This article is about how to buy altcoins for beginners. I am going to show you how to get started in investing in alternative cryptocurrencies, or alt coins, like EOS, NEO, and Iota safely and securely step-by-step.
Quick Summary of How to Buy Altcoins for Beginners:
It will teach you how to set up all of your accounts and allow you to buy Bitcoin, Ethereum, and Litecoin, which you will use to buy other types on coins on the exchanges I will walk you through in this article.
Video Version of How to Buy Altcoins (5 Easy Steps)
3 Important Things to Know Before Buying Cryptocurrency
I’m going to make this as easy as possible for you guys, but before we get started, I want to share with you three important things you need to know before transforming some of your wealth into digital assets.
1. You Need to Learn How to Protect Your Cryptocurrency
Number one, these types of investments are not like anything else you may be familiar with. Unlike banks, credit unions, and traditional stock exchanges, there are virtually no fail safes in place to protect you if you make a mistake or don’t understand what you’re doing.
There is no hotline you can call when you get stuck, there’s no corporate headquarters you can reach out to if you lose your funds, there are no FDIC insured banks behind these investments – this means at anytime you could lose all of your investments from hackers or user error with no recourse at all.
2. Choose and Stick to the Amount You Want to Invest in Cryptocurrency
The second thing you need to know before we go any further is the golden rule of investing:
NEVER invest more than you can afford to lose.
High risk can lead high reward and we humans have a natural tendency to want to overreach. But you need to figure out an amount you are comfortable investing and, more importantly, an amount you can truly afford to invest – then you need to stick with that amount and be patient in the process.
3. NEVER Leave Cryptocurrency on Exchanges – Set Up Corresponding Wallets
The third thing you need to do before buying different altcoins on exchanges is set up corresponding wallets that support the specific cryptocurrency you wish to buy.
Never leave your crypto on exchanges. It’s dangerous and risky because exchanges are targets for hackers, and sometimes exchanges start imposing rules and regulations that make it difficult to manage your funds.
Research to Find Trusted, Secure Wallets for Your Type of Altcoins
So make sure you do your research and due diligence about the wallets for the cryptocurrencies you want to invest in before purchasing them on an exchange.
There are hundreds of types of cryptocurrencies out there, which means there are hundreds of different wallets you can set up. In a later article, I will teach you about the different types of wallets and storage available for some of the major cryptocurrencies.
You Will Learn How to Buy Altcoins Using Binance Exchange
In this article, I will walk you through setting up an account with an exchange called Binance. It’s an online platform that allows you to buy several different types of cryptocurrencies using bitcoin or ether, which is ethereum.
Binance is a Great Cryptocurrency Exchange for Beginners
There are a lot of different platforms to trade cryptocurrency on and Binance is one of the best cryptocurrency exchanges for beginners.
Binance is a trusted exchange with a good reputation and is one of the few exchanges accepting new members at this time. The interface is easy to use, the website supports many different languages, it has low transaction and withdrawal fees, and it processes transactions quickly.
It’s extremely important that you watch part one of this article series where I walk you through buying bitcoin and ethereum safely and securely before following the steps in this guide. This is because you must purchase bitcoin or ether outside of Binance because Binance does not except fiat at this time.
I’ve broken this process down into 5 easy steps for you, so let’s get started.
Go to Binance.com. Double and triple check the URL to make sure it’s https://www.binance.com/ and then bookmark the website. From this point forward, ONLY access the Binance exchange using the bookmark to avoid becoming a victim of a phishing site.
Use this Link to Safely Access Binance to Register
You can also use this referral link to safely access Binance, which will bring you directly to the registration page.
If you decide to go directly to the Binance website, click “Register” in the top right hand corner of the screen.
Next, enter your cryptocurrency email address you created in part one of this article series.
Create a long, strong password and enter it twice in the spaces provided.
Record your new Binance credentials in the paper notebook you set up in part one of this article series.
In the referral ID, you can type 11055137, which tells Binance you were referred by me, Crypto Casey.
Drag the slider sideways until you fit the puzzle piece into the designated area to prove you are not a robot.
Next, an email verification will be sent to your email address. Log in to your email account and click on the link to verify your email address.
Enter your email address and password. Drag the puzzle piece into place again to prove you are not a robot.
Always Set Up 2-Factor Authentication for Cryptocurrency Accounts
Upon logging in, you will be promoted to enable 2FA or 2-factor authentication. You will use the Google Authentication app we installed together in part one of this article series to complete this step.
Select Google Authentication and step 1 prompts you to download and install the Google Authentication app, which we already covered in part one.
So click “Next Step,” then click the + icon on your Google Authentication app, and choose “Scan Barcode.”
Hold your mobile device up to your computer screen with the camera facing the QR code to scan it. Then click “Next Step.”
On step 3, you will be assigned a key. Write down your key in your paper notebook for safe keeping. You will need this key to recover your Google authentication in the event you lose your mobile device.
Click, “Next Step,” enter the key you just wrote down in your notebook in the space provided, then type in your password. Next, type in the code generated on your Google Authentication app for your Binance account before the code changes and click “Enable Google Authentication.”
Now Your Binance Account is Secure and Ready to Go!
If you followed all of the steps so far in this article and all of the steps in part one of this article series, then you should have accounts with both Coinbase and Binance.
Between these two accounts, you will be able to exchange your bitcoin and ether for all of the major cryptocurrencies and some minor altcoins.
To buy other types of cryptocurrencies on Binance, you need to use Bitcoin or Ethereum. This is why we set up a Coinbase account in part one of this article series, which allows you to exchange fiat like US dollars for bitcoin or ethereum.
If you don’t have a Coinbase account yet, you can use this link to receive $10 worth of free bitcoin when you invest $100 or more. Then read part one of this article series to make sure you set it up safely and securely. When you’re finished, continue following this article to learn how to buy altcoins safely.
Click “Sign In” in the top right hand corner of the screen, enter your email address and password, then click “Sign In.”
Enter the 2-step verification code generated by your authentication app on your phone and click “Verify.” If you’ve never logged into Coinbase from the device you are using, you will receive an email with a confirmation link to finish logging in.
Once you are logged in, you will be brought to your dashboard. On the top menu bar, click on “Buy/Sell.”
You will be brought to a screen that allows you to buy bitcoin, bitcoin cash, ether, and litecoin. Make sure you buy Bitcoin or Ether so you will be able to exchange them for other cryptocurrencies on Binance.
In this article, we will buy bitcoin. Select “Bitcoin” from the menu, then select your payment method.
Next, type in the amount of bitcoin you wish to buy and click “Buy Bitcoin Instantly.”
Select your BTC wallet and click on the “Send” button.
You will be asked to enter a BTC address, which you will need to get from your new Binance account.
Log back into your Binance account and in the top menu, hover over the “Funds” button, and then click “Deposits.”
In the dropdown menu, type “BTC” and click on Bitcoin.
You will see your BTC deposit address. (Keep in mind if you decide to use ether instead of bitcoin, you must type ETH into the drop down to retrieve your ether wallet address.)
Click on “Copy Address” to ensure you grab a complete and accurate copy of the address. Then go back to your Coinbase account.
Paste the address into the “Recipient” field. Make sure the amount of bitcoin you wish to send to Binance is accurate and click “Continue.”
Look over the next screen to make sure the details are accurate and click “Confirm.”
Awesome! Now your bitcoin is on its way to Binance. You can click “view details” and then “view transaction” to monitor its progress.
Do NOT Send Bitcoin to an Ether Wallet or Vice Versa
If you chose to use ether instead of bitcoin, make sure you follow the same steps, except send the ether from Coinbase to your Binance ether wallet. Do not send ether to a bitcoin address or you will lose your ether. And do not send your bitcoin to an ether wallet or you will lose your bitcoin.
This is why it is extremely important to learn how to buy altcoins safely and securely.
This should take a few minutes unless the exchange is experiencing heavy use. Go to the top menu of the Binance site, hover over “Funds,” and click “Deposits.” Here you will see the confirmed transaction once it’s complete.
You can view the balances of your accounts on Binance by hovering over the “Funds” option and clicking on “Balances.”
In the row for Bitcoin, you will see your available balance.
Step 4: Exchange Your Bitcoin or Ether for the Altcoins You Want
On the Binance website, hover over the “Exchange” button in the top left hand corner of the screen and click “Basic.”
In the top right box, make sure you select the “BTC” button. This will show you the menu where you can exchange bitcoin for other types of cryptocurrencies.
In the search field, type in the name of the cryptocurrency you wish to buy. For example, if I type in NEO, I can view the buying options for NEO.
In the bottom center box, you will see various buying options. You can also see your Bitcoin balance here.
This is the “Limit” option which allows you to choose a price you would like a buy order to execute. This means if the price of the coin drops to the limit you set, a buy order will complete automatically for you. However, the transaction will only happen if the price ever reaches the limit you set.
Using these percentage buttons, you can choose what percentage of your bitcoin balance you wish to exchange for NEO or whatever crypto you are looking to buy.
You can choose the “Market” option to buy the crypto instantly at whatever price it is at that moment.
There’s also a Stop-Limit option is an order to buy or sell a coin once the price reaches a specified price.
Let’s search for another popular one called IOTA by typing it into the search bar in the top right box. Again, in the bottom center box, you will see the same types of buying options for Iota.
So let’s buy an altcoin now. In this article, we are going to buy Iota at the market price. Click “Market” and choose the amount of bitcoin you wish to exchange.
In this article, I’m going to use exchange 100% of my bitcoin for iota. Next, click the “buy” button. Great! Now you’ve got some altcoins… almost!
Step 5: Withdraw Your Altcoins to Your Corresponding Altcoin Wallet
Hover over the “Funds” button in the top left corner of the Binance website and click on “Balances.”
You can sort by the “Total Balance” column to find the cryptocurrency you bought easily. Now it’s time to withdraw it from the exchange to your wallet for safe keeping.
Never Store Your Cryptocurrency on Exchanges
Remember, do not ever store cryptocurrencies on exchanges. Once you’ve purchased your crypto, transfer it to a wallet that supports that specific type of currency. In this article, I’m going to withdraw iota from the exchange to a wallet.
On the Balances page, click the “Withdrawal” button next to the crypto you bought.
You will see a field for an address and a field to choose the withdrawal amount.
Heavily Research Cryptocurrency Wallets Ahead of Time
A quick note about wallets, you MUST do your research on wallets ahead of time to make sure you are getting one from a trusted source and that the wallet supports your currency.
If you transfer iota to a bitcoin address, you will lose your iota. If you transfer NEO to an iota wallet, you will lose your NEO. Make sure you have a proven and tested wallet before transferring large amounts to it.
From the dropdown menu, click “Use new address.”
Give the wallet a label name, like “Casey’s Iota Wallet,” or whatever name would help you keep track of which wallet you are using and then paste the wallet address in the space provided.
Choose the amount you wish to transfer.
Transfer a SMALL Amount from Binance to Your Wallet First to Test
I highly recommend transferring a small amount first to make sure the transaction goes through. Once the small amount is safely transferred to your wallet, then transfer the balance to get everything off of the exchange.
In this article, I’m going to withdraw 100% of the iota to my iota wallet. Next click “Submit.”
You will be prompted to enter a code generated by your Google authenticator app on your cell phone to approve the withdrawal. Enter the code and click “Submit.”
Next, a confirmation email will be sent to you to confirm the withdrawal once more.
Log in to your email account, open the email from Binance, and click “Confirm Withdrawal.” You will be brought to a screen that says your withdrawal was successfully confirmed.
You can click on the “Deposit & Withdrawal History” link to track the transaction’s progress.
The amount of time it takes the transaction to complete will depend on the amount of the withdrawal, the type of cryptocurrency you withdrew, and how busy the Binance network is at that time. Once the transaction is complete, the funds should be safely in your wallet.
Congratulations! Now you know how to buy altcoins safely and securely. Thank you for reading my article on how to buy altcoins. I hope you found this guide helpful and easy to follow.
In the comments below let me know which cryptocurrencies you would like me to show you how to set up wallets for in future articles. If you have any questions about how to buy altcoins, please feel free to reach out. Be safe out there.
This article is about how to buy cryptocurrency for beginners in 10 easy steps. You will learn how to get started in investing in digital assets like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash safely and securely step-by-step.
Here is a quick summary of the 10 easy steps you will follow on how to buy cryptocurrency for beginners:
Quick Summary of How to Buy Cryptocurrency for Beginners:
Buy Paper Notebooks
Record All Crypto-Related Account Details in Your Paper Notebooks
Create Long, Strong Passwords for Each Crypto Account
Scan, Clean, and Secure Your Computer from Malware
Secure Your Cell Phone and Setup a Passphrase for New SIM Cards
Create and Secure a New Email Account with an Encrypted Provider
Download and Setup 2-Factor Authentication Applications on Your Cell Phone
Setup and Secure Cryptocurrency Wallet
Setup and Secure an Account with a Cryptocurrency Exchange
Record Instructions on How to Access Accounts and Create a Will or Trust in the Event of Death
Video Version of How to Buy Cryptocurrency Step-by-Step:
Two Important Cryptocurrency Tips Before Starting:
I’m going to make this as easy as possible for you guys, but before we start learning how to buy cryptocurrency, I want to share with you two important things you need to know before transforming some of your wealth into digital assets.
First, Appreciate that Cryptocurrency is New, Complex Technology
Number one, these types of investments are not like anything else you may be familiar with. Unlike banks, credit unions, and traditional stock exchanges, there are virtually no fail safes in place to protect you if you make a mistake or don’t understand what you’re doing.
There is no hotline you can call when you get stuck,
There’s no corporate headquarters you can reach out to if you lose your funds,
There are no FDIC insured banks behind these investments
This means at anytime you could lose all of your investments from hackers or user error with no recourse at all.
Cryptocurrency is cutting-edge technology, it’s the modern day wild wild west, so it requires some focused time and energy to wrap your head around.
Luckily for you, I’ve done a lot of the leg work to compile this step-by-step guide on how to buy cryptocurrency to ensure you receive the knowledge and understanding you need to be successful in cryptocurrency investments.
Second, Cryptocurrency is Highly Risky – Only Invest What You Can Afford to Lose
The second thing you need to know before we go any further is the golden rule of investing:
NEVER invest more than you can afford to lose.
High risk can lead high reward and we humans have a natural tendency to want to overreach.
But you need to figure out an amount you are comfortable investing and, more importantly, an amount you can truly afford to invest – then you need to stick with that amount and be patient in the process.
Cryptocurrency is a lot more volatile and unpredictable than the stock market. Unlike the 9 to 5 new york stock exchange, cryptocurrency is traded around the world 24/7.
So if you want to get a good night’s sleep as a crypto investor, you need to budget the amount of money you are going to invest and stick to it.
I’ve broken down this process into 10 easy steps. So let’s get started.
Step 1: Buy Paper Notebooks
This may come as a surprise to you because crypto stuff is pretty high-tech, but the first thing you need to do is get yourself some paper notebooks.
Yes, I realize some of you have never used such ancient recording techniques like a pen and paper before, but seriously buy a couple notebooks from Amazon or something.
Consider Using Moleskine Notebooks with Grid Paper
I personally love to use these Moleskine notebooks from Amazon with grid paper. I am a huge fan of grid paper because it helps organize information in a way that’s easy to read.
You need at least two notebooks, but I suggest three.
Step 2: Record All Crypto-Related Account Details in Your Paper Notebooks
Use your paper notebooks to store all of your passwords, login credentials, and any other sensitive information regarding your crypto wallets, exchanges, and other accounts you will set up to learn how to buy cryptocurrency.
Never Use Password Managers for Cryptocurrency Accounts
Never store your passwords or login data online with a password manager, on your phone, or any device connected to the internet.
You need to go old fashioned and store all the essentials on paper with paper notebook backups. This is why I recommend buying at least two paper notebooks.
Store Your Paper Notebooks in Separate Physical Locations
You should store the notebooks in separate locations to be safe. You never know if a fire may break out, or with all these crazy hurricanes and flooding – your house or office could be affected and your paper notebook could be destroyed.
Consider storing a notebook in a safe at your house and storing the other one in a safety deposit box at a bank.
Remember, there are no pre-built fail safes in this technology and there are hackers everywhere trying to steal your funds. It’s up to you to take the necessary steps to protect your investments when learning how to buy cryptocurrency.
Also, if you decided to buy the moleskine notebook I suggested, take a moment to fill in the “In case of loss, please return to” section and, more importantly, the “as a reward: $” line.
Think carefully and consider how much you would pay to incentivize someone who found your notebook to return it safely to where it belongs.
Step 3: Create Long, Strong Passwords for Each Cryptocurrency Account
Let’s talk about passwords. Passwords related to cryptocurrency need to be strong. I’m going to share some tips that will help you create strong passwords throughout the account set up processes.
Hackers are not sitting on a computer trying to guess your password. They use programs that automatically run through massive databases of common passwords and random combinations of characters.
So, to combat this, you need to make very long passwords containing random words, letters, capitalization, and special characters. Don’t use common phrases, famous movie lines, or a Bible verse and never use the same password for more than one account.
We will be setting up a lot of different accounts as you continue to learn how to buy cryptocurrency, so be prepared to create several strong passwords throughout the process.
I don’t recommend ever storing passwords for crypto accounts on a password manager.
Cloud-based password managers like LassPass and 1Password are vulnerable to remote attacks. Even though those accounts are encrypted, if your master password is hacked, then you are completely exposed.
So, do not rely on one single password to protect your investments. Also, never store passwords in your browser because those are vulnerable as well.
That’s why I recommend only storing your passwords in your paper notebooks.
Create Long, Strong Fake Answers to Security Questions for Cryptocurrency Accounts
Next, if any accounts require a security question, treat the answers like your passwords.Create fake, long, complex answers.
People can easily find out what you mother’s maiden name was and where you went to high school on Facebook, so keep that in mind.
Also, just like your passwords, store the fake answers to security questions in your paper notebook.
Step 4: Scan, Clean, and Secure Your Computer from Malware
You need to ensure that your computer is secure and free of any malwarebefore you start setting up any of the accounts and wallets you will set up to learn how to buy cryptocurrency.
There are a ton of free tools and services available to scan and secure your computer. In this article, I’m going to walk you through the scanning, cleaning, and securing process using Malwarebytes and if you use a PC, Keyscrambler by QFX.
These are all high-quality cyber security solutions that will help protect your computer from hackers.
Require a Long, Strong Password to Access Your Computer
First, if you don’t already, require a strong password to access your computer. So go ahead and make your first entry into your notebook: your brand new super strong computer password!
Next, let’s do a full and complete malware scan of your computer using Malwarebytes:
Open your internet browser and go to https://malwarebytes.com
Scroll down to all products and under the “for home” section, choose Malwarebytes for Mac or PC
Click Learn more and then click “Free Download”
Retrieve the downloaded file and open it to start the installation process
Click through the installation wizard until the installation is complete and then click “Close”
Next, open Malwarebytes on your computer and click “Scan Now”
If you are clean, congratulations! If you have some threat files, Malwarebytes will quarantine them:
Go to the “Quarantine” section and click “show quarantine” to view the files that were quarantined.
Then click the “Clear Quarantine” button to permanently delete all the threat files.
Secure Your Computer with a Trusted Computer Security Provider
Finally, you need to secure your freshly cleaned computer. I personally recommend using the paid version of Malwarebytes, but you can other computer security providers like Trendmicro or similar. Just make sure you choose a reputable security solution to protect your computer.
If You Use PC, Consider Using a Keyscrambler
If you have a PC instead of a Mac want to go one step further to take your security to the max, I recommend downloading and installing a keyscrambler.
Key Scramblers are great tools that prevents hidden keystroke logging malware from recording your passwords to hack into your accounts by encrypting everything you type in real time.
I recommend going trying Keyscrambler by QFX, but again, there are other key scrambling tools out there you can check out as well.
Use On-Screen Keyboards to Type in Sensitive Passwords
Or if you have an on-screen keyboard on your computer, you can elect to ONLY type out your passwords using the on-screen keyboard. This also prevents keystroke loggers from recording your passwords while you learn how to buy cryptocurrency safely.
Step 5: Secure Your Cell Phone & Setup a Passphrase for New SIM Cards
You will not be accessing crypto-related accounts on your computer alone. Smartphones play a huge role in security and access as well.So you need to take steps to secure your phone.
Require a Strong Password to Access Your Cell Phone
First, if you don’t have one already, require a password to unlock your phone. That way if it’s ever lost or stolen, there is a barrier between a potential hacker and your investments.
Make sure you log the password in your notebook for safekeeping.
Remove Your Cell Phone Number from All Public Websites
Next, you need to remove your phone number from any public website and social media, and try to never publish your cell phone number or cell phone provider publicly or to people you don’t know or trust.
I know this very difficult to do in our social media driven world, but it’s an imperative step to take to ensure the security of your investments while learning how to buy cryptocurrency.
Cell phone numbers are used to access a myriad of sensitive data, including banking, crypto, and two-factor authentication applications we will be setting up later on in this article.
Using your cell phone provider and cell phone number, there are hackers out there who conduct something called SIM theft. This is where hackers steal your phone’s identity by calling your cell phone provider and requesting a new SIM card.
If they steal your cell phone’s SIM card, they can easily hack into your investment accounts and drain your funds.
Set up a Passphrase with Your Cell Phone Provider for SIM Cards
So the next thing you need to do to prevent this from happening is set up a passphrase with your cell phone provider that must be disclosed before activating a new SIM card.
Get on the phone with T-mobile, Verizon, or whoever your cell phone provider is and set up a strong passphrase that must be disclosed before activating a new SIM card on your account.
So just to recap, you need to:
Create a password to unlock your phone,
Remove your phone number from any public sites on the internet,
Never publish your phone number or cell phone provider on public sites on the internet,
Set up a passphrase with your cell phone provider for SIM card activation.
Step 6: Create and Secure a New Email Account with an Encrypted Provider
It’s time to create a brand new unique email address using a handle you’ve never used before anywhere else. This includes your name, nicknames, or usernames you’ve used for accounts anywhere online or offline in the past.
Create a NEW Email Address – NEVER Use an Existing Email Address for Crypto
This new email address should be used exclusively for crypto investments ONLY. DO NOT use an email address you use already and that people know about to open up crypto accounts.
You need something completely random to use for the handle for your new email account – and do not use the new email address for shopping or signing up for newsletters or whatever.
Only use your new email address for crypto and don’t tell anyone you don’t know or trust about it. I recommend setting up your new email account using ProtonMail or another similar email provider that prioritizes security and privacy.
This is one of the most important steps people miss when trying to figure out how to buy cryptocurrency.
I’m going to show you how to set up a brand new email account using ProtonMail:
Next choose your unique username that you’ve never used anywhere else before
Next generate a strong password
Register a recovery email – Make sure the email address you use as a recovery has a strong password!
Then click “Create Account”
Verify that you are a human
Then click complete set up and select “Complete Setup”
Step 7: Download and Setup 2-Factor Authentication Applications on Your Cell Phone
Using your newly secured cell phone, we are now going to download some two factor authentication apps. Two factor authentication is an extra layer of security that is absolutely crucial to set up before investing in crypto.
This is how it works, when accessing an account, after entering your super secure password, you will be required to input a code that is generated on your 2-factor authentication phone app. These codes constantly change every 20 seconds to 30 seconds.
So no one will be able to access your accounts unless they have your cell phone at that particular moment in time.
There are two different authentication apps we will be downloading: Google Authenticator and Authy. Some people prefer one over the other and some people use both.
In this article, I will walk you through downloading and setting up both so you can get a feel for them.
Authy App Setup for Cryptocurrency Accounts
First, let’s download Authy:
Go to the app store on your phone, type in Authy, and download the Authy app.
When it’s finished downloading, enter your cell phone number, and click okay.
Next, enter your email address you created using ProtonMail and click next.
A window will pop up that says “Get account verification via Phone call or SMS.”
Make a selection and then enter the registration code in the space provided.
Tap the add icon on the accounts menu.
You will be prompted to create a backups password.
Create a strong password, log in it your paper notebooks, and enter in the space provided.
Click “Enable Backups” and confirm your password by entering it again. It’s important to set up a backups to ensure you can restore your accounts if you upgrade or lose your phone.
The next screen provides instructions on how to set up authenticator accounts. Once we start setting up accounts later on in this article, I will walk you through this process.
On the main screen, tap on “Settings” and then choose “Protection Pin.”
Tap the “Protection Pin” button and enter a pin. This will require a pin to be entered before opening the application.
Next, tap the “Protect Entire App” button and enter your pin again. Your “Protection Pin” screen should now look like this:
Next tap “Cancel” and then tap “Devices.”
Turn the “Allow Multi-device” setting to OFF.
Now no one else can access your Authy account on any other device except your specific cell phone. Taking advantage of all security measures is extremely important. Now your Authy app is secure.
Google Authenticator App Setup for Cryptocurrency Accounts
Next let’s download Google Authenticator:
You will need a gmail account to complete this setup, so if you don’t have one already, create one with a unique handle you’ve never used before and a strong password.
Next open your google account security page.
Go to the app store on your phone, type in Google Authenticator, and download the Google Authenticator app.
Once it’s finished downloading, open the app and choose “Begin Setup.”
You will see two options: “Scan barcode” and “Manual Entry.”
Go to your internet browser and open your Google account security page.
Next scroll down to the 2-Step Verification section and click “Get Started.”
Enter your gmail account password and then enter your cell phone number.
Choose to receive a text or phone call to receive a verification code.
Enter the code you receive in the space provided and click “next.”
Once the code is accepted, choose “Turn On.”
Then, on the next page, scroll down and choose “Set up Google Authenticator.”
Choose the type of phone you have and click “Next.”
Now go back to your cell phone and select “scan bar code.”
Lift your phone so the camera faces the computer screen to scan the code. Once it’s successful, your phone will show a 6 digit code that changes every 20 seconds or so along with your gmail address.
Now, go back to your computer and click “Next.”
Enter the code currently displayed on your phone before the time expires and the code changes and click “Verify.”
Once the code is verified, click “done.”
If you have been using your gmail account for a long time and you are not sure if it’s automatically logs into old devices you don’t use anymore, scroll down to the “Devices you trust” section and choose “revoke all.” That way, no matter what device you are using to log into your gmail, 2-step verification will be required.
Now you have two different authenticator apps. Most accounts work with the Authy app, however some accounts only work with Google authenticator.
When setting up 2-factor authentication with accounts, you must choose one authenticator over the other. You cannot set up 2-factor authentication for the same account using both Google and Authy.
Set Up 2FA for Your New ProtonMail Account
Choose the one you would like to use to set up two-factor authentication for your ProtonMail address you created in the previous step and follow these instructions:
Log back into your ProtonMail account.
Next, click on settings and choose the “security” tab and then click “Enable Two-Factor Authentication.”
You can read their 2FA guide and then click “Next.”
Scan the QR code with your two factor authentication device to set up your account then click “Next.”
Enter your password and then enter the two-factor passcode that is displayed on your phone in Authy or Google authenticator.
ProtonMail will also provide you with several one-time use recovery codes. Save these codes in you paper notebooks. If you ever lose your phone and are unable to access your authenticator app, these codes will be the only way to log into your account.
You can enter these codes instead of the 6-digit authentication code. Note that each code can only be used once, and they must be used in the listed order, so be sure to save all the codes.
Now 2-factor authentication should be required when logging into your ProtonMail account. If you need more support for setting up two factor authentication with ProtonMail, check out the guide at this URL:
While continuing to learn how to buy cryptocurrency, make sure you ALWAYS enable two-factor authentication on accounts whenever it is available.
Step 8: Setup and Secure Cryptocurrency Wallet
Now for the moment you’ve all been waiting for: how to set up a wallet!
There are several different types of wallets out there and some wallets only support specific cryptocurrencies. Wallets are a big topic in crypto and warrant its own article all-together.
So in this article about how to buy cryptocurrency for beginners, I’m going to walk you through setting up a safe, easy to use, and insured wallet using Coinbase. Coinbase has wallets that support Bitcoin, Ether, Litecoin, and Bitcoin Cash.
All digital currency that Coinbase holds online is fully insured. This means that if Coinbase were to suffer a breach of its online storage, the insurance policy would pay out to cover any customer funds lost as a result.
The insurance policy covers any losses resulting from a breach of Coinbase’s physical security, cyber security, or by employee theft.
However, this insurance policy does not cover any losses resulting from the compromise of your individual Coinbase account or individual error. So it is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase.
This is why it’s crucial to understand what you are doing and learn how to buy cryptocurrency safely and securely before investing any funds.
Always Double and TRIPLE Check All URL’s You Access for Cryptocurrency
A quick note, once you start accessing wallets and exchanges online, it’s important to double and triple check the URL you are accessing to make sure it’s the real once.
Always ensure there is an https protocol in the url, not just an http. This means the site has an SSL or a secure sockets layer protecting the information passed through the website by a user. Always ensure that the actual URL is correct as well.
There are a ton of phishing sites that pretend to be the real site in order to steal your username and password to gain access to your account on the real site.
When learning how to buy cryptocurrency, it is extremely important to stay on high alert for sites pretending to be the real ones. So be extra careful out there.
Use this Link to Join Coinbase and Receive $10 Worth of Bitcoin FREE
Use the link in the button below to join Coinbase to receive $10 worth of Bitcoin for FREE when you invest more than $100 in your account.
You will have the option to set up an individual account, or a business account.
Type in your first and last name, followed by your ProtonMail email address and an extremely strong password.
And remember, never save any passwords on your browser or password manager. Log the information in your paper notebooks.
An email will be sent to the email address you entered.
Log in to your ProtonMail account, open the email from Coinbase, and click “Verify Email Address.”
Next you will be brought to the login screen to login. An updated user agreement may display. Read over it and then click “Accept terms”
Once logged in, you will be brought to a dashboard that shows some information about Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Scroll down to the “Complete your account” section and click “add your phone number”.
Choose your country, enter your cell phone number, and click “send code.”
You will receive a code via text message to your cell phone. Enter it into the field provided online and click “submit.
Next, scroll up to the top of the page and click on “Settings.”
Next, choose the “Security” tab.
Scroll down and choose “Enable Authenticator.”
Another code will be texted to your cell phone. Enter it into the space provided and click “Verify.”
Using Authy or Google Authenticator, add the account by scanning the QR code with the authenticator.
As the instructions read, in step 3 on the screen, write down the 16 digit secret code in your paper notebooks. If your phone gets lost or stolen or erased, you will need this code to link Coinbase to a new authenticator app once installed again. Do not ever share this code with anyone. Keep it in your paper notebook and only use it to link Coinbase to a new authenticator if your phone is lost, stolen or erased.
Once the QR code has been scanned, enter the 6 digit code provided by your authentication app. Then click “Enable.” Now your two-factor authentication is set up for Coinbase.
In the section next to it, I recommend keeping the settings to require a verification code to send any amount of digital currency for an extra layer of protection.
Next, click on “Accounts” and scroll down to and click on “Vault”. A vault is a more secure type of wallet Coinbase offers.
It’s ideal for large balances, but it also delays any withdrawals and requires multiple approvals before transferring money out of it.
If you are planning to buy and hold Bitcoin, Ether, Litecoin, or Bitcoin Cash for a long period of time and don’t mind waiting a few days for withdrawal approvals, this is a great type of wallet to set up.
Even if you’re looking to be more of an active trader, let’s go ahead and create a vault for you, as it is a safe wallet to store Bitcoin, Ether, and Litecoin for long term investing.
So click “create vault” and choose the currency you wish the wallet to support. In this article, I’m going to choose bitcoin.
Choose a name for your bitcoin vault, and click “Next.”
You will be brought to a screen that allows you to choose whether you will approve your own withdrawals or if you would like to invite people you trust to co-sign on the withdrawals. In this article, I am going to select “Individual” and click “Next.”
Withdrawals from your Coinbase bitcoin vault wallet will need to be approved using two email addresses. I suggest using the gmail account you created or freshly cleansed during this article, because, if you followed the steps, a strong password protects it, as well as two factor authentication.
Enter the email address and click “Next,” open the email, click “Use this e-mail to approve withdrawals,” and then you should be all set.
On the screen, you will see the two email addresses you will need to access to approve withdrawals, as well as the email addresses and phone number that will be notified when withdrawals are requested, and you see that a 48 hour time delay is required before withdrawals will occur.
Now click, continue to vault.
Now, under the accounts menu, you will see your Bitcoin wallet, your Bitcoin vault, an Ether wallet, a Litecoin wallet, and a Bitcoin Cash wallet. If you plan on investing in Ether and Litecoin, I urge you to repeat the process and create vaults for those currencies as well.
For long term investments, hold the Bitcoin, Ether, or Litecoin in the corresponding vaults. For short term and trading purposes, hold Bitcoin, Ether, or Litecoin in the regular corresponding Coinbase wallets.
Great! So now you have Bitcoin, Ether, and Litecoin wallets set up. In another article, I will show you how to set up other types of wallets like cold storage for increased security, as well as wallets that support other cryptocurrencies like IOTA, Stratis, and EOS.
Step 9: Setup and Secure an Account with a Cryptocurrency Exchange
Now it’s time to create accounts for cryptocurrency exchanges. There are a ton of exchanges out there and I will share other guides with you on how to buy cryptocurrency with trusted altcoin exchanges.
Coinbase is the simplest and most user friendly exchange, and since we set up your first wallets on Coinbase, let’s go ahead and finish setting up your account so you can use the exchange.
A quick note about using Coinbase as an exchange: it’s ease and convenience comes at a price. Buying and selling Bitcoin, Ether, and Litecoin on Coinbase is a little pricier than other exchanges.
In another article, I will show you how to buy cryptocurrency with GDAX, which is an exchange owned by Coinbase that allows you to buy and sell Bitcoin, Ether, and Litecoin with lower fees.
In another article, I will show you how to set up accounts with other exchanges that allow you to buy and sell other cryptocurrencies in addition to Bitcoin, Ether, and Litecoin.
Going back to Coinbase, go back to the dashboard, and click “Add a payment method.”
You can choose to add a bank account, credit card, debit card, or set up a wire transfer to fund your account. Bank account transaction can take several days to hit your account. However, the moment you buy using a bank account, the price will be locked in at whatever it was in that moment, however, the trades can take 4 to 5 days to process and hit your Coinbase account.
To add a bank account, select your bank and link your account by providing the login credentials to your bank, account number, routing number, and confirming a small deposit and withdrawal by Coinbase.
Credit and debit cards are good to make small investments, you simply need to enter your credit or debit card details. However only Visa and Mastercard are accepted at this time.
After entering your credit card information, you will need to confirm two withdrawal amounts from Coinbase on your credit card statement to verify the card for use.
Setting up a wire transfer requires verifying your identity. Click “Verify ID.”
You will need to enter your legal name, date of birth, physical address, the last 4 digits of your social security number, select from a multi-select list what you use Coinbase for, whether it be investing, trading, or trading on other exchanges, disclose the source of your funds, whether it be from your occupation or investments, and choose your current occupation.
Click “Next,” and once your identity has been verified, click “Continue” and you will be brought back to the dashboard.
When selecting wire transfer now, you will see a reference number you can use to set up a wire with your bank account.
Once your payment methods have been verified, congratulations! You are ready to start investing in cryptocurrency…. almost…
Step 10: Record Instructions on How to Access Accounts and Create a Will or Trust in the Event of Death
Now that all of your accounts are set up and you’re ready to invest, there’s one more step you need to take.
Most of the things covered in this article are not easy to figure out on your own. A lot of people investing in crypto are young, single millennials and if something were to happen to you, I’m sure there’s someone out there you would want to benefit from your investments.
However, you know that your mom, grandma, boyfriend, or whoever you would want to benefit from your investments in the event of your death, would probably have a hard time figuring it out all by themselves.
Using your paper notebooks, record detailed notes and instructions from this article on how to safely access, transfer, and cash in your funds if they ever needed to do so. Try to keep it simple, but also detailed enough so even your grandma could do it.
I also highly recommend going the extra mile and create a will, trust, or other documents that could be legally executed in the event of your death to carry out your wishes.
So, on that happy note, thank you for reading this guide on how to buy cryptocurrency. I hope you found this article helpful and easy to follow.
If you have any questions or additional tips on how to buy cryptocurrency, please leave them in the comments below. Be safe out there.