- ICON uses smart contracts to connect multiple blockchains.
- It is supported by the South Korean government and Samsung.
- The protocol is growing in popularity with developers and crypto traders alike.
You can trade ICX on a number of exchanges from the USA. To find out where and how you can buy ICON, read on.
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Step 1: Pick an exchange
To trade ICX, you'll need to open an account with a crypto exchange. The exchange gives you direct market access, allowing you to buy and sell coins in real-time. ICON is available on several exchanges.
There are regulated and unregulated exchanges, and it's important to understand the differences between the two.
With regulated exchanges like Binance US and Coinbase, you can transact with fiat currency like the US dollar or Euro. These exchanges allow you to trade crypto against fiat pairs, and you can cash out your account in fiat as well.
With unregulated exchanges, you only have crypto as your transaction vehicle. These exchanges do not have the authorization to trade in fiat, and they won't permit deposits or withdrawals in anything but crypto.
Your exchange should also offer you margin trading. With margin, you can increase your buying power by up to 10X or more, leveraging your money. For instance, you could trade $1,000 worth of crypto with a $100 account, using a 10X margin. However, it's risky, and you'll need to be comfortable with your risk tolerance as small price declines amplify your losses when using margin.
Step 2: Fund your account
To fund your account at the exchange, you have a few options. If you're using a regulated exchange like Binance US or Coinbase, you can make deposits and withdrawals using debit cards, direct wire, or crypto transfers. Only regulated exchanges are allowed to accept fiat currency deposits and withdrawals.
Unregulated exchanges don't have permission to use fiat currencies for withdrawals and deposits. As a result, your only option is to purchase crypto on another exchange and transfer it to your wallet on the platform.
A crypto wallet is a software tool used to communicate with the blockchain network. Wallets generate the data and instructions to move cryptocurrency through blockchain transactions using public and private keys. The keys are used to generate a specific blockchain location that currency can be sent to.
Hot wallets are connected to the Internet while cold wallets are not. It's important to note that hot crypto wallets are at higher risk of hacking and theft. As a result, all the crypto you have in your hot wallet is at risk of hackers stealing it. Therefore, it's a good idea to store the bulk of your assets in cold wallets and only leave what you want to trade in the hot wallet on your platform.
Step 3: Decide how much you want to invest
After you finish the funding process with the exchange, you're ready to place your first trade. You need to decide how much money you are comfortable trading or putting at risk. This number is different for everyone. Some people with a small $300 account might feel comfortable placing everything they have into a single trade. However, traders with thousands in their account might not feel comfortable allocating large sums to a single trade – it's a risky move, and you could lose everything.
If you're trading on margin, be aware that if the price action goes the opposite way to what you expect, you could end up losing your account and possibly even owe the exchange money. Only trade what you can afford to lose.
Step 4: Set up your order
After settling on the amount you want to invest into ICX, you'll need to open your trading platform and use the following order types to manage your trade.
The market order gets you into ICX at the next available quote. However, it's possible that you only get a fill above your price target for your entry in fast-moving markets. The additional increase in price above where you click the buy button is the "slippage" in the transaction.
The limit order stops slippage, but you might not get the fill your request. This order lets you set your entry price, and the exchange won't fill you above this limit.
The stop order acts as a risk management tool for crypto traders. If you enter a trade at a specific price, you'll set your stop 10% below that level. If the market dips below that, the exchange automatically sells your position.
The Stop limit lets you sell your ICX holdings when you reach your specified price target. The exchange cashes you out without you needing to be present at your trading station.
Step 5: Place the order
After you decide on your order types, click the buy button to enter ICX and the sell button to exit your position.
Step 6: Monitor performance
ICX is a cryptocurrency, and like all other crypto assets, its price action revolves around sentiment and movements in the crypto marketplace. The coin also moves in close correlation to the price of bitcoin. When the bitcoin price is on a bull run, it pulls the entire market higher or lower, depending on the news.
Look out for tweets and PRs from influencers like Elon Musk. These individuals have a cult following in the crypto-sphere, and their sentiment can create price volatility in the cryptomarket and ICON's price.
Regulators are still deciding how to work with cryptocurrency. Be aware that any regulatory action can generate downward pressure on all cryptocurrency.