Are you interested in getting into the cryptocurrency world but haven't taken the plunge yet?
I remember being in that position after fiddling with crypto mining a bit. This article will demystify all the different aspects that I have learned over the past year since becoming involved with crypto currencies including an easy to follow guide to making your first investment.
It will teach you where to go, what to do and how to do it properly so you do not lose your hard earned cash.
Use this as a companion guide while setting up all your accounts, wallets, transactions, exchanges, etc.
Lets start by talking about the 2 main "buyable" currencies - Bitcoin and Ethereum. These main two cryptos will be your gateway from changing your dollars, pounds, euros or whatever into a crypto currency. There are others possible but these are the main two. Once you have them, you can trade for many others (last i checked there were 809 currencies/tokens).
So.... How do you get them??
You will need to sign up with a place to purchase some. You will want to go with some of the bigger names in the game including Coinbase, Bitquick, Bitbargain, Coincorner to name a few. I use coinbase to get my cryptos if i want to buy them.
You will need a wallet to store your coins. I suggest some kind of wallet with the ability to make exchanges via a buolt in app called shapeshift. Examples of these are: Jaxx, Exodus, Coinomi etc.
I have had issues with jaxx.io wallet with ethereum classic so i would steer clear of that one if you ever want to be involved with ETC... Bit they do offer not only a desktop wallet, bit also an android and iphone app. Beware that less coins are supported using the iphone wallet compared to android due to apple limitations.
Download jaxx at http://jaxx.io or search your mobile app store for it.
Exodus is a desktop only wallet that is awesome and i currently use it to do a lot of my transactions
Go to http://exodus.io to download
I have never checked whether coinomi has a desktop version, but it likely does. Just google search if you want a desktop version otherwise check your mobile app stores to find.
Once you have a wallet downloaded and installed, you will notice that each wallet currency (bitcoin, ethereum, dash, etc) will have a unique address associated with it. These are called public addresses and are used to receive currency. Each public address has a single private key (like a password) to unlock that address should you ever need to.
To make wallets even More confusing, most wallets are now HD which means that there are multiple addresses in each wallet to be used which your wallet generates and uses a new one each time you transact. It is an enhanced security measure.
Choose a wallet, download and install it to you device. This wallet although it connects to the internet to sync with the blockchain, does not pass through a bunch of servers that hold your destiny in their hands. Someone would need to gain access to your private key in order to steal your crypto.
Coinbase Steps
Back to coinbase. I will exain how to buy using coinbase since thats what i used and continue to use.
Once you sign up for a coinbase account, in order to log in, you will need a 2 step authentication meaning they will send you a txt message with a cod to unlock your account.
Once in the interface, you will be viewing your dashboard.
There are menu links along the side or top depending on the device you are using. You meed to click buy/sell to purchase new crypto.
Once in the buy/sell page, you will need to select which currency you want to purchase. You have the option of Bitcoin, Ethereum or Litecoin. Ethereum is the most common trading currency used for icos and things, bitcoin is known as the spending currency since many places accept it. Litecoin mo es the fastest when transferred.
You must enter a payment method.
You will notice that you have a 100$ weekly limit for buying crypto. That does not mean you can actually get 100$ value in currency though. There is a fee involved with every purchase of crypto from an exchange. You can get around 96$ for every hundred you want.
That said, you have the option to increase your limits by providing your identification. Although there is currently no use for them having your id other than proving you are you, it is a little sketchy to give your id away like that!
Once you enter the amount you can purchase, click the buy instantly button and your transaction will happen.
Once it goes through, your new crypto currency will be held in your accounts exchange wallet.
You can see it by going to your menu and clicking wallets. You will see a wallet for each currency.
Open the wallet to view your new crypto.
Successfully Transferring Crypto From The Exchange To Your ACTUAL Wallet.
Many people assume that once your crypto is in the wallet on coinbase or any other exchange that it is safe.
That is not the case!
You do not have a private key for the addresses in those wallets. They are controlled and owned by that company unable to be seen by you! If the site goes down forever, you lost your crypto.
So we need to transfer it to a secured personally owned wallet.
Open the wallet app that you downloaded earlier whether it is jaxx, coinomi, exodus or whatever.
No matter the wallet, there will be a specific address for each type of currency you can hold in it.
** you cannot send bitcoin to an ethereum wallet or ethereum to a dash wallet**
3.Navigate to the respective wallet type that you purxhased on the exchange.
- Find the address of that wallet. Sometimes you have to go into a receive tab in the wallet app to find them.
Copy that address as you will need to enter it on coinbase or the exchange in order to semd your crypto to your wallet.
Go back to coinbase on your browser and click "send/request". First on that oage you will need to select the currenty type you just bought in the drop down list.
Once the interface is displaying the right currency type, paste the receive address you copied previously from your personal wallet app to the address field on the exchange.
Type in the amount field how mu h you want to send or use the "use max" button above the box to send all of it.
- Click send to transfer your currency.
There will be an additional mining fee applied to that transaction and for that matter any time you move a crypto currency from place to place.
Now that you've sent your money into oblivion, you will probably be tempted to check your wallet like a crazy person over and over again thinking that it is lost forever!
Just Relax! It takes time for mining to happen and process the transactions. It can take up to 2 hours from an exchange send to get to your wallet.
Once the crypto is finally in your wallet, you officially have it safely and securely until you decide what to do with it.
Watch for an upcoming article on shapeshifting crypto to turn your one type of currency into another for profit!
Another option is to use icos as a way to invest your crypto currencies and hopefully make money off it.
I hope this article has helped you understand the process of getting started in the crypto world. If you need assistance, feel free to comment below and i will always get back to you!
Cheers,
Chris