How to buy altcoins?

How to buy altcoins with USD and other fiat currency

If you’re a new investor and just getting into cryptocurrency, it can be confusing figuring out how to buy altcoins. You might be asking where you can buy them, what you need etc.

Before I dive into all the details, let’s quickly define what an altcoin is.

As Bitcoin is the first and foremost cryptocurrency, each additional crypto created is defined as an altcoin. Popular altcoins include Ripple, EOS, Bitcoin Cash, Litecoin and many more. In fact, there are over 1000 altcoins known to the market in 2018.

How to buy altcoins? Step by step

Step 1: Enter the market by exchanging your local currency for Bitcoin or another cryptocurrency.

Step 2: If possible, trade that cryptocurrency on the same exchange for the altcoins you want to buy.

Step 3: If not, send your cryptocurrency to a different exchange to purchase the altcoins you want with it.

Step 4: After finalizing your purchase, transfer the altcoins to your wallet or keep it on the exchange.

Step 1: Enter the market by exchanging your local currency for Bitcoin or another cryptocurrency.

Although this is only step #1, it can be really tricky to understand for someone investing into altcoins for the first time. Keep in mind that most people around the world can buy and sell cryptocurrency (with the exclusion of some countries that have banned it).

This also means that each country has their own set of rules and regulations dictating how people can buy cryptocurrency. Either way, as the first step, you need to exchange your local currency or a foreign one, if you can purchase it, for a trading pair cryptocurrency.

An example would be to trade USD or American Dollars for Bitcoin. Most cryptocurrency exchanges will allow people to trade fiat or their local currency for either Bitcoin, Litecoin, Ethereum or Bitcoin Cash.

As you can’t exchange or buy all altcoins directly with fiat, you’ll need to use another cryptocurrency to exchange or trade it for that.

Important tip: You’ll need to do some research into the cryptocurrency exchanges available in your country. This will help you figure out where prices and fees are the lowest. However, you can also check out some of the most popular cryptocurrency exchanges which do have international coverage such as Bittrex, Binance, Coinbase, and Cex.io.

If you’re not already, register on an exchange or one of these I previously mentioned, get verified, transfer money into your account and buy some Bitcoin (or any other available). The registration process is normally fairly simple, just follow their instructions and you should be fine.

Step 2: If possible, trade that cryptocurrency on the same exchange for the altcoins you want to buy.

At this point, you should have exchanged fiat for some type of cryptocurrency. Let’s say you exchanged USD for Bitcoin.

However, you still want to buy altcoins, let’s say you want to buy EOS and ELA. The easiest option would be to exchange the Bitcoin you have for EOS and ELA – that’s if both those tokens are listed on the exchange you’re on.

This is always the best option (keeping transactions on the same exchange) as it saves you withdrawal fees and a ton of time – that’s if prices are fair and there is enough trading volume to fill your orders.

For this example, let’s assume that EOS is on the same cryptocurrency exchange you have your Bitcoin on and you exchange a portion of that for EOS.

Step 3: If not, send your cryptocurrency to a different exchange to purchase the altcoins you want with it.

Continuing from step #2 you realize that ELA (Elastos) is not listed on the exchange you’re registered with. After doing some research, you find out that the best exchange you can find this altcoin on is on Huobi.pro.

You’ll need to register an account with Huobi.pro and send some Bitcoin to your Bitcoin wallet on Huobi. Once you’ve received the Bitcoin, you can exchange Bitcoin for Elastos.

It will look something like this:

Exchange with Bitcoin > Send Bitcoin to exchange with ELA > Trade BTC for ELA 

Step 4: After finalizing your purchase, transfer the altcoins to your wallet or keep it on the exchange.

Now you’ve bought your altcoins but both your EOS and ELA tokens are on different exchanges. You have the option of leaving each token on the cryptocurrency exchange it’s on or sending it to your desktop, mobile, browser or hardware wallet.

Take a look at this crypto wallet guide if you’re not familiar with cryptocurrency wallets and safety procedures.

Most investors recommend that you take your token off from exchanges in order to keep it safe as there is always the chance of the exchange getting hacked.

If you’re trading on reputable crypto exchanges your tokens should be fine, but to be safe I recommend sending them to a wallet you control. My favorite wallet remains Exodus.

Conclusion

I know my guide just gives you a quick rundown of the altcoin buying process. After you’ve gone through it and done it a few times, you’ll realize just how simple it actually is.