The thing is, local exchanges don’t offer other cryptos like Ripple, NEM, ARK etc. So you have to use an international exchange instead.
This may sound daunting, but I’m going to take you through the process step-by-step.
Before we begin, you need to know this one important thing about international exchanges
Before you use international exchanges like Binance, Bittrex or Bit-Z to buy cryptocurrencies, you need to know one important thing: International exchanges don’t accept rand deposits. In other words, you can’t deposit money from your bank into one of these exchanges.
What you have to do instead, is deposit either Bitcoins or Ethereum and then trade them for other cryptocurrencies like Ripple, NEM etc.
So before you register, make sure you have bought either Bitcoin or Ethereum
Step one: Register with an international exchange
The first step is to register with an international exchange.
Binance is probably your best bet as it offers many alternative cryptocurrencies, they’re reliable, and convenient. Unfortunately, Bittrex isn’t allowing new registrations at this moment so I’m going to stick with Binance.
Create and sign in to a Binance account.
Like you would register with Luno, you do the exactly the same with Binance. It takes no longer than five minutes to register.
Once you’ve registered, you now need to deposit Bitcoin or Ethereum. I’m going to show you how to deposit Ethereum.
Step two: How to deposit Ethereum to Binance
Once you’ve register with Binance, click “Funds” at the top right, then “Deposits Withdrawals” beneath it.
Find Ethereum in the list and click the “Deposit” button on the far right.
You’ll see an “ETH Deposit Address” listed in the box at the bottom left. This is a long series of letters and numbers, and is the fundamental basis of most if not all cryptocurrencies. An “address” is simply the destination for funds.
The address you’ll see is Binance’s “receiving address” for your Ethereum.
You’ll see “copy address” button - use it to put the address into your copy/paste buffer.
Now, you need to go to your Luno account and then to your Ethereum wallet. Paste in your address. You should double check that the pasted address is the same one you saw on the deposits page in Binance.
Once you’re sure you’re sending to the right place, input the amount of Ethereum you’d like to send and click “Send.”
Step three: You sent Ethereum to Binance – Now what must you do?
Once you click Send, you may need to wait a little while. You see, your deposit needs to go through multiple “confirmations” from the network before allowing you access to your funds. You can view the progress in your Binance account by clicking Funds and then History.
Generally, you should see the transaction show up within a few minutes, with the current number of “confirmations” next to the number of required “confirmations” next to it.
Once you have the required number of confirmations, it’s time to trade your Ethereum for another cryptocurrency – let’s say Ripple.
Step four: How to trade Ethereum for another cryptocurrency
This is really easy.
In the front page of Binance, click “ETH Markets”. Search for “XRP/ETH” in this list, and click it. Now you are on the trading page. In the bottom left under “Buy XRP”.
Now you’ll see different options like 25%, 50%, 75% and 100%. This is how much Ethereum you can trade for Ripple. In other words, if you click 25%, you’ll trade 25% of your Ethereum.
If you don’t want a set amount, you can also change it to a different price, but like any market it’s not guaranteed that someone will buy at the price you’d like. Your order will remain open until it’s been fully filled or you cancel it.
Generally, your order will be fulfilled, unless you want to trade at a specific price. To check if your order went through, you look under the “Orders” and “Order History” tabs.
And that’s it! You have traded Ethereum for Ripple.
If you want to trade Bitcoin or Ethereum for other cryptocurrencies, you can just use the search function to find the crypto you want to buy.
It’s as simple as that.
Anyway, I’m going to stop here for now. But there’s still so much more to talk on cryptos – Wallets, exchanges etc. So I’m going to continue my guide next week with part five.
See you next week.
We just released a special “2018 Crypto Roadmap”
in February issue of the South African Investor detailing the five cryptos to buy and hold in 2018 and one crypto avoid. Do yourself a favour and read every word
. It could be your best chance to make life-changing money from the booming crypto market.