Hi all.

As I seem to be the first one of my family and friends to get into the cryptocurrencies, I though that I would create this guide demonstrating the very first steps to be taken when starting in this wondrous and often confusing field. Please be kind and don't slag me off in the comments - this guide is veeeeery basic :) more like a collection of links, with some explanations

BUYING THE CRYPTOS

I bought my first Bitcoin (BTC) on the Coinbase, and so this is where I would advise the others to start:

https://www.coinbase.com/join/571151f4298d87571f00038e (there is a £10 sign-up bonus through this link)

You will need to go through the verification process so that they are sure you are not a money-launderer, but for the starting amounts it will not be too difficult. You will be able to add your existing bank and credit cards and use them to buy the following cryptocurrencies: Bitcoin (BTC); Etherium (ETH) and Litecoin (LTC) - with Bitcoin Cash (BCH) soon to be added. In the UK, where I am based, your bank or credit card provider might block the transactions as suspicious - if this happens you should expect an automated call from them within 10 - 20 minutes, checking if the transactions are genuine. After that, you should have no issues buying - but you will need to run the transaction again.

My main grumble with the Coinbase is that the rates they use are very far from being competitive - sometimes when you buy the BTC the rate they are quoting could be up to £900 higher that the market rate. Still, this seems to be the easiest way to buy your first BTC.

A popular alternative to the Coinbase is LocalBitcoins:

https://localbitcoins.com/?ch=nb83

This site serves as a marketplace, matching buyers and sellers. The prices follow the market rates, and most sellers give you an option to deposit into a bank account (through an escrow). When selling, you again can ask for a bank transfer, which take a day or two in the UK.

As far as I understand, the sellers are responsible for the verification - this normally consist of copies of your ID documents, as well as a photo of you holding the ID.

I am yet to use LocalBitcoins, but my mate Corrie has done and found the process fairly straightforward, although a bit harder during the times of a greater BTC volatility - when most traders seem to stop and wait until the price stabilises.

SELLING - BACK INTO THE FIAT

Another issue is withdrawing the cryptocurrencies from the Coinbase. In the UK version of it, you can only withdraw into a Euro account - and to do that, you need to first covert your BTC into the EUR, and then verify your bank account with the Coinbase first, which means sending at least 8 EUR from your bank account to the Coinbase. Now, if you use a UK (GBP) bank account then sending this amount will probably result in a £15 charge from you bank for a foreign currency transaction.

There is a way around this though - you can open an account with a mobile banking app called Revolut, which will allow you to have both a EUR and a GBP accounts within the app, so that you can move the EUR from the Coinbase paying £0.15 transaction fee, and then convert into the GBP (or another currency of your choice) inside the Revolut. Here is a sign-up link (my referral link):

https://revolut.com/r/pavel6ul

There is an option to open a Premium account but I don't think you need it, unless you want to move large amounts in and out. The basic account will work just fine - it acts as a normal UK bank account and has an IBAN and BIC codes, which you will be able to use to transfer EUR from the Coinbase.

The added benefit is that you also get a MasterCard attached to this app, which you can use abroad when travelling - all you need to do is convert GBP to EUR or USD or another currency, depending on where you are ravelling to, and then just use your card at your holiday destination

OTHER WITHDRAWAL OPTIONS

MONACO: https://get.mona.co/IVWT/bZ9AXTYrLI

This is one of the eagerly awaited apps that also has a debit card attached to it. The difference with the Revolut is that it will supposedly accept payments in various cryptocurrencies, which means that we will be able to side-step the Coinbase with its fees and charges. The cards should begin to be shipped in the early 2018, but there is a queue for them so the earlier you register the better

BONPAY: https://my.bonpay.com

Another wallet where you deposit BTC and then convert into either USD or EUR. This actually works - I have created a wallet with them and ordered a virtual EUR card, which I was then able to use to buy a Ledger Nano wallet from France. You can also order a plastic card from them for a fee of $15. As of January, 2018, they are having the same issue as all other VISA-affiliated cards in Europe - VISA ordered the cards' issuer Wavecrest to withdraw all their cards in the EU. I am sure a solution will be found - I will update this post as soon as there are news.

CONCLUSION

That is all for the basics. I realise this is a very brief introduction into buying and selling, and I will update this post or expand into additional articles later, when I have a bit more time on my hands. I have tried to make this as easy as possible to understand - something that I would have found useful when first looking into the cryptocurrency world.

Cheerio,

Pav