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CRYPTOCURRENCY 101: Beginners Guide to Buying, Selling & Storing Bitcoin, Ethereum Etc...

Discussion in 'Investing/Trading/Cryptocurrency/Altcoins' started by huntiii, Jun 16, 2017.

  1. huntiii
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    huntiii New Contributor

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    Whats up. I'm Hunter. I like gold, guns, crypto-currencies, wine and quantum physics. Crypto-currencies being the operative word for this post. This post isn't for debating whether or not getting into cryptos is a smart thing to do or dumb as rocks.

    Its a "how to" post.

    This is for people who have already done their research (or not) and decided to get into it and want to model someone who is already in it rather than whine about how its a ponzi scheme . So if you've got a good strategy/tip in that regard, post it. Otherwise shut it :p

    As a crypto-currency investor and teacher for over three years, in this post I'm going to show you how to safely buy, trade and store cryptos. I'll come back in a bit and update and add to it in the future as needed. Oh, I suck at graphics and word docs and html so even though it may look like a 5 year old pasted what follows into the forum, so it might be missing a value attribute like DEMARCO goes over in his new book but its still good stuff.

    To begin, you need a bank account or credit card, a secure wallet, an entry exchange and a crypto currency trading exchange.
     
    Last edited: Jun 23, 2017
  2. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Admin Post
    Your post was being rejected because you posted too much in one thread.

    And if you're gonna post a bunch of affiliate links, this thread will be deleted. So please don't. Thank you.
     
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  3. huntiii
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    1) CREATE YOUR COINBASE ACCOUNT: Coinbase is a San Francisco based digital asset exchange that lets you turn your fiat currency into crypto-currency. Its the main entry point into the crypto space for most people. Through Coinbase, you'll be able to buy Bitcoin, Ethereum and Litecoin. Although your cryptos are insured and protected in the wallet they provide, coming from the gold and silver markets and seeing whats happened to some previous crypto-currency exchanges, I want my crypto to be under my control as much as possible and not vulnerable to counterparty risk or someone hacking my email etc. To create your Coinbase account, you can buy a small amount of crypto instantly with a credit card. What you'll most likely want to do after that is connect your bank account. The amount you can buy is higher and the fees they charge to buy are lower. As you pass their various "Know Your Customer" verification requirements, your limits will increase.

    Create your Coinbase account at: www.coinbase.com

    Here are a couple "how to set up coinbase" videos:

    Coinbase Intro:
    View: https://youtu.be/k7-9FLYxyIc


    How to Fund Coinbase:
    View: https://youtu.be/Z1wEHwOd5uI
     
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    huntiii New Contributor

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    There were only two referral links. I'll delete them.
     
  6. MarekvBeek
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    MarekvBeek Do more Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    In a bull market everyone is making money, so that's isn't difficult. (let the last three years be exactly that)

    Would rather see how you trade when the bubble pops. Might be interesting.
     
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  7. huntiii
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    2) DOWNLOAD YOUR SECURE WALLET: In order to hold your cryptocurrency, you need a "wallet". There are many different kinds of wallets but I'm not going to discuss them all here. You either want a software wallet or a hardware wallet and will probably end up using a combination of both. For starters and because its free, secure and super easy to use, use the Exodus wallet below first. Then if you get more into cryptos, especially if you're buying tens of thousands of dollars worth of crypto, order a hardware wallet like the Trezor. A hardware wallet allows you to completely disconnect from the internet and store your bitcoin or cryptocurrency offline and even in a home safe.

    EXODUS.IO WALLET - Exodus is a desktop software wallet that you download onto your computer. Its more secure than leaving your cryptos on an exchange or even in coinbase and lets you store your private keys. Its backed up with not only your password but a autogenerated 12 word passphrase as well. Exodus also is integrated with Shapeshift.io which means once you add cryptos to your wallet, you'll be able to trade them for a select few other crypto-currencies if you want. Easy to download and set up, here's a basic outline:

    Step one: Go to exodus.io and download the wallet to your desktop
    Step two: Send your cryptos from your Coinbase account to your Exodus wallet.
    Step three: Back up your wallet.

    Here are the accompanying videos:
    Exodus Intro:
    View: https://vimeo.com/172347797

    Send Crypto from Coinbase to Exodus:
    View: https://youtu.be/pz5Nvb5wEQM

    Backup Exodus:
    View: https://www.youtube.com/watch?v=UGrgX3o799o




    TREZOR.IO WALLET - Trezor has been and is currently my favorite hardware wallet. Ultra secure and easy to use. Have a large amount of bitcoin or crypto? Store it here. You have to pay for and order this one. You plug it into the USB port in your computer and follow the automated set up instructions. After that, if you know how to work Exodus, you'll know how to work Trezor. This is what it looks like and you can get it here TREZOR Bitcoin Wallet | The original and most secure hardware wallet.
    [​IMG]
     
    Last edited: Jun 17, 2017
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  8. huntiii
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    3) CREATE YOUR POLONIEX ACCOUNT: Poloniex is a US based crypto-currency exchange where you can buy, sell and trade about 90 different crypto-currencies. Essentially all you have to do is create your account, pass the "know your customer" (KYC) requirements, transfer some Bitcoin from your wallet to your Poloniex account and then you're ready to buy on Poloniex. To set up your Poloniex account you need to go through their account set up and verification process and then send some bitcoin from your existing wallet to your poloniex account:

    Step one: Make sure you bought some Bitcoin and have it in your Coinbase account or Exodus wallet.
    Step two: Create your Poloniex account
    Step three: Send some Bitcoin from Coinbase or Exodus to Poloniex.
    Step four: Buy your first crypto or "alt-coin" on Poloniex.

    Here are the how to videos:

    Poloniex Signup:
    View: https://youtu.be/n8W1v-SxtFg

    Transfer Crypto from Coinbase or Exodus to Poloniex:
    View: https://www.youtube.com/watch?v=2xrjslrMgaQ

    Buy Your First Crypto on Poloniex:



    So thats enough to get you started safely.

    1) Create and add funds to your Coinbase account.
    2) Download and set up your Exodus.io wallet
    3) Create and fund your Poloniex account
    4) Buy your first crypto on Poloniex

    Two websites to watch to keep on top of the most popular cryptos are CoinGecko: 360 Degree Overview of Cryptocurrencies Chart and CryptoCurrency Market Capitalizations

    If you want a cool app that will let you keep track of all your cryptos, download the "Blockfolio" app to your phone. Just search for it in the app store. Here's a quick video on how to use them:


    View: https://youtu.be/Hzh_SibAEpU
     
  9. huntiii
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    I tend to see most beginners over-trading and losing money even in this market environment. I was also on the trading floor of the Chicago Mercantile Exchange in the Nasdaq pit when it hit 5000 for the first time then crashed. Different markets so far but you'd trade the same just reversed as you did on the way up ha
     
    Last edited: Jun 16, 2017
  10. jpmartin
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    jpmartin Jedi Master

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    For "most people" is certainly not the case. There's quite a lot of people o/s the US who are buying crypto and they are not using Coinbase. A piece of advice on anyone planning to use coinbase. While they are backed by VCs, they had a good few hours of outage when the peak was touched in BTC(XBT) - this is not good for an exchange. Furthermore, they blocked IP addresses o/s the US when this happened - which meant your crypto currency could be stuck and not withdrawn. I believe there's a class action lawsuit against them now. Sad, because they were standing up for privacy!

    Anyways, there are other exchanges out there where you can buy, some charge a premium of course (its time for them to make money baby!)
     
    Last edited: Jun 17, 2017
  11. jpmartin
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    In addition to the hardware & software wallet - there is also a paper wallet, which is basically a printout of the password/keys/qr code - While there are a lot of good reviews about Exodus - I don't believe they have a mobile version, which will help you while you're on the go (80% of people are on mobile). I'm using Jaxx Wallet. So far so good.

    I think people who are new to this should understand, there is the software(protocol) called Blockchain - which powers the entire thing, there is the Exchange - where you buy and sell, and there is the Wallet - where you store the cryptocurrencies. Some exchanges can include a wallet as well (this means you're giving it to them, instead of storing it on your own device, risks associated with outages like coinbase).
     
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  12. jpmartin
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    There are other exchanges like Kraken (US), BTCC (Hong Kong), Gemini (US, Registered),CEX (UK), Quoinex (Singapore) - the KYC part is taking time for Kraken - I heard some people wait like 2 months. When the price of bitcoin spiked, many of these exchanges suffered from overload of KYC. I used Poloniex for my first trade of crypto, so can't complain about them :)
     
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    Ok, and if you're new to Blockchain & Crypto - time for selfish plug, MJ pls delete if you don't wish to have this here - grab my report on understanding this in layman terms. I wrote this around 9 months ago, and identified Bitcoin, Ethereum and one more currency to look out for.
     
  14. Paulli
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    Paulli New Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    Love it Hunter. Thanks for the step by step. Made a couple of first purchases on Coinbase in the past few weeks, and wasn't too sure the direction to take from there.
     
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  15. huntiii
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    huntiii New Contributor

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    You want some more cheese with that whine or are you going to make a suggestion? :p

    For most people in Europe, Canada and America, Coinbase is still the "go to" entry exchange. Many exchanges have issues with/when high volume of people buying all at once occurs. The ones that don't probably don't have anyone buying from them. The lawsuit you cited was just a forum post about a complaint from way back in 2013. In 2016 they did end up being sued because a scumbag crypto promoter used coinbase to take coins he stole from people and cash out. But they were sued because they were the exchange that processed the transactions, not because they stole money from anyone.

    COINBASE is just an entry point. Once you buy you move your bitcoin off the exchange to your Exodus wallet. As for other suggestions, XAPO is good and COINMAMA is an up and comer exchange for many spots not yet supported by Coinbase. If you're in a big city, google to see if there are any Bitcoin ATMs near you just check their fees first.
     
    Last edited: Jun 17, 2017
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    Leoto Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I have a few bitcoins that I bought several years ago (and totally forgot about until I saw the recent price action). I only have about 3.5 BTC, but I want to cash out on at least half of it because I smell a big fat bubble brewing. Does Coinbase let you sell your BTC as easily as they let you buy BTC? Half my BTC is stored in a wallet at blockchain.com and the other half is in an Armory paper wallet.

    Will Coinbase let me open an account with them, fund the account by transferring BTC from my existing wallets, sell the BTC at a fair market price, and then have the USD proceeds deposited into my linked bank account?
     
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    huntiii New Contributor

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    Yes.
     
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    Here is a quick Steemit article I wrote explaining all the different kinds of crypto-currency wallets and why you need one and which one is best for your situation. CRYPTOCURRENCY 101: All About Crypto-Currency Wallets — Steemit
     
  19. Leoto
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    Leoto Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    Thank you, sir. It was only because of your post that it occurred to me to check my old bitcoins and sell them. It was super easy to open a Coinbase account, transfer my coins, and sell some of it. I confirmed this morning that the proceeds got properly deposited in my linked bank account. Super cool - it was like finding $12,000 under my mattress after having forgotten that I put it there! Thanks again.
     
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    Sometimes when I browse threads, I look for the cumulative "net rep" of the contributors on one page before I read it. Minus MJ, this thread has a net rep of +2K. Sorry guys, but I'm out.
     
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    We're crying. Thanks for your huge contribution.
     
    Last edited: Jun 23, 2017
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    In my opinion, crypto-currency is purely speculation/gambling at this point in time. Coins have no intrinsic value, essentially no fiat value and there isn't enough critical mass or regulation to ensure that operators (those creating the coins) are on the up-and-up.

    That said, if you like speculating/gambling, crypto-currency is a great place to be these days. With the concept just hitting the masses, there are a lot of people who are throwing money into the space without much concern for research or due diligence. As long as that continues, currencies will increase in value and "early adopters" will essentially benefit from the pyramid scheme.

    At some point, some currencies will likely establish reputation and fiat value, and others will go away. Whether it's too late to jump on board and make some money is up for debate, but I'm still gambling -- in fact, I bought into three ICOs this week and have made well into the 5-figures on crypto in the past few months. I have no idea if I'll lose it all or make a good bit more, but I don't mind taking a small portion of my portfolio and gambling with it from time to time...

    Btw, as a technology guy, the currencies that interest me the most are those that solve the biggest and most pervasive technology problems. Not surprisingly, those are the coins that have been doing the best the past few months...
     
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    Couldn't agree more. That's why I sold half my Bitcoin (which I bought at $300 per BTC a few years ago, and, until recently, had forgotten that I even owned them) when I saw the current ridiculous prices. The other half I'll keep for speculation and for shopping at Overstock :)

    I think the Blockchain technology itself has a bright future, but I'm not so sure about the future of Bitcoin and Ethereum. I read somewhere recently (I think it was a Tweet) that Bitcoin and Ethereum are like Betamax and VHS - one of them will win, but BOTH will eventually become obsolete.
     
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    Just a heads up, Coinbase is extremely unreliable during volatile markets and buying opportunities.
    You can see for yourself
    site:reddit.com reddit coinbase down again - Google Search

    I actually experienced this myself when Ethereum took a small dip, was unable to get on.
    Since then, I've switched to Gemini....Don't want to miss a good buying opportunity when the time comes..
     
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    Bitcoin has fiat value its currently worth about $2700 fiat dollars. I can sell one bitcoin right this moment, someone will exchange 2700 fiat dollars for it. And what is the intrinsic value of a dollar?
     

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