Everyone is talking about it, everywhere you read about virtual coins (or cryptocurrency or cryptocoin), but trying to trade this new commodity is not easy and straightforward …
I try to tell my experience in this kind of “cryptocurrency for dummies”
Cryptocurrency … these strangers
First of all, what is the cryptocurrency? A look at Wikipedia will clarify your ideas a bit. What makes cryptocurrency very interesting is their daily oscillation and the potential gains (or losses) that can be achieved. To cure your curiosity, I tell you that if you had invested $ 1000 in bitcoin in 2010, now you could boast well $ 35 MILLION !!! Could not believe it, but it’s all true.
How do I buy Cryptocurrency?
Let’s go back to us … how to buy Criptocurrency? Unfortunately, this is not like for the stocks, for which, more or less, each bank has home banking web page, which allows us to buy and sell. Criptocurrency can be purchased through digital wallet (Wallet) or via Exchange online (trading platforms) dedicated to purchasing criptovalutes only.
By evaluating the alternatives found on internet, the 2 platforms that convinced me most were Coinbase (Wallet) and Poloniex (Exchange).
It is one of the most widely used Wallet for the purchase of Bitcoin and it also gave you the option to buy Ethereum and Litecoin (these are 3 higher Cryptocurrency). Coinbase, after a two-day identity registration and verification process, provides users with 4 wallets:
- Euro – the “base” portfolio that can be recharged via SEPA
- BTC – the portfolio that will contain Bitcoins
- ETH – the portfolio that will hold the Ethereum
- LTC – the portfolio that will contain Litecoin
Each portfolio has an alphanumeric address through which you can receive virtual currency credit from other Wallets or Exchange.
Deposit money on Coinbase, buy and send Criptovalute
You can either recharge your EUR wallet or buy directly criptocurrency via credit card, although I suggest to recharge the euro account by wire transfer (free, but it takes 2/3 working days) because, by purchasing credit by credit card, Commissions are too high (4%). Here is the Coinbase Cost Summary Table.
NB: When making a wire transfer, it is essential to use the caution indicated on the next screen as a “reference ID”. This will serve Coinbase to direct the money to our account!
Coinbase is really a very simple platform (besides being the only one to have an app), but this extreme simplicity has a limit … you can not set a purchase or sale order at a pre-determined price but you have to rely on Market price (without being able to make good use of the important oscillations that the criptocurrency does every day). The “advanced” function is represented by notification alerts, which can be set if the price exceeds or falls below at a certain value.
To help you plan your purchase or sale orders at pre-set prices, you can sign up at gdax.com (the official Coinbase Exchange), which offers more advanced features. In addition to accepting sales and purchase orders at a certain value, it allows you to set stop (both purchase and sales). Also, it allows you to transfer funds to and from Coinbase completely free!!
Withdraw from Coinbase
If you decide to go back for some criptocurrency on your Bank account, you need to register your Bank account on Coinbase (if you have recharged the coinbase via SEPA, the account is already available) and select the “Transfer” option. Then simply select the amount of Euro you want to withdraw and wait 3 working days. For the withdrawal, the fee to be paid is € 0.15 regardless of the amount you intend to withdraw.
Ripple, Dash, Ethereum Classic, Ardor, etc. … how do I buy the other Cryprocurrencies?
If, besides the top 3, you want to buy other cryptocurrencies (which swing much more than the 3 Major), Coinbase and gdax are not enough … it needs another Exchange. The choice is wide, but the ease of use, the speed of registration and the variety of currencies treated me have made me claim to Poloniex.
How do I recharge my account on Poloniex?
Even on Poloniex, each registered user is associated with an account for each criptovalute. However, unlike Coinbase, there is no euro account, but dollars account. The dollar bill must be recharged by sending a dollar transfer. You can also transfer other criptovalutes to the corresponding Poloniex accounts (for example, transferring Bitcoin from the Bitcoin account to Coinbase to the Bitcoin account on Poloniex). NB: It is necessary to verify that the transition of money between the accounts is equal to the cryptovalue (that is, from a Bitcoin account I can reload another Bitcoin account and NOT an account of another currency). Otherwise, your money could be lost irretrievably!
Like gdax, Poloniex offers the possibility to plan purchase and sales orders at a pre-set price and has historical data and various indicators related to so many criptovalutes.
Withdraw from Poloniex?
As with Coinbase, if you have registered an account on Poloniex, you can Withdraw what’s on the Polish Dollar account directly in your bank account in dollar. Personally, I prefer to avoid sharing my bank account coordinates with too many managers, so I convert everything on Poloniex in Bitcoin and transfer Bitcoin to my Coinbase account in Bitcoin (the transfer is instant and costs 0.0001 Bitcoin – about 2, 5 €). Subsequently, I converted the Bitcoins into Euros and, finally, transfer Coinbase Eur Wallet Eur on my bank account.
If you have any suggestions to give me, please comment !!!! 🙂