Edit (1/31/2020) : I just found out that GDAX changed their name to Coinbase Pro.
With the recent craze of cryptocurrency, I wanted to make a simple guide on how to move your fiat money (USD) into cryptocurrency in a simple way.
In my quest to move my USD into different types of cryptocurrency, I looked around and found the easiest (and safest) way to deposit USD into online wallets was through Coinbase.
Coinbase is a startup from 2012 with the intention of making it easy for non-technical people to use Bitcoin. Since then they’ve expanded their business by founding Global Digital Asset Exchange (GDAX) to cater to the more trading-savvy audience.
In this post, I’ll focus heavily on Coinbase since we are doing an introduction. I plan on writing a post (I’ll link it here later) that explains how you can get around paying fees to get into cyrptocurrency.
For the time being, head over to Coinbase (referral link; we both get $10!).
Create an account…
deposit some fiat currency (via traditional fiat ways like Paypal, bank account, or credit card)…
and purchase some Bitcoin or Ethereum.
A couple of notes here:
- Don’t be scared of the prices of either cryptocurrency since you can purchase small fractions of either. For instance, if you only want to invest $100, you can purchase 0.02327 BTC (at the time of writing this).
- It takes a bit of time to deposit money into the system, but buying/selling BTC or ETH is pretty much instant (well, a few minutes at most).
Why only BTC and ETH?
Coinbase is an exchange of Bitcoin, Ethereum, Litecoin with fiat currencies in 32 countries. These are the most liquid cryptocurrencies to which other alternative coins (altcoins) are compared. In fact, whatever other exchange you use for cryptocurrency, you’re going to have to have either BTC or ETH to trade into other cryptocurrency.
So now that we have some BTC (or ETH), let’s go buy some other cryptos!
Buying other cryptocurrencies
Like I had mentioned before, Coinbase only trades BTC, ETH, and LTC. To get access to other cryptocurrencies, you need to move your BTC (or ETH) to an exchange and trade there.
(In this post, we’ll be using Bittrex)
First, go and open up an account on Bittrex and then navigate into their wallet tab.
Search for BTC (or ETH) and click on the
+ next to BTC.
Geneate an address for your wallet (this is where you will end up sending your BTC).
It takes a couple of seconds to generate the address, but once you have it, go back to Coinbase and click on Send.
Put in your BTC address and put in the amount and then click send!
Now you can trade (buy other cryptos) with BTC (or ETH) on Bittrex!
Like this introduction? Tips are always appreciated!