How to start with cryptocurrency

nicholaschung (42)in #business • 6 years ago

Hi,Steemit Uses today I want to talk about "How to start with cryptocurrency"

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Fast and simple explanation

Here is some immediate help for free! Open a Coinbase account, attach a bank account or credit card to make an initial purchase of coin. Verify your account using driver’s license and utility bill. Verification takes some time so you will have to be patient. Coinbase is where you will be purchasing your initial coins using dollars that you will then use for trading on the exchanges.

Once verified on Coinbase buy Ethereum (ETH) using the credit card or bank withdrawal. Credit card starts but has much lower limits. Bank withdrawal is 3-5 business days but allows a much larger amount. The reason you want ETH instead of Bitcoin (BTC) is that it has lower fees to purchase than BTC and most exchanges will allow you to buy the coin of your choice using ETH.

Next, you want to open a GDAX account which is an exchange owned by Coinbase. You can trade for other coins here but the real reason you want this is so that you can transfer coins in from Coinbase and out from GDAX to the exchange of your choice, free of charge. Simply create your GDAX account using same credentials as Coinbase and then when you click deposit, select Coinbase as the source. Lastly, set up an account with Binance or any other exchange you like. Find the address for the ETH wallet at Binance then go back to GDAX to withdraw. Enter your Binance ETH as the wallet destination. The transaction is initiated immediately but takes several minutes and sometimes hours to complete. My experience is that it’s typically done in 10-15 minutes though.

Once the funds have arrived at Binance click on Markets. Select the coin you want to buy. In this case let’s assume Ripple. Select the ETH/XRP trading pair. You will see the price of Ripple (XRP) in fractions of an ETH coin with an estimated dollar value next to it. Purchase the quantity you like at market value or by setting a limit order, which is essentially specifying how many you want to buy and at what price. If someone else is willing to sell at that price the order will go through.

Last step is to setup a wallet for long term storage of your coin. Ripple has a decent free wallet called Toast Wallet. Download it onto your computer or as a iOS app. Follow the instructions to setup the wallet and copy the address. This is where you will be sending your XRP.

Go back to Binance and withdraw the XRP, listing your Toast Wallet address as the destination. Now hold on to your investment and watch the price periodically which you can do on Binance itself or on a website called coinmarketcap.com. I suggest not checking too obsessively as it can lead to impulse trades.best strategy for someone starting out is to buy and hold a coin that you believe in for the long term.

Lastly, make sure you research anything you choose to invest in. Read the white paper, check out the dev and executive teams, read up on news and the roadmap, and determine if you think that coin has a future/usecase. Hope this helps!

Edit: I would suggest you start with a small amount until you get comfortable with the process. Also make sure you turn on 2FA on any service you sign up for. Be very careful when transferring coins, especially into exchanges, if you enter the wrong info you could lose your investment.