To dance the Merengue, the couple must have a close body contact hold. The man's hand on the lady's lower back, the lady's left hand on his upper arm and holding his free hand. This close contact will produce a swaying motion in the hips, which is classic with most Latin dances.
However, if you're not comfortable with a close body hold, then a good substitution for this is a double hand hold. Basically the couple just holds hands facing each other. This dance hold requires a bit more concentration on keeping the upper body still and all the movement in the hips and leg area. If you don't get that at first, don't worry, it will happen with practice.
The Merengue music generally has a 4/4 beat but can be faster. However, no matter the speed, Merengue steps happen on the beat. Some good Merengue songs would be "Suavemente" by Elvis Crespo, "I know you want me" by Pitbull, "La Vaca" by Tony Vega, "Satisfaction" by Benni Benassi and almost anything done by Andy Andy, just to start with.
This basic can start anywhere on the dance floor and in any direction. Because of the small step area required this is a great dance for crowded nightclubs. Now, to begin with, a complete Merengue basic has a total of 8 steps.
Starting with the man's weight on the right foot, lady's weight on the left, step in place. It's important to remember to shift weight each step. This produces the sway motion mentioned earlier. Each weight shift counts as a step. After eight steps, you have completed one basic. Completing multiple basics in a row is an ideal goal for the Merengue.
Should the idea of weight shifting seem confusing, think of it as trying to squish a bug with your entire weight every time you take a step.
Once you feel comfortable with the basic, you can start to add turns and improvise.