If Bitcoin, Ethereum or other cryptocurrencies have just started looking interesting to you, then you’ve probably noticed there are a LOT of different ways to purchase and trade them and it can get pretty confusing. Here are some tips from my experience and referral codes for your use.
First of all the disclaimer of the obvious: I’m not a financial adviser, I can’t predict the future, you need to make decisions for yourself, the below are my opinions.
Not that that’s out of the way…
Step 1: Making your initial Cryptocurrency purchase
You need to find an exchange that will work in your country with your currency. Signing up to these services can be a bit of a complicated process depending on the rules in your country. Most will require copies of passports and a photograph of your face holding a utilities bill with your name and address. This is not because they want to know who you are – it’s because tax agencies in their respective countries don’t want you anonymously purchasing cryptocurrencies and avoiding tax.
Here are some of my favourites:
- In Australia: Independent Reserve – chosen for simple interface and super low brokerage fees.
**My Independent Reserve referral code is VNEKMG **
- Again In Australia: Coinspot – these guys have more features and offer more coins and tokens to trade. Their fees are a little higher, but that might be worthwhile depending on your priorities.
**My Coinspot affiliate ID is REF4VH7TM **
- In the USA: There is a lot of competition in the USA crypto exchange scene, but my personal favourites are Bitfinex and Bittrex. Bitfinex has some advanced features and I find it the cleanest, fastest and most intuitive way to watch the market and to place trades. Bittrex is nearly as easy to use, but has an added benefit of listing a MASSIVE amount of currencies.
**My Bitfinex referral code is jwO56Ft1eo **
Bittrex does not yet have a referral program to my knowledge.
Step 2: Trading or holding the major cryptocurrencies (BTC, ETH)
On all of the above exchanges I’ve listed, there are facilities to buy and sell your crypto assets. This can be as complicated or as simple as you want to make it. In its most basic form, trading of a cryptocurrency against cash is easy.
Increasing Cash Value: You have a cash account and a crypto account. If you are looking to increase your cash finances, buy crypto when the price is down, sell when the price is high, wait for the next downturn and repeat.
Increasing Cryptocurrency Holding: If your priority is to increase your digital currency holding, then you want to buy when the crypto price is low. Sell when it’s high enough that you’re sure it must come back down, then buy again when it’s low.
Sitting on Your Purchase: If you don’t want to take advantage of the fluctuating price and you are happy just to ride the overall upward trajectory of most assets, then you want to hold. You can hold the cryptocurrencies in your exchange accounts, but that is generally considered less than ideal. Do some research and decide whether a software wallet or a physical wallet is for you.
Step 3: Diversifying into Altcoins
If you want to buy a cryptocurrency or altcoin that isn’t Bitcoin or Ethereum, and you don’t live in the USA, then you will need to do the following:
- Sign up to a local exchange to which you can link your bank account and make deposits and withdrawals. Use this exchange to purchase Bitcoin or Ethereum.
- Sign up to an exchange that lists your chosen altcoin.
- Transfer the Bitcoin or Ethereum from your local exchange to the altcoin exchange.
- Purchase your altcoin and hold or trade it as you see fit.
I hope this information has been helpful and I hope you make some good purchases! Thank you in advance for using my referral codes – I get a small kickback when you do, so I appreciate it 🙂
Best of luck!