Unless you've been living under a rock for the past year, you've surely heard at least something about bitcoin and its dramatic rise. Although it remains incredibly volatile, the world's most popular cryptocurrency has truly exploded onto the scene over the several. Unfortunately, the currency is now getting incredibly expensive to buy, which is one of the reasons why many investors are attracted to the thousands of other cryptocurrencies in the market.
Termed alt coins, these alternative cryptocurrencies are also exploding at exponential rates. Although bitcoins remain the most well-known digital currency, there are more than 1,000 alt coin options out there that can also provide excellent returns for investors. Some of these alt coins have performed better than bitcoin this year. Aside from that, individual alt coins are experiencing gains of more than 100% on an almost daily basis.
The problem is that the process for buying these alt coins is usually not quite as easy as it is when purchasing the more popular cryptocurrencies.
The vast majority of investors buy cryptocurrencies through Coinbase, Gemini, and Poloniex. Unfortunately, these platforms only allows you to buy the three most popular cryptocurrencies bitcoins, ethereum and litecoin. This means that you'll need to put in a bit of extra work to invest in alt coins. Still, the huge gains that many of these alternative cryptocurrencies have been experiencing can make it all worth it. With this in mind, we all now take you through a quick step-by-step process that will make it easy to trade and own any cryptocurrency you want.
In order to invest in alternative cryptocurrencies, you will first need to get your foot in the door of the digital currency market. For this reason, it is recommended that you sign up for a free account at one of the following three exchanges: Coinbase, Gemini, or Poloniex. These three exchanges will allow you to purchase bitcoin (BTC) or ethereum (ETH) to get started.
After signing up, the next step is to buy either BTC or ETH. The high price of these cryptocurrencies means that it is unlikely that you will be buying whole BTC or ETH. Luckily, these exchanges allow you to purchase fractions of a whole coin. For instance, you could buy .1 BTC or .1 ETH just to get you started.
After purchasing your initial coins, you will then want to head over to Binance.com to sign up for a free account. The reason is that unlike the three aforementioned exchanges, which only allows you to trade the most popular digital currencies, this site allows you to trade more than 1,000 alternative coin options. From trading on it the last few months, we are seeing a several coins gain 100%+ everyday, without fail. And Binance is the de facto leader in the alt coin space and has a reputation of being faster and less troublesome than their counterparts.
The site is extremely fast and we have not had any problems with any transfer issues when transferring funds in or out.Â You are able to start trading immediately upon sign up.
Here are some pictures of the two-step registration process:
Once you've signed up for your free Binance.com account, you can then transfer your BTC or ETH from yourÂ bitcoin/ethereum from your exchange wallet to your Binance wallet. This step is important as, after transferring, you can then use these cryptocurrencies to start trading whatever alt coins you wish.
Click on Deposits Withdrawals
1) Type in BTC or ETH in the search bar (depending on what coin you want to send to Binance)
2) Press on Deposit
3) copy your address
After copying your wallet address from Binance, go to your exchange where your bitcoin/ethereum is and send your coins to the Binance wallet address. If want to send ethereum (ETH) over, you need to get your ETH address from Binance. If you want to send bitcoin (BTC) over, you need to get your BTC address. Don't mix them up.
Once you've got your Binance wallet all set up and have transferred your other cryptocurrencies into it, all that is left is to do some research to help you decide which alternative currencies you want to invest in. From there, you can begin trading any cryptocurrencies you wish, using your BTC or ETH to buy into other alternative cryptocurrencies. It's very important to remember that you are not trading in USD. You are trading in bitcoin or ethereum as your trading currency, so the price will look a bit weird. It may look something like this so it takes a little getting used to:
The example above shows IOTA's price in terms of bitcoin. Again, it will take a little getting used to but you can use a currency converter to get the value of it in US Dollars.
Sadly, this is the only way to get access to these highly profitable alt coins. So until there comes an easier way to obtain alt coins, sites like Binance are your best best.
Once you feel like cashing out into US Dollars, all you have to do is send your bitcoin and ether back to Coinbase.
Despite the huge gains that many cryptocurrencies have experienced over the past year, it is important that all potential investors understand the risks involved with digital currencies. All investments carry with them at least some degree of risk, but the truth is that investing in cryptocurrencies carries a much higher degree of risk than most other types of investments. This is definitely true of the major digital currencies, but even truer when looking at smaller, alternative currency options.
Sure, your chosen cryptocurrency could experience a huge rise in the short term, but there is always a risk that the entire thing could collapse at any moment. For this reason, it is imperative that you do some research before investing in any cryptocurrency. As well, it is always a good idea to diversify your investments instead of putting all of your eggs in one basket. This way, you won't lose your entire investment should one of your chosen currencies collapse.
Above all, you should never invest more than you can afford to lose. Although there is a high chance that your investment could yield huge gains, the hugely volatile world of digital currencies brings with it a greatly amplified level of risk compared to traditional investments. Therefore, it is vital that you do at least some research before you start trading and always make sure to invest responsibly.
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