So you're getting into Cryptocurrency?
Whether it be a fraction of a Bitcoin (BTC), a little Ripple (XRP), or a whole chunk load of something more "out there" like Siacoin (SIA), Digibyte (DGB), or Cardano (ADA) you'll need to know how to get them at a good price through a secure and simple method.
EXTREME importance of securely storing your passwords
For this post I'm leaving the trading theories aside and focusing simply on the purchase process. I'll follow up with one on trading at a later date.
Also, I'm assuming you're already aware of the EXTREME importance of securely storing your passwords(keys) for your new assets (if you haven't considered the security side yet then see this post for a warning and info from an expert on how to stay secure.)
The Options:
Starting out it can be daunting the steps you need to take to move crypto-currency (crypto) from a remote location to your local machine or wallet, and this is for good reason; if you stuff up with a typo in the recipient address or send to an incompatible account then your crypto will be gone (into the abyss) forever!
1) The complicated and time consuming
This is basically a three step (minimum) process and requires you get up out of your seat and go to a Bank, which might be fine once or twice to start with, but soon becomes a bit of a pain, especially when it's 40°+ celsius outside.
You'll also need to set up your own wallet for your currency of choice.
https://electrum.org/#home for bitcoin trading would be my suggestion
OR, if you are buying ether to trade then https://www.myetherwallet.com/
The Steps:
- You've decided which Alternative Coin (alt-coin) you want to buy and a place to buy it from (usually an exchange)
- You then ensure you know which major currency they are accepting as trade for your desired alt-coin (you need to make sure of this)
- Then you locate an online seller who will accept a bank deposit in exchange for (usually) BTC or ETH. You can simply google for these as there are plenty, but one I have used is www.coinloft.com.au.
- You select your purchase amount and create an order, paying by one of the mechanisms available and PAY FEES
- The seller will send the crypto currency to your wallet, this may take only a few minutes or potentially hours if you are dealing in BTC
- Once you have received your crypto you then need to send it from your wallet to a trading account on your exchange of choice. (this process also takes fees or in the case of ETH "gas")
- You purchase your alt-coin using your new BTC or ETH on the exchange and usually pay some more FEES
- At this stage many people would say to move it off the exchange to your private wallet as soon as possible, which makes sense if you are going to hold on to (hodl - Hold On for Dear Life) the alt-coin as a long term investment. But if you are only planning on having a short term dabble, it may work out simpler and more cost effective to leave it on the exchange and use their in built mechanisms to set up a sell point at your desired price(s)
That my friends is one way to do it, and although that may seem like a lot of steps, I know investors that have been doing it this way for years. The benefit of trading in this way is you can walk into a Bank, deposit cash into an account without ID and that's it, the Government, Banks, and your mom have no idea you own that crypto.
The downsides are it requires more effort, diligence and care or you can stuff up and lose the lot.
2) A Simpler Method
To be clear, I don' t work for, have shares in, or benefit in any way from mentioning www.coinspot.com.au
I'm just a user.
A facility like coinspot is your one stop shop. Now there is an account verification process which requires you to photograph your ID and also send them a photo of you holding a written code word to prove your identity (which can all seem a little worrying in this age of identity theft) but coinspot are a registered Australian company and in my opinion trustworthy in that regard.
The (easier) steps:
- Register on coinspot (last time I checked you'll need to allow a week or two for this to process)
- login, pick a coin to buy in your account, click buy, use POLi, pay a nominal FEE and it's done.
Wow, that was easy!
Now at this stage coinspot are effectively holding your crypto in your online wallet, it's not fully in your control, but they do offer two factor authentication (2FA) using google authenticator, and coinspot always hold the actual amount of coins as stated in the same form, meaning they don't use your coins to buy or trade themselves, so they should always "be good for it" when you come to trade in or sell off your coins.
If you have any questions regarding trading feel free to ask and I will do my best to point you in the right direction!
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