This text will present a summary and then go through the details of trading cryptocurrency. I will try to be as brief as possible.

In summary:

1. Figure out which cryptocurrencies you wish to purchase with your fiat currency
2. Join an exchange
3. Deposit fiat currency
4. Purchase cryptocurrency with your deposited fiat currency
5. Profit! (or die trying… well not die but at least cry a little)

The details:

I made investments in Monero because I like the privacy aspect, Ripple because it’s mainstream and has garnered major banks interest, Lumens because it’s cheap, non-profit, and sort of like Ripple but different, and finally, Electroneum because it is trying to revolutionize video gaming and online gambling. There are also plenty of disadvantages to my list but that isn’t the point of this text. You should do your research, follow your gut feeling and then invest in the short or long term.

Step 1

I signed up with the San Francisco based exchange Kraken.com. An exchange is a medium used to exchange one currency for another for a small fee. The next steps are to:

1. Get verified
2. Setup a wire transfer from your bank to Kraken’s bank
3. Trade your fiat currency for cryptocurrency

Upon signing up, click on Funding and you will notice a bunch of fiat money you have the option to deposit. You may select the one of your choice, but you will then find out that you need to get verified first. So, click on Get Verified and depending on which currency you are depositing, you may have to get verified all to way to Tier 3 – uploading an image of your driver's license and a recent bill.

Step 2

Once verified, you will be provided with Wire Transfer Deposit information. A wire transfer is used to send funds from your bank to another bank:

1. Account name (your money will go into this account)
2. Address (receiving bank address)
3. Bank name (receiving bank name)
4. Branch address (receiving bank address)
5. SWIFT (also known as bank identifying code or BIC and is used to identify banks internationally)
6. Account number (receiving bank account number)
7. Reference (your Kraken deposit account – IMPORTANT – your bank may not have a field titled reference, it may be titled Note or Additional Information or something like that. Ensure that kraken.com is included in that Note field. In example: AA98 BB98 XXXX XXXX kraken.com
8. The Minimum and the Maximum is simply how much fiat you can wire, it’s not something to be provided to your bank. I mean you sure can, but they won’t care.

Step 3

After 1 to 13 days, depending on the country of fund origin. Canada seems to take the longest according to Kraken’s frequently asked questions (FAQs). You will get notified by e-mail when your funds are available in Kraken. After you do, you may log in and click on Trade followed by New Order. Start with the Simple option, at the top left, select your currency pair (i.e. XBT/USD), and exchange your USD for XBT (Bitcoin)!

You will notice that you may not purchase some of the less popular cryptocurrency with fiat currency. As a matter of fact, most cryptocurrency is not available for purchase with fiat currency. You will have to purchase Bitcoin first and then use it to purchase other cryptocurrency. I think that this is one of the reasons for the Bitcoin popularity, a minor one but a reason nonetheless.

So, will you become an active day trader or will you hold? Best of luck and enjoy the trip.