US-based Bittrex was founded in 2014 and is one of the older and better-known digital currency exchanges.
According to CoinMarketCap, you can buy and sell 347 different currency pairs on Bittrex. Base currencies for trading on Bittrex include bitcoin, Ethereum, and Tether.
You can even buy bitcoin and 21 altcoins on Bittrex with US dollars. However, USD trading is not allowed in 12 states, including New York and Virginia.
To buy and sell digital currencies on Bittrex, you will need to verify your identity by uploading a document such as a passport or a driver’s license.
Bittrex is not the most beginner-friendly digital currency platform. If you haven’t bought bitcoin or altcoins yet, you may want to go with something simpler like Coinbase.
Buying and Selling Digital Currencies on Bittrex
To buy and sell on Bittrex, you will need to understand some trading terms.
Bid Price: This is the price you receive when you sell an asset. The bid price is always lower than the ask price.
Ask Price: This is the price you pay when you buy an asset. The ask price is always higher than the bid price.
The difference between the bid price and the ask price is called the spread, and this goes to someone called a market maker.
When you trade on Bittrex, you can place either a stop-limit order or a limit order.
A limit order is simpler. When you place a limit order, the trade will be filled either at the price you specify or a better price.
A stop-limit (or conditional) order is a little more complicated. Here you can set the price you are willing to pay if the price falls below a given amount.
You can read more about stop-limit orders here.
According to its website, Bittrex charges a fee equal to 0.25 percent of the value of the trade. Bittrex does not charge fees for deposits and charges small fees for withdrawals (depending on the coin).
You have two options for the trade’s Time in Force. If you choose “Good ‘Til Cancelled”, the order will remain open until it is either filled or canceled.
If you choose “Immediate or Cancel”, the trade will be cancelled if it isn’t filled immediately.
Now, let’s walk through a trade on Bittrex. For the purpose of this example, we are going to buy OmiseGo (OMG) with Ethereum.
Step 1: Create an Account
If you don’t already have a Bittrex account, you will need to first sign up for one.
You should see something like this.
Enter your email address and choose a password. You will then need to enter personal information, including your home address and date of birth.
Finally, you will have to upload a document such as a passport or a driver’s license to verify your identity.
Step 2: Deposit Something to Your Account
Before you can buy or sell anything on Bittrex, you will need something with which to trade. You can deposit US dollars, bitcoin, or altcoins into your account.
We are going to deposit Ethereum into our account. To deposit Ethereum, click on this link: https://bittrex.com/Market/Index?MarketName=BTC-ETH
You should see this on your screen:
Go to the top right corner of the screen and click on “Deposit”.
This will pop up:
You can copy this address, open Coinbase, and send Ethereum to this address.
WARNING: DO NOT SEND BITCOIN TO THIS ADDRESS!
If you do, the bitcoin will go to someone else and will be gone forever. This is your Ethereum address, not your bitcoin address.
Once you’ve received the Ethereum, go to https://bittrex.com/balance.
We received around $20 worth of Ethereum.
Step 3: Choose a Currency to Buy/Sell
As mentioned earlier, we will buy OmiseGo with Ethereum.
To do so, go to this link: https://bittrex.com/Market/Index?MarketName=ETH-OMG
Your screen should look something like this:
Scroll down a little bit to view the rest of the order form.
We are going to place a regular limit order, and this offer will be good until canceled. We will click “Max Buy” to convert our ETH to OMG.
Then click “Confirm”.
Once the trade clears, click on “Wallets” or go here: https://bittrex.com/balance.
We now hold both ETH and OMG.
We have successfully bought OmiseGo on Bittrex.
Step 4: Withdraw OmiseGo from Bittrex
Some people don’t like storing digital assets on an exchange long-term. They may worry about exchanges going bankrupt or getting hacked, and so would rather store digital assets in a wallet. That is the most secure way to handle your digital assets.
Withdrawing from Bittrex is relatively straightforward.
First, go to this page: https://bittrex.com/Market/Index?MarketName=BTC-OMG.
Click on the icon in the top right corner next to “Deposit” that says “Withdraw”.
You will then be asked to type in the amount of OMG you are sending and the address of the wallet to which you are sending this.
Just cut and paste the amount it says is available.
Then go to the MyEtherWallet website and copy your wallet address. Paste it in here:
You will then be asked to confirm the trade. Click “Email confirmation link”. Then check your email inbox for an email with a subject like “Bittrex Withdrawal Verification.”
Open the email, and click on the link.
Then when you return to Bittrex, you should see something like this:
Successful investing requires a good understanding of the assets in which you are investing.
Bitcoin Market Journal is a great resource for understanding digital currencies such as bitcoin, Ethereum, Ripple, EOS, and others like OmiseGo.
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