The Absolute Beginner’s Guide To Cryptocurrency Investing
The Absolute Beginner’s Guide To Cryptocurrency Investing will take you through the whole process of buying, sending and receiving cryptocurrency on both Coinbase and Binance. If you don’t feel ready to invest just yet, we recommend you start by familiarizing yourself with our ‘Beginner‘ guides, to learn about fundamental blockchain concepts.
Start By Creating Both A Coinbase And A Binance Account
Coinbase is the most beginner friendly, offering approximately 60+ of the most established cryptocurrencies on the market.
Binance has the lowest trading fees on the market, while offering a majority of the total cryptocurrencies on the market (2000+).
Both can be used as a point of entry, but banks have a tendency to be more lenient towards allowing transactions to and from Coinbase (depending on your geographical location). It is strongly recommended to have verified accounts on both platforms for this reason.
1. Log into your Binance account and go to your wallet overview page.
2. Click on [Deposit] at the top right side of your screen.
3. Select [Deposit Crypto].
4. Select the cryptocurrency you want to deposit. In this example, we will deposit USDT.
However, if your intention is to transfer over in order to continue trading then Litecoin will provide you with the cheapest transaction fees.
- BEP2 relates to the Binance Chain.
- BEP20 relates to the Binance Smart Chain (BSC).
- ERC20 relates to the Ethereum network.
- OMNI refers to the OmniLayer that runs on the Bitcoin network.
- TRC20 relates to the TRON network.
- BTC refers to the Bitcoin network.
- BTC (SegWit) refers to Native Segwit (bech32), and the address starts with “bc1”. Users are allowed to withdraw or send their Bitcoin holdings to SegWit (bech32) addresses.
- The network selection depends on the options provided by the external wallet/exchange that you are making the withdrawal from.
- If the external platform only supports ERC20, you must select the ERC20 deposit network.
- DO NOT select the cheapest fee option. Select the one that is compatible with the external platform.
- For example, you can only send ERC20 tokens to another ERC20 address, and you can only send BSC tokens to another BSC address. If you select incompatible/different deposit networks, you will lose your funds.
7. Copy the deposit address provided by Binance and paste it on the corresponding platform’s address section (where you intend to withdraw your funds from).
8. After confirming the withdrawal request, you have to wait until the transaction is confirmed. The confirmation time varies depending on the blockchain and its current network traffic. Please, wait patiently for the transfer to be processed. The funds will be credited to your Binance account shortly after. You will receive a confirmation email when your funds have been confirmed.
9. You can check the [Transaction History] page for more information on your recent transactions.
Want a cryptocurrency that you couldn’t purchase directly?
The easiest, and far less intimidating option to use is the ‘Convert’ tool, simply select the token you have and the token you want to convert it into. For example if you followed the previous steps to assure the lowest possible transaction fees, you’ll have Litecoin in your spot wallet, which you can convert into USDT. And then you convert that USDT into, say Dogecoin directly without having to use the classic trading tool. The conversion tool will then convert these immediately based on current market price. However, do note that not all trading pairs are available to the converstion tool.
The next step is the ‘Classic’ market trading interface.
For an introduction on how to use this you can check out our guide explaining the different order types.
Two-Factor authentication is a must, and an authenticator app like ‘Google Authenticator’ is the most secure. Two-Factor Authentication, in a nutshell, provides an extra layer of security on your accounts by means of you manually verifying that you’re actually the one logging in.
There are two ways you can apply 2 factor authentication on your accounts (of course, depending on what option the site allows):
- Via an Authenticator application. Some exchanges and applications allow ‘Authy’, but the vast majority use ‘Google Authenticator’. They function the same, as applications on your phone. Be sure to write down the installation passphrase in case you ever lose your phone. You will also need this in order to verify setting up a new phone. (most secure)
- Via SMS. You’ll receive text messages to your phone number when you try logging in or making a transaction. (least secure)
For a more in-depth security overview, visit our guide on how to keep your cryptocurrency secure
Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following: