I've been asked quite a bit about cryptocurrencies recently and at first glance it can be pretty daunting. Bitcoin, Ethereum, Litecoin, or other altcoins can be some extremely profitable investments, but when it comes to actually purchasing them it gets hazy. Some cryptocurrencies have different purposes, and there are numerous reasons to why you would want to invest in them. Here are a few that I personally like:
Bitcoin - The father of all cryptos.
Ethereum - An innovative software company with a little more structure than Bitcoin, some think it will pass the father crypto.
Monero - A completely anonymous currency. This is currently the "currency of the dark web" because it is untraceable.
Siacoin - A redesign of Cloud Storage using a decentralized network. "Storing 1TB on Sia costs about $2 per month, compared with $23 on Amazon S3."
Golem - Similar to sia, but focused on selling idle computing power.
Steem - Obvious, but re-engineering social networking.
So without further ado this is my simple guide to purchasing in cryptocurrencies.
Step 1: Sign up for Coinbase
Sign up here:
Once you sign up you can buy Bitcoin with your bank account or with a credit card (there is a fee if you buy with your credit card).
Step 2: Buy Bitcoin with Coinbase
This is pretty self explanatory, but in order to buy other altcoins you should buy some bitcoin first. Now if you want to buy only Bitcoin, Ethereum, or Litecoin you can stop here.
Step 3: Sign up for Poloniex
Sign up here in order to buy cryptocurrencies. I would advise setting up 2-factor authentication as security is a top priority in cryptos.
Step 4: Get your Poloniex Bitcoin address
Once you have made an account click:
- Balances ->Deposits & Withdrawals
- Scroll down to BTC or Bitcoin and press "Deposit"
- Click "Show me Deposit Address"
- Copy this address
My Bitcoin address looks like this:
Step 5: Send Bitcoin to Poloniex
Go back to Coinbase. Click "Send". Select the dollar amount you want to send, and paste your Poloniex Bitcoin address. This will take about 10-15 minutes for it to get to your Poloniex account.
Step 6: Buy Altcoins
Now that you have Bitcoins in your Poloniex account you are ready to buy your altcoins. Poloniex is like a stock exchange, select the currency you want to buy, and set a buy order.
- Go to "Exchange"
- Select the currency you want to buy. For instance if you want to buy SiaCoin select "SC"
- Go to "Buy SC", and in the "Total" box put the amount of Bitcoin you want to use
- Then press buy!