A Beginner’s Guide to Investing in Altcoins with Jimmy Potter
Hey guys! I'm Jimmy Potter, and I'm a cryptocurrency expert. Today, I'm going to guide you through the process of safely and securely investing in alternative cryptocurrencies, also known as "altcoins," like EOS, NEO, and IOTA. This guide will walk you through the steps needed to get started, even if you're a complete beginner.
This article is the second in a series on how to buy cryptocurrencies. If you haven’t already, I highly recommend watching the first blog, which covers what you need to know and do before investing in digital assets like cryptocurrency. It will teach you how to set up all the necessary accounts to buy Bitcoin, Ethereum, and Litecoin, which you’ll use to purchase other altcoins on the exchange we’ll discuss today.
Getting Started
Before we dive into the step-by-step guide, there are three important things you must understand before converting your wealth into digital assets.
No Safety Nets: Cryptocurrency investments are different from traditional financial systems. There are no fail-safes, hotlines, or FDIC-insured banks to protect you if something goes wrong. If you lose your funds, there's no way to recover them. This is why it's crucial to be careful and fully understand what you're doing.
Invest What You Can Afford to Lose: Always remember the golden rule of investing: never invest more than you can afford to lose. The cryptocurrency market is highly volatile, and while the rewards can be substantial, the risks are equally high. Decide on an amount that you're comfortable with, and stick to it.
Set Up Secure Wallets: It's essential to set up wallets that support the specific cryptocurrencies you want to invest in. Never leave your crypto on exchanges, as they are prime targets for hackers. Make sure you do your research and choose wallets from trusted sources.
Setting Up Your Binance Account
In this guide, we’ll be using Binance, one of the most beginner-friendly cryptocurrency exchanges, to buy altcoins. Follow these five simple steps to get started:
Visit Binance: Go to Binance.com. Double-check the URL to ensure it's correct, and bookmark the site for future use. You can also use my referral link below for a safe and direct path to the registration page. Click "Register" and fill in your details, including a strong, unique password.
Enable Two-Factor Authentication (2FA): After registering, you’ll be prompted to enable 2FA. Use the Google Authentication app, which we set up in the first blog of this series, to secure your account.
Buy Bitcoin or Ether: To purchase altcoins on Binance, you’ll need Bitcoin or Ether. If you don’t already have some, use Coinbase to buy Bitcoin or Ether. Once purchased, transfer it to your Binance account by sending it to the appropriate wallet address on Binance.
Buy Altcoins on Binance: On Binance, go to the "Exchange" section and choose the "Basic" option. Here, you can trade your Bitcoin or Ether for various altcoins like NEO or IOTA. Use the "Market" option for an instant purchase, or set a "Limit" order if you prefer to buy at a specific price.
Withdraw to a Secure Wallet: Once you’ve bought your altcoins, transfer them immediately to a secure wallet. Never leave your cryptocurrencies on an exchange. Make sure you have a trusted wallet that supports the altcoins you’ve purchased.
Final Thoughts
Congratulations! You now know how to safely and securely invest in altcoins. Always remember to keep your investments secure and never risk more than you can afford to lose.
Thanks for following along! If you found this guide helpful, please let me know in the comments which cryptocurrencies you'd like me to cover in future blogs. Stay safe and happy investing!