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:
- Create Accounts with Coinbase and Binance
- Buy Bitcoin or Ether on Coinbase
- Send Your Bitcoin or Ether from Coinbase to Binance
- Exchange Your Bitcoin or Ether for the Altcoin You Want
- Withdraw Your Altcoin to Your Corresponding Altcoin Wallet
This is the second article on how to buy cryptocurrencies. If you haven’t already, please check out the first article that explains what you need to know and do BEFORE investing in digital assets like cryptocurrency. Click here to read part one of how to buy cryptocurrency 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.
Step 1: Go to https://www.Binance.com
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!
Between these two accounts, you will be able to exchange your bitcoin and ether for all of the major cryptocurrencies and some minor altcoins.
Step 2: Buy Bitcoin or Ether on Coinbase
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.
How to Buy Bitcoin or Ether on Coinbase:
- Once you have a Coinbase account, go to https://coinbase.com, and check the URL to make sure you are accessing the real site.
- 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.”
- Then click “Confirm Buy.”
Great! Now you’ve got some bitcoin to work with.
Step 3: Send Your Bitcoin or Ether to Binance
- On the top menu of Coinbase, select “Accounts.”
- 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.