Bitcoin, and Cryptocurrency in general, is quickly becoming more popular and accessible to the mainstream public after some incredible gains were made during 2017. Everyone and their uncle is trying to become a bitcoin millionaire overnight. I’ve found investing in cryptocurrency significantly easier than the stock market and have yielded great returns on small investments. In order to get started here’s what you’ll need:
1. Buy Bitcoin
When trading on a cryptocurrency exchange – for the most part – you’ll be using Bitcoin to buy and sell altcoins (any coin that is not Bitcoin). A single Bitcoin can be quite expensive but you do not need to buy a whole one. You can purchase $10 worth of Bitcoin, $20 or even a $1000+ worth of Bitcoin – depending on your budget. The most common place for people to buy bitcoin is on Coinbase. However, they require you to be in the US and provide a ridiculous amount of information for verification purposes.
I buy all my Bitcoin on LocalBitcoins.com. This site works similar to Ebay and allows you to purchase Bitcoin directly off other people. What makes it so useful is the number of ways that you can make payments. You can pay with Alipay, WeChat Pay, Paypal, Western Union, Amazon Gift Cards, bank transfer, etc. The list of payment methods is extensive and I’ve found this especially useful when certain countries have made it difficult to make purchases using traditional methods. Once you have your Bitcoin, it’s time to join a cryptocurrency exchange market.
2. Cryptocurrency Exchange Market
Both these exchanges are easy to use, have amazing functionality and don’t require much information for verification. In fact, you can do exchanges on Binance without ever verifying yourself if your daily withdrawal is below 2 BTC (Bitcoin).
Bittrex is an exchange for your PC while Binance is specifically designed for use on mobile phones. It does, however, also have a PC client if you prefer to use it that way. In order to eventually become a bitcoin millionaire, you’ll definitely need to sign up to both of these exchanges. Another exchange called Poloniex was once the king but due to verification issues, withdrawal problems and extremely long customer support times – many traders have stopped using it. There are many other smaller exchanges like HitBTC, Mercatox, CoinExchange, etc that deal with new, cheap and many times low quality coins. Once a coin has become established, you will usually be able to find it on the big 2 exchanges.
3. Fund Your Account / Deposit BTC in Crypto Exchange
Next, you’ll need to transfer your newly bought Bitcoin (BTC) from LocalBitcoins to Binance. This is a very simple procedure but do keep in mind that a transaction between one exchange to another (LocalBitcoins to Binance) or from an exchange to a wallet (Binance to Ledger Nano wallet) usually takes about 10 minutes. During busier times, I have waited for over an hour for a transaction to finalize.
Every exchange and wallet will have a deposit (+) and a withdraw (-) option. Let’s use Binance as an example of how to go about making a deposit. In the app, under the Funds tab, you’ll find the Deposit option. From here will search for and choose BTC (Bitcoin) as the crypto you would like to deposit into. You will now be provided with a deposit address which is a long string of letter and numbers. Simply copy these numbers to use later (copy address).
In LocalBitcoins, click on Wallet from the top menu. You’ll find a box called Receiving Bitcoin Address, where you’ll paste the long address you copied earlier. Finally, input the amount of Bitcoin you would like to transfer. If you would like to transfer it all, there will be an indicator above the Receiving Bitcoin Address box that will tell you exactly how much you can transfer. Simply click on the amount to have it added to the correct field. Finally, hit the Continue button and wait a bit for the transfer to progress. Be patient, it will take a while.
4. Buying and Selling on an Exchange
The idea is simple – use BTC to buy other coins (altcoins) at a low price and sell them back into BTC at a high price. In practice, it will take some time before you get a hang of how the market works and how rumors and news articles can have a huge impact on the rise and fall of altcoin prices. Here’s a short video showing you the ins and outs of trading on an exchange.
How to Become a Bitcoin Millionaire
So, ready to become a Bitcoin millionaire yet?
The process is quite simple and becomes easier and easier as days go by. Within a week, you should have the basics down. Now it’s simply a matter of doing research on the best coins to invest in. Don’t just follow the hype, do your own research. When you trust in a coin, keep it for the long term. You’ll make mistakes, you’ll sell when you should have held – this is all part of the learning curve. Remember, you can’t win if you’re not in the game.
Best of luck!