Post By: @CryptoLanger
Hey Guys. Here is a post for someone who is BRAND new. Someone who has heard of Bitcoin but has never actually invested in it. Half of the battle is converting your Fiat (current money you use in everyday life) into Cryptocurrency.
If you are a US or Canadian Resident you have two options that I can recommend to use in order to turn your USD/CAD into Bitcoin to get started.
Step one is to register to Coinbase (if you wish to use VISA to pay) or QuadrigaCX if you want to do Bank Wire, Interac E Transfer or a few other methods available. To start you’ll have to verify your accounts and make sure you complete the Know Your Customer (KYC) protocols that are found on all exchanges. They put these stringent protocols in place to protect themselves from government audits to make sure they aren’t letting anonymous traders participate in money laundering.
Once you move your CAD/USD into one of these exchanges (or any exchange you found that accepts these types of Fiat (a word used to describe regular currency that isn’t cryptocurrency) you can now buy Bitcoin, Ethereum, or Litecoin. The three Giants. From here you buy these coins and simply hold on the exchange (Coinbase and QuadrigaCX each generate their own “Wallets” for these coins. So if you just want to buy these and hold them long term then you can simply leave them on the exchange as they are. If you want to trade for other cryptocurrencies you have to move them onto larger volume exchanges that offer a larger variety of coins. These are:
https://www.binance.com/ - Binance, Hundreds of Coins. 5million+ users
https://bittrex.com/ - Bittrex, Another large exchange
https://www.kucoin.com/#/ - KuCoin, Smaller Exchange offering SmallCap Coins
https://www.cryptopia.co.nz/Exchange - Cryptopia, SmallCap Coins
https://www.coinexchange.io/ - Coin Exchange, SmallCap Coins
Each of these exchanges I’ve used. Each of these you can hold any of the coins on as you trade. But LONG TERM, its never safe to keep your money on an exchange. Its beneficial if you want your coins readily available to trade right away. But if you just want to hold ETHEREUM for the next two years then I’d suggest using a Hardware Wallet. A Hardware Wallet; Ledger Nano S, can be bought online and is a piece of hardware you connect onto your computer that acts as Cold Storage (for the coins it supports; see the website for coins it supports). This way it can’t be hacked or can’t be lost. FYI a lot of people keep there money on exchanges and keep it perfectly safe. But just to know if you don’t plan on trading then that’s the safest way to store your coins.
This gets into the Wallet discussion. As I said, wallets are on all exchanges. IF the exchange allows you to trade a certain coin, it will have a corresponding wallet for you to hold it. Now if you want to keep your funds OFF the exchanges then each coin should have their own wallet. (People are hesitant to keep funds on an exchange because of Mt.Gox collapse. Just Google it and you’ll get the history of the collapse of the exchange and how people lost millions).
MyEtherWallet is a site that allows you to store any coins that are built off the Ethereum Platform (over 800+ coins). Although its not an exchange it also has its risks of being hacked. So use it only if you need to use certain coins; but my opinion is its no safer or no riskier than keeping it on an exchange.
Just google the coin your looking for and read on Reddit and Steemit communities on which wallets are safe for which coins and just research what other people say. That’s the best way of finding out. But personally, I keep most of my funds on exchanges and keep some funds on my Hardware Wallet that I want to HODL.
There are several types of Wallets so its best to get the general idea of what types of wallets are out there, and then once you find coins you like; find their corresponding wallets;
• Desktop: wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.
• Online: wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft.
• Mobile: wallets run on an app on your phone and are useful because they can be used anywhere including retail stores. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available on a mobile.
• Hardware: wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline which delivers increased security. Hardware Wallets can be compatible with several web interfaces and can support different currencies; it just depends on which one you decide to use. What’s more, making a transaction is easy. Users simply plug in their device to any internet-enabled computer or device, enter a pin, send currency and confirm. Hardware wallets make it possible to easily transact while also keeping your money offline and away from danger.
• Paper: wallets are easy to use and provide a very high level of security. While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software that is used to securely generate a pair of keys which are then printed. Using a paper wallet is relatively straightforward. Transferring Bitcoin or any other currency to your paper wallet is accomplished by the transfer of funds from your software wallet to the public address shown on your paper wallet. Alternatively, if you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your software wallet. This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code on the paper wallet.
NOTE: Paper wallets need to ensure if you print your WI-FI printer is secure as these are easily accessible to hackers. Just hand write it if concerned.
Now I know that is a lot to take in. Use this as a guide. Ive posted some links to youtube videos of people explaining how to do what I just explained. Sometimes people learn differently and it may take a certain way of explaining it in order for your to truly understand.
Any questions that havent been answered please comment below or ask the community in our Discord Community Group Chat! Follow on twitter @Cryptolanger