How can I invest in Cryptocurrencies?
Disclaimer: I am invested into the cryptocurrency platform and I am not a financial advisor. Always do your own research and due diligence before investing any of your hard-earned money! This should be looked at as supplementary information in your research. Thank you!
Step One: Acquire Currency. I realize this point is a little obvious; To invest in anything you need money. I want to expand on that a little bit though. You don’t JUST need money to invest, you need money that you would be comfortable with losing. Investing is not a guaranteed way to make money; It is a very difficult task and hard work is required. Investing in the cryptocurrency realm is just as risky as (if not more than) any other investment and you need to be okay with the prospect of losing money. Now that that is out of the way, let’s continue with how you actually go about investing in cryptocurrencies.
Step Two: QuadrigaCX Sign-Up QuadrigaCX is my go-to exchange for turning CAD into cryptocurrency (and vice versa). Albeit, QuadrigaCX is not the best website for this service (they can be slow) but they are the only ones who currently cater to Canadians. Coinbase is another site that has similar functions which also allows you to purchase a few select cryptocurrencies. The only problem is that you cannot actually get your cryptocurrencies back into our fiat currency – CAD (as of yet). You can overcome this by buying from Coinbase and transferring to QuadrigaCX but that honestly just adds an unnecessary step. Click this link to sign-up (affiliate link): https://www.quadrigacx.com/?ref=jexiobibwmgd2lopffe8hsfm
In the top right corner, you will see the register now button.
Click it and follow the instructions. They are rather straight forward and I trust that you can make it to the end.
When you are finished, a verification stage will be required.
On the dashboard, there will be a button that says verify account.
You will need to click on that and complete that before you will be allowed to actually fund your account.
Step Three: Cryptocurrency Exchange Sign-Up There are a lot (and I mean a lot) of cryptocurrency exchanges out there. This is where the regulation of cryptocurrencies will really come in handy as hopefully some of the lesser exchanges will gradually be weeded out. I am not going to go through every single cryptocurrency exchange here as that would be ludicrous. I am simply going to go through a few that I have found and liked enough to share with everyone. They differ in the type of cryptocurrency available and all also offer slightly different services (although for our purposes they are essentially the same). I am not going to list the benefits and downfalls of each as it is so subjective. As always, you need to do your own research and find the best exchange that fits your needs.
Here are four starter exchanges that I highly recommend. I have accounts with all of them.
First off, Poloniex. https://poloniex.com/
Second, Bittrex. https://bittrex.com/
Third, Liqui. http://liqui.io/
Lastly, Kucoin. https://www.kucoin.com/#/
You are going to simply click on the registration buttons and go through the verification process of whichever cryptocurrency exchange you find best fits your need. My advice is to sign up for multiple exchanges because they all offer different (and equally impressive) altcoins.
Step Four: Wait Patiently Since cryptocurrencies have exploded in the mainstream, the long wait times are definitely real. They will take at least two weeks to verify you – if not longer. Do not fret though! Spend this time wisely. Research some of your favorite cryptocurrencies that have caught your eye. I personally recommend SONM or Golem. That way you will have a head start when your accounts are finally verified.
Step Five: Purchase some Bitcoin / ETH / Litecoin Now that your QuadrigaCX account is setup, you can fund your account. They offer a variety of options for you to fund your account. They also offer a variety of options for you to withdraw from your account as well.
Scroll down (on the dashboard page) until you see the “Balances” subsection. Here you will find the various currencies that QuadrigaCX supports. You want to hit FUND on the CAD.
Once done, you will be faced with this screen about the various ways you can fund your account. Find the option that best suites you and follow the instructions!
Once you have funded your account, you will want to click the trade subheading.
Now that you have some currency to fund your investment, let’s finally buy some cryptocurrency. From the drop-down menu, you will find many options on what you can buy. I currently have it set to XBT/CAD which indicates that I am going to be buying Bitcoin (XBT) with Canadian currency (CAD). Now the green column is your buy area and the red column is your sell area. The ‘amount’ refers to the amount of XBT you want to buy (or sell) and the ‘price’ indicates what price you want to buy (or sell) that XBT for. The Top 10 Buy/Sell Orders refers to prices that other people are paying and selling for currently. (MATCH MARKET PRICES)
Okay, go ahead and buy whichever cryptocurrency tickles your fancy.
Now, if this is all you want to do, perfect. You have successfully invested in cryptocurrencies! Sit back and relax until you decide to sell (in the sell column above). If you are going to hold onto these cryptocurrencies I recommend doing your due diligence on how to properly store them as well (which I will be more than happy to cover in the future so please subscribe).
Step Six: Transfer your cryptocurrency to an exchange! If you decide that you want to invest in more than just the five main cryptocurrencies, then you are going to need to transfer your cryptos to the previous exchange(s) you signed up for.
Head back to the dashboard subheading on QuadrigaCX.
Click withdraw on whichever cryptocurrency you chose to purchase. I will use Bitcoin for my example (mainly because my balance is 0).
You will then be faced with this screen.
Now the ‘Amount’ refers to the amount of Bitcoin you would like to transfer. The ‘Address’ is a little more complicated so hold tight as I help you find your preferred address! Remember the various bitcoin exchanges you presumably signed up for? Well you need to now logon to one of them – I will use Poloniex for my example.
When logged onto Poloniex, you will be faced with this screen. Click balances and then Deposits and Withdrawals in the drop-down menu.
You will then see this screen. If the ‘Hide 0 Balances’ is checked, uncheck it. Find the cryptocurrency of choice (in this case Bitcoin) and click Deposit.
Once you press deposit, this notification will appear. Click “Got it. Show me the Deposit Address.” Voila.
That is the address you were searching for on QuadrigaCX; go back and input that address into Quadriga. Click send.
Step Seven: Trade your cryptocurrency for Altcoins (3rd generation cryptos). Assuming you have done your research at this point, you are now going to invest into your cryptocurrency of choice. This is as simple as trading your BTC (or ETH) for the listed cryptocurrency on the exchange. Be careful to make sure you have the right coin name; always double check!
I will once again use Poloniex as an example on how to do this. Under the exchange subheading, you will find the various markets to the right of the screen. As of right now, Poloniex offers a Bitcoin exchange, an Ethereum exchange, a Litecoin exchange, and a USDT exchange.
Since we have been using Bitcoin as the example this entire time, you are going to want to click on the BTC (Bitcoin) market. Here you will see the various cryptocurrencies that you can now transform your BTC into. I will continue using DASH coin as an example (keep in mind this is a totally random pick). I have clicked the BTC tab and then clicked the DASH subtab underneath. Now if you scroll down on the DASH page (past the chart) you will find these options.
Okay, so now if you want to buy DASH you will use the option furthest left. If you want to sell DASH you will use the option furthest right. I will not be explaining what a stop-limit (middle option) is in this post. Okay, so the ‘Price’ refers to the price you will pay for the cryptocurrency. This usually reflects the lowest ask price; If you click where it says ‘lowest ask’ it will automatically show up in the price. In this example, DASH is valued at 0.044322 BTC. Now under ‘Amount’ is where you enter how much DASH you want to purchase. The ‘Total’ refers to how much BTC you will end up using in this transaction. If everything looks good to you, click buy!
If you want to go backwards, from DASH to BTC, you will just simply use the sell box.
Step Eight: Find an investing strategy that works for you.
So there you have it! You are officially invested into the cryptocurrency (and altcoin) realm. You may choose to hold your coins, swing trade with them, use them for online transactions, etc., just remember to ALWAYS do the necessary research beforehand to minimize loss. And remember, it’s not a loss until you finalize the sale. The cryptocurrency realm is in its infancy. I truly believe this is the monetary system of the future and I don’t think it is going anywhere.
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