How to buy other coins via Indian exchanges?
With bitcoin/ether/ripple in your portfolio (If not, go through Part 1), you are now interested to add some more coins. As Indian exchanges don’t have a variety of coins we’ll have to go to Binance, Bittrex, Kraken, Kucoin etc.
Understanding Wallets (Level 0)
Your exchange contains a wallet for each coin you buy. Let’s take Koinex as an example exchange.
Under the Balances tab, you’ll find Koin wallets. Each coin has a deposit and withdraw section.
- Deposit
Hitting deposit button, displays your coins wallet address.
What is a wallet address?
Just like you have an email address to receive mails, wallet addresses allow you to receive coins. Each coin has a different address and they are not interchangeable i.e you cannot send ether to your bitcoin address.
- Withdraw
Hitting withdraw button, displays a form to enter the amount and wallet address you wish to transfer to.
There can be deposit or withdrawal fees associated with the transaction. Deposits are usually free, withdrawal fees can go upto 1,000 Rs depending on which coin you wish to withdraw.
Sign Up
- Binance: You only need to verify your email for withdrawals upto 2 BTC. KYC needs to be submitted to withdraw above 2 BTC.
- Bittrex: Along with your email, you need to verify your KYC before being able to transfer coins.
Purchasing More Coins
Lets take Binance as our example in which you want to purchase ADA.
Start by withdrawing any of your Bitcoin, Ether, Litecoin or Ripple from your Koinex wallet and deposit it to the corresponding coins address on Binance wallet.
There are multiple ways to go about purchasing ADA
- Direct: Purchase BTC or ETH and transfer to Binance wallet. Then trade for ADA in BTC or ETH market.
- Indirect: Purchase Ripple, Litecoin and transfer to Binance wallet. Convert Ripple/Litecoin to BTC/ETH. Then purchase ADA in BTC/ETH market.
Let’s compare both ways. We start by adding Rs 10,204 on Koinex. After payment gateway fees we have Rs 10,000 in our INR Wallet. We use all money in INR wallet to purchase a particular coin on Koinex. On Binance we assume 1ADA =0.000057 BTC and1ADA =0.00062 ETH.
Depending on market conditions one way of purchasing is more profitable than other. Koinex and Binance trade fees were not added in the above calculations for simplicity.
Due to volatile nature of crypto’s, by the time your coin transfer is completed its value might have changed. Time taken depends on coin network conditions.
You can check transfer status of your coins on block explorer of respective coins. Few are:
If you are planning to HODL your coins, exchanges are not the best place to store your coins. Details about storage and security in the next article.
