Altcoins Buying Guide | Paypal, Credit Card & SEPA
In this article we show you how to buy Altcoins at secure crypto currency exchanges. We also explain what Altcoins are and why it might make sense to invest in them.
If you are new to cryptos and trading, you might stick with the typical coins you would find on Coinbase. Among these big crypto currencies are for example Bitcoin, Ethereum, Litecoin and more. However, there are more than 1000 different crypto currencies by now and therefore everybody from the crypto area should at least inform himself about the Altcoins.
What crypto currencies are Altcoins?
In principle, every crypto currency, except Bitcoin, is an Altcoin. The Bitcoin is the great rider and every other coin is an alternative. Hence the name Altcoin = Alternative Coin.
With Altcoins you have the opportunity to invest in companies that are still in their early stages. Many of these companies are developing solutions to real problems. The chance for exponential market growth is high.
Example: If the Bitcoin is worth €10,000 and you want to benefit from 100% growth, the Bitcoin must climb to €20,000. While an Altcoin is often only worth a few cents, here a doubling is not associated with such a powerful market increase.
A problem for Altcoins is that many of the most popular exchanges do not offer the possibility to trade them. You can often buy Bitcoin or Ethereum with your credit card or bank transfer, but not Altcoins. The easiest way around this is to buy certain crypto-currencies at a stock exchange and then convert these coins into Altcoins.
Ideal platforms for this type of transaction are Coinbase and Binance. Even if it sounds complex, using this pair is the easiest and fastest way to buy Altcoins. In this article we will guide you through the process of using these two services. By the end of the article, you should be able to add various Altcoins to your portfolio.
Why use Coinbase for Altcoins?
One of the best known and most widespread stock exchanges is Coinbase. The attraction of Coinbase is that it is simple and you can easily connect your Fiat currency with your crypto currencies. All you have to do is to connect your bank account or credit card to Coinbase. Once you have done this you can buy any of the available crypto currencies that are available on the website.
The problem is that Coinbase is not ideal if you are interested in trading or buying Altcoins. Coinbase limits your offered crypto currencies to four crypto currencies: Bitcoin, Bitcoin Cash, Litecoin, Ethereum and Ethereum Classic. If you want to buy crypto currencies other than those listed on Coinbase, you have to use other exchanges. You have to transfer your coins from Coinbase to a stock exchange that offers your desired Altcoins and can process this kind of trades.
During the peak season, Binance provided over $1 billion in daily volume. You will have many trading pairs to choose from, along with a wide range of buy and sell functions. In comparison, the fees on Binance are lower than on Coinbase.
If you are new to buying or selling and trading crypto currencies, using Coinbase and Binance is the easiest way to do this. In the following we have prepared a step-by-step guide for you:
Create your Coinbase account
Creating accounts on Coinbase and Binance is easy, but it takes a little longer to set up and verify them. Apart from that, getting started is uncomplicated. Let's start with the creation of your Coinbase account.
Advantages of Coinbase
- Regulated: Coinbase takes crypto-regulation seriously and has acquired all necessary licenses for the operation
- Deposit options: Bank Transfer, Card & PayPal (for selected countries)
- Cryptos offered: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin & 0x
- Beginner-friendly: clearly arranged dashboard, easy to buy
Do you want more information about Coinbase? For example about account creation? Our comprehensive guide gives you help for the Coinbase setup.
Go to the Coinbase page and click on the "Getting started" button in the upper right corner.
From here you will be directed to a page that requires your first and last name, e-mail address and a password. After you have filled out this form, select "Create account". Now you will receive an e-mail with a confirmation link. Click on the link in the mail to continue with the registration.
Once you have completed your email validation, go back to Coinbase and log in to your account with the information you have previously provided. When you are logged in, the exchange will ask you to enter a telephone number and a payment method. If possible use your bank account, as the fees are higher for credit card payments than for bank transfers.
After you have entered your bank account, credit or debit card details, Coinbase will ask you to enter verification data for identification. These precautions apply to a security process called "Know Your Customer" (KYC). This is a common practice for many digital currency transactions. Once you have gathered the required documents, upload them to your Coinbase account.
The next step is to enter your bank account information. Once you have done this Coinbase will send a test transaction to your account. This means that you will receive one cent from Coinbase with a confirmation code as reason for payment. Now return to Coinbase and confirm with your individual code that the bank account belongs to you.
Now wait a few days until your confirmation is complete, but as soon as this step is done, you are ready to go.
Deposit money to your Coinbase account
While you are logged in to your Coinbase account, select the option "Buy/Sell" at the top of the page. There is a drop down menu that offers a choice of crypto currencies. Select the one you want to buy and then choose your preferred payment method.
Your bank account should be the one listed by default under the "Payment method" drop-down list. Enter the amount you wish to transfer by entering the amount in the "EUR" field on the left side of the screen.
Coinbase automatically converts the entered amount into your crypto currency, which you have selected. On the right side of the screen you will see the breakdown of your transaction, which also includes your Coinbase fees.
If you agree with the transaction details, select the "Buy" option at the bottom of the screen. Coinbase will withdraw the money from your account in exchange for the crypto currency you have chosen. You will usually find the purchased crypto currency in your Coinbase account after 2-3 days.
Note: You will receive exactly the number of the purchased crypto currency that you selected at the time of purchase, excluding exchange rate fluctuations after the purchase.
Coinbase Pro: Useful?
Coinbase Pro can be accessed optionally and is used by those who want to avoid the high fees of Coinbase when trading crypto currencies. Normally Coinbase charges a fee of 1.49% for each transaction. So if you create a buy order of 100€, the total amount is 101,49€.
If you create a sell order for the same price, Coinbase will also deduct the 1.49% so that the amount you receive is only 98.51€. Another fee that you can potentially face is the credit card or debit card fee. Transactions with a debit or credit card will be charged at least 3.99%.
With Coinbase Pro you can potentially conclude a transaction with fees of 0%. All brokerage fees are 0%, but the buyer fees depend on the amount of the transaction. If your transactions have a volume of 0-10 million €, the participation fee is 0.30%. 10 million to $100 million is 0.20%, and anything over $100 million is 0.10%. This means that you can definitely save money with Coinbase Pro.
Transfer of funds to Coinbase Pro
Now that you should have crypto currencies on your Coinbase account, it is time to redirect them to Coinbase Pro to avoid the expensive fees associated with Coinbase. Go to Coinbase Pro to get started.
There, click on the "Deposit" button, which you will see on the left side of the screen. Next, a popup will appear on your screen. From the drop down list, select the type of currency you wish to trade in Coinbase Pro. When you have selected the desired trading pair, select "Coinbase Wallet" on the right side of the pop-up to transfer your funds from Coinbase to Coinbase Pro.
When you are satisfied with the chosen currency and amount, choose deposit and your funds will be displayed on Coinbase Pro.
After you have transferred your funds from Coinbase to Coinbase Pro you can now start the transfer to Binance so that you can buy your Altcoins.
Before you can do anything on Binance, you must first create an account. Setting up Binance is easier and faster than on Coinbase, as your bank details are not checked.
Details about Binance:
- Top exchange for Altcoins: High trading volume and a large selection of Altcoins
- Beginner-friendly: Simple layout and user interface, ideal for crypto novices
- Wide selection: Provides access to over 100 crypto currencies
- Mobile app: Binance offers both Android and iOS applications.
Do you need more help getting started in Binance? Simply read our Binance setup guide.
Go to the Binance website and register. You will be asked for your e-mail address and a password. You will then receive an e-mail from Binance to confirm your e-mail address. Click on the link contained in the e-mail to complete the activation of your account.
Once you have created your account, log in to Binance using the e-mail address and password you have provided. You will be asked to read and accept the security instructions. Once you have done so, click on "Next" to continue.
On the next screen you can set up your 2-factor authentication, also known as 2FA. This is an additional layer of security to prevent strangers from gaining access to your account. With 2FA on Binance you can either use the Google authentication app or use SMS authentication. You can also skip this step, but the Bitcoin-News team always recommends using 2-factor authentication.
After you have completed your 2FA, you are ready for the next step. The daily limit on Binance for withdrawals is 2 BTC. However, you can increase this limit by providing the KYC documentation under your account settings.
Transfer from Coinbase to Binance
The transfer of your currencies from Coinbase or Coinbase Pro to Binance is simple and straightforward. We will explain both ways so that you know exactly how to transfer your money from one place to another. Afterwards you can finally buy Altcoins.
To transfer your funds from Coinbase to Binance, you must first copy the receiving wallet address into Binance. Log in to your Binance account and then select the "Deposits" option in the "Balance" menu at the top of the website.
Now you have to select the crypto currency you want to deposit. If you cannot find the currency, you can also use the search function. Binance will now create your individual wallet address to which you can now send funds. Make sure that you copy the entire address so that you do not lose your deposit when you move your funds.
Now go back to your Coinbase account and click on the "Accounts" tab at the top. Here all your crypto currencies are listed, together with the amount of each one you have. Find the currency from which you have just copied the address and now want to move it to Binance. Click on the paper airplane symbol and select "Send".
You will now see a pop-up window asking for the address of the wallet you want to send money to. Enter the address, along with the amount of Fiat currency or crypto currency you wish to transfer. Coinbase converts the amount, regardless of which type you choose.
At the end of the transfer, you can enter a note for this job. This function helps you to see in the future what you did with the money when you moved it. Temporarily enter "Binance Transfer" there and the purpose should be fulfilled. Now click on "Next" to start the transaction process.
Unlike fiat transactions, transfers of crypto-currencies are usually completed within a few minutes. Note, however, that this may vary depending on the type of crypto currency you choose. As soon as your transfer has started, Coinbase will send you an e-mail informing you of this.
Just like in Coinbase, you would first have to copy the wallet address to Binance. Go to the "Deposit" section and select the crypto currency you want to move. Again, make sure that you have copied the address correctly and then visit the Coinbase Pro website to start the transfer.
First of all you want to select the "Withdrawal" option on the left side of the screen. Once you do so, a pop-up with a drop-down menu will appear. Select the crypto currency you wish to move to Binance.
Here you enter the wallet address and the amount you want to move. Just like in Coinbase the amount you enter will automatically be converted into Fiat or crypto currency, depending on what you enter.
When you are satisfied with the coin you have selected and the amount you have entered, click on the "Cash Out" button below and your transaction will begin.
Now back to Binance.
Buy Altcoins on Binance
Now that you have loaded your account, you can start trading the transferred crypto currency for Altcoins. Go back to the "Credit" option from the main page.
On the Credits page you will see a list of all crypto currencies supported by Binance, together with the amount you hold in each of them. Find the one you wish to own and click on the "Trade" button on the right hand side. There you will see a drop down menu where you can select the coins you want to trade for the old coin you have selected.
Once you have selected which pair you wish to trade, Binance will take you to the trading screen. Here you can choose how much you want to trade and at what price. When you are happy with your decisions, you can click on the "Buy" button.
Below you now have the possibility to buy or sell. Congratulations, you have done it!
Transfer to your own wallet
If you plan to keep your Altcoins for a longer period of time, we recommend an offline wallet. The steps to move your crypto currency are as simple as buying and moving your crypto currency.
Return to the "Credits" section where all your coins are listed. This time choose "Cash out" instead of "Trade".
You will now be redirected to a screen that asks for the payout address, which should be the address of your private wallet to which you want to move your money. Enter the amount you wish to move. After verification, confirm your entries and click Send to start the transaction.
Check your wallet to confirm that the transaction was completed successfully.
Mobile app possibilities
One of the advantages of Coinbase and Binance is that both offer a mobile app. You can find these apps in both the iOS and Android app store. These apps offer the vast majority of the same functionality as the web interfaces, so you can perform the same functions as we have just gone through.
You will not see the same detailed information on the app as on the website, but there are very similar ways to transfer your funds easily from Coinbase to Binance. You even have the chart functions when buying Altcoins.
Buying Altcoins can seem more complicated than it is. Buying with Coinbase and trading on Binance makes it easy and uncomplicated. Just make sure that you follow the necessary steps described above. The rest is just transferring your funds from one place to another.
Now you know how easy it is to buy Altcoins. It can sound tempting to buy a lot of Altcoins right away, especially when you start out. But we recommend that you do your own research before you make any investments. Remember that you are dealing with real money. Only invest money that you are prepared to lose. Be patient, invest wisely and have fun.
- Altcoins: https://upload.wikimedia.org/wikipedia/commons/b/b8/Cryptocurrency_logos.jpg
- Coinbase: https://upload.wikimedia.org/wikipedia/commons/c/c7/Coinbase_Logo_2013.png
- Coinbase Lupe: https://www.flickr.com/photos/149561324@N03/42549922930
- Coinbase with Bitcoin: https://www.pexels.com/de-de/foto/bank-bitcoin-business-coinbase-730557/
- 2x Coinbase Pro: Screenshot from website
- Binance logo: https://upload.wikimedia.org/wikipedia/commons/d/d7/Binance.png
- 2x Binance: Screenshot from website
- Binance with magnifying glass: https://www.flickr.com/photos/149561324@N03/44309495132
- Binance with Bitcoin: https://www.flickr.com/photos/163013779@N03/41876606774
- Wallet subscription: https://pxhere.com/en/photo/1452115