Over the past two weeks we’ve looked at analysing charts, information on comapnies and coins, and blockchain uses. With those (very) basic bits of information, I think its time to start preparing to use the information to build your own portfolio. We will be looking at the very basics today, and then I’ll walk you through the do’s and don’ts of opening your first Binance account for trading.
How do I buy cryptocurrencies?
Alright, this is actually the most painful part of the whole process, and where you purchase your cryptocurrency from is really all about your personal preferences. Before we delve into where to buy it, lets discuss what you should buy.
I’m going to write this piece to a global audience, which is why I have chosen certain providers as opposed to just suggesting that you open a coinbase account (USA, Cananda and Some of EU) I also personally didn’t care for coinbase while in the USA, however that is personal opinion. I just can’t seem to trust them after the Bitcoin Cash incident last year.
At the moment, Bitcoin is just too expensive. I don’t even mean the price of Bitcoin, I mean the price of using it. The fees are currently too high, which is why I recommend that unless you plan on only buying Bitcoin, you should buy Ethereum initially.
Ethereum is easily exchanged for other cryptocurrencies, and the fees are far lower than Bitcoin.
Here is a list of exchanges:
This site allows you to purchase coins with your credit card, and sends it to your wallet of choice. If you wish to skip verification, this is possible, however there is a $150.00 limit. This site requires you to have a wallet in advance.
Changelly also allows credit card purchases. Their verification process is pretty fast and easy. Changelly also allows you to exchange between currencies. This site requires you to have a wallet in advance.
I personally use Xapo for Bitcoin purchasing. Their prices are fair. Note: Xapo only sells Bitcoin
Luno is the other site I use, but only for Ethereum. They also sell Bitcoin.
Coinbase is the last of my suggestions for initially purchasing cryptocurrencies. While they have a selection of coins on their exchange, I wouldn’t use them for anything besides buying Bitcoin or Ethereum.
I bought some ETH, now what?
This is where it gets fun. I highly recommend Binance.
The steps to follow are really simple:
- Go to binance.com
- Choose “Register” at the top-right of the page and fill in this very intrusive form
- Check your email and verify your account
- Complete the captcha verification
- VERY IMPORTANT: Enable 2FA with Google Authenticator
- Choose “Deposits Withdrawals” on the top menu, search for either Ethereum or Bitcoin (whichever you chose to purchase) and click “deposit”
(I pre-loaded this account with a few coins earlier today for future tutorials)
- Copy the address in the block that appears in the highlighted section and send your funds from coinmama, changelly etc to your Binance wallet.
There you have it! You have now created and funded your first trading account. Tomorrow we will look at other features, such as linking your portfolio to apps to track profit and loss as well as buying your first altcoin on Binance.
Here’s that Binance link again.