Trying out something new is always intimidating, especially when your hard-earned money is on the table. I will not tell you what to buy or buy anything for that matter - I guess you made up your mind already about that.
In this post, we will look at what you will need to make your first crypto transaction and how to do it.
Let's get to it right away!
First things first, you'll need to choose an exchange. A crypto exchange.
Sounds obvious, right?
Yes, but which one? There are plenty out there. You'll eventually have an account with many (quite likely), but that is not a requirement.
Take a look at Coinbase, Kraken,
Binance or Poloniex. These all have a long history in business and quite unlikely that they will go out of business or worse, run with your money. Do some research, choose one (not necessarily from the list above) which suits your needs and go ahead and register.
Always make sure is that the URL is correct.
For example here are the links for all the four I mentioned above (no affiliates here, these are just some I use/used):
Coinbase - https://www.coinbase.com
Kraken - https://www.kraken.com
Binance - https://www.binance.com Poloniex - https://poloniex.com
Always ensure that you have the correct URL in the browser and if not, navigate to the correct site. Alternatively, you could type the name of your exchange into Google and navigate from there.
Register an account
It is just as simple as on any other website however, you must make sure that you have a strong password for your account (more on that in a later post). Take the time and come up with a good password that satisfies the following: \n
- Long: At least 16-20 characters
- Never used before: Self-explanatory. Do not use a password or passphrase you used for anything else.
- Add in numbers and special characters: replace letters with numbers, add an exclamation and/or question mark
- Use upper and lower case \n
Make sure that you remember this password as it will be the key to your funds.
Note about security: You should always use different passwords for all your accounts, especially finance-related accounts, and email accounts.
You will need to go through and authentication process (KYC) in order to be able to trade: exchanges normally ask for your address and a picture of your ID or passport.
Once your account is ready you can go ahead and start adding funds to it.
This is no different than purchasing something on a website or transferring money to another bank account. Sometimes you need to add in a special code in the reference field on your banking app - just make sure you get that right.
Using the exchange
Most exchanges offer OTC trading which means you can exchange your currency for your selected cryptocurrency for a small fee.
On most exchanges you can trade your fiat currency for cryptocurrency for a small fee. \n
I would suggest doing this and with a small amount you are comfortable losing. Not that you will lose everything instantly, but you should always treat any money that you put into crypto as lost.
Wait, this sounds insane. People make crazy money with crypto. What do you mean that my money is lost?
I hear you! As most crypto projects
are decentralized aim to be decentralized you are responsible for your own money. There are a lot of scams out there. Sometimes things go wrong, exchanges exit and run away with the cash or a coin crashes after a pump & dump. But let's just focus on the transaction.
You should have your money loaded now on the exchange. Choose the coin you want to trade, enter the amount you want to exchange, and accept the transaction.
Note, that you don't have to buy a full coin! It is possible to buy a fraction of an asset, just be mindful of exchange fees.
Once the transaction is completed, check your portfolio and enjoy your cryptocurrency.
This is the
boring exciting part - the waiting or as crypto people call it, HODLing. It means exactly, what you think it means: doing nothing and enjoying the ride!
Cryptocurrencies are different from most other traded commodities or currencies. Trading never stops and that means price fluctuates all the time. You may have some gains or losses already but don't worry about that. It is scary sometimes (especially when everything goes red right after your transactions) but this is all about the long-term.
Go on, read some blogs or crypto news and let your coins be.
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Thanks for reading and see you out there!