Bit20 #1 - How to Obtain
I'm going to write a series of articles about the Bit20 cryptocurrency index, trying to figure out what kind of an animal it is. To begin with, I'll provide instructions for obtaining some Bit20 - in case someone doesn't want to wait. The asset goes with the currency symbol BTWTY.
Get an account on Openledger
Openledger is one of the companies providing an interface to the Bitshares blockchain. You can also use the reference interface or light wallet, but in this guide I will use OpenLedger.
Go to bitshares.openledger.info. You will be greeted by the account creation interface.
Just follow the steps required to get an account. Make sure to securely back up and double back up your keys and passwords. If you loose them, no-one on earth can help you get back your funds.
You can switch to a more complicated interface from the top bar if you feel too restricted. Have a look around and be amazed. Now take note of your account name. That's your address where you can deposit funds from other exchanges.
Get some bitUSD
bitUSD is a price-stable cryptocurrency worth 1 USD. It is a native asset on the Bitshares blockchain, with 3s block times and tiny fee's. You need to get some. If you are a cryptocurrency pro, find your own way. If not, here are a few paths you can take.
Fiat -> Kraken -> USDT -> Openledger -> bitUSD
- Get an account on Kraken, which is a cryptocurrency / fiat exchange. You need to provide your passport number and all kinds of documents to be able to send them money. They accept USD, EUR, CAD, GBP and JPY.
- Deposit some money to Kraken
- If other than USD, exchange it to bitcoin (XBT)
- Buy some USDT with the USD or XBT
- In Openledger, find the "Deposit OPEN.USDT" function. If you wonder about the OPEN -prefix, ask about it in the comments.
- In Kraken, find the Withdraw page
- Withdraw from Kraken to Openledger using the address and memo provided in the Openledger dialog.
- Go to the USDT:USD exchange pair in Openledger.
- Just buy bitUSD.
Fiat -> Openledger -> bitUSD
- You need to get verified by Openledger to deposit Fiat currencies.
a. Open the DEPOSIT-WITHDRAW tab
b. Open the "Fiat" subtab
c. Click the link to register.
d. Wait a few days for the KYC thing to complete. - Deposit your Fiat, and wait again for the deposit to show up. By then you will have already read my entire series of coming articles, ran a marathon and obtained peace of mind.
- Have a look at Cryptofresh for the most active market for your Fiat currency. USD, EUR, or CNY
- Choose your path to bitUSD
- Make the necessary trades to get into bitUSD.
BTC -> Openledger -> bitUSD
- Deposit BTS to the address shown in the Openledger "Deposit" tab and "Gateway" subtab. You need to select BTC from the pulldown menu.
- Trade bitUSD for the BTC once it appears in your account.
Place a buy order for BTWTY at about 1.5 x face value
Check out the USD face value of Bit20 at the website.
In the Openledger interface, navigate to the BTWTY:USD market. You should see the price history.
Now switch to market depth. The button is on the upper right hand of the chart.
If the lowest sell order is lower than 1.5 x face value, buy what you can. For what you can't get immediately, place a buy offer at 1.5 x face value. The price of BTWTY will likely always be way above face value, so you will be able to sell at similar premiums later on. Don't hold your breath. Check whether your order has filled the next day, and adjust price if necessary. The market is still bootstrapping, and BTWTY is rarer than precious stones, so don't panic or hurry. You won't miss the boat. It will be here and rise steadily for a long long time. Basically BTWTY is worth anything you can get it for, just don't buy much higher than 1.5 x face value. Later I wil explain why 1.5. If you are impatient, just go ahead.
In the next article, I will explain what this index really is, what gives it it's value, and how it is created. It's pretty fascinating stuff, and if you enjoyed discovering Bitcoin, you will surely experience the same amazement again.