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How To Become a Cryptocurrency Trader (Simple Tutorial)
I have had an increased load of friends and family genuinely interested in Nexus and Cryptocurrency. Unfortunately, it takes a great deal of time to explain to each and every person exactly how to enter into the cryptocurrency markets the easiest way possible using the most laymen terms.
So here I present a basic tutorial on how to:
- Purchase Bitcoin using a Bank Card or Bank Transfer
- Purchase other cryptocurrencies for trade using Bitcoin
- Sell those cryptocurrencies for more bitcoin (or less if you buy high and sell low)
- Transfer the Bitcoin back to a USD Exchange and sell to transfer to your bank.
Keep in mind, when you sell Bitcoins they are subject to taxation when sent to a bank. If you sell your bitcoins on a service like www.localbitcoins.com you deal directly with other individuals and bitcoin acts like cash not being recorded by bank records.
This tutorial is mainly meant to help people take their first step into cryptocurrency the easiest and most painless way possible.
If you are not actively trading in cryptocurrencies or would like to save and use your bitcoin off trading exchanges please consider one of the following two Bitcoin wallets. You should never save bitcoin or other cryptocurrencies on an exchange. They are like banks and just like banks should not be completely trusted with the security of your savings.
Step 1: Set up a Coinbase Account
Click the following link for $10 of free bitcoin after a $100 dollar purchase (I also get $10 referral Fee)
Setting up a coinbase account is simple. Now getting your bank to connect to your Coinbase can be a hassle depending on your bank. Sometimes it requires microtransactions to be sent to your bank account which will be 2 transactions say (one 3 cents and the other 47 cents). Then you have to come back to coinbase to verify your bank account.
It may require other security features. They require this due to the fact many people have attempted to scam and steal on the internet. You can get fully verified by providing everything Coinbase asks for and have almost no limits on buying or selling Bitcoin in Dollar Markets.
You can find most of the requirements for verifying your bank account and credit card under the section Payment Methods.
The Next Step is Buying your Bitcoin once your account is verified.
Select your payment method. As long as the amount you are looking to purchase does not exceed your weekly limit, you should have some bitcoin coming your way.
When you use a credit card you can instantly purchase bitcoin at current value and move it to where you want.
When you do a bank transfer you have to wait three days until the bitcoin is deposited. That is because the banking industry is three days slower than bitcoin and coinbase has to wait for your bank to actually send the money to their bank.
The plus is you still get bitcoin at the price you purchased it three days earlier.
Join a Cryptocurrency Exchange
The first page that comes up carries the markets of the most traded altcoins (cryptocurrencies).
You will see their ticker symbols, names, volume (Amount in Bitcoin they are traded), percentages up or down 24hrs, their last trade, 24 hour high, 24 hour low, Spread percentage (Distance between buy and sell orders), and date the coin or token was added to the exchange.
Next step is you want to transfer your bitcoin from Coinbase to Bittrex.
Click the following tab:
It will bring up a screen including all the cryptocurrencies you will own, their BTC value and your total BTC value across all of your coins.
You want to select the following plus sign below to add Bitcoin to your Bittrex account to start trading.
It will bring up the following screen which will give you a public key address. Dont worry… it looks like a very complicated password. It is your public key. This is the address of the Bittrex wallet you will be sending your bitcoin to from Coinbase.
ALWAYS DOUBLE CHECK YOUR ADDRESS BEFORE SENDING FUNDS!!!
Copy the address to your clipboard and go back to Coinbase. Select theSend/Request feature and paste your address where it says Bitcoin or Email Address.
In your Wallets section of Bittrex you will see Pending Deposits. Usually Bitcoin used to take 10 mins but sometimes it takes up to 40 mins to deposit. Which is still 72X faster than a bank so I am not complaining.
Trading on Bittrex Basics
The Last is the last trade price in bitcoin.
Volume is total bitcoin volume for that coin.
Bid is price someone is looking to buy for.
Ask is price someone is looking to sell for and then the 24 the highs and lows plus the chart which includes volume
Altcoins (Cryptocurrency) is priced in decimals of bitcoin. One cryptocurrency can be priced as 0.00000100 BTC or 0.10513781 BTC. The higher the decimal the higher the value. Buy low sell high. That is how you make a profit. What goes up comes back down and what goes down usually goes back up (unless it is a crap project).
The First Box is where you put how many of the coins or tokens you want. The second box is the per token or coin price and the last box is the total Bitcoin being spent include a trading fee.
By placing a buy at a price found in the ASK section you make a market buy off a sell order present in the ASK list. Same works vice versa. You can place a sell at a price in the BID section and make an instant sell. Or you can place a buy or sell and hope your order gets filled. Patience is key.
Sooner or later you will want to sell some of your bitcoin profits for dollars.
Sending Bitcoin Back to Coinbase
Go back to Coinbase and select the following two:
Then find your wallet address in the upper right corner.
The following option will pop up which will present you with your Coinbase Bitcoin Address and a QR Code.
Copy and paste this address (Public Key) into your bittrex withdraw bitcoin by selecting the minus next to bitcoin in your bittrex wallet.
Now paste the address in the form below on bittrex, the quanity of Bitcoin you seek to withdraw and hit withdraw.
Check your email for a confirmation to ensure the bitcoin will leave. Not doing this will postpone some withdraws. This is a safety feature. There are other features you can add for security found in your Bittrex options like Two Factor Authentication.
Selling your Bitcoin
Select what wallet you want to sell from and which bank account you want to send it to. Sometimes it takes a few days until the money is deposited into your account. I have usually had it deposited within the next business day.
Other Cryptocurrency Tools
The following links are tools that can be used for cryptocurrency and bitcoin.