How to Buy Cryptocurrencies
In this example we’ll go through the process of buying cryptocurrencies from an exchange. In this case we’ll be buying “Expanse” (EXP) on the Poloniex exchange. Besides Expanse, there are hundreds of cryptocurrencies (also known as “alt coins”) including popular ones such as Ethereum (ETH), Ethereum Classic (ETC), Monero (XRM), Ripple (XRP) and Litecoin (LTC).
In order to purchase cryptocurrency, you’ll need to start with cryptocurrency. The most universal is Bitcoin. In order to buy Bitcoin, you’ll need to create an account on either Coinbase or Circle. Most US based investors and traders use Coinbase.
Setting up an account on Coinbase does take time for validation and verification purposes, up to 7-10 days. It’s best to go ahead and initiate this so that when you’re ready, your account is setup. Setting up entails linking your bank account and (optional) a credit card to enable purchases and verifying your identity with a government issued document (drivers license, passport, etc.). You’ll be buying Bitcoin with USD.
It’s also a good idea to go ahead and setup your account at Poloniex. You’ll be able to raise your deposit/withdrawl limits by verifying information.
Once you have both your Coinbase and Poloneix accounts setup you can now send Bitcoin over from your Coinbase account. To do so, select Balances>Deposits & Withdrawls then scroll down to “BTC” in the left column and click “deposit”. If your wallet address is not showing, click to show. Copy this address and then go to your Coinbase account and click on the Send/Request link on the left. In the “Email or Bitcoin address” field, paste the address you copied from your Poloniex account. Next, select the amount of Bitcoin you’d like to send and click “Send Funds”.
Currently, sending Bitcoin takes around 30-45 minutes. You can check the transaction on Coinbase by navigating to your dashboard and viewing your “Recent Activity”.
Once the transaction has completed, your Bitcoin should now be in your Poloniex account. Since we’ll be buying EXP, you’ll want to find it in the Exchange. You can use the search in the top right and type “EXP”. Once visible, click to view the “Expanse Exchange”. Look under the chart for the “BUY EXP” area. You’ll see the amount of Bitcoin you have available. You can now buy EXP from the market or set your own limit order and hope it gets filled.
If you have any questions, let me know! Also, please join our cryptocurrency group on Linkedin to interact with others.