean that history will repeat itself, but it's a risk you have to be aware of. There is a saying "Not your keys, not your crypto". This is because people have lost money from holdings in exchanges.

Withdraw WAXP from an exchange

To withdraw WAXP from an exchange, you will need to have an account on the WAX Blockchain. This can easily be set up on wallet.wax.io, in an earlier lesson we go through this in detail. 

WAX Blockchain protocol has an account system, where the name of the account is immutable and unique, this is your identifier, and what you use to receive WAXP.

If you use the cloud wallet, your accout name will be similar to the one below. It will be 4-5 characters followed by .wam. These names are autogenerated when you sign up, and not something you choose. My account showed below is q4k5u.wam.

When you do transfers on WAX, you have the option to add a memo, this is a public memo, that anyone can read. Exchanges and some DAPPs use this field to identify what type of transfer you do. If you deposit WAXP to an exchange, the memo has to be 100% correct, what you need to add is clearly displayed inside the exchange interface. However, when you withdraw WAXP, as long as this is to your own account, memo is not required. You can use the memo to tag the deposit for your own purpose, but it won't matter for the exchange. 

Withdrawing WAXP usually takes less than 3 minutes.

Summary:

- Withdraw WAXP to YOUR account.
- Memo is not required when withdrawing to YOUR account.
- Memo is required if you move the WAXP from one exchange to another.

Resources

Resource 1

List of exchanges with WAXP listed

Resource 3

Binance Exchange

Resource 5

Crypto.com Exchange

Resource 2

Huobi Exchange

Resource 4

Bittrex Exchange

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