How to Invest in Bitcoin & Crypto Currencies FAST Part III
Step 3: How to setup your portfolio
That’s what we’ve done so far. We’ve purchased Bitcoin through Coinbase in this example and then we have kept it in Coinbase itself in the sense that Coinbase also doubles as an online wallet. And that’s where you want to stop if you just want to buy and hold Bitcoin. End of story. Nothing else to do. You can if you want, take that Bitcoin out of Coinbase and send it into another wallet. You could decide to send to your mobile wallet, to your hardware or cold storage wallet etc.
What if you now also want to start investing in other cryptocurrencies? You want to hold Bitcoins possibly and also Altcoins. Altcoins are other cryptocurrencies. Altcoins stand for alternative currencies or alternative coins. The process is pretty much the same. We buy Bitcoins through Coinbase for example, instead of keeping those Bitcoins in either Coinbase as an online wallet or any other type of wallet, we need to send those coins to an exchange.
An exchange is a website where people can exchange coins for one another. What you would do for example is you would open an account with an exchange say Bittrex, and by the way, I may in the future record some step by step video tutorials on how to open an account with Coinbase for example with Bittrex with a number of other platforms and exchanges. Let me know that that is something you’d be interested in so I can make sure it’s prioritized and it gets done as soon as possible.
With that said, you would open an account with an exchange say Bittrex and then we need to transfer the Bitcoin that you have in Coinbase to Bittrex. Why? Because we need to exchange, if you want to buy Altcoins other cryptocurrencies, we need to exchange some of that Bitcoin or all of it to other cryptocurrencies.
How do we get our Bitcoin from Coinbase to Bittrex? As you open an account with Bittrex, they will give you automatically a public key. A public wallet address or ID. In the same way that you have a public wallet ID with Coinbase, you would have a public wallet ID with Bittrex for example. You take that, you copy it, you go back to Coinbase and you tell Coinbase to send however many Bitcoin you want to send out, you tell them “I want you to send this many Bitcoins to this wallet ID”.
Like I said before, make sure double check the first couple of characters, the last couple of characters in that way you would’ve moved some or all of the Bitcoins from Coinbase to Bittrex.
Once that is done, then within Bittrex, you can start exchanging Bitcoins to other cryptocurrencies. Important thing to know here is that to purchase pretty much any other Altcoin, you need to go through Bitcoin first. You need to convert Fiat currency say dollars, euros, pounds etc. into Bitcoin and then convert that Bitcoin into whichever another Altcoin you want to purchase. In some cases, you can go through Ethereum or other "major coins", so you would exchange dollar, euros, pounds whichever fiat currency into ether and then into other altcoins.
In the vast majority of times the main currency of reference when it comes to cryptocurrencies is Bitcoin, so chances are that you will want or it will be more cost efficient for you to go through Bitcoin first. If you just want to buy and hold bitcoins, you buy and hold bitcoin and that’s the end of it.
If you want to also invest in other cryptocurrencies, which I highly encourage you to because there are some incredible opportunities there, then we need to move that Bitcoin into an exchange so you can start trading those currencies.
There are also incredible opportunities with Altcoins.
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Investing in Bitcoin is a huge opportunity…It just is too big to be ignored.
Cryptos are a huge opportunity that is just too big to be ignored. I wish you the very best of luck.