The World's most comprehensive guide to buying Ethereum and any other Cryptocurrency
In this guide you will learn how to set up a Coinbase account, buy any of the major digital currencies including: Ethereum, Bitcoin, BitcoinCash, Litecoin, and Ethereum Classic. You will also learn how open an account on Binance and use Ethereum to trade for nearly any cryptocurrency on the market. Also, we have an in-depth guide that will teach you how to join a Token Sale and we created an ICO simulator for you to test these skills before you invest large sums of money.
***MUST READ: This guide is a teaching tool and is not investment advice. You are fully responsible for any purchase you make and AGREE TO OUR TERMS AND CONDITIONS. Throughout this guide we make references to third parties, we have no affiliation with these companies other than using their products. By reading this guide you accept full responsible for using these third parties and do not hold Crusayder liable for any occurrences thereof.***
We have broken this guide into sections:
- An intro to Ethereum and cryptocurrencies
- Opening a Coinbase account
- Buying your first digital currency
- Sending ETH on the Ethereum Blockchain
- Creating a Meta Mask
- Transferring your coins to a secure wallet
- Opening a Binance account
- Trading for other cryptocurrencies
- Participating in ICOs
- ICO simulator
Section 1: An introduction to Ethereum and cryptocurrencies
Ethereum is the world’s second most popular digital currency (or cryptocurrency) to Bitcoin. Similar to Bitcoin, Ethereum’s protocol utilizes blockchain technology to maintain its system. What seperates Ethereum from Bitcoin, is the introduction of smart contracts, that allows Ethereum users to create Dapps and advanced web applications. This type of technology is revolutionary and has led to Ethereum’s rapid scalability since it went mainstream in 2017.
Why are we using Ethereum for this guide? Although Bitcoin is the most popular and has the largest marketcap, Ethereum’s protocol and its smart contract system make it a more functional currency. Image when cashless payment options became available. Check writing became highly popular for a long time (Bitcoin), but debit cards soon became a more viable and easier option (Ethereum). Also, Ethereum is a popular choice for ICOs, as most ICOs use Ethereum’s blockchain for their fundraising. Lastly, Ethereum has some really awesome and unique wallets that are super easy to set up and make transferring cryptocurrencies fast and simple.
It is important to note that during this guide we will be covering how to buy Ethereum. You have the option to buy any cryptocurrency you wish, but in order to successfully follow this guide you will need to purchase a small amount of Ethereum.
Section 2: Opening A Coinbase Account
We are going to use Coinbase to purchase Ethereum. What is Coinbase and why do we use it? Coinbase one of the top cryptocurrency exchanges and one of the few sites you can trade USD for Ethereum inside the US. We like to use Coinbase because of its high security (they have never been hacked) and they work closely with the SEC to ensure continuing operations. The SEC has the power to shut down exchanges so it is important to use a reputable one so your assets aren’t frozen if they get shut down. Coinbase also offers favorable fees compared to other exchanges (some others one charge up to 10%, YIKES).
Do I have to pay fees. Yes, unfortunately no service is free and that includes exchanging FIAT for digital currencies. Although paying a fee isn’t fun, its ultimately necessary. For Coinbase to exist and improve as a company they have to charge a fee. You see transaction fees in every investing service in the industry. Buy stocks through a broker, you pay a fee. Trade USD for another currency, you pay a fee. Send money through Paypal, you pay a fee. Transaction fees are part of the territory, and a top priority is finding the lowest fee on a secure exchange. We believe Coinbase fulfills this priority (there have been issues with Coinbase in the past, but it has never been hacked or shut down by the government).
Head to https://coinbase.com/ and click “sign up”.
On the next screen fill out the form with your information and click “create account”. Then go to the email you provided and verify your account. After your verify your account, return Coinbase.com and provide your phone number to receive a code verification.
After you submit your code, you will be asked to verify your identity. Coinbase is required by the US Government to verify identities to prevent money laundering and tax evasion. For those wanting to shield there identities must understand registering for Coinbase is in essence similar to verifying your identity to a bank. Coinbase is going to hold assets in YOUR NAME, so it is important that you can prove these assets belong to you by using your REAL information. Not to mention lying on this form is a fraud.
After verifying your identity you can now access the Coinbase dashboard, HURRAY! Before you can buy Ethereum (or other cryptocurrencies) you must link a form of payment to your account. There are three ways to fund your Coinbase account: bank account, debit card, wire transfer.
Usually linking a bank account is the cheapest solution as it offers the lowest transaction fee 1.49%. Setting up a debit card is usually easier, but you pay a premium for using it. Fees cost up to 3.99%. Choose what is best for your situation, but keep in mind a higher transaction fee eats away at your ROI. Coinbase fees for the US are below (other countries click here):
Depending on the account you linked, you may be required to verify it by submitting “dummy” transactions from Coinbase. Usually they charge your account a few pennies (then reimburse you frugal folks) and ask you to enter that amount on Coinbase. After your verify your payment method, you CAN BUY YOUR FIRST CRYPTOCURRENCY!!!
Section 3: Buying Your First Cryptocurrency
Go to the Coinbase.com dashboard and click “Buy/Sell”. Then Click Ethereum.
You are free to purchase any coin you like, BUT the rest of this guide is going to cover using Ethereum and may cause confusion. Plus, we believe Ethereum has the most potential to grow.
Notice the price under the coin name. As of writing this guide, Ethereum is trading around $477.64. This meas 1 Ethereum (ETH) is $477.64.
What if I can’t buy a full coin? No worries, the great thing about cryptocurrencies is you can buy fractions. You can buy as little as $1.99 worth of ETH (although we wouldn’t recommend it as the transaction fee costs more than this). Enter the amount of USD you want to trade, or enter the amount of ETH you want to buy. On the right side you will see the amount totals and the transaction fee. Once ready, hit the “By Ethereum” button.
You did it! Now you own Ethereum.
This is just the beginning. With Ethereum you can purchase nearly any other cryptocurrency, or even participate in an ICO. But before your can do either, you need to learn how to send your newly acquired ETH on the Ethereum Blockchain.
Section 4: Sending ETH On The Ethereum Blockchain
You may ask, “Why would I want to send ETH from my Coinbase account?”
Although Coinbase is an awesome trading platform, they are limited on the amount of coins they offer, but they are one of the few places in the US where you can buy ETH with USD. This ultimately necessary process has made Coinbase an industry leader.
Now with your ETH you can transfer it to other Ethereum accounts that you own, including a Binance account, where you can choose to buy 100’s of other cryptocurrencies. It is important to note, throughout the rest of this process you will be trading ETH for other cryptos on different accounts (not Coinbase). To fund these accounts you will need to transfer ETH from your Coinbase to whatever exchange you decide to use.
This is usually one of the most complicated parts for those new to cryptos, but this guide will go over the process in-depth, as well as, give you a practice opportunity to transfer a small amount of ETH to make you comfortable sending large amounts. This transaction is optional, BUT SUBMITTED TRANSACTIONS ARE NOT REVERSIBLE. This means if you accidentally send ETH to the wrong address it cannot be returned. This is why we feel this practice transaction is important, you would much rather screw up a few dollar transaction over a few hundred dollars.
To send ETH go back to the Coinbase dashboard and click the “Accounts” tab. Then scroll down to the Ethereum icon and click “Send”.
You will be prompted to this screen:
In the “Recipient” box, copy and past this Ethereum address: 0x7C7F4a6a00360C5cda1207d3eb1AfF200505Dd04
and enter $3.00 or .00638 ETH (if you input one it will calculate the other amount). This string of numbers 0x7C7F4a6a00360C5cda1207d3eb1AfF200505Dd04 is our ETH address. You are about to send us a small amount of Ethereum so you can truly understand this process, and learn how to confirm your transaction on the Ethereum Blockchain (also we like to think of this as a nice tip for creating this awesome guide and give us the opportunity to continue to make these awesome guides).
Click the “Continue” button and then click “Confirm” on the next screen. YAY!!! You sent your first cryptocurrency. Now we will track it on the blockchain to confirm it was properly sent. After you submit the transaction you will be shown a pop up with a summary of the transaction. Click on the “View Transaction” button (note this may take a few moments to appear as the transaction must fully process first) and you will be redirected to a site called etherscan.io. This site tracks all transactions on the Ethereum Blockchain and you can use it to view the transaction you just sent.
You will be redirected to this page where its important to note the different parts of the transaction.
TxHash is the transaction hash and is essentially a transaction number used for reference.
Tx Recipient Status confirms if the transaction went through or not.
Timestamp is when the transaction was added to the blockchain.
From is your public address that you sent Ethereum from (don’t worry no one can can steal your coins with your public address. Everyone’s public address can be seen on Etherscan).
Lastly, notice the Gas Price, this is a small transaction fee paid to the network miners for processing the transaction. This fee is necessary to reward the workers keeping the Ethereum Blockchain running.
Wow, look how far you’ve come on this cryptocurrency journey. And to think it is only beginning. This is part 1 of our guide, but you are just a the tip of the iceberg. Check out part 2 and 3 to learn how to buy any cryptocurrency, and how to invest in ICOs.