So you’ve decided to step into the world of cryptocurrency. You’ve bought your first Bitcoin (BTC), Ethereum (ETH) or Litecoin (LTC) on Coinbase (Many people will refer to these as the Big Three), and now you have friends talking about XVG, NEO, OMG, WTC etc. Coins such as these are what we refer to as altcoins.
Unlike the big three most of these coins cannot be bought on Coinbase. They need to be bought on different exchanges. My personal favorite exchange is Binance. Binance is a secure exchange that many people use, I like that Binance fees are halved because they have their own currency Binance coin(BNB) which will when used to pay your transaction fee will cut your fee in half! The guide below will explain just that.
To register for Binance use the link “Register” from top right corner.
You will be taken to this page.
Click on the “register” button and fill out all your information. Check the confirmation e-mail sent to you.
*Do Not Skip This*
2FA or Two factor Authentification basically adds another level of security in addition to your password. So even if someone hacks your password unless they also have the Google Authenticator code from the app they cannot log in. In addition to being the more secure option, Google Authenticator is the only one available for those of us not in Mainland China.
Back up this Key! Write it down, print and store in a Vault, but keep this in case of a lost password or login trouble. If you do print this out store it somewhere where no one can find it and leave instructions for your wife/kids in the event something happens to you. I recommend using a Trezor/Ledger Nano Wallet for offline storage and keeping your exchange (Binance password) and cold storage device (Trezor/Ledger Nano) seeds in a safe location such as a vault or bank (if you trust them)
Some like to use the box that the Nano/ledger comes in to keep passwords together. You don’t want to be the guy that holds millions in cryptocurrencies with no way to access them, or worse lose them forever.
Open your Google Authenticator app and hit the + button below then scan the QR code on your screen and enter the 2FA code given to you from the app. Congratulations you’re now protected!
Now that you have Binance set up, you need to transfer your funds from Coinbase (I will be using Ethereum as an example).
2. Click on Send. Now you will see this:
3. Go to your Binance account and go to Funds then Deposits and Withdrawals (This is also how you check your coin balances in the future).
4. Search for the coin you are trying to deposit (Ethereum in our case) and click.
5. Copy and paste the ETH Deposit Address into the Recipient box in Coinbase and enter how much ETH/USD you want to send and click continue… Your Ethereum is now en-route to the Binance exchange (Depending on network congestion, this could take a while, although usually with Ethereum transaction times are shorter).
Once the incoming Ethereum hits your Binance account, you are now ready to start trading! Go to the Exchange tab and click Basic and you should see the screen below. Don’t worry about all those numbers and figures! They may seem very over whelming but for the purposes of this guide we will be ignoring them.
Like FOREX trading Cryptocurrency is traded in pairs. It will always be ETH/BTC, BTC/XVG, BTC/WTC, etc. Most coins are traded against BTC although some also support ETH and LTC.
For our example I will be using the coin XVG.
CONGRATULATIONS! you now know how to purchase alt coins using ETH.
But what if the altcoin doesn’t take ETH as a pairing? We then need to exchange our ETH to BTC and then we can go about trading as usual again. In order to do this we need to this time click on the BTC tab which is right next to the ETH one we clicked earlier.
1. Click on Market.
2. Enter amount of ETH or percentage of your total ETH balance you wish to sell.
3. Click on Sell ETH.
4. Now you can buy altcoins that don’t take the ETH pairing! (All altcoins can be bought with BTC to my knowledge). Welcome to the world of Crypto and as always, happy trading!