I have been asked this question over and over again and I decided to share this with everyone and especially with people in Canada.
So, here we go ...
I struggled for a while to find the best Cryptocurrency exchange for myself to end up registering in so many exchanges because I couldn’t find one exchange that does everything I need (Plus, the fact that different coins are listed in different exchanges).
So, here we go ... I will try to make it as simple as possible. I will explain the concept first and then give you the tools and how to use them to trade. I just want to note that this is only to get you started and give you the very basic tools. Once you get started, do your own research on which coins to buy, which exchange to use, which transfer method would maximize your profit … etc.
You probably have heard about different exchanges, online wallets, and other terms people use in this market. I will use a simple example to explain some of these terms.
Let's assume you want to buy a new mobile phone and here is the process you followed:
The key elements in the above example are the following:
Translation to Cryptocurrency world
let's translate the above elements to the Crypto world:
So, Cryptocurrency exchanges are the place where you can buy and sell your coins.
Examples of Popular Exchanges:
Now before we start applying any of these scenarios, we will need to setup the tools that we will need.
Let’s start by setting up our accounts in the Exchanges we want to use. If I were you, I would do this as soon as possible because the verification process might take some time in some exchanges.
I personally use the following exchanges: Coinbase, Binance, QuadrigaCX, Qryptos (Japanese Exchange), Cryptopia and Kraken.
Step 1: go to: https://www.coinbase.com/join/5a3804d6be3693011b8992bf (using this specific link will reward you and me with USD 10 worth of Bitcoins if you initiate a buy or sell of USD 100 or more) – check Coinbase referral program
Step 2: a verification link is sent to your email. Find the email and click “Verify Email Address”
Note: The email might be found in the junk folder if you couldn't find it in the inbox folder.
Step 3: enter your local phone number. Phone number might be used for login (2-step verification) and for transaction verification.
Step 4: a verification code is sent to your mobile number. Enter the code in the new screen (see below) and click "Submit"
Step 5: your dashboard page will open. Scroll down to the bottom. Click on add a payment method.
Step 6: Click on Credit/Debit Card and enter your credit or debit card information
Step 7: Coinbase will make two withdrawals and reverse them later (you won’t be charged anything for this). The point is that they want to know that you have full control over this credit/debit account. So, please login to your bank account online and open the bank statement for the card you just entered its information. You will find two transactions in the same date with description indicating that these are related to Coinbase. Copy just the cents amounts from both transaction to the page showing on Coinbase (see below) and click “verify your card”
Congratulations! Now you can start trading within $250 limit. You can increase your limit if you go to Settings >> Limits >> upload your ID
Step 1: go to https://www.binance.com/?ref=13077900 and click on Register
Note: Again I’m including my referral number in this process – check Binance referral program
Step 2: Fill out the registration form. Click Register. Fit the puzzle piece in the picture (another way to ensure that you are not a robot)
Step 3: Email verification. Open your email inbox, find an email from Binance. Open it and click on “Verify Email”
Step 4: Google Authentication (optional but strongly recommended). Click on Google Authentication. Follow the steps to install and setup the Google authentication app.
Step 5: Account Verification: Open your account settings.
Once the account settings page is shown, click on “Submit Verification Documents”
Step 6: Provide information/documents required for the verification. I personally provided a copy of my driver license in Canada for the identity verification in addition to the selfie with the driver license.
It takes few days to get the verification done from Binance side. So, just wait and relax.
Step 1: Go to https://www.quadrigacx.com/?ref=3opyse7tbrvxulkai2j33f9h and click on “Register Now”
Step 2: Fill out the registration form. Then, save the client ID provided because you will use it every time you want to login.
Step 3: Login to your account. Find the “verify” menu item and open this form.
Step 4: Fill out the member verification form
Step 5: Complete the member verification step by choosing one of two ways: ID & address verification or EQUIFAX. QuadrigaCX says the EQUIFAX way is faster. I personally found the ID & address verification simple enough, but it’s totally up to you.
Step 6: Review the withdrawal options and think about which one you want to use to withdraw your money when you want to.
Step 1: Login to Coinbase: https://www.coinbase.com/signin
Step 2: Buy Bitcoins with your credit/debit card: Navigate to the Buy/Sell page
On the buy/sell page, you will see the following:
a. Bitcoin (BTC) is selected by default (no action is required unless you want to buy something different)
b. The payment method you registered earlier when you created the account is selected by default (no action is required)
c. The only thing you need to enter is the amount you want to buy either in CAD or in BTC. Coinbase will calculate the equivalent value for the other currency automatically based on the current BTC price in the market. Keep in mind the amount you can invest is limited based on the verification level you have.
d. Take a look at the right side of the page. Coinbase will give you full details about this transactions including Coinbase fees to complete this transaction and the fees associated with using the payment method you chose to pay with
Click on “Buy Bitcoin Instantly”
Step 3: Send your Bitcoins (BTC) to your Binance address
You might have to wait for your transaction to be confirmed first in Coinbase. Once you see the Bitcoin amount you purchased available in your portfolio, you can now send it to any exchange you want.
Here is how to send it to your BTC address in Binance. First, you need to login to Binance to copy your BTC address. Go to www.Binance.com >> click on Login >> enter your credentials
From the Binance main page, navigate to “Funds” >> “Balances”
Find BTC Coin and Click on “Deposit”
Click on “Copy Address”
Once you have the address copied, go back to your Coinbase Account. Then, click on “Accounts”
Under BTC Wallet: Click “Send”
In the Recipient field, enter or paste the address you just copied from Binance. Make sure it’s the right address. Otherwise, your money will be lost. Then, enter the amount you want to transfer and an optional message. Then, Click “Continue” and finish the transaction.
Step 4: Login to Binance: Go back to your account in Binance. Shortly after sending your bitcoins from Coinbase, the amount will appear in your Binance account (sometimes it takes up to 30 mins. So don’t freak out if you didn’t find it transferred in few minutes)
Step 5: Exchange Ripples for Bitcoins
In the main screen in Binance, navigate to “Exchange” >> “Basic”
In the “Basic” screen, follow these steps to buy Ripples:
a. Select BTC at the top right of the page as shown in the picture below
b. Write “XRP” (Ripple Symbol) in the search bar
c. Select the “XRP/BTC” pair
d. In the middle of the page, select the “Market” tab to trade at the market price
e. Under the “Buy XRP” section, enter the amount of XRP you want to buy with your available BTC fund. Then, click “Buy XRP” to confirm the transaction
Congratulations! You just completed this scenario.
Again, I just want to highlight that this example is just for beginners to help understanding the basic concepts and tools. When you get more experience, you will figure out the best and most profitable way for yourself. For example, I found buying ETH and transferring it across different exchanges is faster and cheaper than transferring Bitcoins.
Here is the summary of what you have done so far:
In my next post, I will show the steps to complete scenario#2 - although I believe if you got this far in my post, you probably have enough knowledge to complete it on your own
