Virtual currencies are becoming more and more popular, but how can you get started if you’ve never had any experience with them? This guide will give you an introduction to the world of virtual currency, and what you can use it for. It will also explain some of the basic terms that you should know when you’re dealing with these kinds of currencies, so that you can buy, sell and trade them easily and safely.
Step 1: Register at Coinbase
To begin, you need to register at Coinbase. This process only takes a few minutes and requires proof of identification. Once your account is confirmed, you can buy Bitcoins using a credit/debit card or connect your bank account directly and make purchases with either. Remember, it's best practice to keep your identity off of exchanges like these in order to protect your personal information. Step 2: Fund your account: Next, you’ll need to add funds to your account so that you have something to trade with. You can use one of two options for funding: ACH transfer or wire transfer. Both are free but take several days to complete. If you want to move quickly, consider paying a small fee for instant transfers via debit/credit cards (3.99% fee) or PayPal (4% fee). Step 3: Trade on an exchange: Now that your account is funded, it’s time to start trading! Exchanges are where you go to buy and sell cryptocurrencies. The most popular exchanges right now include Bittrex, Poloniex, Bitfinex, GDAX (Coinbase Pro), Kraken, Gemini and Binance. Be sure to do some research on each exchange before deciding which one is best for you; each has its own strengths and weaknesses depending on what kind of trader you are.
Step 2: Choose your coins wisely
There are hundreds of different altcoins (alternative coins) that can be traded, bought and sold across various online exchanges. Before you choose which coins you want to buy, it’s important to know what they do. This post by Investopedia has a great list of altcoins, so check out their guide if you haven’t already. Once you have an idea of what kind of coin you’re interested in, head over to Bittrex or Poloniex and create an account using your email address. These two sites are crypto-only trading platforms, meaning they don’t allow deposits from fiat currency like USD or EUR. In order to buy any cryptocurrency on these sites, you need to first purchase Bitcoin or Ethereum using an exchange like Coinbase. After signing up for both Bittrex and Poloniex, set up 2 Factor Authentication for security purposes before depositing any funds into either exchange. Step 3: Deposit Bitcoin/Ethereum: Once you have some BTC/ETH in your wallet, go back to either site and click wallet on either site.
Step 3: Keep records of all your trades
On June 24, 2018, Bitcoin’s (BTC) price was $6,547.43. This morning, I checked on my portfolio and noted that my BTC was sold for $4,327.38. That wasn’t a trade error. The cryptocurrency market is volatile, but it’s also one of the most exciting markets in existence. If you want to play around with trading before you start investing in it, there are plenty of options out there where you can use your own money. What I’m doing here is called day trading. It involves buying cryptocurrencies on an exchange, holding them for a few days, then selling them when their value has gone up significantly. There are lots of resources online about day trading Cryptocurrencies and you can find videos or tutorials explaining how to do it all over YouTube... ...but please be careful! You should only ever invest as much money as you can afford to lose. Remember that every investment comes with risk, so never invest more than you can afford to lose - and try not to lose any money at all if possible! Step 4: Diversify: Diversification simply means having a wide variety of investments spread across different industries and sectors rather than putting everything into one particular asset class.
Step 4: Stay safe
Understand that while bitcoin and other cryptocurrencies can be good investments, they're not without risks. Never invest more than you can afford to lose. Never use money that you might need in case of an emergency (or which can't be replaced easily) when engaging in bitcoin or cryptocurrency speculation. Be smart about how you store your bitcoins or digital currency; don't leave them vulnerable on an exchange or online wallet. And don't put all your eggs into one basket — spread out your risk by investing in multiple cryptocurrencies. In short, never engage in speculative investment unless you're willing to accept a total loss of your investment. Cryptocurrencies are a high-risk investment. You should never speculate with money that you cannot afford to comfortably lose. If you decide to purchase cryptocurrencies, it is important to do so with money that you can afford to lose. If your current financial situation makes it difficult for you to sustain a loss, you should consider whether purchasing cryptocurrencies is sustainable for you. Please note: There is no such thing as guaranteed profits when it comes to trading foreign exchange markets and/or stocks/bonds/mutual funds/commodities/cryptocurrencies. Past performance does not guarantee future results!