Cryptocurrencies have witnessed explosive gains over the last decade and if you’re not already invested in this area, it’s still not too late to get involved. As an investor in the UK myself, it can seem a little daunting to take those initial steps into an asset class that most people you know have very little knowledge of.
This post will give you the stepping stones you need to buying your first crypto coins and perhaps making a tidy profit too!
Getting an Electronic wallet
An electronic wallet is a good starting point for buying cryptocurrencies. An electronic wallet is also called a hot wallet as opposed to a cold storage wallet which usually takes the form of an offline USB key such as a TREZOR or a Ledger wallet.
Cold storage has the benefit of potential increased security, but before you jump in and spend your hard earned bucks – an electronic wallet will serve as a good starting point to learn the ropes.
I’d recommend setting up a wallet with Coinbase. The setting up of the wallet is simple and in no time you will be able to store your coins and also buy them here. I did try other popular providers such as Blockchain.info and Coinfloor, but with both of these services I found serious problems which rendered days of effort in getting set up futile.
I’ll write a more detailed blog post -in coming weeks – comparing Coinbase, Blockchain.info and Coinfloor which will highlight the stengths and weakenesses of each platform so you can make an informed decision.
From this the Coinbase wallet you can buy the King of cryptocurrency, Bitcoin, as well as Ether coins. For other altcoins you’ll need their native wallets (I’ll come to that later) for storage and your bitcoins which you will send from Coinbase to an exchange.
Joining a cryptocurrency exchange
Once you know how to buy Bitcoin on Coinbase, next open an account with an exchange.
I would recommend Bittrex as an exchange that I use regularly. Once you have an account on here you can send you Bitcoins from your electronic wallet to Bittrex.
In Bittrex, the received Bitcoin can be used to buy over 190 different cryptocurrencies. Once you have bought the cryptocurrency, I would send it to their native wallets which you will need to download. For example, I send my STRAT coins from Bittrex to my Stratis Electrum Wallet which was downloaded from that particular cryptocurrency provider. Most altcoin providers have easy to follow guides to installing their native wallets.
Bittrex is not meant to be a long term storage solution of your cryptocurrencies.
As mentioned, you may later look to adding your coins to a cold storage device which can store a range of coins in one place.
Other cryptocurrency websites to visit
A great website to visit for UK crypto buyers is Bittylicious. Here you can buy a range of cryptocurrencies and send them to native wallets. The fees are low (if you are using bank transfer not so good for credit card purchases) and it’s always good to price check rates to get best bang for your buck.
Selling is straight forward too with the money transferred back to your nominated bank. The registration process requires forms of ID and proof of address, but the process is smooth and relatively pain free in comparison to other suppliers like Coinfloor where I really struggled with the set up process.
So there’s the whistle stop tour to starting off your own cryptocurrencies empire.
The below link will get you over to Coinbase where you can get started on your crypto adventure – you wont regret it !