How To Buy Crypto – The Easy Way
- Go to Coinbase and make an account. After the verification process, choose the sum that you are prepared to lose. If you deposit/buy via Bank Account it will take 7 days (about), if you use a card you can buy the coins instantly. If you deposited money instead of purchasing coins, convert the sum to ETH or BTC (transactions from Coinbase to exchanges will be faster and cheaper with ETH than BTC, but some pairs in some exchanges will accept deposits only in BTC). Either way, BTC is not a good choice, you will lose a large chunk just because of the transaction fee. ETH does not have nearly as high fee.
- Open an account on Bittrex ( https://bittrex.com/ ), Binance ( https://www.binance.com ) or Bitfinex ( https://www.bitfinex.com ). The coins or tokens that you’ll decide to buy will be in one of these exchanges. Kraken ( https://www.kraken.com ) and Poloniex ( https://poloniex.com ) are also good options. There will be always someone complaining about one exchange or another, simply choose the one that you’re more comfortable with and that supports the coins that you’ll choose.
- If you have multiple accounts, or want features from one exchange that your favorite doesn’t offer, we highly recommend using 3commas. It has everything we could ask for in a portfolio + account management system, and then some – see our full write-up here. Coinigy ( https://www.coinigy.com ) is another good option if you want to see all of your accounts together in one place.
Always activate the 2 factors authentication.
- Go to Coinolia ( https://coinolia.com ), Order by Gainers 7d, 24h or simply by MarketCap, both in the Coins and in the Token section.
Look at the coins or tokens with at least $30 million market cap ( all the others are simply too risky and you’re probably not an experienced trader ).
Visit their websites. If the website sucks simply avoid them, it’s normally a good indicator. Search them on Google. Most of all: trust your intuition, if you’ll find some red flags, avoid.
If you like what you see there might be a good chance it’s the right coin for you.
- Choose your favorite 5 coins or tokens.
Do this simple math:
total supply of the coin * expected value in one year = total market cap in one year.
If the total market cap in one year is reasonable looking at the present value (and the result is not $5 Trillions for example), your price estimation is probably reasonable.
- Send your ETH or BTC from Coinbase to the exchanges. Exchange 20% of your ETH/BTC budget to any of these 5 coins that you chose.
- If the sum is considerable, don’t leave your coins on exchanges, buy a hardware wallet, use a paper wallet, use multisig. Do everything you need in order to feel more secure.
- HODL (no this isn’t a spelling error, its a crypto joke from a drunk guy years ago). There is a market crash: HODL. There is a price correction: HODL. Someone said that is better to sell: HODL. You want to take some profit: sell some, HODL the rest. Be patient. HODL.
- You can also keep a good and well distributed balance of main cryptocoins (ETH, BTC, BCH, LTC, DASH, XMR…). These coins, equally distributed, have a good long term chance to be worth more than the present and corresponding amount of fiat that you keep in the bank.
This is specifically for buying and investing, maybe a few extra trades, but not Day Trading. That requires lots of knowledge and experience. Start here, start slow, and gain knowledge and experience.
But What About “The Crash”
Yes, at some point in the future there will be a crash. It will look bleak for some time after that. Good news, like every bubble, there are always those who pull through, persevere, and flourish (ex. Google, specifically Google adwords, which was announced after the crash). We have about 3-5 coins that we are positive will not only survive but will rise, like the phoenix, from the ashes of the fallen and will lead the “Crypto-revolution”. We are still in the early stages of Cryptocurrency, that we can ride the wave and make profits and still come out “ok” after the crash. But that will be for another article.
We at xCoinDesk want to provide you with the best information that is easy to understand and guides that are easy to follow. We are not your Financial Advisers or CPAs, tax season is coming up and governments are wanting to do everything they can to get “their share”. Always consult with a CPA and/or Financial Adviser before making any large purchases (especially if it is over $10,000) or cashing out your profits. What we are: very experienced traders, investors, and miners in both the crypto-world (going on 8 years), and the stock market (50+ years combined experience). We are here to share information and help you understand, profit, and stay safe.
Credits: Filippo Gandellini