As a beginner, you should start of by purchasing Bitcoin or Ethereum. These are the main currencies that are traded for other cryptocurrencies. The most efficient method of purchasing is by using Coinbase.
Upon signing up, you will be taken through an identification verification process. Therefore, ensure you have your photographic identification on hand as well as your credit or debit card.
Now that you have completed the verification, go ahead and click buy/sell. As a beginner, it is best to start off by purchasing Ethereum. Click on Ethereum and decide how much you would like to purchase. Here you can buy 0.1 or 0.5 or more, once you have finished buying, you should see ETH in your Coinbase account.
This is a very simple explanation of cryptocurrency trading, but now let’s get started on trading the base currency for other currencies. Before you can trade, you need to sign up with an exchange. Binance is good to start with but they do have limitations on how many people can sign up on any given day. As an alternative, you can try KUCOIN.
Go through the signup process and hit the link that says ‘funds.’ Once you have clicked that, go on to click deposits/withdrawals. Look for Ethereum and hit deposit. They will then provide you with a wallet address, then copy ‘ETH DEPOSIT ADDRESS.’
-Go back to Coinbase and click accounts
-Hit ETH Wallet
-Input the wallet address from Binance into the section that says recipient
-Hit ‘Send Max’ and click continue, here it should prompt you to provide a 2 step verification code.
Now we can trade your base currency for other cryptocurrencies.
Trading For Other Cryptocurrencies
The Ethereum transfer should take around 30 minutes to process. Once the transfer has arrived, it should show up when you hit the funds button.
Here we are going to trade the ethereum or ETH for IOTA. Go ahead and hit exchange followed by basic. Then choose ETH and search for IOTA, decide how much you want to buy. If you wish to just use all the ETH you purchased, select 100 percent.
How Much Should You Invest?
There is no recommended amount, it solely depends on how much you have got to spend. You can start with 100 or 250 or more. Just like any investment, you are taking a risk and the more you invest the more risk, but if your investment pays off, you will obviously reap bigger rewards if you invest a larger amount, but it is entirely up to you how much you want to outlay.
This is a common question, how to track your investments. An efficient way to do this is by downloading tracker apps. Blockfolio is a good choice, as well as Delta. Download the apps from the Appstore or Google Play store if you are on Android. Both allow you to input the price you bought the coins for. The apps will provide you with an accurate calculation of the price in your local currency.
This is a very basic simplistic guide on how to start buying and selling cryptocurrency. However, if you would like to learn more, there are plenty of books and tutorials available on the subject.