Now that you have your funds transferred to the exchange platform, how do you buy the coin that you want using those funds?
As I’ve mentioned in part 1, I have transferred some Ethereum funds in order to buy some Quantstamp (QSP) tokens on Binance.
So now you go on Binance and click on Exchange in the top left corner. You will be taken to the exchange platform where you can buy and sell the coin that you are interested in.
This is showing you what each of these boxes that you have on the exchange page represent:
After you have decided what price you would like to pay per coin (let’s say 0.00024000 ETH per coin), you put that in the Price field that’s within the Buy box.
In the Amount field, you put the number of coins that you would like to buy.
The exchange platform will automatically calculate for you how much Ethereum that will cost.
Another thing that you could do is use the % buttons below the Amount field – 25%, 50%, 75%, 100%. After you have put in the Price per coin that you want to pay, you can choose one of these 4 options which essentially means that you will use 25%, 50%, 75% or 100% of the amount of Ethereum that you have on Binance in order to buy the coins.
After you’ve done all this, you press the Buy QSP button and the order is sent. Until the order is fulfilled, it will appear under the Open Orders tab.
When the exchange platform finds someone who is willing to sell the number of coins that you want to buy at the price that you want to buy them, it will automatically perform the exchange and close your order.
- if you put in a price that is much lower than the current buying price, your order will not be fulfilled straight away and that is because at that particular point in time, there are no sellers who are willing to sell at the price that you want to buy; so in the images above, the exchange price was 0.00024310 ETH for 1 QSP. If I set a buy order at 0.0001 ETH for 1 QSP, it will only be fulfilled when the exchange price is going to drop that 0.0001 ETH for 1 QSP, that is – when a seller is willing to sell you his coins at the price of 0.0001 ETH for 1 QSP.
- the same goes for selling – if you put in a price that is much higher than the current selling price, your order will not be fulfilled straight away and that is because at that particular point in time, there are no buyers who are willing to buy at the price that you want to sell.