So you’ve decided to buy a cryptocurrency that’s not Bitcoin, Ethereum or Litecoin – great! So what are the steps that you have to go through in order to buy any (alt) coin?
Look it up on Coinmarketcap
Let’s say I would like to buy some Quanstamp (QSP). In the video below, you can see the steps that I am going through in order to find the coin on Coinmarketcap , and then find the exchange platform where I would be able to buy this coin.
Using Coinmarketcap to find out where to buy a particular coin http://www.drcrypto.co.uk/tutorial/how-to-buy-a-cryptocurrency-on-an-exchange-platform/
Posted by Doctor Crypto on Saturday, 2 December 2017
After finding the coin, you can check the price in USD, BTC and ETH. You have the official website link in the column on the left-hand side.
In the bottom part of the page, you have the Price Chart tab and the Markets tab.
- The price chart tab shows you how the price of the coin has evolved since its release; there are 4 main parameters – Price USD (price in USD), Price BTC (price in Bitcoin), the market cap and the 24h volume of transactions. You can also choose different time periods over which you want to see the price change – 1 day, 1 week, 1 month, 3 months, 1 year
- The Markets tab show you all the exchange platforms where you can actually buy the coin. It also gives you the coin that you need in order to exchange it for the coin that you want to buy.
In this case, QSP can be bought on Binance using either BTC, ETH or BNB (Binance coin) and a few other platforms. You also want to look at the price to see where you would get the best deal and the volume of transaction over 24 hours is (the higher the volume, the more likely you are to find someone who is willing to exchange their QSP tokens with your BTC or ETH). One important thing to keep in mind is that using ETH to buy a particular coin is much quicker at this point in time than using BTC. The validation of BTC transfers takes much longer than the ETH transfers hence there will be a longer delay between sending the funds from your Coinbase / GDAX / Bitpanda wallet to the exchange platform wallet.
Once you’ve decided which platform you would look like to use for this exchange, you need to sign up on that exchange platform. You can see how to do that here.
In this case, I used Binance to buy some QSP using some ETH. So what you have to do now is buy some ETH in your Coinbase account. After you’ve done that, you want to send the Ethereum from your Coinbase account to your Binance account. This is a very important step so read carefully. The way you send the Ethereum over is by using a wallet address that is unique to your Binance Ethereum account.
Finding your wallet address for sending funds to the exchange platform
After you’ve logged into Binance, you should go to Funds and then click on Deposits Withdrawals.
Now you will be shown a list of all the types of coins that you can send to this exchange platform. I decided to buy QSP using ETH therefore I am interested in the Ethereum deposit address.
In the search box in the top left corner, I searched for Ethereum because that’s what I’m using to buy QSP:
On the Ethereum row, click on deposit and you will be given the deposit address for Ethereum – this is the address where you send the Ethereum that you want to use buy QSP. Copy this address as you will need it on Coinbase.
Only send Ethereum to this address because this is an Ethereum deposit address! If you send a different coin, your coins will be LOST!
Now that you copied the address, you go back to Coinbase, log in, click on Accounts, then on ETH Wallet and then on Send. You will be presented with a page that looks like this:
In the Recipient box, you put the Ethereum deposit address that you copied from Binance. Double check and make sure it is the same address as you don’t want to send your ETH to someone else!
Confirm the amount that you would like to send to Binance and press on Send funds. You will be asked to verify the transaction either using the code you receive through a text message on your phone or by putting the number from your Two-Factor Authentication app on your phone, as seen in the image below:
The Ethereum transactions require 30 confirmations so it will take about 3-5 minutes until your Ethereum is transferred to Binance.
This is what the confirmation page looks like if you click on the transaction in your Coinbase account:
If you click on the View transaction link, it will take you to your transaction on EtherScan, which gives you all the details of the transactions and the number of confirmations that have been successfully done.
When the transaction is completed, you will see the green button above saying COMPLETED and you should have your Ethereum transferred over to your Ethereum wallet on Binance.
Read the second part of this tutorial here.