How to Invest in Bitcoin, Ethereum and Other Cryptocurrencies

How to Invest in Bitcoin, Ethereum and Other Cryptocurrencies



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How to Start Investing in Bitcoin, Ethereum, and Other Cryptocurrencies

How to Start Investing in Bitcoin and Ethereum

There are multiple ways to invest in virtual currencies, and it all depends on what you want. Here are the basics of buying and investing in Bitcoin, Ethereum and other alternative cryptocurrencies (altcoins).

Coinbase

If you’re new to cryptocurrencies, then Coinbase is the best way to get started.

Coinbase is an online exchange platform for transferring, buying, selling, and storing cryptocurrency. Its creators wanted to develop an open system that would allow people to convert digital currency into their local currency. In 2013, Coinbase became the top-funded Bitcoin startup, raising over $25 million.

If you signup for Coinbase using this link (http://ianbalina.com/sixfigures/coinbase), and buy or sell $100 of digital currency or more, both you and I can earn $10 of free bitcoin!

GDAX and Gemini

If you’ve already tested the waters and decided that Bitcoin is something worth investing in, then you need to learn how to use GDAX and Gemini. Just like Coinbase, they are exchange trading platforms that allow you to buy, sell, and store cryptocurrencies. However, these systems are more complex than Coinbase and perfect for day trading. Moreover, they have lower transaction fees than Coinbase.

Let’s take a look at both of them to understand how they work.

GDAX

GDAX (Global Digital Asset Exchange) is a service provided by Coinbase that offers a secure and easy way for traders of all levels to buy and sell digital assets online and instantly, across six trading pairs:

BTC (Bitcoin) to USD
BTC to EUR
BTC to GBP
ETH (Ether) to USD
ETH to BTC

So, while Coinbase is a place for consumers to buy, sell, and store digital currency easily, GDAX is an exchange for professionals to trade digital assets. Coinbase created GDAX because it identified a need in the market for a more controlled exchange to trade Bitcoin and Ether.

Gemini

Gemini is another cryptocurrency exchange that has seen a massive expansion in the last years. As a world-class digital asset exchange, it provides an electronic trading platform to both individual and institutional customers.

The process of registering and using Gemini is similar to GDAX. However, there are a few notable differences.

For starters, Gemini allows you only to deposit and withdraw US Dollars, Bitcoins, and Ether. Unlike GDAX where you have six trading pairs, Gemini provides only four: USD to BTC, USD to ETH, BTC to ETH, and ETH to BTC.

On the other hand, with Gemini, you can make a deposit and then use the funds within a matter of seconds. So, you don’t have to wait a few days for the transaction to be completed as it happens with GDAX. However, with Gemini, you can only trade Bitcoin and Ether, while with GDAX you can also trade Litecoin;

I personally use GDAX to purchase my Bitcoin or Ether and then transfer it Poloniex, where I do my investing and trading.

Poloniex and Bittrex

Let’s say the gold rush for making a ton of money on Bitcoin and Ethereum is over, what can one do?

No need to worry, there are numerous small virtual currencies, less well-known, that are actually growing faster than Bitcoin and Ethereum. In general, Bitcoin is the 800-pound gorilla in the room and all other non-Bitcoin currencies are referred to as Altcoins.

If you head over to Coin Market Cap, you can see a list of 100 cryptocurrencies. Including Bitcoin, they all total up to a whopping $28 billion dollar market cap. In other words, a lot of people are taking their chances at these currencies.

Where to Invest in Altcoins?

There are numerous other smaller exchanges to invest in altcoins. I personally, use Poloniex and Bittrex to exchange bitcoin into other altcoins.

One thing to note is that Poloniex and Bitttrex are cryptocurrency exchanges. You can ONLY exchange cryptocurrencies for other cryptocurrencies. You cannot purchase fiat currencies on Poloniex, you will have to do that at a different site like GDAX or Gemini. In other words, you cannot buy currencies on there using the dollar, euro, yen, etc. You can only make purchases (to exchange a currency) with bitcoin, ethereum, and a few others; bitcoin is the universal cryptocurrency for exchanging to other currencies.

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