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New to Crypto - I have some questions and hope you can help

Hello @CoinGuy,

Recently signed up to this forum, as well as registered on Quadriga CX. (still waiting to be verified).

I have read a number of your getting started articles here and other research online, but still have some questions.

So, a couple of questions if you have the time:
1. I've read some articles where people propose the following:
- Coinbase to purchase bitcoin
- transfer to GDAX for free
- transfer to QuadrigaCX

So, my question is why go through those hoops. Why not just buy direct through Quadriga...

2. What I would like to do is :
- purchase some Bitcoin/Etherium/LiteCoin from bank account/ credit card
- use above purchase to trade in some alternate crypto currencies
- be able to transfer excess bitcoin from exchange to a secure wallet
- be able to sell bitcoin for fiat and transfer back to bank account.

So, myquestion is what is best approach for this......
- It looks like Quadriga can satisfy buying and selling of bitcoin from bank once I'm verified.
- It's not clear what a good exchange would be for alternate coins.
- The udemy course I"m looking at uses Coinbase to Poloniex for alt coins.
- - reviews on poloniex dont look very good
- - reviews on a number of online wallets and exchanges reveal sketchy nature
- not sure about wallet. Think it would be good to have multiple - like an ios /desktop wallet for small amount of bitcoin - then hardware wallet for safe storage of anything I'm not trading with. Looked at Ledger Nano S, and it seems to be sold out everywhere....

3. How safe is it to keep currency on an exchange - either in alt coins or in bitcoin
- should currency be pulled off exchange when not trading, or...
- how much is a `safe` amount to trade with on these exchanges ( relative I know)

4. Does it cost to transfer bitcoin from an exchange to a wallet and back.
- and where do majority of charges get incurred

That's about it for now. Just getting into this so looking forward to learning. Initial research I've done seems to indicate that as Canadians we have to deal with things differently then other countries, as well as being wary of putting your money into an exchange or online wallet that you can't get it out of....

Thanks for your time, and any input you have on the above questions and comments would be appreciated.

Regards,
Vic

Comments

  • CoinGuyCoinGuy Administrator
    edited January 6
    Hi @vvanherk,

    Thanks for your questions and thanks for letting me move this public. I get a lot of personal messages, but it's best for the community when these questions and answers are public.

    As you noted, you read some starter stuff. I hope you also read this starter guide:
    https://coinforum.ca/discussion/4490/new-to-bitcoin-in-canada-start-here-with-the-basics

    Now onto your questions. These are my answers based on my own experience from the past 6 years.


    1. I've read some articles where people propose the following:
    - Coinbase to purchase bitcoin
    - transfer to GDAX for free
    - transfer to QuadrigaCX

    So, my question is why go through those hoops. Why not just buy direct through Quadriga...


    Some people choose Coinbase because it offers support for credit and debit cards as payment methods for Canadians. Funds purchased via a credit/debit card will be credited to your account instantly.

    The issue, though is Coinbase has high fees for withdrawing Bitcoin and will also not let you withdraw Canadian finds to a bank. GDAX is an exchange owned by Coinbase and transfers between your Coinbase wallets and GDAX account are free.

    Transferring from GDAX to Quadrigacx has a low fee and then let's you withdraw your Canadian funds. Quadrigacx can be harder to get Canadian funds into the exchange, because you need to get verified. This can take 2 weeks at this point because they are overwhelmed with new accounts. In December, there were 100k new accounts apparently.

    Frankly, I am not a big fan of hoops, so truthfully you can go direct to Quadrigacx, it's just a matter of people wanting to get into the game quickly.


    2. What I would like to do is :
    - purchase some Bitcoin/Etherium/LiteCoin from bank account/ credit card
    - use above purchase to trade in some alternate crypto currencies
    - be able to transfer excess bitcoin from exchange to a secure wallet
    - be able to sell bitcoin for fiat and transfer back to bank account.

    So, my question is what is best approach for this......
    - It looks like Quadriga can satisfy buying and selling of bitcoin from bank once I'm verified.
    - It's not clear what a good exchange would be for alternate coins.
    - The udemy course I"m looking at uses Coinbase to Poloniex for alt coins.
    - reviews on poloniex dont look very good
    - reviews on a number of online wallets and exchanges reveal sketchy nature
    - not sure about wallet. Think it would be good to have multiple - like an ios /desktop wallet for small amount of bitcoin - then hardware wallet for safe storage of anything I'm not trading with. Looked at Ledger Nano S, and it seems to be sold out everywhere....


    There are a couple of options for Altcoins. Like you I am wary of Poloniex. Right now the only main exchange in Canada handling alt coins and is still open for exchanging alts is Ezbtc.ca. It's a 50 dollar minimum, and $5k max. The will do the buys on your behalf.

    I also like Binance, but they have closed new registrations for the moment. As have Bittrex and Bitfinex. I will certainly keep the forum updated when it reopens. As matter of fact I have asked the CEO of Binance directly about this:




    As for wallets, please read this section of our get started guide.

    You can consider Jaxx.io for small and quick trades, consider paper wallets where you can. I also recommend the Ledger S Nano because they have support for lots of altcoins.

    Yes they are sold out direct. However, they will have a batch ready by March. It will come faster than you think. You can try to find other places online, but all the Canadian retailers I know are out of stock, and from what I understand Ledger has ended their bulk buy program, so you will pay the same as them, minus their markup. You can try on Amazon to find one, but YMMV.

    Final note on wallets, if you don't have the private keys, you don't own the coins. Make sure you copy your private keys from Jaxx using best practices (secure USB or printed paper).


    3. How safe is it to keep currency on an exchange - either in alt coins or in bitcoin
    - should currency be pulled off exchange when not trading, or...
    - how much is a `safe` amount to trade with on these exchanges ( relative I know)


    NEVER EVER EVER leave coins or fiat on exchange unless you expect to trade. You do not own these coins, because you don't have the private keys. Exchanges are not banks.

    In terms of safe amount, you should be okay to know if the exchange closes, and your money or fiat are not able to be withdrawn you will be okay.

    The truth is, malice does not need to be involved. It can just be overwhelming traffic which slows withdrawals or an exchange halts them to catch up. Sometimes the blockchain of Bitcoin or Ethereum can be overwhelmed too and there are delays.

    Hope that helps make it clearer.


    4. Does it cost to transfer bitcoin from an exchange to a wallet and back.
    - and where do majority of charges get incurred


    So most exchanges should not charge you a huge fee to move Bitcoins to your wallet, but you will incur a miners fee. The miner fee is what you pay miners to confirm your transaction. Depending on how busy things are you can pay a lot. Essentially with all coins there is something called a mempool. The mempool is where transactions wait to be processed. Due to lots of transactions, miners tend to favour those transactions with higher fees and they move ahead. The lower the fee, unfortunately the longer you have to wait.

    See mempool here https://blockchain.info/charts/mempool-size
    More about mempool: https://99bitcoins.com/what-is-bitcoin-mempool/
    What Miner fee to choose? https://bitcoinfees.earn.com/

    Vic I hope this helps and welcome to the community :)

  • @CoinGuy - thanks for the info. Good stuff. Will research and plan accordingly. Cheers.
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