The number of people entering the cryptosphere is constantly increasing. The information may be lacking regarding the ways to enter this world though. Here is a short guide to strim the way.
Platforms of trading
There are two types of platforms to trade cryptocurrencies. The first type accepts fiat money, when the second doesn’t. It simply means that in the first type of platforms you can actually either send some cash (Eur/Usd/Jpy/etc) on it, or buy most popular crypto straight away with your credit card. This type of platform is your gateway to the cryptoworld. The second type needs you to have some cryptocurrencies beforehand.
First type examples
Second type examples
An extensive list of exchanges places can be found here. Every exchange only has a bunch of cryptos available for trading. The crypto you want to trade at a given time might no be available on the exchange were you have an account. If that’s the case, you’ll need to open an account on a different exchange. Currently, the exchange with the more available cryptocurrencies is Poloniex. Unfortunately, Poloniex doesn’t accept cash deposits.
Set up an account
First, we need an account. I personally use Kraken. It might not be available in your country. Most of the exchanges have four level of validation. The higher the level of validation, the higher the amount of cash/crypto can be traded per day. On Kraken, you need to be tier 3 to be able to send cash from your bank account to the website. Being tier 3 require you to provide a copy of your passeport. They need to be an the good side of the law. We are talking about real money. The validation can take a couple of days. If you think it takes to much time, feel free to contact the Kraken team. They are responsive. Once your account is activated, send some cash on it, following the procedure, going in: Funding > EUR (your local currency) > Deposit > Deposit Method Sepa (for Euro). The details are given there. The most important thing after having set up the Fidor counterpart on your bank account is to use the reference which is given there in your coming bank transfer.
Start trading Bitcoins
Now that you have put money on your kraken account, you can buy the cryptocurrencies that are available through direct cash buy i.e. mostly Bitcoin and Ethereum.
Most of the cryptocurrencies can only be bought through Bitcoin, or Ethereum. It means you need to buy Bitcoin or Ethereum with your available cash, and once you have some bitcoin or ether, you can buy different cryptos with these.
To buy Bitcoins, go to: Trade > new order > Buy > put the number of bitcoin you want, and the at what price > then click Buy XBT with EUR (or local currency).
Buy coins not available through cash buy – where to find them
You might want to buy what we call altcoins – stands for alternative coins. Let’s say you want to buy FCT (Factoids) because you read my precedent articles and you find the project awesome. First, you need to find the exchanges that list FCT. Go on Coinmarketcap.com and in the search bar, put the name of the coin. Then click Markets, between Charts and Social. The list of the exchanges is displayed here. You can chose either Poloniex or Bittrex. Let’s use Poloniex. Most of the volume is traded there.
When your account on poloniex is done, you’ll need to send the bitcoins you bought previously on your new poloniex account.
Go to Poloniex, Balance > Deposits and Withdrawals > Find the bitcoin row > Deposit > Copy the address which is given to you.
Go on Kraken, Funding > Withdraw > Bitcoin (XBT) > Withdraw Method Bitcoin > Add address > Put whatever description to remember it is your personal poloniex bitcoin address > Paste the address copied from Poloniex in the Bitcoin Address field > Save address. You’ll get an email to confirm this action.
Now we can send the bitcoins bought previously on Kraken to Poloniex. On Kraken, in Funding > Withdraw > Bitcoin (XBT) > Withdraw Method Bitcoin > Address select your poloniex address > put the amount of bitcoin to send > Send.
Wait approx 10 minutes, and your Bitcoin will be available on Poloniex. On Poloniex, on the right Market Panel search bar, put FCT. Click on the row that appears. The FCT/BTC chart is now displayed. It is the price of one FCT expressed in Bitcoin. Currently, 1 FCT = 0.009 BTC. (BTC = XBT = Bitcoin). Below the chart, you have a BUY / STOP-LIMIT / SELL panels. Go on the buy panel. Put the amount of FCT you want, and at what price. Click Buy. If there are FCT available at this price, your order will get filled.
Congrats, you now hold Factoids (FCT)! If you want to sell them, just use the Sell panel.
You can check your coin in Balance > Deposits and Withdrawals > Tick Hide 0 balances.