In this article, we’ll show you how to buy altcoins on the major cryptocurrency exchanges, and why you should consider investing in altcoins.
If you’re new to trading, then you might be sticking with the typical coins you’d find on Coinbase. Major coins include like Bitcoin, Ethereum, and Litecoin. And while there are great coins to consider, you’re doing a disservice to yourself by only focusing on those. There are many altcoins worth your time. Coins like ARK, BAT, and NEO, which you cannot purchase on Coinbase.
Taking a look at altcoins means you have the ability to invest in early-stage companies. These companies are developing solutions to real-world problems and their technology ranges from supply chain improvements to cloud computing. Your potential for reward with these coins can be much higher than you would experience with a larger coin like Bitcoin or Ethereum.
- 1 Altcoins – The Allure of Alternatives
- 2 Why Use Coinbase for Altcoins?
- 3 Why Use Binance?
- 4 Create Your Coinbase Account
- 5 Fund Your Coinbase Account
- 6 Why Use Coinbase Pro?
- 7 Transfer Funds to Coinbase Pro
- 8 Binance Registration
- 9 Moving Funds from Coinbase or Coinbase Pro to Binance
- 10 Buying Altcoins on Binance
- 11 Moving to Your Wallet
- 12 Mobile Options
- 13 Enjoy!
Altcoins – The Allure of Alternatives
The problem is that a lot of the more popular exchanges don’t offer the option to purchase altcoins. You can purchase Ethereum or Bitcoin with your debit or credit card, but not a whole lot else. The simplest way around this is to purchase certain cryptocurrencies on an exchange, then move your funds to a different service.
Ideal candidates for this method of transaction are Coinbase and Binance. While it might sound complex and convoluted, using this pair is the simplest and fastest way to purchase altcoins. In this article, we’ll walk you through the process of using these two services to buy the altcoins you want to have in your portfolio.
Why Use Coinbase for Altcoins?
One of the most well-known and widely used exchanges is Coinbase. The appeal behind Coinbase is that it is straightforward and you can easily connect your fiat currency to your cryptocurrencies. All you need to do is link your bank account or credit card to Coinbase. Once you’ve done that, you can purchase any of the available Cryptocurrencies available on the site.
The problem is that Coinbase isn’t ideal if you’re interested in trading or buying altcoins. Coinbase is limited in its trading pairs and is known for its high fees. If you’re looking to purchase coins other than what is listed on Coinbase, you’re out of luck. You’ll need to move your funds from Coinbase to an exchange that can handle those types of trades.
Why Use Binance?
If you want an exchange that has a lot of volume, Binance is the way to go. Binance performs over $1 billion in volume every single day. You’ll have plenty of trading pairs from which you can choose along with a wide range of buying and selling features. Comparatively, the fees on Binance are much lower than Coinbase.
If you’re new to buying, selling, and trading cryptocurrencies, using Coinbase and Binance are the easiest way to do so. That being said, let’s get started.
Create Your Coinbase Account
Creating accounts on Coinbase and Binance are easy, but it takes a little bit of time to get set up and verified. Otherwise, getting started is straightforward. Let’s start with creating your Coinbase account.
- The Top Choice To Get Into Crypto Markets: Coinbase’s easy to use interface and bank deposit options make it the most popular way to buy crypto.
- Regulated: Coinbase takes regulation seriously and has acquired all the necessary licenses to operate.
- Deposit Options: Bank transfer, card & PayPal (for select countries).
- Available Cryptos: Bitcoin, Bitcoin Cash, Ethereum, BAT, Ethereum Classic & Litecoin.
- Beginner Friendly: The easiest way to buy cryptocurrency.
Looking To Buy Over $100 Worth Of Crypto? Create An Account Though Us & Get $10 Free.
Are you finding it tricky getting set up on Coinbase? Our comprehensive guide shows you how.
Head on over to the Coinbase site and click the “Get Started” button in the upper right corner.
From here you’ll be taken to a page requesting your first and last name, an email address, and a password. Once you’ve filled that in, choose “Create Account” and you’ll receive an email with a verification link. Click on the link to continue with signing up.
Once you’ve completed your email validation, head back to Coinbase and log in to your account with the information you provided earlier. When you’re logged in, the exchange will ask you to add a phone number, along with a payment method. If possible, use your bank account, since the fees for a debit card are higher with Coinbase.
After you input your bank account or debit card information, Coinbase will ask you to enter verification information for identification purposes. These precautions are for the Know Your Customer (KYC) process. This is a common practice for many digital currency exchanges. Once you have the required documents, upload them to your Coinbase account.
The next step is to enter your bank account information. Once you do that, Coinbase will send a few test transactions to your account. They’re only a few cents each, but once you see them, you’ll return to Coinbase and confirm the bank account is yours.
That’s pretty much it. It will take a couple of days for your bank transactions to finalize, but once that’s done you’re all set. Now you need to fund your Coinbase account.
Fund Your Coinbase Account
While you’re logged into your Coinbase account, select the “Buy/Sell” option at the top of the page. There is a drop-down that offers a selection of Cryptocurrencies. Select the one you want to purchase, then choose your method of payment.
Your bank account should be the one listed by default under the “Payment Method” drop-down. Enter the amount you want to move by typing in the amount in the USD field on the left side of the screen.
Coinbase automatically converts the amount entered to reflect the amount of the cryptocurrency you selected. On the right side of the screen, you can see the breakdown of your transaction, which includes your fees for Coinbase.
If you are satisfied with how everything looks, select the “Buy” option at the bottom of the screen. Coinbase will withdraw the funds from your account in exchange for the cryptocurrency you selected. It might take a little while for the amount to show up in your Coinbase account, so be sure to give it some time.
Why Use Coinbase Pro?
This step is optional and is typically used for those that want to avoid the high fees charged by Coinbase when moving cryptocurrency. For instance, Coinbase charges a fee of 1.49% for each transaction. So if you create a buy order for $100, the total amount ends up being $101.49.
Additionally, if you create a sell order for the same price, Coinbase deducts the $1.49%, so the amount you receive is only $98.51. As you can see, Coinbase gets you whether you’re coming or going. One other thing to note is that transactions made with a debit or credit card are charged a minimum of a 3.99% fee.
With Coinbase Pro, you could potentially wind up with a transaction that has fees as low as 0%. All maker fees are 0%, however, the taker fees depend on the amount of the transaction. If your transaction is $0-10 million, the taker fee is 0.30%. $10 million to $100 million is 0.20%, and anything more than $100 million is 0.10%. No matter what, you’re doing better than you would on Coinbase.
If you’re confused by the terminology, the taker is the person that buys or sells based on the market order. This person takes the order created by someone else and as a result, pays the fees associated with the transaction.
The maker, on the other hand, is the user who buys and sells using the limit order. As the maker, you create the order, then wait for it to be filled. The makers are not charged a fee when an order is filled.
Transfer Funds to Coinbase Pro
Now that you’re wallet is full of your chosen cryptocurrency, it’s time to move them over to Coinbase Pro to avoid the costly fees associated with Coinbase. Head on over to Coinbase Pro to get started.
Once there, click on the “Deposit” button you’ll see on the left side of the screen. Next, a popup will show up on your screen. From the drop-down, select which currency type you want to move to Coinbase Pro. When you’ve chosen the coin you want, choose “Coinbase Wallet” on the right side of the popup to move your funds from Coinbase to Coinbase Pro.
When you’re satisfied with the chosen currency and amount, choose deposit and your funds will show up in Coinbase Pro.
Now that you’ve moved your funds from Coinbase to Coinbase Pro you can get started moving them to Binance so you can purchase your altcoins.
Before you’re able to do anything with Binance, the first thing you’ll have to do is create an account. Setting up Binance is easier and quicker than with Coinbase since there’s no need for you to validate your banking information.
Binance Important Info
- The Top Exchange For Altcoin Investors: The home of the highest trading volume & a wide selection of top altcoins.
- Beginners Welcome: The exchange’s simple layout and interface makes it the ideal choice for crypto newcomers.
- Big Choice Of Coins: Offers access to over 100 cryptocurrencies.
- Buy Or Sell Anywhere: Binance offers both Android & iOS apps.
- Supported Deposit Methods: Cryptocurrency only.
Buy Altcoins On The World’s Favourite Cryptocurrency Exchange.
Need more help on getting started on Binance? Just read our Binance set up guide.
Head on over to Binance and register for an account. It will ask for your email address, along with a password. You’ll receive an email from Binance to verify your email address. Click on the link included in the email to complete activating your account.
Now that you’ve created your account, log into Binance with the email and password you provided. You’ll be asked to read and accept the safety notice. Once you do, go ahead and click “Continue” to move on.
On the next screen, you can set up your 2FA, which is 2-factor authentication. This is an additional layer of security to prevent your account from being compromised. With 2FA on Binance, you can either download Google’s Authentication app or use SMS authentication. You can skip this, but we highly recommend that you don’t.
After you’ve completed your 2FA, you’re ready to go. Binance does have a limit of 2 BTC on withdrawals. However, you can raise that limit by providing KYC documentation under your account settings.
Moving Funds from Coinbase or Coinbase Pro to Binance
Transferring your currencies from Coinbase or Coinbase Pro to Binance is easy and straightforward. We’ll go through both sites so you know exactly how to get your money from one place to the other and begin buying altcoins.
To move your funds from Coinbase to Binance, the first thing you’ll need to do is copy the receiving wallet address in Binance. Log into your Binance account, then select the “Deposits” option from the “Funds” menu at the top of the site.
Now you’ll see an option to select the token or coin you want to deposit. If it’s not near the top of the list, you can type it into the search field. Now, Binance will create a wallet address, which you’ll use to move your Coinbase currency to Binance. Be sure you copy the entire address so you don’t lose your deposit when moving your funds.
Head back to your Coinbase account now, and click on the “Accounts” tab in the top. This will list all of your cryptocurrencies, along with how much you have of each. Find the currency you want to move to binance and choose “Send.” The icon looks like a small paper airplane.
You’ll be greeted with a pop-up which asks for the address for the wallet you’re sending funds to. Enter the address, along with either the amount of fiat currency or cryptocurrency you want to transfer. Coinbase will convert the amount no matter which you choose.
At the bottom of the transfer, you can input a note to yourself. This is to help you see exactly what you were doing with the funds when you moved them. Something along the lines of “Transferring to Binance” should do the trick. Click on “Continue” to begin the transaction process.
Unlike with your fiat transactions, cryptocurrencies typically complete in a few minutes. Keep in mind, however, that this may vary depending on the type of cryptocurrency you’ve selected. Once your transfer has initiated, Coinbase will send you an email letting you know.
Just like you did with Coinbase, you’ll want to head over to Binance first and go to the “Deposit” section of your funds. Choose the coin you want to move and get the wallet address. Make sure you copy it correctly, then visit the Coinbase Pro site so you can start the transfer.
First, you want to choose the “Withdraw” option on the left side of the screen. Once you do, a popup will appear with a drop-down. Select the cryptocurrency you want to move to Binance.
Here you’ll enter the wallet address and enter the amount you want to move. Just like with Coinbase, the amount you enter will automatically be converted to either fiat currency or cryptocurrency depending on which one you fill in.
When you’re satisfied with your chosen coin and the amount you entered, click on the blue “Withdraw” button at the bottom and your transaction will commence.
Now you can make your way back to Binance. Once again click on the “Funds” option, but this time click on “Transaction History.” Here you should see your incoming funds from Coinbase or Coinbase Pro. It will also show you how much you already have in your wallet if anything.
Buying Altcoins on Binance
Now that you have your account funded, you can go ahead and start trading for the altcoin you want to own. From the main page, go back to the “Funds” option, but this time choose “Balances.”
On the Balances page, you can see the list of all the cryptocurrencies Binance supports, along with the amount you hold in each of them. Find the one you want to own and click on the “Trade” button on the right. There you’ll see a drop-down of which coins you can use to trade for your chosen altcoin.
Once you select which pair you want to trade with, Binance will take you to the trade screen. Here you can select how much you and at what price you wish to trade. When you’re satisfied with your choices, you can click the “Buy” button.
Congratulations! You now own an altcoin!
Moving to Your Wallet
If you are planning on holding your altcoin for a while, you may want to move it to a wallet that does not reside on Binance. The steps to move your coin are just as simple as they were for buying and moving your cryptocurrency.
Return to the “Balances” section, which lists all your coins. There, instead of choosing “Trade,” you’ll choose “Withdrawal.”
You’ll be taken to a screen that asks for the withdrawal address, which is the address of the wallet you want to move your funds to. Choose how much you want to move, confirm everything is how you want it, then click on submit to initiate the transaction.
Visit your wallet to confirm the transaction successfully completes.
One of the benefits of both Coinbase and Binance is that both offer a mobile app. You can find these apps available on both the iOS and Android app stores. These apps provide the vast majority of the same functionality that the web interfaces offer, so you can perform the same functions we just went through.
You won’t see the same in-depth information available on the web GUI, but there are plenty of features available to move your funds from Coinbase to Binance. You’ll also have all the functionality you need to buy, sell, or withdraw your favorite altcoins.
Buying altcoins can seem like a daunting task. Purchasing them by using Coinbase and Binance makes it straightforward and easy. Just make sure you complete the necessary setup steps for each site. The rest is just moving your funds from one place to the next.
Now you know how easy it is to buy altcoins, but be sure to take it slow. It can be enticing to purchase a whole fistful when you start. Do some research and remember that you’re dealing with real money. Be patient, invest wisely, and have fun.