Technology

Published on July 25th, 2017 | by To Higher Consciousness

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How to get started with Bitcoin, Ethereum or just about any other Cryptocurrency.

How to get started with Bitcoin, Ethereum or just about any other Cryptocurrency.

Greetings all.

I decided to create a basic how to guide for all of you who have been asking me how to get started with Bitcoin and other cryptocurrency.

For any of you who are unsure what cryptocurrency is this is not the article for you. Please check out my other post http://tohigherconsciousness.com/apart-cryptocurrency-revolution/

Ok first things first. You are going to need a wallet and some Bitcoin. Just like a wallet in real life a cryptocurrency wallet is used to store your Bitcoins and other crypto currencies.

My personal favorite is Exodus wallet, which can be downloaded and installed from here:

Download Exodus Wallet

Only have a smart phone? That’s ok although I don’t personally recommend storing your coins on your smart phone just incase it gets lost but I can vouch for Blockchain Bitcoin Wallet which is available on IOS and other platforms.

Wallets are fairly straight forward to use. Once downloaded and installed you will get a unique address for sending and receiving your Bitcoin.

Bitcoin addresses look like this:

1BqMUCAQc9fZzR1AfBEz9PQopWFeXJy5cf

Please take the time to backup your wallets and encrypt them using passwords.

I could go more into detail here but you will find these applications to be fairly straightforward and easy to use.

Now that you have your wallet it is time to purchase some crypto currency. For now I will explain how to purchase Bitcoin and then will later explain how to exchange your Bitcoin into other crypto.

There are many different ways to purchase Bitcoin. One of the most popular methods is to sign up at an exchange such as:

coinbase.com

Or one of the lesser-known methods is to purchase from an actual person at:

localbitcoins.com

Coinbase is a lot more user/noob friendly and once setup and verified is pretty easy to use. Where as localbitcoins can take a little bit of getting used to but is more preferable to me.

I like localbitcoins because I can meet people in real life and pay for my Bitcoin using cash. You can also use Paypal (which is a little risky) or bank transfers. In fact there are tons of different payment methods on there each with pros and cons. I would recommend using Coinbase for now until you are little more familiar with cryptocurrency.

Once signed up and verified at Coinbase you can easily trade your cash for coins using a linked bank account and/or credit/debit card.

Once purchased your coins will arrive in your coinbase account. I repeat your coins will be held at coinbase.

I seriously suggest once your coins are purchased to send them to your personal wallet immediately. The reason for this is due to sites such as coinbase sometimes having maintenance problems and in rare cases there are reports of users being unable to login or losing their coins due to hacks and other reasons.

It is also good to get some experience moving your coins around. You will be surprised at just how easy it is and is great way to get more familiar with sending and receiving Bitcoin.

How to send your coins from coinbase to your personal wallet

First off locate your wallet address on Exodus or on your Blockchain app if using your smartphone.

Hit ‘receive’ to display your Bitcoin address it will look something like this:

Copy your address and then head over to coinbase login and hit ‘send’ found in the tool bar next to ‘accounts’ and ‘tools’.

You now paste in your address and select the amount you wish to send (hit max to send it all).

Then hit ‘Send Funds’. That’s it. Your bitcoins will now be on their way to your personal wallet.

Your Bitcoin should arrive in your new wallet pretty quickly, but don’t be alarmed if it takes more than a few minutes.

If you were brave enough to purchase coins using an alternative method such as local bitcoins this works in a similar fashion. Once you purchase your coins you can then safely move them to your personal wallet. When I purchase them using cash I meet up with a seller face to face at a neutral location such as a coffee shop. We agree the terms and then I give him/her my Bitcoin address. Once I see the coins in my wallet I hand over the cash and we are done. I like this method because it is instantaneous. No waiting for bank approvals or transfers.

Just always remember. Once you have purchased your coins using whatever method to transfer them to your personal wallet immediately, which should always be backed up, so it can be restored on another computer in the case of emergency.

How to buy alt coins and other cryotocurrency

Now that we have briefly explained how to purchase Bitcoin and move it around lets talk about purchasing the other cryptocurrencies.

Like Bitcoin there are few other popular coins such as Ethereum and Litecoin, Due to their popularity they can be purchased in a similar fashion using coinbase.

However there are thousands of other cryptocurrencies out there and some in my opinion are completely undervalued.

At the time of writing these are the current values of the 10 most popular crypto.

As you can see from this image Bitcoin is at $2585.86, Ethereum = $209.49 and so on and so forth.

To check them today I highly suggest using the same page:

coinmarketcap.com

It is one of the most useful tools I have found for tracking cryptocurrency progress.

It contains information progress and status of all the major cryptocurrencies, which at the time of writing is over 1000.

To invest in one of these coins is fairly simple once you have Bitcoin.

First identify which coin you wish to invest in and why. To do further research on the coin is simple and can be done via coinmarketcap.

Click on the one of interest, for this example we will choose ‘Dash’ which is currently valued at $196.94

From here you can visit the official website, check out the message boards or even click on ‘Announcement’ to see what people are saying on the forum.

I like to do this before investing in a currency to get a general feel for it.

Next thing to do is to hit ‘Markets’

As you can see from the image above Bithumb is the most popular market since it contains 36.62% of the volume. In almost every case I trade my coins at the market that contains the highest volume. This is because it means I am likely to get the best rate and it will be easier to exchange because more people are trading this particular currency there.

However… I did notice that on Bithumb it says DASH/KRW which means DASH is being traded for KRW NOT BITCOIN (BTC) and it is also a Chinese site which makes it difficult to use unless you are fluent Chinese.

So instead we are going to trade on the next best thing which is the market below Bithumb ‘Poloniex’.

Once at Poloniex create your account.

This is fairly straight forward and will not take much time like when signing up for coinbase. As soon as your account is created you are now ready to trade your Bitcoin for Dash.

Login to your account at Poloniex. In the top right corner hit ‘Balances’ and then ‘Transfer Balances’

We are going to send Bitcoin from your personal wallet to Poloniex market and then trade it for Dash.

So we want to deposit our Bitcoin (or BTC for short) so search for BTC (should be at the top) then hit deposit.

Click to generate a new deposit address and then copy it.

Head back over to your personal Bitcoin wallet open it up and click send.

Once here paste in your Poloniex Bitcoin address.

Change the value from BTC to USD if it helps and enter in the amount you wish to send. Once this is completed double check it and hit send. Your Bitcoin will now be on its way to your Poloniex account.

You can track the process of your transactions by clicking the transactions ID.

Ok now assuming your coins have arrived safe and sound at their new intended destination head back over to Poloniex.

Hit ‘Exchange’ in the top left corner and then search for Dash in the markets sections. Then click Dash. Scroll down and enter the amount of Dash you desire to buy.

Double check once you have entered your values correctly then click buy.

Your dash will soon be available on Poloniex. To check head back over to ‘Balances’ > ‘Deposits and Withdrawals’

From here you will able to see your new Dash balance. You can also withdraw it to a personal wallet such as Exodus in the same way you did Bitcoin.

Please be careful to never send Dash to a Bitcoin address. Always make sure the crypto you are sending is compatible to where you are sending it to (for example never send Bitcoin to an Ethereum wallet).

Another thing worth noting is that there are hundreds of coins that can be traded for and not all of them are easy to store like Bitcoin and Ethereum  because some may need you to download and install a specific wallet.

Also this tutorial only explains how to trade your Bitcoin for another crypto in this case Dash. Trading for other currencies will work in the same manor.

Markets other than Poloniex will be work in a similar fashion but may not be as straightforward. If you are unsure maybe just stick with Poloniex for now until you are more comfortable trading.

I hope this tutorial is easier for you to follow then it was to create. Please be careful out there as cryptocurrency is a bit like the wild west right now. Don’t invest more than you can afford to lose and do your homework before investing in any particular coin/currency/token.

My advice would be to start small and work with only small amounts and work your way up.

Have fun and good luck investing.


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