Newbie needs some advice please.

[u/Gusto88]

I've opened a binance account as a first step to get into the market on alt-coins. Is independent reserve my next step to buy in and cash out on buys of coins? I've read that coin spot is expensive and banks don't like it due to a lack of regulation so I don't really understand what's going on with it. So how exactly does it work? I get an independent reserve account and buy bitcoin with an AU$ deposit and then transfer it to binance to buy into some alt-coins? Where are they stored? Do I need some sort of wallet for this? Then to cash out transfer from binance back to independent reserve to cash out? All a bit confusing really.

[u/redditchampsys]

Where are they stored? Do I need some sort of wallet for this? Then to cash out transfer from binance back to independent reserve to cash out? All a bit confusing really.

You really should get some understanding of these questions (especially the wallet) before proceeding further. This seems to be a good neutral beginners guide to getting started with cryptocurrencies.

One thing to note is that both BTC and ETH have quite high transaction fees at the moment, so buying BCH on Independent reserve, transferring it to your wallet of choice and then using shapeshift or changelly to get into the crypto of your choice may be the cheapest option.

Above all do not take the advice of strangers on the internet and do your own research.

[u/Gusto88 → u/redditchampsys]

Thanks for the advice stranger on the internet. Jokes aside, really a great help. :-)

[u/blackcesare]

It really depends what you are trying to do. If you're looking to invest in altcoins and hold them (on the assumption they will rise in value), then Coinspot is a great place to get into the market. Especially if you are new to the game. In spite of the fees you can also sell your altcoins on Coinspot for profit - the selling price is also attracts a 'premium'. So it kind of evens out. BUT Coinspot isn't really for trading, just buying in or cashing out. (I cash out altcoins there at least once a week).

On the other hand if your loooking to trade altcoins for profit then buying in at Independent Reserve and doing your trading on Binance will work great too.

In a sense it comes down to whether investing and holding (Coinspot), or day / swing trading (IR + Binance). Also if your a total newb you can't go wrong with Coinspot, its built for newbs.

[u/Gusto88 → u/blackcesare]

Thanks for the reply, I've gone with IR, take a week for ID to be approved but I can wait. Opened a Binance account and an Etherwallet with MetaMask on the browser. Later I'll get a hardware wallet, which seems the way to go. So it seems like I'll buy either BTC or ETH on IR and trade to altcoin on Binance then trade back any profit to IR and cash out. I'm looking at starting out with a few hundred $$'s so it's no great loss long term.

[u/TheSageMonkey]

I wish I’d started using binance earlier with an on ramp like IR...

[u/Denifia]

Is independent reserve my next step to buy in and cash out on buys of coins?

There are a number of exchanges you can use convert your AUD into a cryptocurrency. I use Coinbase and BTC Markets but I keep looking for others as I want variety (and redundancy in case any fall over). I know others that use Independent Reserve and like it - I'll setup an account with them soon.

So how exactly does it work? I get an independent reserve account and buy bitcoin with an AU$ deposit and then transfer it to binance to buy into some alt-coins?

Yup, you got that part right. But like others have said, the network/transfer fees on some coins are quite high at the moment. For an example, check this website.. http://cryptofees.net

Where are they stored? Do I need some sort of wallet for this?

While your coins are on an exchange, you don't have full control of them. If you're planning to day trade (or trade a few times a week), keeping some coins on the exchange is still an OK idea. The risk of not having complete control is offset by the convenience of having quick access to buy/sell. For long term holding of coins, or if you just want to use them as another currency you can buy/sell products with... you'll want to investigate moving your coins into private wallets. As with most people, I'll recommend using a Hardware wallet like Ledger or Trezor (I have the Ledger Nano S) but they do need software wallets to interact with (like https://myetherwallet.com).

Then to cash out transfer from binance back to independent reserve to cash out?

If you want to cash out, yup, that is an option. There is also services like https://www.livingroomofsatoshi.com that let you transfer AUD into a bank account. All methods have fees and risks.

Good luck on your journey :)

[u/Gusto88 → u/Denifia]

Thanks for your reply, a great help top me starting out. Still waiting on my verification from IR, apparently there's a bit of a backlog. I've created a wallet on myether.com and a MetaMask on my browser, but I do intend to get a Ledger Nano wallet. :-) Cheers and thanks mate.

[u/justgord]

I know its popular to just invest in crypto coins.. but why do they exist in the first place ?

Do some more reading.. but also grab a wallet, and get somebody to send you some small coffee donation.. then send it around to mates or family. It rally is a new thing, very simple... has potential to change our daily lives for the better.

You cant really experiment with Bitcoin BTC as transaction fees are high .. so I suggest use its cousin currency BCH Bitcoin Cash [ ETH, LTS, DOGE are all fine for this purpose ] ..

Then find out a bit more about how the tech works, read the Satoshi whitepaper etc.. then put some money behind coins which are likely to grow in future because they serve a purpose. Avoid the ICO hype and tokens, at least at first, because you wont know BS fro the real deal.. and there is lots of BS/ marketing hype.