Those who have had invested in crypto currencies at the right time, are enjoying perks of it. Six months ago, in June 2017, the value of BitCoin (BTC or XBT) was around $800. And today after six months, in December 2017 it has crossed the milestone of $17,000. In the similar fashion AltCoins (which are Alternatives to BitCoin) have also performed too well. Recently Ripple (XRP) has seen surprising growth. We have had covered Top 5 Best Performing BitCoin Alternatives (AltCoins) here.
Many newbies to crypto currency wonder if they can exchange or trade their local currency or US Dollars with BitCoins or AltCoins? Today we will cover up the guide to get started with building your cryptocurrency portfolio. Invest only what you can afford to lose, and never put your all eggs in one basket, so that you can diversify the risk. First of all you will need to buy BitCoins from the fiat currency (for instance US Dollars or your local currency). We will cover this up right below.
How to Buy, Sell, Trade BitCoins & AltCoins with Local Currency?
CoinMarketCap.com – This website lists the details about current market value of cryptocurrencies. You should keep an eye on it to see the trending cryptocurrencies. Trend should be positive. There are multiple ways to identify a good performing cryptocurrency, which include Market Cap Value & Price Graph. The more the market cap value, the more trustworthy the cryptocurrency is. And price graph should be showing upward / positive growth trend. Once you have found the best cryptocurrency, you can buy it using the method given below.
How To Buy or Sell BitCoins at LocalBitCoins or CoinBase?
You need to have BitCoin in order to purchase any of the AltCoins. BitCoins can be purchased from LocalBitCoins or CoinBase. You can purchase BitCoins from any amount starting from ($5 to infinity) – The bigger the amount, better the exchange rate. Benefit of purchasing BitCoin from LocalBitCoins is that you can find out local exchanger who can sell you BitCoins with wide variety of payment methods such as PayPal, Payoneer, Online Bank Transfer (Wire Transfer) or even Cash Payments (face to face). Please make sure to use your real name while creating the account at LocalBitCoins as most of the sellers do ask for verification documents to identify your real name and that must match with your account name.
Once you have reached a sufficient trust level with frequent transactions at LocalBitCoins, you will also be able to sell BitCoins at LocalBitCoins at a profit. The price / value of BitCoin is generated dynamically in real time and is multiplied with margin level by sellers, so that you can earn good profit by selling BitCoins.
If you want to buy BitCoins worth $1000, you need to enter this amount under how much you wish to buy and it will show the BTC value that you will get in return. Now you need to click on Send Trade Request. There might be limits to buy BitCoins on new accounts, so you need to make few transactions to get the limits enhanced for purchasing more BitCoins. You can also keep an eye on the market value of BitCoins in US Dollars by using BTC to USD Converter or USD to BTC Converter.
LocalBitCoins ensure the security of your transactions with the help of escrow. Once you have placed the order to buy BitCoins, BitCoins from the seller’s account will be escrowed to LocalBitCoins company’s account. Now seller might ask you for the verification of documents to identify your real name. You can upload your document instantly. Then seller will send you the payment information details, where you have to make the payment.
Once you have made the payment to seller, the seller will probably ask you to send the screenshot of payment sent. You have to send the payment receipt and click on payment done. Once the seller verifies that payment has been received, the seller will release BitCoins and they will be successfully transferred into your LocalBitCoins wallet. You can send them anywhere such as for any payment purpose, for buying AltCoins at any exchange or store them into Cold Hardware Wallets.
Sending BitCoins from LocalBitCoins or Coinbase to Bittrex Exchange to Purchase or Trade AltCoins
BitCoins can be traded with other coins also known as AltCoins at Bittrex Exchange – It is cryptocurrency exchange where you can trade in BitCoins or AltCoins. Once you have created the Bittrex exchange account, you need to get it verified by sending your documents, once it has been enhance verified, you will be able to buy / sell / trade cryptocurrencies at Bittrex Exchange.
Open Bittrex Exchange and click on Wallets, there you will see lots of AltCoins / cryptocurrencies listed. You need to click on Plus sign (+) in front of BitCoin – BTC and then click on new address. This will take a while and generate a new BitCoin wallet address for you. Where you can receive BitCoins. Now you have to use Bittrex Exchange’s BitCoin Wallet Address to receive BitCoins from LocalBitCoins.
Click on Wallet at LocalBitCoins, enter the Bittrex Exchange’s BitCoin Wallet Address, enter the BitCoins value you want to transfer from LocalBitCoins Wallet to Bittrex Wallet and click on continue. It will take approximately 20 – 25 minutes to transfer BitCoins from LocalBitCoins wallet to Bittrex Wallet. Now you can go to Markets section at Bittrex and start exchange of BitCoins to AltCoins of your own choice and vice versa. You can also withdraw your BitCoins / AltCoins from Bittrex to Hardware wallets.
Storing BitCoins or AltCoins in Cryptocurrency Wallets
BitCoins or AltCoins have to be stored on Crypto Wallets. Each crypto currency has it’s own wallet. Hot wallets are computer or phone based wallets, online wallets are on websites or exchanges, and cold wallets are hardware wallets that are used to store cryptocurrency for long period of time. It is recommended to use Hardware or Cold wallets for the security of your cryptocurrencies.