Lesson 6 – The Process of Setting Up To Trade Cryptocurrency
- Setting Up A Wallet. The wallet is where you store your cryptocurrency, usually Bitcoin. It is from the wallet that you send your Bitcoin to one of the many cryptocurrency Exchanges to buy any of the other currencies. Your wallet is also where you send your Bitcoin from the Exchanges. So Bitcoin is taken out of your wallet when you want to buy the other cryptocurrencies and it Bitcoin is deposited into your wallet when you sell a cryptocurrency. (Selling a cryptocurrency is a conversion of it into Bitcoin). We will use Coinbase as your wallet. Getting a Coinbase wallet is free. (I will cover setting up a Coinbase wallet in a few lessons from now)
- Getting an Account With One or More Cryptocurrency Exchanges. Once you have Bitcoin in your wallet, you need a place in which to go to buy other cryptocurrencies (Altcoins) with it. So, your next step would be to sign up with one or more Exchanges. Signing up with a cryptocurrency Exchange is free. In this course, I will walk you through signing up with Bittrex and I will recommend the two other Exchanges I am signed up with. The reason why you want to have accounts with multiple Exchanges is that one Exchange might not list the Altcoin (aka coins) that you are interested in. Bittrex is the easiest Exchange to use and it lists most of the popular Altcoins. (I will cover getting your Exchange accounts in the lesson after setting up your Coinbase wallet).
- Transferring Bitcoin From Your Coinbase Wallet to An Exchange. Once you have Bitcoin in your Coinbase wallet, you need to transfer all or some of it (the amount is up to you depending on how much you are buying in an Altcoin) over to an Exchange. Since I will have showed you how to sign up with Bittrex, I will show you how to transfer Bitcoin from your Coinbase wallet over to your Bittrex Bitcoin wallet. Once you have Bitcoin on the Bittrex Exchange (or any cryptocurrency Exchange), you can purchase any of the Altcoins you are interested in. (I will cover how to do this after the lesson on getting your Bittrex Exchange account.)
Before I step you through actually buying your first Altcoin (and I will recommend a good one), it is important at this stage that you learn more about the cryptocurrency Exchanges and where to find them.
The Next Lesson (Lesson 7): What Are Cryptocurrency Exchanges? (Check your email tomorrow)