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Buying alt coins
I recommend starting simple – open a coinbase account (aff link) – it allows you to deposit money by any wire transfer, ideally into EUR or USD (GBP still not supported at the time of writing).
Buy ETH or LTC, then transfer to an exchange. It’s usually faster and cheaper to transfer than BTC.
Then on exchange look at coins available,
- Binance (aff link)- very reliable, nice interface, tons of alt coins. Registration is closed for new users at the time of writing this 08/01/2017
- Cryptopia (aff link) – has the widest list of small alt coins I’ve seen. Occasionally faces downtimes, but overall it’s a good exchange.
- Bitbay (aff link) – this is one of the very few exchanges that has an actual hotline you can call and speak to a human. Small range of top currencies, exchangable to USD, EUR and PLN. Very reliable and good support.
- Bitfinex – nice selection of alt coins, great interface. Good withdrawals (I’ve heard) – works quickly, without verification etc. Some say it’s dodgy, but I’ve never had much issue with it.
- Bittrex – great exchange, very reliable, lots of coins.
- Poloniex – again good selection, quite reliable, enjoying using it. Verification was also a bit faster than others.
I spread my coins across a few exchanges, so if one is down, ever gets hacked, I don’t lose too much of my trading coins.
I’d stay away from Kraken (as not stable in my experience), coinexchange, yobit and other small exchanges.
Always enable 2FA on each exchange, using your google authenticator and keep it safe!
Ideally buy a trezor to use with myetherwallet or it’s own wallet for other currencies or/and nano ledger s to keep your ripple, bitcoincash and others safe.
Use https://coinmarketcap.com to research any coins. Look for a decent trading volume, 25m or so, ensure it hasn’t just peaked. Look at the overall trend, and at how many exchanges it’s on. Ideally don’t touch coins which are just on one exchange.
Youtube recommended channels
This guy has a starter video, connected to a few others. Fundamentals for understanding how charts work and what do they mean.
It’s good to join your top 3-5 coin telegraph channels. They release news there so you may stay ahead of others and buy in as hype builds up. Try to find whatsapp or facebook groups via your friends. I started one and it’s already 50 people and going. Here’s the whatsapp link to join.
What is a wallet
A wallet is where you store your cryptocurrency. Wallets allow for receiving and sending, but not for exchanging.
I recommend using a hardware wallet, such as trezor or nano ledger s.
You can also store your coins on desktop, exchange or on paper even if you wanted to.
I’ve been recommended hardware wallets as they’re the most secure.
Cold wallet vs hot wallet
Cold wallets are kind of like secure savings accounts, while hot wallets are more like current accounts.
Cold wallets are the hardware ones for example, they’re not connected to the internet constantly and require hardware to access, so they’re more secure.
Hot wallets are for example wallets in exchanges, they’re constantly online and anyone can access them.
Again, it’s best to keep long term investments in cold wallets, and the short term trading in hot wallets.
What is an exchange
An exchange is where you trade coins. Each exchange equips you with their wallet for your coins.
It is not recommended to hold large amounts of crypto in an exchange in case it ever gets hacked.
Remember to only send coins within the same currency wallet.
So eth, ethereum, must be send to an Ethereum wallet. Otherwise you’ll risking losing the coins.
ICOs are kinda like IPOs. They’re a way for you to buy into new coins before they’re publicly available.
I recommend researching into the:
- community behind the project (do they get any real interaction on social, how is their reddit looking, do they even have one, what are the opinions of people about them online)
- their github page (is it a lot going on)
- technical (check out the whitepaper, do they even have one?)
- team on the project (how do their linkedin profile look like)
When you put ETH (usually) into an ICO, use myetherwallet, as the coins from ICO will go to that address, you can find them by clicking on ‘see other tokens’ on bottom right corner of myetherwallet.
Day trading – wake up, review market, set your buy orders to grab coins on the cheap, sell coins with profit ideally the same day (as during night sometimes coins crash and you won’t be there to sell out in profit).
Mid term – buy coins that you researched and hold for a few weeks. Maybe buy more in advance of any news, watch reddit for updates, watch the graphs for any big buy/sell orders.
Long term – buy coins, put them in a hardware wallet and HODL (hold on for dear life) to them as you believe in the future they’ll be big. This is the laziest method, but done with the right coins provides a great future cashing out chances and doesn’t take much time.
Selling – cashing out
You may want to cash in once in a while, to make sure that if things (if they ever will) come to an end, you already extracted some of your profits.
Most of the exchanges already mentioned provide ways to cash in.
For me the only one that worked so far is bitbay – they have great support and actually processed the payment quickly. The fees were very low. Other exchanges, I haven’t had much luck with in terms of extracting money out of. Bitfinex was also recommended to me for extracting cash.
Good luck! Any questions, use the contact form to get in touch or catch me on social, just google for me.