How to Buy Altcoins

Do you feel like you’ve missed the boat with Bitcoin? 

Never fear. There are literally hundreds of other coins and tokens (collectively called ‘altcoins’) that would offer more realistic chances of reaping large returns in 2018.

Bitcoin rose an incredible 10 times in 2017 to reach its all time high of around $19000 in December 2017. In the first quarter of 2018 the price dropped dramatically, but as of May 2018, there are definite signs of recovery.

Bitcoin currently has a market cap of nearly $200B. 

The market cap refers to the total of all the coins in circulation times the market value. This means that for Bitcoin to double in price it will need another $200 billion to be invested. While they’re plenty of people predicting that this will happen – if not in 2018, then in the years afterwards, the opportunity for big gains like in 2017 may be limited. Finding an altcoin with a much smaller market cap does prima facie offer you the same opportunity that investors were offered with Bitcoin a year ago.

But while there are literally hundreds to choose from, it’s safe to say that not all will make it. So choosing which coin to invest in must involve you conducting your own research to determine if you believe there is a long term future.

As of May 2018, the top 12 coins by market cap were:

All of these coins have already made it to a certain extent. They will generally be considered ‘safer’ to invest in but are arguably more likely to see bigger returns than BTC.

If you join an exchange such as Binance you will be able to trade around 40 different coins, including some relatively new ones that may offer even more potential than the big 12 listed above. 

So how do you buy altcoins?

If you’re starting from the beginning, this is what you need to do:

Sign Up to Coinbase

Coinbase is a San Francisco based exchange and one of the biggest in the world. It allows you to purchase BTC, ETH, BCH and LTC using a credit card or by wiring money to their account.

(If you use this link, you’ll get a $10 sign up bonus when you first deposit $100 or more – and so will I, so it’s a win-win)

If the altcoin you’re after is ETH, BCH or LTC then you can purchase it directly from Coinbase, otherwise you will need to send coin to another exchange in order to purchase NEO or XRP etc

Sign into GDAX

GDAX is an exchange owned by Coinbase. You use the same log in as Coinbase – although extra verification is usually required before you can trade.

Transfer BTC or ETH to GDAX

Transferring coins from Coinbase to GDAX is free – and you can do it easily from the GDAX platform.

On the top left of the screen you will be able to deposit or withdraw funds into and out of GDAX.

You can then navigate to your Coinbase Account and deposit funds straight into your GDAX account.

Open an Account With Binance

Binance is one of the largest crypto exchanges in the world, but you cannot trade fiat (eg USD) for cryptos. It is exclusively for crypto trading.

Send BTC (or ETH) to Binance

You can find the BTC (or ETH) address for your wallet on Binance by clicking “Funds” and then “Deposit”

On GDAX repeat the steps you previously took to claim your BTC or ETH from Coinbase but instead click “BTC Address” (or “ETH address) and then enter the address from your BInance account.

Why do we do it this way? Why don’t you just send it straight from Coinbase?

You could do it that way, but the method described above eliminates any fees. Moving BTC can sometimes cost as much as $20.

And now you’re ready to trade!

Note that we recommend that you first buy the Binance Coin (BNB) and you will be able to reduce your trading fees in half.