So you’re thinking you may have missed the ball on Bitcoin and Ether. And people are posting up memes like this one because everyone who did get in early enough are talking about how much the $1000 they put in in 2016 blew up to the $30 000 – $40 000 range.
Don’t worry, I’ve been there. In fact I missed the ball too. And I’m in the FinTech space, building technology for the banks. I even have some friends who work in the banks and say this bubble coming, but they didn’t get in in time.
After a co-worker of my fiancée told her about how much she made just playing around with ICO’s, we knew we had to get into this ASAP. She convinced me that it was something we had to get into, since we had a wedding to pay for and a house closing in 2018.
But just getting started was tricky. Understanding where my money could be, and couldn’t be, (and shouldn’t be), and why I needed everything wasn’t really black and white. So I decided I’d make a post about how everything works, and how you can go about trading your Crypto Currencies on Exchanges, how to store them safely, and how to cash out (in Canada). These are the tools that I use, and if there are any referral links for products, I’ve used them, and I hope you use those links (and I will post up more of these).
So let’s get started.
Step 1: Safety First
Protect your browser
The internet is a dangerous place. Phishing Websites, Fake ICO Websites, etc. make it easy for scammers to fool you into sending your Ether/Bitcoin to fake websites. So we’re going to use a chrome plugin called Cryptonite (you can download it here)
For those of you wanting to use Safari or Firefox, that’s cool. Chrome’s better though. So you’re on your own for anything else.
Once Installed, Cryptonite’s shield icon, which should be position next to your address bar, will change colors between green (if you’re on a safe website that it recognizes) and black (if its a website it doesn’t recognize). So as a general rule of thumb, just stay away from transferring any of your coins and tokens if the icon isn’t green.
Save your passwords somewhere
You’re most likely going to need a few accounts. As well, you may get attachments etc. that you’ll want to secure somewhere safe as well. I personally use 1Password (paying the $5/month for it) to manage all my online accounts and passwords. I keep a separate vault for all my crypto investing tasks.
Step 2: Create your account on an exchange
Now that your browser is a bit protected, let’s go get an account setup so we can transfer and convert our dollars into Ether or Bitcoin.
I use an exchange called Quadriga. I usually use Interac Online to transfer money into the account. The sign-up process will require verification of your identity, but it’s fairly easy after that.
You can my referral link here 🙂 (https://www.quadrigacx.com/ref=g5oijpf7y4se4jx467ejn6ct)
Now, once your account has been approved, you’ll be able to make transfers of Fiat dollars (CAD) to the available crypto currencies listed on Quadriga. However, your account on Quadriga is not a safe place to keep your coins/tokens. You need a wallet to store your tokens and so make sure to complete Step 3 while you wait for your account to be completed.
Step 3: Get Yourself a Wallet
This step is really important – Get yourself a “wallet”. If you’ll be investing in ICO’s, you’ll need an ether wallet and a bitcoin wallet. However, with the hardware options, one can work for both.
There’s a bunch of options out there; Desktop wallets, Mobile App wallets, Web Wallets, etc. I myself started inve
But here’s the thing – this wallet you’re going to be trusting will contain all your currencies. My $1500 investment from September of 2017 is now worth over $12 000. In those 4 months, I’ve had to reformat my iPhone, repair a chip on my laptop, etc. So trusting one of those options could have gone really badly.
My advice – Get yourself a Hardware Wallet. A Hardware wallet is something that looks like a USB key – it contains all the address you’ll need to manage all your currencies. And in case of emergencies (lost or damaged Hardware Wallets) you can always recover your money given the instructions that come along with the device. I keep the hardware key somewhere safe, and treat it as I would treat an envelope containing $20 K. So having a robust, secure, and safe way to access your money is worth what will be a minimal investment. So (for the first of my referral links) here are the best ones you should get:
This is the one I have. With Integrations with MyEtherWallet to purchase and hold ether, it’s an awesome key.
This one looks just as good.
Once you get your wallet, and you get your Ether, you can use MyEtherWallet to access your Hardware wallet’s ether, or the the wallet that your hardware ledger recommends to use to access
Step 4: Transfer your coins to your wallet
Now that you have some crypto coins in your account on Quadriga, and an empty wallet. So transfer the coins out of your exchange by carefully copying your wallet’s address (the destination address), and clicking the “Withdraw” button for the correct currency in Quadriga, pasting the destination address there. If you want to make sure it all goes to your wallet, transfer the minimum amount first, and after you see it in your wallet, transfer the rest.
Later, when you’re ready to cash out, log into Quadriga, and next to the “Withdraw” button (on the dashboard) you’ll see a “Fund” button. Click that and you’ll get a destination address to use to transfer ETH/BTC etc. copy the address, (And make sure your Cryptonite shield is green!). Go to your wallet, and send the coins you want to convert to this address. Once it’s in Quadriga, convert your coins to CAD, and then click the “Withdraw” button from the dashboard, choosing whichever option you prefer (eTransfer, Wire Transfer, etc.)
You’re now ready to invest in ICO’s, and trade your currencies on the many different exchanges that are out there. Let me know how helpful this post was, and if you’d rather the next post be about how I invest in ICO’s and sell them on exchanges, or if I should do something else.