How to Buy Alt Coins
Peace, what’s happening good people. This right here is my first post about Cryptocurrencies. Now, let me say I’m not here to give anyone financial advice because I barely know what I’m doing. I just thought that I could, maybe, use my experiences as a guide for those that know even less than I do. Feel free to skip my ramblings and dive right into the process of getting set up at “Step 1”.
My journey started with a Blockchain.net account. Somebody wanted to send me Bitcoin, I needed a way to receive it, turned to Google, and it came up as one of the top results. It looked the most legit out of the other top results so I went for it. Blockchain.net had a weird login system that didn’t always work and I was afraid of being locked out of my account — which I ultimately was -and losing what little I had in there. After going back to Google, I found Coinbase and moved everything there.
I knew there were other coins beside Bitcoin but I never thought much about it until the Bitcoin price surge. After missing out on that, I focused on the Alternative coin market. Back to Google I went, to find an exchange I could trust. First I used Kraken. It was cool but sometimes I’d go there and I’d get a 505 error saying the site was down which is terrifying if you have money in there. They also don’t have a large inventory of currencies to trade. I ended up going back to Google and finding “Binance” which I settled in on. So, now I’m going to walk you through my convoluted process of buying Alternative coins using Binanace and Coinbase.
STEP 1 — SETTING UP A COINBASE ACCOUNT
Cryptocurrencies are traded on an exchange. Not all exchanges trade all currencies. Bitcoin and Ethereum are currencies that you can trade all other currencies into. In order to buy Alt-Coins, you’re going to need either Bitcoin or Ethereum coins. Most of the exchanges that allow the purchase of Bitcoin and Ethereum with credit cards and bank accounts don’t sell Alt-coins. The ones that do, require a lot of personal information like scans of your photo ID, a photo of yourself taken with your webcam, your social security number, and more. I ain’t with all that so I chose to use Coinbase.
On Coinbase you can easily set up an account and either connect your bank account or a credit card and start trading. Buying from your Bank Account currently can take up to 9 days for a transaction to process so it’s better to buy with a credit card. Credit card purchases process instantly, though they’ve announced the launch of instant Bank purchases, it’s not yet available to everyone. Once you have a Coinbase account, you’ll be able to trade.
In Coinbase you’ll see a menu in the header with the options: Dashboard, Buy/Sell, Accounts, Tools, Settings
Click “Buy/Sell” and you’ll see currency options: Bitcoin, Bitcoin Cash, Ethereum
Currently, Bitcoin transaction fees are crazy so I’d avoid it if you’re buying to trade and not buying to own Bitcoin.
The best thing to buy for trading purposes is ETH, it moves quickly and the transaction fees are really low. A transaction of $1,000 might cost $2 in transaction fees. Note, if the transaction fails for any reason when you’re returned to the buy page the selected currency will default back to Bitcoin. Pay attention to that so you don’t accidentally buy Bitcoin if that’s not what you want to do.
Make sure you have the correct payment method set before you click to buy. You have the option of paying from your USD Wallet which is where you store your dollars on Coinbase, your Bank account, and your credit card.
You don’t have to buy an entire Bitcoin, Bitcoin Cash, or Ethereum. You can buy $50 worth of one of those currencies or however much you want to invest. Just input how much you’d like to spend into the USD box. After all this is set, click Buy. If you buy with a credit card the ETH will show up right away.
Whatever the price of the currency at the time of your purchase is the price you pay. If 1 Bitcoin is worth $100 when you make your purchase, you get 1 Bitcoin no matter if the value of 1 Bitcoin soars to $1,000 or drops to a dollar.
STEP 2 — SETTING UP A BINANCE ACCOUNT
The next thing you’re going to have to do is create an account at Binance. Once you’ve created an account at Binance you’re going to need to get funds into your wallets to trade. In the Binance header menu you see options like: Funds, Orders, Join Us, Support, News, etc. Mouseover “Funds” and from the drop-down menu select “Deposits Withdrawals”
Look for the currency you’d like to deposit -ETH- and on the row of that currency you’ll see buttons labeled “Deposit” and “Withdraw”. Click “Deposit” and the row will open up with a wallet address and a QRcode. Copy the wallet address to paste in Coinbase.
STEP 3 — Sending The Crypto to Coinbase
On the Coinbase dashboard, click “Accounts” from the header menu. On the next page, you’ll see a list of currencies with options like “Send” and “Receive”, click to send. Enter the wallet address that you copied from Binance and enter the amount you’d like to send. After a few minutes, your funds will be available in your Binance account.
STEP 4 — Trading
On Binance you’ll see “Exchange” in the header menu, when you mouseover, it will show a drop-down menu with options like Basic and Advanced. Click Basic.
On the next page, you’ll see a bunch of charts and graphs that might seem scary but it’s a kitten, trust me.
In the box on the far right, you’ll see a search box, and options like “BTC”, “ETH”, “BNB”, and “USDT” with a list of currencies, their price, etc. Click whichever currency you’ll be trading with “BTC — Bitcoin” or “ETH — Ethereum”. In the search box type the currency you’ll be trading for like XRP and click it when it shows in the list.
On the far left in the corner you’ll see the title of the currency you’re trading for and the currency you’re trading from with the price.
Scroll down until you see the box where you make the exchanges. You’ll know it by the colored buttons that read “Buy” and “Sell”. Input the amount of the currency you’d like to buy into the box that says “Amount”. After this, you’re going to want to choose whether you want to sell for a price that Binance has set by clicking “Limit” or for the market rate which is the option “Market”. When you go to input a number into the search box it will show you the max amount you can buy for your funds. See how much you can buy at the market rate and then see how much you can buy for the Limited rate and go with the one that gives you more. Just know that the market rate can change instantaneously. Once you’ve done this, click buy and you’re done. You’ve just completed your first trade.
You can find your wallet address by clicking “Tools”, selecting the currency you’re sending to from the selection box and copying one of the wallet addresses. Once you’ve done that, return to Binance, paste the wallet address and send your funds to Coinbase the same way you deposited funds to Binance but, the other way around.
Things to Understand
You send and receive funds from a digital wallet address which is a string of alphanumeric characters like “12kiwpgvkeklannioesapiety” You can generate and use however many wallet addresses you like. For the purpose of privacy, it’s best to use different wallet addresses and try not to display a frequently used wallet address publicly, like on Twitter. Every transaction is logged to a public ledger and everyone on the Blockchain can see how much is coming from and going to wallet addresses.