Get On the Digital Gold Rush Train
The Internet is on fire with everyone looking to get their piece of the pie in cryptocurrency. Bitcoin is the most recognizable and by far the most successful as far as market cap and value price goes. As of this writing, it is at $16,327 USD a coin. That is bordering on Ridiculous, I mean that in a good way. Bitcoin is also the 6th largest currency is the world, Crazy right? So you are curious about how to buy cryptocurrency like everyone else.
What to know
Before diving right into how to buy cryptocurrency I need to explain what to look for and what to look out for to help you decide where to go to invest.
There are a few factors to be concerned when diving into the digital currency world. Let me first clear up a few misconceptions about Bitcoin or cryptocurrency in general. First Bitcoin is real and is Not a fad or a scam, Nor is it a Bubble in my opinion as many so-called experts claim it is.
In my opinion, they need to do more research on how cryptocurrency works before claiming that. Now that is not to say that Bitcoin or any other currency is a safe bet always as they are all normally very volatile in the constant up and down swings that happen.
The technology Bitcoin was founded on “blockchain” technology as explained here by Wikipedia is revolutionizing the financial world to the point that countries like Greece are considering adopting it to help fix economic issues. We are entering the age of cryptocurrency, it is here to stay. There will be some bumps along the way but the financial structure we are so used to is changing. Hang on for a fun ride.
Get familiar with coinmarketcap.com They have many of the coins listed there and all the data you can imagine regarding your target coin. Click on the coin title for more background information and then click the “Market” link to show what exchanges it is listed on. Research some individual coins and find out how they are set up, what technology they use, not all use blockchain technology. Use the information to target a few select coins you may want to pursue, Yes including Bitcoin.
Before putting any money into this, you need a digital wallet. Yes it is just like it sounds, it is a place to store your crypto coins, Each Coin has a wallet designed for that specific coin, this is important as you can not send Litecoin to a Bitcoin wallet for example, well you can but it will not arrive and you will lose the coins you sent. This needs to be a big deal for you, to make sure you have the right wallet setup before you acquire coins. There are many light versions of coin wallets but it is best to get them from the source like the website of the coin itself which will have instructions on how to download it onto your computer and get it set up. Some are a bit tricky so follow the instructions. There are light versions of many wallets available for Smartphones. I would use a smartphone wallet to store a small number of your assets at most.
Where to get a wallet
Well for Bitcoin there are several choices but I would recommend either of these 3 places if you are looking for a secure and easy to use wallet.
Electrum– One of the most widely used and best-known wallets, very secure and supports multiple coins
Exodus – Here is a place to go to get Bitcoin wallet they have a great multi-coin wallet option you can download for your PC and also some training videos that show you how it all works. If you are just starting out I would recommend Exodus as one of your choices to get your wallet from.
Bitcoin.org– The wallet is a full blockchain download which is about 145Gb at this point, so if you want to go a bit more hardcore then give it a try. Click on the large Bitcoin icon in the upper left to go to home page of the site, for some good and useful information about Bitcoin.
The process of sending coins to a wallet is one you need to understand before sending a large number of coins out to it. Try a small sampling first, and once you see if works then proceed to repeat the process to send the rest. A coin wallet contains a receive address which looks like this below. Exodus has a nice training video on how this works
LYDFZMoMk8R4pNKuCcud6gq6yXq8hNEeL6 This is a Litecoin wallet address.
Once you have that you paste it or use the QR barcode to scan it into the send to field from where you are sending from and follow the prompts to complete the transaction. Then shortly your coins will show up at the destination address. Become familiar with your wallet before going to an exchange. You can send your coins from an exchange to your wallet by using the withdrawal section and entering your wallet address
How to Buy and Trade
OK now for the meat of what you came for.
Using the information from Coinmarketcap you will see there are many exchanges to select from to buy sell and trade cryptocurrency. Depending on the coin you are looking to acquire may limit your choice of exchanges as not all of them have every coin. I have a few favorites that you can look into listed below, but certainly, do not limit yourself to just this list.
Coinbase– They only have 3 Coins at this time but they will be launching more soon, they are one of the largest exchanges and setup is free and fairly straightforward. I would recommend starting here to initially purchase one of the three coins, then send coins to one of the others below to start trading. Many exchanges are coin only, meaning you have to trade with Bitcoin or Litecoin or Ethereum first to get started.
Bittrex– Based in The USA they have many of the coins available today and a secure account set up to get you going. You can Buy, Sell and trade most coins here.
Bitfinex– Based in China- several coins available- No USA accounts allowed on Bitfinex
Poloniex– Many coin trading options like the others nice user interface.
Binance– A fairly new exchange based in China, But one of only 2 exchanges that trade the hot coin IOTA, so if you are a US resident you will not be able to get IOTA from Bitfinex so you will need to go to Binance.
Changelly– A great option for exchanging your coins- cheaper transaction fees and a good reputation
So to get set up on one of these exchanges takes a few steps to get verified as a valid user and not a robot. Follow the steps to get set up and enjoy trading.
Most of the exchanges have some sort of training available on how to actually make it all work, they are pretty simple, but I would advise you to check out a few YouTube videos on your chosen exchange on how to buy and sell for tips I may not have covered.
Coins to acquire
There are Hundreds of crypto coins to start trading with, many are very affordable like Bitcoin was in 2009 when it was a few cents for a coin. This is how they start, so you need to research them a bit and find out the projections on how they should do before investing. But something to consider, Buying a coin that is .01 Cent in value and purchasing several hundred or more gives you a good way to gain value when it goes up a few cents, it has gone up 3 times the initial value that you purchased. People are making quite a bit of money from Bitcoin with its over 1600% or more increase in value. Other coins perform well also. I have listed a few of the most popular coins that people are getting into now.
Bitcoin – Available on all exchanges normally. Still, a good investment as the value continues to trend upwards
Ethereum– The new technology coin- Available on most exchanges
Litecoin– All the exchanges listed above contain Litecoin
Monero– Available on most exchanges- Backed by several large corporations and a solid foundation
IOTA– Get it on Binance a new coin supported by Several large companies including Microsoft. Learn more information about IOTA Here with a page on how to get an IOTA wallet. IOTA has no transaction fees which is a plus and a new technology, instead of the blockchain, they use the “Tangle” which eliminates the need for miners.
Many more very affordable coins to consider.
I have shown you a few ways to get started on this adventure. Please be careful when investing in cryptocurrency. Only purchase what you can afford to lose if that were to happen, practice using your wallet with small pieces of the coin for a transaction before sending everything to it. Crypto wallets are not like email, you cannot just loose or forget your password and get a reset if you lose your login seed or password then you have lost your coins, so protect that secure information in a place only you know.
What is your favorite coin and why?
Let’s talk about it. I am always looking for good information about cryptocurrency leave a comment below and Let’s talk about it.