Cryptocurrency refers to a digital currency that is secured by various cryptographic methods. These are often used as a substitute for real currency to make fast and secure transactions online. There are several types of cryptocurrencies. The main one being Bitcoin, a cryptocurrency that reached a peak of $2800 per coin. Investing in cryptocurrency peaked my interest earlier this month. Here is a step by step guide on how to start investing in cryptocurrency:
HOW TO PURCHASE BITCOIN IN THE PHILIPPINES
There are 2 basic requirements. One is a portal to buy Bitcoin, and the second is an account in an exchange to convert your Bitcoin into other cryptocurrencies. Here are the websites I used:
COINS.PH – to purchase bitcoin. If you use that link, a PHP50 bonus will be instantly credited to your account once you CONFIRM your identity by uploading a valid ID and a selfie of you holding your valid ID.
POLONIEX – exchange website
1) Funding your COINS.PH Account
One thing you should know is that Bitcoin is needed to buy all other cryptocurrencies. In short, if you want to invest in cryptocurrencies you must first obtain Bitcoin. The most reliable and secure Philippine portal I found to purchase Bitcoin was COINS.PH.
Once you have a confirmed account, you have to fund your peso wallet. You can do this in several ways either by online bank transfer, over the counter deposit, 7-11 etc. I personally prefer depositing through 7-11 since this credits your wallet instantly as opposed to the other methods which could take up to 24 hours. COINS’ fee for depositing through 7-11 is PHP50 per PHP2,500 deposit.
2) Converting PHP to Bitcoin
You can see that I funded my wallet with PHP 5,000. The next step is to convert it to BTC(Bitcoin). Simply click “CONVERT” as seen in the image above.
You will be prompted to the window below. Type in the amount of PHP you want to convert to bitcoin. The amount of bitcoin you receive depends on the Bitcoin exchange rate at the time of your conversion. In the example below 1 Bitcoin is equivalent to PHP 166,170. Click convert to finalize.
Once converted you will see a balance on your BTC wallet.
3) Sending Bitcoin from COINS to Poloniex
To do this, click the “SEND” button in your BTC wallet as seen in the image in step 2. You will be taken to the following window. Simply fill up the necessary information. The wallet address you will place in the “TO” section will be the one in your Poloniex account. We will discuss this in detail later.
After you fill up all information, you will be asked to choose between 3 types of fees. The type of fee you choose will determine how quickly your bitcoin will be transferred. This is because in order for Bitcoin to be transferred from one wallet to another it has to be “mined” or decrypted by a “miner.” They, of course, would like to be paid for their efforts so they typically mine those with high fees first. By experience, here is the timeline of transferring Bitcoin depending on the fee amount:
Low Fees: I experienced a transfer time of 24 hours, but according to forums it could last as long as weeks.
Medium Fees: 3 hours based on experience.
High: Haven’t tried it yet, I don’t like to pay too much as it will eat your profits. Based on forums it could take around 30 minutes to a couple of hours.
4) Getting Your Poloniex Wallet Address
Creating a Poloniex account is pretty straightforward. You simply have to create a username, password and enter a valid email address.
After creating your Poloniex account, head over to “BALANCES” in the main menu and click on “DEPOSITS AND WITHDRAWALS“
You will be taken to this screen:
Look for “BTC” in the list of wallets.
Click on “DEPOSIT“. This will prompt a window containing your wallet address. A wallet address is a unique alphanumeric sequence. Input this address in the “TO” section in step number 3. You will receive an email from both Poloniex and COINS once your Bitcoin has been successfully transferred. Make sure that you clicked on your BTC wallet and not the other ones. Otherwise, you will not be able to receive your Bitcoin.
Check out THIS POST for the performance of my portfolio for the first 24 hours of investing in cryptocurrency.