Perfectson
Banned
1. What do I need to start?
In order to begin the Crypto game, you will need both a wallet and an exchange to trade on. Also a working knowledge of the Cryptos
Just as a refresher:
Bitcoin is a platform and a coin on the blockchain that functions as currency but in a more technological form you will see it listed as BTC, There are several coins (alt coins) that are built on the bitcoin blockchain platform, such as litecoin others are what are known as "hard forks" such as Bitcoin Cash (BCC) or Bitcoin Gold.
Ethereum is a platform with it's own working blockchain different than Bitcoins platform. The main currency is Ether (ETH). There are several coins and tokens that are also built on top of the Ethereum platform, which are listed on exchanges that you can buy and sell. The protocol standard is called ERC20 and for tokens to operate on Ethereum they have to be implemented with this protocol.
Other Altcoins that are on their own native blockchain includes Ripple and Omni, as well as other lesser known Alts.
Tokens are typically assets that operate on top of a blockchain, they can be contracts, currency, loyalty points, etc etc.
As far as investing, it's good to understand these points as they will help you understand how to trade the different cryptos.
2. What is an exchange?
An exchange is where you can buy and sell your crypto. This is typically where you will fund an account either in fiat currency (USD, GBP, EUR, etc etc) or with Cryptos. In some instances an exchange can "act" like a wallet; however, it's safer to have a separate wallet to hold your cyptos if you're not actively trading them.
There's an exhaustive list of exchanges and new ones popping up all the time. In the past, some of these exchanges have been hacked or have been taken offline. So always be careful about which exchanges you use and again always utilize your wallet to ensure you have full control of your cryptos.
Registering and verifying
To get started you will want to register for an exchange. The recommendation is to register for at least 2 and ensure you go through the verification processes, which may take some time. Verification allows you to do different things based on the exchange you register for, some exchanges will not allow you to buy cryptos without verifying who you are. This could take as little as a few hours to a few days.
Funding your account
In addition to verifying, you will want to fund your account in either Fiat or Cryptos. ACH's typically take 5-8 days to fund. Wires are usually done within 1-2 days buy costs additional fees. Credit cards also usually fund quickly but have high fees. You can also transfer from your wallet directly to the exchanges.
Security
Always check your address of your exchanges to ensure you are going to the right websites, as there have been phishing scams in the past. You will also want to sign up for 2 factor authentication. Whether by SMS or using an authenticator (Google Authentication or Authy).
3. List of Exchanges:
Allows USD Deposits
1. Coinbase / GDAX - Coinbase is one of the more popular exchanges and accepts USD ACH funding. GDAX is a part of Coinbase but they almost act like two separate companies; however, they are basically the same. Coinbase does charge higher fees for trading cryptos, so you should fund in Coinbase and then move your funds over to GDAX to purchase your cryptos. Currently only allows trading in BTC, ETH, and Litecoin.
2. Gemini - another popular funding exchange that also accepts USD ACH funding. Currently only allows BTC and ETH coins.
3. Kraken - was a very popular funding exchange and also has alot of different pairings. AS of Jan 2018 they have updated their servers and are back on top. Though they only allow USD wire deposits.
Only Allows Coin Deposits
1. Binance one of the more popular exchanges for trading altcoins and tokens. There are several pairings for Binance; however, they do not allow USD ACH funding. So you will need to transfer from either Coinbase/GDAX , Gemini, etc. or your wallet to beging trading.
2. Kucoin - a newer exchange that also allows for trading altcoins and tokens. Has some smaller offerings that Binance does not have.
3. Coinmarkets - good for small alt coins not listed on other exchanges. Has had some issues with servers recently and many people have their funds locked up. They have said they are working on this issue but many complaints
4. Cryptopia - good exchange, fast, and fairly easy to use. Has several alt coin pairings for BTC and ETH.
5. Etherdelta - decentralized exchange more for the advanced trader but you can find ETH pairs being sold on here from actual users. Use at your own risk as alot of fraud has happened and you need to ensure you know what you're trading.
6. HITBTC - recently underwent a facelift. Has several coin pairings and has seemed to push to be get all alt coins listed. Personally I had my 2FA changed by the site somehow and others have had similiar issues. I would not recommend storing your coins here longterm and to move them to a wallet after purchasing. Really nice interface.
4. What is a wallet?
A wallet is where you will store your cryptos, typically this is off an exchange and done for security reasons. A wallet is basically defined by two addresses a) private address and b) public address. The private address is where your funds are stored on the block chain, anyone with your private address has access to your funds. Your public address is where you send your cyptos to and from and can be shared without any issues. It's very important you write down your private address in a safe place.
There are two categories of wallets:
1) Hot Wallets are online wallets and are typically used to hold cryptos in the short term.
2) Cold storage wallet is an offline wallet and is typically used when you expect to hold a crypto for a long period of time.
Hot Wallets are actually broken into two kinds:
1) Web/Exchange Wallet - every exchange technically has a wallet they provide to you. However, these are prone to hacks and other risks. If you are not actively trading it is best not to leave large funds in an exchange wallet. In addition, your personal address/keys are hidden from you, so you are relying on the website to manage your keys for you. If they are hacked or they lose the keys you may potentially lose your cyptos.
2) Software wallet - are wallets that you download to your computer or phone. these are safer than the exchange provided wallet. You manage your personal keys; however, if you aren't safe you could be hacked or if you lose your keys you may not be able to recover your funds. Always have a back up (paper, usb, etc etc ) with your keys.
Best Ethereum Wallets
The Top 10 Best Ethereum Wallets (2018 Edition)
Best Bitcoin Wallets
2018's Best Bitcoin Wallet (23 Hardware & Software Wallets Reviewed)
@MaliktheRapper @EVILRICO THE GREAT @SoSoSlick @internetexplorer @Eternally Jaded @KushSkywalker @nyknick @Malta
hoping to direct any discussion on wallets and exchanges here to help keep the other threads about the coins themselves. Feel free to add on and I'll update the OP for relevant updates.
5. Transferring Funds to Exchanges
In order to participate in altcoin purchases, you will need to fund your account likely in USD. The best exchanges to do (as listed above) currently are Coinbase or Gemini. Coinbase adds an additional wrinkle as purchasing any currency through coinbase is expensive; however, they have a sister interface called GDAX which uses the same login information as Coinbase. If you're verified on Coinbase then you will have a GDAX account. You simple need to transfer your USD from Coinbase to GDAX. There you will make your BTC, LTC, or ETH purchases.
At this point, whether GDAX or Gemini, you will want to transfer your currencies to other exchanges who list other altcoins (see list of exchanges that only allow Coin deposits from above). You will do this by utilizing the deposit address from your "coin deposit" exchanges. Here is a youtube video explaining this using GDAX and Binance.
In order to begin the Crypto game, you will need both a wallet and an exchange to trade on. Also a working knowledge of the Cryptos
Just as a refresher:
Bitcoin is a platform and a coin on the blockchain that functions as currency but in a more technological form you will see it listed as BTC, There are several coins (alt coins) that are built on the bitcoin blockchain platform, such as litecoin others are what are known as "hard forks" such as Bitcoin Cash (BCC) or Bitcoin Gold.
Ethereum is a platform with it's own working blockchain different than Bitcoins platform. The main currency is Ether (ETH). There are several coins and tokens that are also built on top of the Ethereum platform, which are listed on exchanges that you can buy and sell. The protocol standard is called ERC20 and for tokens to operate on Ethereum they have to be implemented with this protocol.
Other Altcoins that are on their own native blockchain includes Ripple and Omni, as well as other lesser known Alts.
Tokens are typically assets that operate on top of a blockchain, they can be contracts, currency, loyalty points, etc etc.
As far as investing, it's good to understand these points as they will help you understand how to trade the different cryptos.
2. What is an exchange?
An exchange is where you can buy and sell your crypto. This is typically where you will fund an account either in fiat currency (USD, GBP, EUR, etc etc) or with Cryptos. In some instances an exchange can "act" like a wallet; however, it's safer to have a separate wallet to hold your cyptos if you're not actively trading them.
There's an exhaustive list of exchanges and new ones popping up all the time. In the past, some of these exchanges have been hacked or have been taken offline. So always be careful about which exchanges you use and again always utilize your wallet to ensure you have full control of your cryptos.
Registering and verifying
To get started you will want to register for an exchange. The recommendation is to register for at least 2 and ensure you go through the verification processes, which may take some time. Verification allows you to do different things based on the exchange you register for, some exchanges will not allow you to buy cryptos without verifying who you are. This could take as little as a few hours to a few days.
Funding your account
In addition to verifying, you will want to fund your account in either Fiat or Cryptos. ACH's typically take 5-8 days to fund. Wires are usually done within 1-2 days buy costs additional fees. Credit cards also usually fund quickly but have high fees. You can also transfer from your wallet directly to the exchanges.
Security
Always check your address of your exchanges to ensure you are going to the right websites, as there have been phishing scams in the past. You will also want to sign up for 2 factor authentication. Whether by SMS or using an authenticator (Google Authentication or Authy).
3. List of Exchanges:
Allows USD Deposits
1. Coinbase / GDAX - Coinbase is one of the more popular exchanges and accepts USD ACH funding. GDAX is a part of Coinbase but they almost act like two separate companies; however, they are basically the same. Coinbase does charge higher fees for trading cryptos, so you should fund in Coinbase and then move your funds over to GDAX to purchase your cryptos. Currently only allows trading in BTC, ETH, and Litecoin.
2. Gemini - another popular funding exchange that also accepts USD ACH funding. Currently only allows BTC and ETH coins.
3. Kraken - was a very popular funding exchange and also has alot of different pairings. AS of Jan 2018 they have updated their servers and are back on top. Though they only allow USD wire deposits.
Only Allows Coin Deposits
1. Binance one of the more popular exchanges for trading altcoins and tokens. There are several pairings for Binance; however, they do not allow USD ACH funding. So you will need to transfer from either Coinbase/GDAX , Gemini, etc. or your wallet to beging trading.
2. Kucoin - a newer exchange that also allows for trading altcoins and tokens. Has some smaller offerings that Binance does not have.
3. Coinmarkets - good for small alt coins not listed on other exchanges. Has had some issues with servers recently and many people have their funds locked up. They have said they are working on this issue but many complaints
4. Cryptopia - good exchange, fast, and fairly easy to use. Has several alt coin pairings for BTC and ETH.
5. Etherdelta - decentralized exchange more for the advanced trader but you can find ETH pairs being sold on here from actual users. Use at your own risk as alot of fraud has happened and you need to ensure you know what you're trading.
6. HITBTC - recently underwent a facelift. Has several coin pairings and has seemed to push to be get all alt coins listed. Personally I had my 2FA changed by the site somehow and others have had similiar issues. I would not recommend storing your coins here longterm and to move them to a wallet after purchasing. Really nice interface.
4. What is a wallet?
A wallet is where you will store your cryptos, typically this is off an exchange and done for security reasons. A wallet is basically defined by two addresses a) private address and b) public address. The private address is where your funds are stored on the block chain, anyone with your private address has access to your funds. Your public address is where you send your cyptos to and from and can be shared without any issues. It's very important you write down your private address in a safe place.
There are two categories of wallets:
1) Hot Wallets are online wallets and are typically used to hold cryptos in the short term.
2) Cold storage wallet is an offline wallet and is typically used when you expect to hold a crypto for a long period of time.
Hot Wallets are actually broken into two kinds:
1) Web/Exchange Wallet - every exchange technically has a wallet they provide to you. However, these are prone to hacks and other risks. If you are not actively trading it is best not to leave large funds in an exchange wallet. In addition, your personal address/keys are hidden from you, so you are relying on the website to manage your keys for you. If they are hacked or they lose the keys you may potentially lose your cyptos.
2) Software wallet - are wallets that you download to your computer or phone. these are safer than the exchange provided wallet. You manage your personal keys; however, if you aren't safe you could be hacked or if you lose your keys you may not be able to recover your funds. Always have a back up (paper, usb, etc etc ) with your keys.
Best Ethereum Wallets
The Top 10 Best Ethereum Wallets (2018 Edition)
Best Bitcoin Wallets
2018's Best Bitcoin Wallet (23 Hardware & Software Wallets Reviewed)
@MaliktheRapper @EVILRICO THE GREAT @SoSoSlick @internetexplorer @Eternally Jaded @KushSkywalker @nyknick @Malta
hoping to direct any discussion on wallets and exchanges here to help keep the other threads about the coins themselves. Feel free to add on and I'll update the OP for relevant updates.
5. Transferring Funds to Exchanges
In order to participate in altcoin purchases, you will need to fund your account likely in USD. The best exchanges to do (as listed above) currently are Coinbase or Gemini. Coinbase adds an additional wrinkle as purchasing any currency through coinbase is expensive; however, they have a sister interface called GDAX which uses the same login information as Coinbase. If you're verified on Coinbase then you will have a GDAX account. You simple need to transfer your USD from Coinbase to GDAX. There you will make your BTC, LTC, or ETH purchases.
At this point, whether GDAX or Gemini, you will want to transfer your currencies to other exchanges who list other altcoins (see list of exchanges that only allow Coin deposits from above). You will do this by utilizing the deposit address from your "coin deposit" exchanges. Here is a youtube video explaining this using GDAX and Binance.
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this man for taking the time to do this.
