This Is How You Purchase Digital Currencies

This is an overview on how to buy cryptocurrency. I wouldn’t even call it a guide. It is also not a step-by-step tutorial.

I thought about whether or not to write a more detailed guide, but decided not to because I strongly believe that you need to challenge yourself to figure out some of this on your own. If you cannot do that, then honestly you probably should not be buying cryptocurrency.

I do not say this to be patronizing. I say this because no matter how detailed I am, if you’re not able to be extremely attentive, diligent, and curious through this process, then you are likely to either (a) lose your money by being careless, or (b) fall for a scam. By forcing yourself to figure out some of this on your own, you will gain important skills that will help you become attentive and savvy enough to navigate the space safely. It will also help you build stamina for continued research so you don’t get all FOMO and spend all your money on stupid things.

Note: If you think anything I wrote is wrong, or think that there is important information that I omitted, please comment and let me know.

Preface to this short overview.

This overview is meant to get the true beginner started and answer frequently asked questions by people who have never bought cryptocurrency before.

Therefore, this overview focuses on buying and storing cryptocurrency on exchanges.

However, note that storing large amounts of cryptocurrency on exchanges is not safe, as your money can be stolen if the exchange is hacked. If you are worried about this, then you should store your digital currency offline on a hardware wallet and also create one more more backups.

Step 1: Buy bitcoin on Coinbase.

Coinbase is probably the most user-friendly exchange that exists, in my opinion. Therefore, if you are new to cryptocurrency, this is a great spot to learn how to buy. Kraken is another popular exchange to buy from.

Head over to Coinbase.com, and fill out the initial data-entry form. After that, Coinbase is going to walk you through a step-by-step process to verify your identity and complete your account creation.

If the only thing you’re interested in buying is bitcoin, litecoin, ethereum, or bitcoin cash, or ethereum classic, then this is the only exchange that you need to sign-up for and you can ignore the rest of the steps outlined below.

It may take a few days to verify your account. So you should do this now and quit putting it off.

Step 2: Sign up for a bittrex, binance, or another digital currency exchange.

If you want to buy anything that’s not listed on the Coinbase exchange (like XRP, for example), then you’ll have to sign up for another account on another exchange. Consider bittrex or binance if you are not sure which digital currency exchange to begin with. Also, try at least skimming this entire post before running over to a second exchange so you can get an idea of the time commitment and level of detail required to buy currencies not listed on any of the major exchanges.

Unfortunately, most exchanges do not have every alt-coin/token, so you may want to look at what trades on the exchange before you sign-up to make sure that the coin you are looking for is listed on the exchange.

The process for signing up for one of these exchanges is similar to signing up for Coinbase or Kraken. But, if you need help, just look for a how-to video on YouTube, or on the exchange’s support section. :-)

Once you have signed-up and verified your account on the exchange, you are ready to send bitcoin or ethereum to the corresponding wallet on this new exchange and trade it for the alt-coin you’re interested in accumulating/supporting.

Update: Bittrex is not taking new users at this time due to inability to handle new-user account requests. Read here for more info about when the exchange will be registering new users again, and how to sign-up for updates.

Step 3: Be careful.

The best piece of advice that I can give you for the following couple of steps is to be VERY CAREFUL. Before you continue reading, consider these tips to help you protect yourself from common errors that occur during these two steps that can cause you to lose all of your money. Also consider reading my previous post, “5 Common Ways People Lose Money Buying Cryptocurrency.

(1) Make sure you send a test amount to verify the transaction first, so if you mess up then you only lose a little bit of your money instead of all of it.

(2) Make sure that you double or triple-check every single step you take while sending money across wallets. Often times when we rush, we stop paying close enough attention and that is where mistakes happen.

(3) Once you know you are on the correct exchange website (like Coinbase, Bittrex, Binance, etc.), bookmark the site in your browser. A common way people can lose their money is by googling an exchange, and accidentally entering login information for a phising site. By bookmarking the correct and legitimate site, you will avoid this pitfall.

Okay, moving on…

Step 4: Find the public key of the wallet that you’re trying to send bitcoin or ethereum to.

To send digital currency to your new wallet on the second exchange that you created an account on (binance for example), you’ll need to find the public key of the wallet you want to send it to. This is the public wallet address that anyone in the world can send money into. (You could share this address on social media and ask people to donate directly to a cause. Then, anyone in the world would be able to verify how much money had been sent to your wallet address. Pretty neat!).

Note, for this step you have to make sure that you get the public key of the same exact cryptocurrency that you’re trying to send.

Example, if you’re trying to send ethereum from your Coinbase wallet to your Binance wallet, then you have to make sure that you find your ethereum public key on Binance to send the payment to. If you are not paying attention, and you accidentally send ethereum to your bitcoin public key, then you will lose all the money you sent. This is very sad but can happen very easily, so be careful.

Step 5: Send bitcoin or ethereum across wallets.

Navigate to your wallet on Coinbase and initiate a “send” transaction. You will be required to paste the public key that corresponds with the other wallet that you are trying to send your bitcoin or ethereum to. Remember, this is the wallet address that you re trying to send digital currency to. What you’re doing is sending currency from one wallet, your Coinbase wallet, to another wallet, the wallet you created on binance or another exchange.

This process is pretty straight forward, but a good opportunity to double check that you (a) are sending the right type of cryptocurrency to the right type of wallet, and (b) that you pasted the full and accurate public key.

Once you press send, you can wait a few minutes (or maybe more like 20 minutes), and refresh the wallet that you sent your bitcoin or ethereum to in order to see it show up in your other wallet. If it doesn’t show up, trying waiting a few hours. If still nothing, then you probably did something wrong and should take a break for a day and come back to it with fresh eyes.

Step 6: Making sure you have enough gas.

When you send cryptocurrency someone has to process the transaction. This takes time and effort, so transaction fees are generated to compensate the exchange and the miners processing the transaction. As a result, you should keep .01 of whatever cryptocurrency you’re using in your wallet to cover the gas needed to process the transaction. This will vary by cryptocurrency of course, since they are all worth different amounts, and different exchanges have different additional rates, but that number is usually enough to cover the cost of gas.

If you don’t have enough left over to process the transaction, the transaction will fail. So don’t worry if you do this wrong the first time.

Ummm… I’m already lost

That’s okay. Everyone was new at this once. And for most of them it took a while to understand.

There are other step-by-step guides that help explain this process a little bit more that may be of better use to you. If you’ve taken some time to try to figure this out on your own, then here are a few other guides you can read. There are many more out there, don’t be afraid to spend a couple hours googling the information you need to know!

Coinbase’s guide for how to buy cryptocurrency on its exchange.

How to signup for binance.

What is multi-factor authentication?

How to send digital currency.

What is the gas in ethereum.

Are exchanges safe places to keep bitcoins?

How much time is this supposed to all take.

Honestly, if you’re really being careful and learning all of this for the first time, it will probably take you 3+ hours, if not a couple of days, to figure this all out. That’s okay. Learning new things is hard, but once you learn it, you will be a member of the community, and hopefully the things that you read in the paper or online in your Facebook or Twitter feed will begin to make a little more sense.

Good luck!

Source : https://medium.com/@veronicareynolds/how-to-buy-cryptocurrency-if-youre-a-complete-newbie-1bda1f99a5af

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