Gaining access to hundreds of cryptos
Here are a few directions on how to branch out from the main cryptos…
Once you have Bitcoin or Ethereum, you’ve got to create an account with another exchange beyond popular ones such as Coinbase – you need an exchange that gives you the opportunity to trade a range of crypto rather than just the main ‘gateway’ ones.
Exchanges like Binance, Poloniex, Bittrex and Kraken are the ones that open the door for you to buy hundreds of different cryptocurrencies. Note that you may encounter problems registering with Bittrex, as they are adapting to the overwhelming requests for new accounts, but hopefully this will change soon.
A lot of these second-level exchanges do not accept fiat (cash). You can only make transactions by using other cryptos like Bitcoin, Ethereum, Bitcoin cash, etc. (what I like to call ‘gateway’ coins).
When you sign up for these exchanges, you’ll have to provide some personal information, much like opening a bank account. Some want a picture of your ID. Some even a video of yourself! You’re going to have to give your name, address, phone number, etc.
They don’t do it to be annoying or to try to steal your money. They do it because they’re required to by law.
I recommend getting accounts on at least two different exchanges. Why? Because sometimes these exchanges stop taking new customers as with Bittrex, which we’ve seen happen a lot recently. Not to mention spreading your money around is another added layer of protection against crypto hacks.
These exchanges are so flooded that it may take a number of days to verify your details.
I know this is extremely frustrating if you want to get involved. Be patient. Once your account is verified, you will be able to send your Bitcoin or Ethereum to the exchange.
The nice thing about these exchanges is they have wallets for hundreds of currencies. So you can have five, 10, 20, 30 different tokens on one exchange.
Yes, there are risks at this level as well. If the exchange is hacked, you may want to withdraw your crypto into wallets you personally hold. But setting up individual wallets can become very complex.
Ultimately, the decision is up to you.
Next, I recommend you do a test transaction. Do not send thousands of dollars from your wallet with Coinbase to these exchanges. Send a small amount first and make sure the transaction goes through.
Why? Because human error happens. You may mistype something. The exchange may take hours to show the money transferred over as pending or as received.
Rather than worrying over a big amount, it’s important to test the variables with a smaller sum until you feel comfortable trading at the level you want.
I hope that provides you with some basic know-how on taking the second-step onto the crypto ladder. I’ll be back tomorrow with some more on crypto exchanges.