The Complete Guide To Buying Digital Currencies (Cryptocurrencies)

The Complete Guide To Buying Digital Currencies (Cryptocurrencies)

bitcoin

By using this step-by-step guide, you’ll avoid hefty transaction fees that some exchanges charge and be well on your way to trading or holding currencies long-term.

We’ll start off by setting up all of the accounts we will need for this guide:

Prerequisite: Create a Coinbase account.

Coinbase is recommended as it supports many countries and is all FDIC-insured.

  • Use the link above and receive an extra $10 worth of Bitcoin if you fund your account with $100 or more.
  • Go through the guided steps to setup your account.

Prerequisite: Create a Binance account.

Binance will be used to buy currencies other than Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

  • Use the link above to save 50% on trading fees.
  • Go through the guided steps to setup your account (no verification of identity required).

From Here, Choose What You Would Like To Do:

  1. Buy Only Bitcoin, Litecoin, Ethereum, or Bitcoin Cash

If you ONLY have an interest in purchasing one of the above currencies, follow these steps.

 

Purchase Coins from Coinbase

  • From within Coinbase, purchase only $100 worth of the currency of your choice.

Pro-tip: If you connect your bank account, your purchase fee will be the lowest.

Go to GDAX.com

 

  • GDAX is owned by Coinbase, and this is where you will trade and/or purchase currency beyond your $100 investment because fees are essentially non-existent.

 

  • In the GDAX interface, go to “Deposit” -> “Coinbase Account” and transfer your funds from Coinbase to GDAX.
  • From here, you can either begin trading your investment or connect your bank account to buy more currency from GDAX. Do not continue to use the Coinbase buying function, as fees will be higher there.

   2) Buy Other Currencies Such as RIPPLE, IOTA, and Others

If you’d like to purchase additional currencies beyond what Coinbase offers, follow these steps.

Purchase Coins from Coinbase

  • From within Coinbase, purchase desired amount of Bitcoin (BTC). You will need this to exchange for the currency of your choice.

           Pro-tip: If you connect your bank account, your purchase fee will be the lowest.

Go to GDAX.com

  • Transfer your purchased coins to GDAX. Under BTC, go to “Deposit” -> “Coinbase Account” and type in the amount of Bitcoins you’d like to transfer over (this will be the amount of BTC you’ll use to buy other cryptos).

Go to Binance

  • Go to Binance -> “Funds” -> “Deposits Withdrawals”
  • Find BTC, and click on “Deposit” and copy the BTC deposit address

Go back to GDAX

  • Under BTC, go to “Withdraw” -> “BTC Address”
  • Paste the address you had copied from Binance into the field
  • Type in the amount of BTC you would like to transfer to your Binance account

    Go Back to Binance

  • Go to “Exchange” -> “Basic” or “Advanced” (just depends on your preference).
  • On the right-hand column, click on the currency you’d like to purchase
  • BUY YOUR Currency! (Remember, you’re trading BTC for the currency of your choice)
  • Type in the price of BTC you would like to purchase your new currency at. Binance makes it easy by giving you options (25%, 50%, 75%, 100%) of the amount you’d like to buy.

Optional Step – Check Your Transaction on a Block Explorer

*Contributed by SingleGhost on Reddit

You Can use a block explorer to check the status of your currency transactions

Go to a block explorer

  • For BTC: https://blockchain.info/
  • For ETH: https://etherscan.io/
  • Alternatively, Google “bitcoin block explorer” or “ethereum block explorer” to find alternatives if these two are down
  • Search your Binance deposit address in the block explorer
  • Locate the incoming transaction from Coinbase
  • Wait for the transaction to be confirmed by the network

Example of Buying Ripple through Binance (With Photos)

Purchase Coins from Coinbase

  • From within Coinbase, purchase desired amount of Bitcoin (BTC). You will need this to exchange for the currency of your choice.

           Pro-tip: If you connect your bank account, your purchase fee will be the lowest.

bitcoin

 

Go to GDAX.com

  • Transfer your purchased coins to GDAX. Under BTC, go to “Deposit” -> “Coinbase Account” and type in the amount of Bitcoins you’d like to transfer over (this will be the amount of BTC you’ll use to buy other cryptos).

bitcoin

Go to Binance

  • Go to Binance -> “Funds” -> “Deposits Withdrawals”
  • Find BTC, and click on “Deposit” and copy the BTC deposit address

binance

Go back to GDAX

  • Under BTC, go to “Withdraw” -> “BTC Address”
  • Paste the address you had copied from Binance into the field
  • Type in the amount of BTC you would like to transfer to your Binance account

gdax

    Go Back to Binance

  • Go to “Exchange” -> “Basic” or “Advanced” (just depends on your preference).
  • On the right-hand column, click on the currency you’d like to purchase
  • BUY YOUR Currency! (Remember, you’re trading BTC for the currency of your choice)
  • Type in the price of BTC you would like to purchase your new currency at. Binance makes it easy by giving you options (25%, 50%, 75%, 100%) of the amount you’d like to buy.

Source: google docs

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