Eleven months ago I joined Steemit.com and was thrown head first into the world of Crypto currencies. To be perfectly honest I still do not understand most of what I read about it. Which is why I decided to write this guide for other n00bs to the arena. Below you will find my steps I took in the last year and how I Buy and Sell all manner of Digital Currency (Coins).
The first thing to know is some basic terminology:
- Cryptocurrency - a wide array of digital currency. This is non-fiat currency which means simply there is no physical coin or paper involved. It is all electronic!
- Fiat - Fiat is traditional currency like US Dollar, Euro, Great Britain Pound, etc.
- BTC - Bitcoin - the oldest Cryptocurrency and currently the standard for buying all other cryptocurrencies.
- Steem/Steem Power/Steem Backed Dollars - the three types of cryptocurrency that Steemit runs on. Steem and Steem Power are earned for Posting, Commenting and Curating. Steem can be converted (at any time) to Steem Power (SP) or Steem Backed Dollars (SBD). SBD can be converted at any time to Steem or SP. Additionally Steem and SBD can be bought and sold on Steemit.com and multiple exchanges.
- Exchanges - These are marketplaces where you can buy/sell/trade numerous different currencies. Often times both Crypto and Fiat Currencies.
Sites you will need to know/use/register on:
- https://Bittrex.com - This is one of many different exchanges and is my personal favorite. You can buy/sell many many different Crypto and Fiat currencies.
- https://bitpay.com/card/ - This is a Visa Credit Card that you can load Fiat Currency on and Bitcoin and spend in the real world just like Fiat. You can have payroll direct deposited to it as well.
- https://localbitcoins.com - If you want to buy Bitcoin with Bank Transfers, Wire Transfers, Credit Card, Cash (in person), Prepaid Debit Cards or many other ways then this is the place to go. If you get a BitPay card and have your pay loaded to it then this site will become obsolete for you, unless you want to convert FIAT that isn't on your BitPay card.
Step 1: Making your first Purchase of Bitcoin!
I am going to assume that most of you are like me and do not have any Cryptocurrency yet and need a quick and easy way to get some. So head over to LocalBitcoins and register an account. Make sure to "Show Real Name" under Settings once your account is active.
Now, to decide how you want to pay for the Bitcoin. Once you decide login to localbitcoins.com and click Buy Bitcoin at the top of the screen. Now you can select how you want to pay from the list and it will show you a couple people looking to sell that way.
Once you find an offer you like contact the seller and follow the instructions given by localbitcoins and the seller. After the purchase is completed your Bitcoin will show in your Wallet on LocalBitcoins.com.
Step 2: Transferring your New Bitcoin to Bittrex!
We are going to move it to Bittrex for several reasons, one it is more secure than LocalBitcoins, two you can Buy/Sell your new BTC for other Crypto Currencies (like Steem) once we do. So to get started go to Bittrex and create an account, if you haven't already!
Once you are logged into Bittrex click on Wallets (top right of page), you should see something like this:
Once you see the list of Crypto Wallets go over to the search box on the right side of the list and type: BTC
You should now see this:
Now click the Blue + sign to the left of Bitcoin in the list. It will display a screen like this:
Copy the "Address" in the top box to your Clipboard. It will look like this: 1P63rJr7Kci38Xu6PuUYCmKx4vJ1kqQmmN
Now go back over to Localbitcoins, login and click on your Bitcoin balance on the top right of the screen. On the page that loads on the left it will say "Send bitcoins" and under that it will say "Receiving bitcoin address". Click in that field and paste the address we got from Bittrex earlier. Now in the "Amount in bitcoins" field type in the total amount you have (shown just above "Send bitcoins". Now click Continue!
This process will typically take 30 to 60 minutes but on busy periods may take several hours. Don't freak out if it isn't there for 3-4 hours.
Step 3: Buying different cryptocurrencies!
You can find my investing plan here.
There are literally tens of thousands of cryptocurrencies on the market today. The most common are featured in the Ticker on the Bittrex.com home. Buying them is easy, as is selling them.
At the top of any page on bittrex.com click on
It will show you the 18 most active Cryptocurrencies at that time.
Once you choose which one you want to buy click on it from the list above and you will see a page like this:
This is the what every Buy/Sell page for all crypto's on Bittrex will look like. It is pretty straight forward. If you want to Buy you use the box on the left, if you want to sell you use the box on the right.
