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Centralized Exchange Trading Tutorial

· 4 min read
StockTokenHub
StockTokenHub
代币化股票专家

This tutorial will teach you how to safely trade tokenized stocks on centralized exchanges (CEX).

Centralized Exchange

🎯 Learning Objectives​

After completing this tutorial, you will be able to:

  • Choose the right centralized exchange
  • Complete account registration and verification
  • Perform secure deposits and withdrawals
  • Execute buy and sell trades
  • Manage trading risks

🏢 Choosing an Exchange​

1. Kraken​

Features: Established exchange with strong regulatory compliance

  • ✅ Supports various tokenized stocks
  • ✅ High security, never been hacked
  • ✅ Fast customer support response
  • ❌ Relatively complex interface
  • ❌ Not available in some regions

2. Binance​

Features: World's largest exchange with diverse offerings

  • ✅ Most trading pairs
  • ✅ Best liquidity
  • ✅ Relatively low fees
  • ❌ Higher regulatory risks
  • ❌ Restricted in some countries

3. Coinbase​

Features: US public company with strongest compliance

  • ✅ Best regulatory compliance
  • ✅ User-friendly interface
  • ✅ Insurance coverage
  • ❌ Higher fees
  • ❌ Fewer supported tokens

📋 Prerequisites​

  • Complete the Basics Tutorial
  • Prepare identity documents (for KYC verification)
  • Basic English reading ability
  • Funds ready for trading

Selection Criteria​

  1. Regulatory Compliance

    • Legal operation in your region
    • Relevant financial licenses
    • Reputation of regulatory bodies

  2. Security

    • Historical security record
    • Fund insurance coverage
    • Cold wallet storage ratio

  3. Supported Assets

    • Support for tokenized stocks you want to trade
    • Variety of trading pairs
    • Speed of new asset listings

  4. User Experience

    • User-friendly interface
    • Mobile app quality
    • Customer support quality

📝 Account Registration​

Registration Process​

  1. Visit Official Website

    • Ensure using official URL
    • Check SSL certificate
    • Avoid phishing sites

  2. Fill Basic Information

    • Email address
    • Set strong password
    • Agree to terms of service

  3. Email Verification

    • Check verification email
    • Click verification link
    • Complete email confirmation

  4. Set Up Two-Factor Authentication

    • Download Google Authenticator
    • Scan QR code
    • Enter verification code to confirm

KYC Verification​

Identity Verification Levels:

  1. Basic Verification

    • Provide name, birthday, address
    • Usually limited trading amounts

  2. Intermediate Verification

    • Upload ID document photos
    • Increased trading and withdrawal limits

  3. Advanced Verification

    • Provide proof of address
    • May require video call
    • Get highest limit permissions

Required Documents:

  • Government-issued ID (passport, ID card, driver's license)
  • Proof of address (bank statement, utility bill)
  • Selfie (holding ID document)

💰 Fund Management​

Deposit Methods​

  1. Bank Transfer

    • Most common deposit method
    • Relatively low fees
    • 1-3 business days to arrive

  2. Credit/Debit Card

    • Instant arrival
    • Higher fees (usually 3-5%)
    • Amount limits apply

  3. Cryptocurrency Deposit

    • Transfer from other wallets
    • Fees depend on network
    • Faster arrival time

Withdrawal Considerations​

  1. Verify Withdrawal Address

    • Carefully check wallet address
    • Use address book feature
    • Test with small amounts first

  2. Understand Fees

    • Network fees
    • Platform fees
    • Minimum withdrawal amounts

  3. Withdrawal Timing

    • Processing time
    • Network confirmation time
    • Weekday vs weekend differences

📈 Trading Operations​

Order Types​

  1. Market Order

    • Execute immediately at current market price
    • Suitable for quick buying/selling
    • May have slippage

  2. Limit Order

    • Set specific price for execution
    • Can get better prices
    • May not execute immediately

  3. Stop Loss

    • Set stop loss price
    • Automatically limit losses
    • Important risk management tool

Trading Steps​

  1. Select Trading Pair

    • Find desired tokenized stock
    • Confirm trading pair (e.g., AAPL/USDT)

  2. Analyze Price

    • View price charts
    • Analyze trading volume
    • Consider market trends

  3. Place Order

    • Choose order type
    • Enter quantity and price
    • Confirm trade information
    • Submit order

  4. Monitor Orders

    • Check order status
    • Modify or cancel if necessary
    • Confirm execution

⚠️ Risk Management​

Basic Principles​

  1. Diversify Investments

    • Don't put all funds in single asset
    • Diversify across industries and regions
    • Control individual investment ratios

  2. Set Stop Losses

    • Set stop loss for every trade
    • Usually at 5-10% loss
    • Execute strictly, don't hope for luck

  3. Fund Management

    • Only invest spare money
    • Keep emergency funds
    • Don't borrow to invest

Common Risks​

  1. Market Risk

    • Price volatility
    • Liquidity risk
    • Systematic risk

  2. Technical Risk

    • Platform failures
    • Cyber attacks
    • Operational errors

  3. Regulatory Risk

    • Policy changes
    • Compliance requirements
    • Regional restrictions

🔒 Security Best Practices​

Account Security​

  1. Strong Passwords

    • Use complex passwords
    • Change regularly
    • Don't reuse passwords

  2. Two-Factor Authentication

    • Enable 2FA
    • Use hardware keys (recommended)
    • Backup recovery codes

  3. Device Security

    • Use secure devices
    • Update software promptly
    • Avoid public WiFi

Trading Security​

  1. Verify Information

    • Carefully check trade details
    • Confirm receiving addresses
    • Verify transaction amounts

  2. Monitor Account

    • Regularly check account balance
    • Review transaction history
    • Set up anomaly alerts

  3. Timely Withdrawals

    • Don't store large amounts long-term
    • Use hardware wallets for storage
    • Diversify storage risks

📚 Advanced Learning​

Technical Analysis​

  • Learn candlestick chart analysis
  • Understand technical indicators
  • Master trend identification

Fundamental Analysis​

  • Study company financial reports
  • Follow industry dynamics
  • Analyze macroeconomic factors

Trading Strategies​

  • Long-term investment strategies
  • Short-term trading techniques
  • Risk hedging methods

Congratulations! You have mastered the basic usage of centralized exchanges. Remember, investing involves risks, please make decisions carefully!

Next Step: You can continue learning the Decentralized Exchange Tutorial to understand more trading methods.

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