By Ryan Velez
The Bitcoin boom has officially made cryptocurrency into a mainstream consideration, but at this point, fluctuations in the flagship currency have taken Bitcoin out of reach of the average investor. However, Black Enterprise points out that cryptocurrency is not just a one-act show, and there may be alternatives out there that are worth considering.
One such example is Ripple. Over the last few weeks, it has jumped from .22 cents a coin to approximately $3.20 a coin and it continues to fluctuate. At the moment, it’s important to note that you can’t just jump into a Ripple investment with your cash, at least for the time being. In many ways, the cryptocurrency space is in its infancy, so expect a lot of changes as things begin to roll on. The reason is that a lot of the exchanges don’t want to deal with the regulations related to the US dollar (USD).
There are several different ways to get involved in this space. One such example is signing into your Coinbase account and investing USD or cash, also known in the crypto world as Fiat, into bitcoin, Ethereum, Litecoin, or Bitcoin Cash. When the money posts (roughly a week or week and a half later), you will be ready to send it into an exchange. Black Enterprise writer Sequoia Blodgett explains her method.
“I use GDax, which is also owned by Coinbase. This keeps the fees significantly lower than if you were to send the crypto to a non-affiliated exchange. Once your coins are on GDax, you transfer them to the crypto exchange of your choice. I use Binance. Again, you will need to register for your exchange account, which can take anywhere from a few days to a couple of weeks.
When transferring, you want to always deposit and withdraw, the same exact coin. Not doing this correctly can result in the loss of your crypto. Example: you buy bitcoin on Coinbase, withdraw bitcoin from Coinbase, deposit it to GDax, withdraw bitcoin from GDax, and deposit it into your exchange account, in my case, Binance. This will take anywhere from an hour to several depending on how backed up the system is. The bitcoin will show up in your exchange account and you are ready to purchase altcoins.”
Note that each exchange works differently, so before making your choice, be sure to look up a few tutorials so you know how things work. These can be easily found on YouTube, for one.