Introduction:

To invest is to buy part of the object you want to invest in. It doesn't mean physically splitting the object, it can be represented like stocks for example. In Cryptocurrency, however, we have coins with a limited supply and those without a limited supply. Now, say that you wanted to buy a token to exchange BCH/ETC, how will you do it? How will one buy BCH through an exchange without an instant exchange like Changelly and SideShift.ai? Being someone who never knows about these things, I have taken to promote a small token-based exchange called Anycoin Exchange for this article's example.

The Parts, the Labels, the Graphs

This is an example of your typical coin exchange. To the left are columns, to the middle is a graph, and to the right is a very confusing chart. The bottom of the graph seems to be where to input to put your coins in. On other exchanges, you will only find the list by the left, the input sections on the bottom, and the side-ways graph on the right. Let's label them together correctly to explain how these exchanges work.

Markets

This section is called a market selection chart. Most exchanges have pages specifically for showing these in greater detail. These things have three columns: the market pair, the last price, and the price change.

Market pairs are the most important part of an exchange, as it indicates which coin you will want to get for the coin you will have to give. One example I frequently use is MIST/BCH and HONK/BCH market pairs.

The last price details what was the price of the token (per BCH). It will update based on who was the one that last used the coin.

The price change column is shown is percent to show how much the value of the token has changed.

Trading Area

I named this the trading area because this is where you are able to buy and sell your tokens/BCH. In this section, you are able to set your price of a Token per BCH and the amount of SPICE that you want to get. By choosing the Market tab, you will be able to automatically choose the lowest/highest price of token/BCH according to your wallet.

How this part works is that you send an order to the exchange. If you buy a token, you "Bidding" the token to a specific price. If you sell a token, you are "Asking" the exchange for the token based on the price you or the market sets.

Order Book and Market Graph

This is an order book. This is where all the orders of other people will appear and it will affect the market price of a specific token, in this case, SPICE. This is where the supply and demand come in from my last "Trading In a Nutshell" article. As you buy a token, your order will appear by the green section until your order is finished. If you sell a token, your order will appear by the red section instead. All of this is sorted by price per token. To see how big the supply/demand curve the current market pair you have, you need to find the Market Depth graph of your exchange, typically seen underneath the order book.

Since this SPICE token is heavily being sold, its demand price is significantly smaller than the supply price. This graph changes on every order that was made.

Bonus: Price History

Some exchanges do not show this graph, but this is also very important when predicting the market's movement in exchanges, especially when you are going forward to sell something larger than SLP tokens. This is the graph that you see when people are trying to analyze markets to predict the next market trends.

Using the graph can also show you the historical price of an item, and can be used to start a market trend or analyze future trends.

End: Keep an Eye on the Price

It is unfortunate that I wrote this article during a season of uncertainty, where BCH has the possibility to split, causing investors and HODLers to leave the BCH blockchain for stronger coins. But, always remember to ensure you know which coin you will focus upon, and ensure that you find a way to have economic growth. Speculation does help, but when you have enough of a specific currency, you can cause an avalanche of events.

I'd like to thank Anycoin Exchange for allowing me to use their exchange as an example, and if you want to exchange your coins to specific SLP/ERC20 tokens, feel free to create an account at Anycoin.Cash! Just keep an alert, as exchanges can have something going horribly wrong, and if you have any coins on them, you will lose it.

Join Anycoin's Telegram:
https://t.me/anycoincash_eng

Trading in a Nutshell: Price? Buy and Sell? Trade?:
https://read.cash/@RowanSkie/trading-in-a-nutshell-price-buy-and-sell-trade-2d673783

Stay safe, and have a good day!