The Absolute Beginner’s Guide to Cryptocurrency Investing
The Absolute Beginner’s Guide to Cryptocurrency Investing
By using this step-by-step guide, you’ll avoid hefty transaction fees that some exchanges charge and be well on your way to trading or holding currencies long-term.
Screenshot guide and Strategy tips available at the end!
Enjoy and happy Trading!
Lets get started by setting up the necessary accounts for this guide:
Required: You will need a Coinbase account.
- Set up an account on any of the above websites and follow all the steps needed in creating an account.
Required: You will need a Binance account.
Binance is a very popular exchange and will be used to trade your ETH, BTC or LTC into other up and coming currencies on binance e.g Ripple, IOTA, NEO etc.
- Use the above Binance link or click here to sign up and to save 50% on trading fees.
- Follow the account set up instructions. You don’t need to verify to start trading or withdrawing!
Buy ETH or LTC from coinbase not BTC for lowest FEES and fastest transactions!
Always enable 2FA Security feature on all exchanges and write down the private key on a piece of paper just in case you ever lose your phone. Google Authenticator is recommend!
Pro Tips and info on how to pay the lowest fees!
Funding your Coinbase account via bank transfer is cheaper than with a credit card.
Coinbase is a great site to get started with and to purchase a base currency. To instantly purchase a currency a credit card is ideal. Coinbase actually offers some of the lowest credit card buy/sell fees in the industry.
It is recommended to use Gdax for withdrawing coins as they have no withdrawal fees. Transfer your coins to GDAX for free then withdraw from there to binance!
GDAX shines when it comes to saving on fees. Trading fees are typically .25% or less. You can see the specifics on their fee structure page. Coinbase charges ~1.5% when buying or selling via bank transfer and ~4% when using credit cards or PayPal
Accounts set up? Now we can start to trade:
This will show you how to purchase coins via coinbase or Gdax and then how to trade them with other coins listed on the Binance exchange
Buy a currency from Coinbase
- Go to the buy and sell option in your coinbase account and use funds from a bank transfer or credit card to buy ETH or LTC. Follow all the steps through the buy and sell menus. You will now have currency in your wallet.
- If funding via bank transfer and not credit card then go to GDAX and use your funds there to buy some ETH or LTC on the /USD exchange markets.
TIP: If you buy BTC or ETH or LTC on coinbase you should transfer it to gdax, then send it to binance. No fees when sending from gdax.
Then head over to Binance
Go to Funds and then Deposits withdrawals
- Go to Funds and then Deposits withdrawals.
- Search for your ETH or LTC wallet on the binance wallet list. Type ETH or LTC in search box to find them quicker.
- Click on Deposit and then copy the deposit address from your binace wallet.
Then transfer your ETH or LTC from Coinbase/Gdax to Binance
- Go to “Accounts” on Coinbase or GDAX and select your wallet
- Click on “Send” and paste your Binance deposit address.
- After the transfer is confirmed you will see your the coins in your Binance wallet balance.
- Remember that Gdax is recommend due to NO WITHDRAWAL FEES!
You can now use your coins to buy any cryptocurrency binance supports.
- Go to Exchange > basic > in the top right corner select the currency you bought (ETH or LTC)
- Search for a coin you’re looking to buy.
How to purchase on Binance using “IOTA” as an example:
- Click on IOTA/(ETH) in the Exchange , basic section.
- If you have LTC then first exchange it for ETH under LTC/ETH
- At the bottom you can now see ‘Buy IOTA’, ‘price’, ‘amount’, ‘percentages’, ‘Total’ and ‘Buy IOTA’.
If you want to use all your cryptocurrency to buy IOTA select 100%, if you only want to buy 25% select 25%, this way you won’t have to calculate anything.
- Click on ‘Buy IOTA’ and you will now see your balance under Funds > Deposits withdrawals .
Tracking Your Transactions
Use the following two websites to track the status of your Bitcoin or Ethereum Transactions going out of Coinbase into Binance.
Screenshot guide on how to Purchase, Transfer and Trade Cryptocurrencies
- To send your currency go to accounts on coinbase and then select your currency wallet.
3. On Binance, go to funds up top and then select the currency you will be sending from coinbase. Copy the address and enter it into coinbase and finish the transaction.
4. To trade and buy other coins go to the exchange section and chose basic. Then search for the coin you want to trade.
Utilize a buy and flip strategy, and look to invest in projects that you expect to grow in the short to medium term. These projects should allow you to realize gains almost immediately.
When dealing with altcoins, take profits as often as possible and transfer funds into other altcoins or ICOs when profits are realized. This helps to maximize your investments and keeps your portfolio active.
Be prepared to experience loses and focus on winning big. With higher risk activities such investing in ICOs and day trading it’s inevitable that you will lose out at times. However, picking large gainers will offset your loses and use stop-loss orders when trading if necessary.
When investing in ICOs look for projects that can provide good returns. Popular projects with a lot of interest surrounding them should experience solid gains in the short term. ICOs with active teams that seek to get onto exchanges will also grow rapidly in value.
If you have any crypto questions feel free to message me on reddit, I will get back asap!
Thank you for reading to the end! Best of luck in your future investments!
If you have any crypto questions feel free to message me on reddit, i will get back asap!