The RFD - Cryptocurrency Mega Thread
Instead of the instructions getting buried in the bitcoin/eth thread I typed out the basics here so it can be on post #1 that people can reference.
TLDR! Just get me started!
1. Register on Coinbase or QuadrigaCX
2. Buy using credit card on Coinbase or transfer in funds via ETF / Interac / Wire to QuadrigaCX (verification with QuadrigaCX takes about 10-14 days, $ transfer about 7 days)
3. Purchase ETH (not BTC due to high fees and transfer times, unless you go from Coinbase to GDAX to wherever)
4. Transfer ETH to whichever exchange you settle on, for example Binance.
5. On the exchange, locate correct pairing for the crypto of choice and ETH. So for example if you wanted to buy ICON (ICX), click on ICX/ETH.
6. Enter in Buy order. Voila.
7. Leave on exchange or send to a wallet (Be aware of withdrawal fees)
8. Withdrawals, you can sell XYZ coin to ETH or BTC, move it to QuadrigaCX and opt to have a ETF withdrawal.
Binance has their own coin, BNB which you can purchase and when doing trades it will use that “coin” for your fees. This is slightly cheaper and it prevents “dusting”. Dusting happens when you enter in an order and the exchange takes the fee from the trade. The order was for 1000, but you end up with something like 999.97654. When you use BNB, you prevent that and actually get your 1000.
What is cryptocurrency?
Cryptocurrency is a digital/virtual asset. Cryptocurrency is not regulated or controlled by any bank or government. All transactions are recorded on the blockchain. Data is stored across a network, so it’s not susceptible to exploitation by hackers or central failure.
Where can I buy cryptocurrencies?
There are numerous exchanges that trade in Bitcoin or ETH (Ethereum). Alternative cryptocurrencies aren’t as easy to acquire. However, there are exchanges where you can convert BTC or ETH to Alts.
Here’s a short list. There are many more.
Binance - https://www.binance.com/
Bitstamp - https://www.bitstamp.net/
Coinbase - https://www.coinbase.com/
Coss.io - https://coss.io/
Cryptopia - https://www.cryptopia.co.nz/
Etherdelta - https://etherdelta.com
GDAX - https://www.gdax.com/
Gemini - https://gemini.com/
Kraken - https://www.kraken.com/
Kucoin - https://www.kucoin.com/
QuadrigaCX - https://www.quadrigacx.com/
Where do I store my crypto?
Cryptocurrencies are digital so it’s a completely different approach when it comes to storing it verses a typical bank. You use a private key for transactions that need to be securely stored. DO NOT EVER GIVE OUT YOUR PRIVATE KEY.
There are several different types of cryptocurrency wallets:
Desktop wallets – For example Rippex for Ripple.
Online wallets - Cryptocurrency keys are stored online by exchange platforms like Binance or Coinbase and can be accessed from anywhere. Exchanges can be hacked and some have in the past, for example Youbit in South Korea which filed for bankruptcy.
Mobile wallets – For example, Jaxx or Electrum.
Paper wallets - Some websites offer paper wallet services, generating a piece of paper with two QR codes on it. One code is the public address at which you receive cryptocurrency, and the other is your private address you can use for spending.
https://www.myetherwallet.com/ * for more info on why you might see another wallet called mycrypto please see post #754
Hardware wallets - You can use a USB device like the Ledger Nano S or Trezor. If you buy from a re-seller and not direct please make sure the device or recovery has not been tampered with. Recovery sheet shouldn't be pre-filled!
Read post #154 in this thread for more details along with a picture of a fake recovery sheet.
How do I figure out what to buy?
1. Does it have a whitepaper?
2. Who and how is the Dev team?
3. Is there any backing or partnerships?
4. Is there a finished product? If not, how far along are they?
5. Is there potential for growth? What’s the supply like? What’s the price?
6. How is their marketing? Any media attention?
7. Does it solve real world problems or is it fluff?
8. Do they have competition in the same class?
Should I diversify?
As in the stock market, crypto has different classes. Most will say yes to diversification. There are many, but here are some examples:
Privacy coins: PIVX, Monero, Dash
Proof of Stake coins: NEO, NAV, LISK
Game and entertainment related: Digibytes, Tronix, Funfair
Payment platforms and decentralized exchange: OmiseGO, ARK
Currencies: Dash, Ripple, NEM, LTC
Smart contracts / Dapp platform: Ethereum, NEO, EOS
Crypto and the Canada Revenue Agency:
"Tax rules apply to digital currency transactions, including those made with cryptocurrencies. Using digital currency does not exempt consumers from Canadian tax obligations.
This means digital currencies are subject to the Income Tax Act."
https://www.canada.ca/en/financial-cons ... rency.html
Terms you will run into:
ATH - All time high (price)
Bagholder - People that purchase during ATH and are stuck after the price lowers
Dapp - Decentralized Application
FIAT - Government currency like the dollar
FUD - Fear, Uncertainty, Doubt
FOMO - Fear of missing out
HODL - Also known as "Hold" or the misspelling of "Hold.
ICO - Initial Coin Offering. Think of this as an IPO for stocks.
MEW - MyEtherWallet
Mooning - It means the price going up like crazy, astronomically.
Satoshi - Smallest unit of a bitcoin. Some investors talk in Satoshi's instead of USD.
Weakhands - Those who cannot be patient and sell at loss when the market is down
Whale - Someone that has massive holdings in crypto. You'll see this term associated with market manipulation.
Whitepaper - Document / Guide that describes the crypto protocol in detail
For those wondering what I’m holding: ICX, IOTA, REQ, TRX, VEN, XLM, XRP
The Coinmarketcap site is awesome for tracking the price, volume, circulation, supply and market cap of most existing cryptocurrencies. You can also find out on which exchange a currency is listed by clicking on the “Markets” tab of the crypto you selected.
Always enable 2FA. Never give out your secure address. Always double check the address you are sending to. Don’t invest what you are not willing to lose. Don’t be drunk/high and make trades.