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How To Get Started with Altcoins


WHAT ARE ALTCOINS

Before investing into anything, we should probably know what they are first. The reason being is you are more aware what to expect out of your investment. For example: if you were investing in real estate, you will know that you are most likely investing in a building with hopes of it paying you well in the long term, or if you were investing in a car you expect that car to be able to take you from point a to point b while not necessarily expecting your ROI (return on investment) back.

Alternative coins is any coin that is not bitcoin. This includes but is not limited to Ethereum, Litecoin, Dash, Monero, Verge, and any other cryptocurrency that you can think of that is not Bitcoin falls under the Alternative coin (Altcoin) category.

WHY INVEST IN ALTCOINS

If you are reading this you most likely got into bitcoin later than you would have liked. Being bummed out about missing out on Bitcoins bull run and wanting to not miss on another great opportunity, investors generally turn to Altcoins in order to see what could be the next "Bitcoin". Alternative coins have proven to have given significant gains if you were to get in early and hold for six months or longer. An example of this can be seen with Ethereum where if you bought ETH on January 5, 2017 you would be buying at a rate of $9.00 and waited until June 5, 2017 you were able to sell at a rate of $248. That's the power of Altcoins.

However, you can't just pick a random Altcoin then hold for six months and expect to sell it for a massive profit. Going back to what I said in the very first paragraph of this article, you need to at least gain some sort of understanding of what project you are investing in. Ethereum deals with smart contracts which is a piece of code that executes immediately once certain parameters set by the parties involved are met. Many ICOs use this platform for crowdfunding where if you send a certain amount of ETH to their address you receive a certain amount of that ICOs tokens in return without having to deal with a person or customer service. So research your Altcoin before investing in it and we can definitely help you with some good picks! Don't be afraid to send us a message!

HOW TO START INVESTING IN ALTCOINS

If this article was a sandwich, this would be the meat section! Unless you are vegetarian, then this where the vegetables are! As you might have find out, investing in various Altcoins is not as simple as signing up for coinbase and start trading Dash, Monero, and other Altcoins you hear about. Coinbase currently only offers the following Altcoins: Ethereum, Litecoin, and Bitcoin Cash. Now you might think, what the heck? I want to invest in more coins than that! At that we would say, not to worry! Simply follow these steps.

Step 1) Sign up on Coinbase (if you are in the United States)

1.1) Sign up on Coinmama/BitPanda/CEX.io (if you are outside United States)

The reason we need to start with Coinbase or the other exchanges mentioned above is because the exchanges that have over 100 Altcoins do not accept debit/credit cards nor do they accept wire transfers or even checks. So we are obliged to buy Bitcoin/Ethereum first through Coinbase or Coinmama/BitPanda/CEX.io, then send it to the other exchanges.

Step 2) Sign up for Bittrex, Binance

These are the two exchanges that I started with before realizing what I was actually doing. When I found out that they hold a large array of altcoins I was ecstatic! When I found out that they do not hold all the Altcoins I became sad. When I then found out that one exchange holds some coins that the other does not, I started asking what I was doing with my life. Not to worry! We have you covered so you do not have to ask what are you doing with your life too. When you get more experience, make it a habit to go to Coinmarketcap.com, type in the coin you want to invest in, click on it, then click on the markets tab and voila! That is where you can find which exchanges carry that coin!

Step 3) Send bitcoin/ethereum to bittrex/binance

Once you have acquired your first bitcoin/ethereum from coinbase/coinmama, you can start investing in broader Altcoins! Now you have to send your BTC/ETH over to Bittrex/Binance. In coinbase/coinmama you click on the cryptocurrency that you have, then click on send. They will typically ask for an ADDRESS to send it to. That is when you open up a new tab and login to your bittrex/binance account. Once logged in, go to wallet in bittrex or balance in binance and type in the cryptocurrency you want to send in the search box. Once it pops up, click on receive and you will most likely get a QR code with a bunch of words and numbers that make absolutely no sense. Copy the random words and numbers EXACTLY HOW THEY ARE and then go over to your coinbase/coinmama tab and paste it in the send box. NOTE: if you misplace one character from the random string of words and numbers you will lose your funds and we are not responsible for that nor is coinbase/coinmama or bittrex or binance. Don't take a loss!

Step 4) Invest in Altcoins!

The final step is here! This is what we have been waiting for! Over 900 words into this article and we finally see how to invest in Altcoins! Once you have received the funds you sent over from Coinbase/Coinama to your bittrex/binance account, you click on exchanges. This is where your research comes in because now you have a sea of red, green and 3 letter words that you have never heard or seen before! Forget all that and find an area to type in the coin you want to invest. For example, if you wanted to buyRipple (XRP) you would type in Ripple or XRP in the search and look for the appropriate pair that matches the cryptocurrency that you sent over. For example: XRP/BTC is Ripple/Bitcoin pair or XRP/ETH is Ripple/Ethereum pair. Enter the amount you want to buy and I usually make sure my setting is on (immediate or cancel) then hit buy! Within a few seconds, you will receive your Altcoins in your wallet! Congratulations!

If you are still having troubles getting started with Altcoins, make sure to send us a message and one our representatives will walk you through every step.