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How to Buy Altcoins?

Do you want to get away from traditional investments in stocks and bonds? Secondary virtual currencies — or altcoin developers have very limited responsibility over the functionality of the respective coins but also have very little liability. However, if you are making this purchase as a beginner, buying altcoins can be done by selecting among the hundreds of them out on the market. Do not panic! In this guide, I will try to cover everything you would need to know before buying your first altcoins so that you always feel at ease when making the investment.

Understanding Altcoins

First of all, before you dive right into the buying, you need to know what altcoins are and how they are different from the most famous cryptocurrency—the Bitcoin. Any cryptocurrency besides Bitcoin is an Altcoin. Work on altcoins has been booming since Bitcoin introduced the world to digital currencies, but usually to make it faster or improve on some aspect. Some popular altcoins include Ethereum, Ripple, Litecoin, and Cardano.

How to Buy Altcoins: Step-by-Step Guide

Purchasing most altcoins just requires a few additional steps compared to buying Bitcoin. This guide recommends purchasing and trading Bitcoin for the altcoin you want. Besides hundreds of (most) altcoins you should use BTC on one of those exchanges. But you do not have to pay exchanges for a cryptocurrency. Buy in over-the-counter (OTC) or by one of an owner Use to protect against fraud for the beginners in crypto. So lets dive in the 8 steps to acquire your shiny new altcoins.

Step 1: Find The Share Of Your Crypto Portfolio That Is Committed To Altcoins

Bitcoinist reported that 92% of blockchain projects have failed with an average lifecycle of 1.22 years. These are striking figures. And yes, altcoins are risky, but some are solid investments. For a riskier part of your portfolio, you might want to categorize less proven and more niche coins for potential trading. Keep Track of The Coins With A Portfolio Tracker

Step 2: Research And Find The Best Altcoin For You

When looking to buy an altcoin, there are many things to take into account. Do you want a well-known name? Can an altcoin exist on a platform, or should it only exist as a cryptocurrency? This list may go on forever, so browse the most popular altcoins, educate yourself on the various features that appeal to you, and choose a cryptocurrency.

Here are a few important things to think about before committing:

  • Is the altcoin subreddit active, and is the official website still active?
  • Is the volume on at least one exchange sufficient to support the purchase?
  • Does your current cryptocurrency wallet support the altcoin, or will you need a new one?
  • Is it genuinely possible to profit from cryptocurrency?

Step 3: Using Fiat Money to Purchase Digital Currency (BTC)

The majority of altcoins cannot be bought with USD. This implies that you should buy Bitcoins and exchange them for your chosen altcoin on the appropriate exchange. On certain exchanges, you can buy Bitcoin right there on the platform using a credit card. This is a simple way to get going. Having a wallet for your bitcoins and another for your altcoins (which we'll discuss later) is a good idea.

Step 4: Choose An Exchange

The next step when buying BTC is to find an exchange or exchanges that lists your altcoin(s). The results are automatically ordered by this values, i.e. the top currency exchanges & the "markets" (or currency pairs ) that these exchanges trade in, hourly trades, daily volume, and percent market share, will all be listed on the Coin market. Avoid using the less well-known exchanges if you are not an expert cryptocurrency trader. More liquid exchanges have a higher volume. 

Having more liquidity allows you to buy altcoins faster at closer to the market clearing price. Need a Quick Liquidity Refresher? List through the currency exchanges and explore the ones that provide liquidity in your currency pair. Once you have chosen the exchange that suits you best, you need to create an account. We should consider other important aspects before selecting to an exchange:

  1. Do they have credibility?
  2. Have they previously been hacked?
  3. Are the rates and fees reasonable?

Step 5: Find The Currency Pair

After completing the registration process, you should transfer some of your Bitcoin to the exchange. Keep in mind that since you are trading in pairs of currencies, BTC will be converted to your altcoin. Be sure to examine the currency pair's historical trading patterns for the previous week or month. Given the imperfections of cryptocurrency markets, there might be a best moment to execute a trade.

Step 6: Trade BTC for the Altcoin of Your Choice

You will go to the exchange and place an order for your altcoin when you are ready to make the trade. If this is your first time using an exchange, spend some time learning how orders operate. Watch this video to see a trader discuss NEO, analyze the BTC-NEO pair, predict the market, and place an order.

Step 7: Move The Altcoins Into A Wallet

Once the trade ends, your precious altcoins are left at the exchange. Move your exchange cryptos into a wallet if you are buying to hold. By type, 2 types of safe cryptocurrency wallets.

Hot wallets: These wallets are accessible online and using your computer, smartphone or any other device connected to the internet.

Cold wallets: A wallet that is not online — i.e. a hardware wallet or paper wallet. The best way to do this is by securing your assets in a new hardware wallet.

Step 8: Dream of Lambos

Congratulations! All the money that you knew was going to spill over, did indeed spill over. Maybe your token will be worth millions of dollars and you will become famous!

Conclusion

Investing in altcoin cryptocurrency budgets on a world scale can be very fascinating and tricky in the identical time. First off is learn the basics then study or research well. Pick a reliable exchange and also safeguard your investment. Diversify your portfolio and consult the experts. By being well prepared, you might generate income with digital currencies. Happy investing!

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