Crypto-trading. Let's get started!
Crypto-trading. Lets get started.
Blockchain Works x Tenjincrypto
What is a cryptocurrency?
Cryptocurrency is a general name that denotes all encrypted decentralised digital assets. It uses cryptography to create tokens or 'coins' that carry value. Each token requires mathematical work to create and this work makes it incredibly difficult to counterfeit. Transactions are located on a public 'ledger' that everyone can access so it cannot be counterfeited. Currency is only one use of decentralised public ledger technology. There are many different kinds of cryptocurrency with myriad uses. The most well known is Bitcoin.
Buying your first bitcoins.
Localbitcoins.com is a great site through which you can buy bitcoin quickly, securely and easily. Signup and select the method you want to use. Don't be alarmed by requests for pictures with your ID and a note, this is to be compliant with money instrument regulations.
If you would rather use a slightly slower alternative method that doesnt require these requests, sign up to coinbase, get verified and purchase your first bitcoins with your card or a bank transfer.
Storing your crypto
So you've bought your first Bitcoin. Congratulations! Now let’s put it in your wallet. What is a wallet?
A cryptocurrency wallet is a digital vault used to store, transfer and receive digital currency. Most currencies have their own proprietary wallet but third party wallets are very easy to use.
How does it work?
Think of your wallet like a digital safe. A secure digital code known as a private key shows ownership of the safe. Your public key is the public address of your safe.
Think of the private key. like a key, and the public key, a safe with the amount stored inside painted on the outside. You can use your key to access the safe, and the safe lets the network know how much is in it so you can use it.
Jaxx is an excellent multi platform wallet that handles many types of currency. However, stay away from the ‘shapeshift function’ and use an exchange instead as it can be unreliable. Download Jaxx
Make sure you back up your wallet and write down your back up seed.
This is a 12 word phrase that can restore your wallet if your device crashes.
Your wallet is located at this address. An example public key looks like this:
Send your bitcoins from local bitcoin, to jaxx.
Remember what we said about miners making sure the network is secure? Everytime you send bitcoins, there is a small fee that goes to the miners. Now depending on network traffic, this may take a little while for your bitcoins to appear in jaxx.
Buying other coins with your bitcoin.
There are two ways of buying other coins. The easiest is shapeshift.
Shapeshift is a service integrated with Jaxx that allows you to buy other coins without having to transfer to an exchange. You do pay a premium for these services on the rate but it is easier than transferring to an exchange.
Exchanges such as Bittrex.com are good for trading different coins. The trading page will look like something like this:
Looks complicated right? Don’t worry. Scroll down, on the left hand side you will see the buy box. Type in how many units of the coin you want in the top box, type the price you want to buy at in the second and the total bitcoin spent will appear in the bottom. Click the buy button and you are good to go!
Remember, if you place a buy order above the current price, it will be filled immediately. If you place it below the current ask, you will have to wait till there is a seller who posts an ask that matches your price. You will receive a notification when you have bought your coin.
Congratulations! You have just completed your first cryptocurrency trade. A useful tool is blockfolio, an iOS and Android app to track the value of your holdings over time.
This is just the beginning. For more trading information, tools, strategies and news on the latest coin developments, head to tenjincrypto.io
Thank you to the excellent team at Blockchain Works.
If you are interested in working with Blockchain technologies sign up at Blockchain Works here