Altcoins can be purchased in different ways. Most commonly, users obtain Bitcoins or Ethereum first and then convert them between different exchanges. This is easier than it may sound! If you have never bought altcoins before, follow our guide.
1. Choose a Gateway Exchange
Register at a gateway service — a fiat-to-crypto platform that lets users buy cryptocurrencies with fiat. Note that deposit and transfer fees vary, and some platforms may not be available in your location. If you find the altcoin you want listed, you can buy it directly.
2. Buy Bitcoin/Ethereum
After registering, buy some BTC or ETH (unless the altcoins are available). Every reputable exchange has detailed user guides and FAQ sections, so you can learn how the purchases work. Both Bitcoin and Ether are extremely popular and liquid, so you should have no trouble swapping them for the altcoins afterward.
3. Register on Altcoin Exchange (if Necessary)
If the altcoins are not listed, register on a suitable altcoin platform (crypto-to-crypto exchange). In these digital ecosystems, you may neither deposit nor use fiat currencies. The popularity of altcoin exchanges relies on listing trendy promising projects at a low price.
HitBTC, Bittrex, and Poloniex are popular choices. Choose an exchange based on reputation and security. Steer clear off platforms that have been hacked, and whose users are leaving consistently negative feedback.
4. Transfer Coins Between the Exchanges
The final step is to make a deposit at the altcoin exchange by withdrawing your BTC or ETH from the gateway exchange wallet. This is a simple process. Copy your altcoin wallet address for the deposit asset. For example, if you are sending ETH, use the ETH address.
Switch to the withdrawal section of the gateway platform. Enter the altcoin wallet address and confirm the withdrawal. Usually, the funds arrive within minutes, depending on how busy the network is.
5. Buy Altcoins
Now, after the assets have been transferred to your wallet on the crypto-only exchange, you can buy your altcoins by trading BTC or ETH.
6. Transfer Altcoins to a Hardware Wallet
Any exchange may be vulnerable to hacking, so give yourself peace of mind by sending the assets to a hardware wallet. In addition, some exchanges hold your keys, too, so you do not actually own the coins until they land in your private wallet. The most popular types are Ledger and Trezor, but you can also use the native wallet of the altcoin project.