The first step in our journey to richdom is creating a wallet. I personally prefer the Blockchain wallet. It can hold both Bitcoin and Ethereum (you can use both to buy alt coins like MANA or IOT trough an exchange). Follow the steps and create your wallet on the Blockchain website, make sure to write all your login/recovery details down, you don't want to lose your wallet. After you've created your wallet you can also download and connect the mobile app for quicker transactions.
After you've created your wallet, it's time to set-up your Binance account. Binance is an exchange for cryptocurrencies, this means that you can send Bitcoins, Litecoins and Ethereum to a deposit adress on the website, and exchange the BTC/LTC/ETH for alternative crypto's. Again, make sure to write the login/recovery details down, your Binance account could be worth a lot of money a little while from now.
This is it for step 1, easy right?
After completing step 1, we're set to make our first investment. We'll do this trough Coinbase for international users and trough Litebit for european users, as those are two of the most trusted cryptocurrency brokers in the world. Now it's time to create your Coinbase/Litebit account. Make sure to verify your phone number and to submit an ID check right away (only for Coinbase), as you'll need this to safely buy crypto's. After you've created your account, it's time to get started with our investment.
We'll need to either buy some Bitcoin, Litecoin or Ethereum to be able to invest in all the other currencies on Binance. Open your Blockchain wallet so we're ready to copy the deposit address of your wallet. You can find it here:
So go ahead and copy the request address, and paste it into your Coinbase/Litebit order, you can now buy the desired amount of Bitcoin. After you've made your order on Coinbase, your Bitcoin is on its way towards your Blockchain wallet. You can track the progress within the transactions tab in your wallet.
At this point, mainstream coins like Bitcoin/Ethereum/Litecoin have already grown a tremendous percentage. So for new investors like ourselves, it's a good idea to look at the market for alternative coins. A lot of those coins don't just act as a currency, there's a futuristic concept behind them. For example, IOTA aims to control the way Internet of Things devices will interact with eachother. This sort of technologies are interesting for big companies, so you'll often see small coins with a lot of big partners. This is good news for us, because those coins can still make the gigantic profit Bitcoin, Litecoin and Ethereum made in the past few years.
So let's get started with purchasing some alt coins. First login into your Binance account (which you created in step one). Go to the 'deposits & withdrawals' under the 'funds' tab in the main menu. Now find Bitcoin (BTC) in the list and click 'Deposit' as shown below:
Now open your Blockchain wallet, and send the desired amount of Bitcoin to the address shown above. Once completed, your Bitcoin will show up in the 'history' button under the 'funds' tab.
When the transaction is complete, go to the 'Exchange' on Binance. Here you'll be able to trade Bitcoin with any of the alternative coins listed. This should look like shown below:
In this example i'm exchanging Bitcoins for IOTA. Just press buy and you will be able to find the coins in the 'Deposits & withdrawals' section under the 'funds' tab. From here you can either withdraw your balances to your different wallets, or just leave it on Binance. When you want to sell your profits, just exchange everything to a stable coin like Bitcoin, withdraw it to your wallet, and sell it on Coinbase.
After you've purchased your desired coins, you obviously will want to keep track of their performance. One of the best ways to do this, is opening an account on Cryptocompare, and adding the coins to your portfolio. Eventually it will look like this:
Adding your coins to your portfolio makes it easy to see which coins are performing good, and which are generating a loss. Don't be scared when the price of a coin drops, this happens all the time. It mostly increases to a new record height right after the pricedrop.
The best strategy for making a good profit with alternative coins, is the Buy and Forget strategy. Also known as HODL, this is not a misspelling of hold, it stands for Hold On for your Dear life. So in short, just buy these coins while they still have a low price, and don't mess with it for one to three years. The chances are realistic that one or more of your coins have generated a huge amount of profit by then.
While your excisting coins grow, it can't hurt to keep an eye out for new coins that enter the market, or suddenly become interesting. You can use this website to do that. When you find a cheap coin with a concept you believe in, go for it and buy a couple of thousands.