Learn how to trade Near Protocol on one of the major centralized crypto exchanges in the world by using the order book and placing orders.
Meet NEAR Protocol, a so-called layer-one blockchain project. Meaning, that the project is inspired by Ethereum(ETH) which invented decentralized smart contracts. Near Protocol is designed as a community-run cloud computing platform that eliminates some of the limitations that have been bogging competing blockchains like Ethereum. Such as low transaction speeds, low throughput, and poor interoperability.
On top of that, they are using the NEAR token as the blood and veins of this blockchain network. At the time of writing, NEAR is the 43rd most traded crypto token worldwide. In addition, it is valued at a total market cap of approximately $1.12 billion.
Being a cryptocurrency means that this token(NEAR) is available on many exchanges all around the globe. Trading Near Protocol, or buying and selling NEAR tokens is a logical next step if you want to start making money from this volatile asset.
Finally, by continuing to read this guide you’ll learn the following according to Near Protocol:
- How To Trade Near Protocol on Kucoin(Step-by-step)
- How centralized cryptocurrency exchanges(CEX) work
- Learn to use the advanced trading orders
How Does Trading Near Protocol(NEAR) Work?
Spot trading NEAR is like buying and selling digital currencies. You can trade Bitcoin, Ethereum, and other cryptocurrencies. To start, sign up, and deposit funds on a centralized exchange(CEX). There are trading fees when you make trades, typically a small percentage of your transaction.
Now, about custodial wallets: All centralized exchanges(CEX) like Kucoin, provide a wallet for storing your crypto. It’s very similar to a digital bank account. They manage security and private keys. However, it’s a custodial wallet, meaning it controls your funds by managing the keys of the wallet. You can also use non-custodial wallets for more control.
Regarding costs, besides trading fees, be aware of withdrawal fees when moving your NEAR tokens out of the exchange. These fees vary by the type of cryptocurrency you’re moving.
In summary, to trade Near Protocol on a CEX involves signing up, trading digital assets, paying trading and withdrawal fees, and using a custodial wallet. Consider using non-custodial wallets for added security and control over your funds. Start small, learn, and make informed trades.
The NEAR/USDT and NEAR/BTC Trading Pairs
By far, the most popular Near Protocol trading pairs are with Bitcoin (BTC) or Tether (USDT). Additionally, the most popular exchanges to buy or sell NEAR are Binance and Kucoin. Below is a short summary of both crypto exchanges:
- Binance(The most popular platform and well-known cryptocurrency exchange globally)
- Kucoin(Another reputable cryptocurrency exchange with a mobile app, it allows Near Protocol trading for US and EU residents)
So, if you are planning to trade Near Protocol, then you will need to have some BTC or USDT in your exchange account to buy them with. Deposit BTC or USDT into your exchange account if you have not yet done so.
If you are selling Near Protocol, then you will need to have some NEAR in your online trading account.
Once you are done with the registration and deposited your NEAR, BTC, or USDT, you are ready to start trading NEAR. For the rest of the guide, I will be using NEAR/USDT in the examples.
Steps To Trade Near Protocol on Kucoin Exchange
As explained earlier in this guide, using a CEX depends on your local situation where EU and US residents can’t use Binance(at the time of writing). As a result, I’ll be using the Kucoin exchange to guide you through the spot trading process for the NEAR/USDT pair.
Step 1: Open Spot Trading Screen
After you have logged in/signed up at Kucoin you have to navigate to the upper menu and click Trade and then the first item in the menu: Spot Trading. This will launch the Kucoin trading interface with the BTC/USDT as the default trading pair.
Step 2: Find NEAR/USDT Trading Pair
At this point, you have to click on the BTC/USDT up arrow and type the NEAR symbol in the new search screen.
Next, you only have to select the NEAR/USDT pair, click on it, and the chart will load:
Step 3: Place a Limit Buy Order
To indicate how to trade Near Protocol on Kucoin, I’m going to place a limit buy order on the NEAR/USDT pair. Meaning, I’m going to add a new order to the exchange trading book(add liquidity). After this has been done, it’s just a matter of waiting before the order will be hit.
Overall, the spot trading process on Kucoin is very straightforward where you can use limit and market buy orders. On the flip side, you can also start selling the NEAR/USDT pair where you have to click the big SELL button. Also, remember that you have to pay fees for every single trade on Kucoin:
- Spot orders (Maker/Taker): 0.1%
- Futures(Maker/Taker): 0.02 / 0.06%
Understanding Near Protocol Spot Trading Orders
To be able to understand Near Protocol trading on Kucoin, you have to learn the concepts mentioned below:
- Market Depth: Market depth, often shown as a chart, displays the supply and demand for a particular cryptocurrency on KuCoin. It shows the number of buy orders (bids) and sell orders (asks) at various price levels. Deeper market depth indicates more liquidity and stability in the market.
- Order Book: The order book on KuCoin is a real-time list of all buy and sell orders for a specific cryptocurrency pair. The buy orders are listed on the left (bids), and the sell orders are on the right (asks). It helps traders see the current market sentiment and potential support and resistance levels.
- Open Orders: Open orders are the trades you’ve placed but haven’t been executed yet. For example, if you set a buy order at a specific price lower than the current market price, it’s an open order until the market reaches that price, and the trade executes.
- Stop Limit Orders: Stop limit orders on KuCoin are used to automate trading strategies. They consist of two parts: the “stop” price and the “limit” price. When the market reaches the stop price, the order becomes active, and a limit order is placed. It’s commonly used for managing risk. For instance, you can set a stop limit order to sell your crypto if its price falls below a certain point to limit potential losses.
In essence, these terms help you understand the dynamics of trading on KuCoin. The order book shows current demand and supply, open orders are your pending trades, and stop-limit orders automate your trading strategy based on predefined conditions. Understanding these concepts is crucial for effective trading on the platform.
Conclusion: What Moves The Price of The NEAR Token?
In general, to trade Near Protocol as a beginner in cryptocurrencies, it’s very reliable to use a more mainstream exchange like Binance or Kucoin. The sign-up process for both platforms is very straightforward and there is enough volume and liquidity in the order books to buy or sell NEAR tokens.
Finally, to explain what moves the price of the NEAR token, consider the following factors:
- Adoption and Usage: If more people and projects use the Near Protocol network for transactions and decentralized finance, it can create demand for the NEAR token, potentially increasing its price.
- Market Sentiment: Like all cryptocurrencies, NEAR price can be driven by investor sentiment. Positive news, developments, and community support can boost confidence and attract buyers.
- Token Utility: The NEAR token may have specific uses within the Near Protocol ecosystem, such as paying for transaction fees or participating in governance. The more utility it has, the more valuable it can become.
- Competition: NEAR’s price may be influenced by how it compares to other similar projects and trending meme coins. Competition can affect demand and market perception.
- Overall Crypto Market: Cryptocurrency markets are interconnected. If the broader crypto market experiences bullish trends, it can positively impact NEAR and vice versa.
- Supply and Demand: The basic economic principle of supply and demand applies. If more people want to buy NEAR than sell it, the price goes up, and if more people want to sell than buy, the price goes down.
Can I Buy NEAR on Binance?
Yes, it’s possible to buy and sell NEAR on Binance. In addition, you can use the USDT, BTC, and EUR trading pairs to trade with(NEAR/USDT and NEAR/BTC).
How Do You Trade Near Protocol For Cash?
On the major crypto exchanges like Binance or Kucoin, it’s very easy to convert your NEAR to USD or EUR. From here you can cash out and deposit funds to your bank account.
Where Can I Trade Near Protocol?
As explained in this guide, you can trade Near Protocol on Binance and Kucoin. Other popular exchanges like Coinbase, Kraken, ByBit, and Okex have added the NEAR token to their platforms.
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