In Three Easy Steps You Can Start Investing and Trading Today
A How To Guide
The first step to getting started trading and investing cryptocurrencies is creating your first wallet account on an exchange. Choose an exchange that is right for you that allows for a direct fiat deposit to Bitcoin (BTC), Ethereum (ETH) or even Litecoin (LTC). Our top picks are:
Pros: Fast verification time, low fees and easy to use platform.
Cons: Support is not always the best, compared to Kraken.
Pros: Easy to use platform, own trading deck (GDAX), credit card deposits.
Cons: Terrible support, slow verification times, high fees.
Pros: Fast verification time, low fees and excellent support.
Cons: Slow website, hard to make transactions.
This next step is the most tedious of them all and will allow you to really get started with trading cryptocurrencies. Once you have been verified at one of the exchanges above and made a direct deposit into either your Gemini, Kraken or Coinable wallet with your fiat currency (USD, EUR, CAD etc.), you can now transfer to a trading deck or exchange of your choice. Our top picks are:
Pros: Easy to use platform, great look, charts with indicators, many coins listed, free to sign up.
Cons: Closed to US citizens only, unconfirmed rumors of poor security, weak support.
Pros: Great community, helpful support, no verification to deposit BTC, ETH etc., charts with indicators, fiat conversions, secure.
Cons: Occasional glitches, withdrawal issues with some currencies, closes to new members here and there.
Pros: Easy to use, US based, many coins listed, secure.
Cons: Difficulties with verification, average support, not very user friendly.
How To Transfer To Second Exchange
After purchasing either BTC, ETH or LTC from Gemini, Kraken or Coinbase you will receive a key (address). If you choose to purchase BTC (easiest) your deposit address should be 34 characters long and you will find that address on the trading exchanges wallet area. Deposit your BTC from Gemini, Kraken or Coinbase to the wallet address on the second exchange. Depending network traffic and block completion you should have the BTC in your exchange wallet within 20-30 min max. Now you are set to use the exchange platform to purchase "alt-coins" and trade at your own discretion.
Now that you have all your trading funds transferred to exchanges you are now set to trade. This third step is very important and here to make sure you perform your own due diligence and research. Here are the key points you should consider when making an investment into a new "coin":
Make sure to go to the projects website and examine their core team thoroughly. This goes for developers, and management. Look at what projects the team members have been involved in previously - have they seen success or not? Search the members on websites like Crunchbase or Linkedin - there you will find all you need to know.
Stay up to date with any news when thinking about investing, the news in the crypto markets heavily influences currency prices. If a project is planning to make an announcement soon it would most likely be smart to buy before hand to catch a pump in price. News almost always has a direct relation to price.
The whitepaper is essential to any project or startup. It provides technical information as well as a roadmap of when and how they are going to complete their goals - similar to a business plan but much more in depth. Make sure to read it through and through and identify how confident the team is in the technology they are developing.
Pretty much every project has developers and founders that are very involved with the community and hold live AMA's where the community is able to ask them questions. This is helpful in an growing market as it provides transparency especially when early adopters are able to ask questions to the creators that they strongly believe in. Don't be afraid to ask a stupid question or state your opinion, 90% of the time someone will respond no matter what.
This is very important. Make sure to keep all funds you have earned secure. Most projects already have working wallets for the currencies you are holding (cold storage). If you choose to use cold storage make sure you keep track of your seed and keys (write them down - keep track). If you choose to keep your currencies on the exchanges for trading purposes, make sure you have 2-factor authentication enabled (stay away from SMS authentication as it is not as secure as 2FA). Never use unofficial sites, or proxy versions of the project you are involved with, always use direct links.
Most projects and teams are heavily active on social platforms such as, Twitter, Facebook, Reddit, Telegram, Slack etc. By following your coins progress on social media is provides you with an look inside the community they are creating. You can tell a lot about a coins success if its long time followers have been supporting it since the beginning. Most followers of a project provide helpful insight and food for thought that can aid in your decision making.