How to Buy Altcoins – Ultimate Cryptocurrency Guide
With so many cryptocurrencies emerging every day on the crypto markets, it can be difficult to figure everything out about altcoins, especially how and where to buy altcoins.
At present, there are about 10,000 altcoins listed in different markets, and the number continues to increase.
You may stumble upon a good investment opportunity knowing that some returns on investments are astronomical. But it’s impossible to research all of these projects.
However, if you are pondering over buying lesser-known altcoins, you are at the right place, as this guide tells you how to buy altcoins safely in 2021.
As understood from its name, Altcoins are alternative tokens (alternative coins). The term applies to all cryptocurrencies that are not Bitcoin. Examples of the best altcoins include Ethereum, Ripple, Litecoin, Tron, Verge, EOS, etc.
Nevertheless, the altcoin price varies from penny cryptocurrencies under $1 to those with the price reaching a couple of thousands. So, the process of purchasing it starts with investment planning and proper research of the best altcoins. Here is an overview of the “how to buy altcoins” process applicable to any crypto exchange.
How to Buy Altcoins Step by Step
There are many ways to buy altcoins on various exchanges, but which one is right for you?
Everything will depend on your situation. Do you already have cryptocurrency? Do you have an account on an exchange? No matter the exchange, the process of buying altcoins is quite the same.
For instance, if you already have an account on, let’s say, Coinbase, and you wonder how to buy altcoins with the Coinbase platform, the process is similar to other exchanges. So, let’s move on to the process of buying your first altcoins.
1. Diversification Planning
Before tackling the subject of how to buy altcoins, make sure to have a diversification plan. It’s advisable to always have several penny cryptocurrencies in your portfolio. In addition, dividing your portfolio into risk layers is a good risk management technique.
2. Research the Best Altcoins to Buy
Many altcoins are just copies of Bitcoin’s open-source protocol. Others are simply money-making projects or failed experiments.
Despite this, there are also many exciting companies with unique proposals, solutions, and characteristics. You just have to sort the wheat from the chaff. Some of the best altcoins to buy at this moment are Chainlink, Uniswap, Stellar Lumens, Polygon, Doge, just to mention a few of them.
3. Choose a Reputable Fiat-to-Crypto Exchange
On most exchanges, altcoins are paired with Bitcoin or Ethereum. Therefore, you will need to exchange them for altcoins.
In some cases, you’ll need to register and transfer the cryptocurrency between a few exchanges to get what you want, but it’s a relatively straightforward process in the end. So, if you don’t have any Bitcoin or Ethereum yet, let’s start at the very beginning.
First of all, you ought to register on an exchange platform. Exchanges are online marketplaces where you can buy cryptocurrencies with fiat currencies (euro, dollar, yen …).
The most popular and beginner-friendly fiat-crypto exchanges are Coinbase, eToro, Binance, Coinbase Pro, and a few others.
Find the exchange that matches your needs. When choosing, pay attention to deposit and transfer fees.
Some exchanges offer fast credit/debit card transfers. Also, check which cryptocurrency assets they offer.
At this very moment, the Coinbase sweepstake takes place till the 10 of June 2021. They give away $1.2 million worth of altcoins DOGE, one of the best altcoins to invest in.
Here is how to buy altcoins with Coinbase if you want to take part in this sweepstake.
- Create an account if you do not have one.
- Once you have opted in sweepstakes, you will get the confirmation email.
- Then, buy or sell $100 DOGE or more, and you will automatically take part in the competition.
4. Register and Buy Bitcoin or Ethereum
Once you’ve chosen the most suitable exchange, it’s time to create an account and buy some Bitcoin, Litecoin Ltc, Ethers ETH (or altcoins, if listed there).
Bitcoin and Ethereum are widely accepted cryptocurrencies. These also have the highest number of pairs, which makes it easier to trade them.
Every reputable trading platform, such as Coinbase, Binance, Coinbase Pro, or Kraker, has a full guide or full FAQ section to help you make your first purchase.
So, you shouldn’t have too many problems. However, if you want to know how to buy altcoins with Coinbase specifically, go to the part of their website dedicated to that matter.
You Can Register on an Altcoin Exchange (Optional)
If you can get all the altcoins you want using a fiat-to-crypto exchange, you’re good to go. However, fiat-crypto exchanges usually have a minimal choice of altcoins, so what you’re looking for may not be there. That’s why there are many cryptos to crypto exchanges.
Altcoin or crypto to crypto exchanges is a cryptocurrency market that does not have fiat pairs or deposit options. Typically, these exchanges survive by listing less popular altcoins.
However, these less expensive and fewer promising projects are offered at a low altcoin price but can significantly enrich the pockets of long-term investors.
Pro Tip: Use a crypto research tool to find the exchanges with the altcoins you’re looking for. Before choosing an exchange, please pay attention to its reputation and security measures. Beware of platforms with bad reviews.
5. Transferring Cryptos from One Exchange to Another
After you’ve selected a suitable exchange, it’s time to make a deposit. To do this, you need to withdraw your crypto-assets (probably BTC or ETH) from your exchange wallet (fiat-to-crypto) to the crypto-to-crypto exchange wallet. Again, the process is simple and universal for all exchanges.
- First of all, you need to find and copy the deposit address in the altcoins exchange.
- Next, make sure your crypto wallet address matches the asset you are about to deposit. For example, never send Ethers to a Bitcoin address.
- In case you are transferring Bitcoin, make sure to send it to a Bitcoin wallet address. It’s a simple but essential step! If you do not do it right, you risk losing your funds!
- Then go to the exchange in the withdrawal section. Enter your altcoins exchange wallet address (check if it is correct) and press the withdrawal button.
On some exchanges, you will need to confirm the withdrawal using your email.
The cryptos should arrive a few minutes later, an hour at most, depending on the speed and saturation of the network.
6. Purchase Altcoins on an Exchange
Here’s the fun part – getting your much-wanted altcoins. Once the deposit is made to your crypto exchange wallet, you can go to the crypto exchange and trade BTC or ETH for altcoins.
Note that buying unpopular altcoins carries more risk than projects that are more widely recognized.
Little-known cryptos with anonymous team members that are “too good to be real promises” can turn out to be simple scams.
7. Transfer Altcoins to a Physical Crypto Wallet (recommended)
The safest way to store altcoins is to use a hardware wallet. Yes, they cost you a few dollars more, but that’s nothing compared to keeping your assets secure.
Ledger and Trezor represent the most popular hardware wallets. This is because they support a lot of altcoins.
However, if none of them support the altcoin (s) you own, you can use the project’s native wallet.
You Can Buy Altcoins from an ICO
Now that you know how to purchase altcoins, you are more knowledgeable about cryptos than most people in the world.
In addition to regular purchases, you can buy altcoins not yet listed on exchanges through ICOs.
ICOs are a great way to become an early supporter of a promising project. In addition, they can be extremely rewarding.
In 2017 alone, an average ICO generated a return on investment of 1320%.
Of course, that’s not the case with every project, but sometimes it can be worth the risk.
Participating in an ICO is not complicated either. Most ICOs raise either Bitcoin, Ethereum, or other crypto. In most cases, they will have clearly defined documentation on how to contribute.
