Since I have seen lot of inquiries from facebook, office and in my community, I posted this follow-up article of this post investing on cryptos for beginners. People asks these common questions: “how can I buy bitcoin?, how can I have alt coins(ethereum, ripple or litecoin)? where will I start with investing on bitcoin?” Well, there are lot of ways and choices on how you can get it.
- Buy from bitcoin service available in your country. In the Philippines we have: coins.ph, bexpress.ph, buybitcoin.ph. For me, I used coins.ph. But buying from these services is a bit pricey. For example, look at the buying price from buybitcoin, it is a bit higher than the market price. This is common if you buy from these kind of online services. If you want to save money you may opt to follow the next way.
- Buying from friends or individual traders. You can usually find them on facebook groups or look in localbitcoins.com. These people are sometimes miners or bitcoin pioneers who got their BTC when it was $0.3. Some people agrees on current market price from certain website or bitcoin exchange. Usually they will arrange meetups. Before meeting with the trader, make sure that you already have a Bitcoin wallet. To read about wallets go here.
- Buy from exchange like kraken.com. But on some countries like in Philippines, you cannot buy directly from kraken.com that is why it is necessary to do choice #1 or #2. There are many bitcoin exchange but kraken.com is the most comfortable for me. What I did was: created account in coins.ph -> deposit money in Cebuana Lhuillier -> created account in kraken.com -> generated a bitcoin address(serves as btc wallet) in kraken.com -> used that address to send bitcoin from coins.ph.
The advantage on having bitcoin in an exchange like kraken.com, there are many types of cryptocurrencies you buy and choose from. Here are the list of coins you can buy and trade in kraken.com:
It depends on how do you want to invest, you can store it in your mobile or desktop wallet and keep it for long term or keep your bitcoin in an exchange and be an active trader like, sell bitcoin easily when it is high or buy bitcoin when it is low. Take note that there are fees when you buy bitcoin and fees are cheaper in an exchange(kraken.com).
In this part, I assume that you already have a cryptocurrency wallet with coins in it, and you have signed up in kraken.com and got your account verified up to Tier2. First, you will fund your kraken account by going to the “funding” menu:
In this case, I chose Bitcoin. Later, I will use that bitcoin to buy altcoins (litecoin, ether, monero). At the bottom part of the page you will see this:
Take note of the minimum deposit of Bitcoin required. Just click the “Yes I acknowledge” button after reading the note.
After clicking the button, a “Generate New Address” button will appear, just click it to generate your Bitcoin address. This is what your address look like(a common Bitcoin address).
You will use this address to fund your kraken account. You can also use other cryptocurrency available in kraken when funding your account.
Next, go back to your wallet and send some coin to your Bitcoin deposit address in kraken, in my case I am using coins.ph as my wallet:
Just paste the Bitcoin address on “To” text field, put the desired amount of Bitcoin on “Amount” text field then click continue to view the confirmation message then click send. Honestly it is scary at first, that is why you should verify your kraken address carefully when sending coins. As the kraken’s note stated above, it will take 6 verifications before you can use your Bitcoin for trading. But you will already see if your coin transfer has taken effect by viewing its status:
Under the “Funding” menu, just click deposit. You will see the status of your deposit on recent deposits table. If I am my memory is correct the statuses are: Confirming and Success. You can also view the number of confirmations on your transaction in blockchain.info. Just input your kraken Bitcoin address on the search box then hit enter. Blockchain.info API is not working now but as soon as I get it, I will update this post.
Now that you got your Bitcoin ready to trade, I will discuss on how you will buy other crypto coins. On your kraken dashboard you will see this:
First, choose the coin pair you want to buy on upper left drop down box(XBT to USD, XMR to USD, BTC to XMR, etc.). In this example I have chosen Monero(XMR/USD) pair to trade for Monero. I usually convert the Bitcoin I deposited to USD for easier computation and it is much convenient for me. When converting to a Fiat currency, remember that kraken charges small fees. Now click “New Order” menu then you will see this:
You can choose from simple, intermediate and advanced but as a beginner, simple is enough. On “Amount” field, you can put your desired quantity of coin you want to buy(1). On “Price” field, you can put your target price you want(88.20). On “Total field” you will see how much you will spend. If the “Market” button is enabled, the “Price” field will be locked because the basis of the Price rate will be the current market price. Note: we are lucky on this example because we can buy at the lowest price(see Low). Just click the big green button “Buy XMR with USD”, remeber to uncheck “Skip order confirmations”. It is recommended that you will not skip order confirmation.
You may now see your Buy order on the table below:
Just wait for it to be executed or you can cancel it if you desire to change something. If you have chosen the buy at “Market” option, you will not have wait and it will be executed right away. The same process goes with “Sell”.
That’s it, good luck!