How to trade Ripple, Verge, Tron and other altcoins

Update 26/12/2017: I have posted a detailed guide on how to transfer ETH/BTC from Coinbase into Binance.

Although I live in South Africa, I avoid the local exchanges and trading platforms (such as Luno) as you will not just exposed to the volatility of the Rand against the USD, but local exchanges have an insane margin on most coins.

Trade altcoins such as Ripple, Verge, Torn, Stellar and others on Binance

Coinbase is not available to South Africans and Germans (and is only supported for these countries): Coinbase changed their TOS in 2017 and has started revoking access for users from non-supporting countries. You can then only buy  buy ETH via Changelly or Luno (South African exchange). If you are based in a SEPA country, I suggest you use Litebit.eu.

Other options to buy Ethereum with credit cards: From feedback, users have reported success here: Changelly (careful markup), CoinMama and Cex.io (registrations currently disabled).

The “conventional” coins such as Bitcoin, Ethereum, Litecoin have reached prices where profit-margins are very small. When the crypto-whales then come in and do a massive dump&pump, Bitcoin can drop from $17,000 to less than $12,000 in less than 24 hours:

On Luno, the same drop reflects a loss of between R 90,000 to R 120,000 (between $7,000 – $9,000 at current exchange rate):

Buying a Bitcoin on Luno will cost you right no R195,000 or $15,488 (at the same time, buying it on Coinbase will only cost $13,600).

In my opinion, you don’t want to trade in BTC and especially not on South African crypto-markets. Where it becomes interesting is when you trade Ripple or other #altcoins on Binance:

Notice on 22nd December 2017 crypto investors engaged in a massive dump&pump (you drop a large quantity of coins in a well orchestrated profit-taking and then re-purchase the coins at the low:

Notice how in the above charts, Ripple (XRP) was dumped from USD1,00 to USD0,45 and then bought up again. Most #cryptonewbies panicked and started to fire-sale as well to minimise “losses”. It is quite a regular occurrence that dump&pump or pump&dump schemes run on exchanges and you want to be there when it happens (sell high, buy low).

The greatest profit margins can then be made with #altcoins: If you bought XVG (Verge) 3 weeks ago at $0.005 with a budget of $500,00 you could have sold 100,000 coins for $14,000 today.

How to trade in altcoins

In the beginning this sounds scary, but it is very easy, and I will show how this works with Binance. As a start you need Ethereum or Bitcoin to trade on Binance. Buy them from Coinbase with your credit card (it works out cheaper than Luno).

Deposit Ethereum / Bitcoin to start trading

Once you have signed up with Binance, go to the deposit/withdrawal page: https://www.binance.com/userCenter/depositWithdraw.html: – find the Ethereum entry and then click on “Deposit” to display the deposit address on Binance. Use this address to send your Ethereum from Coinbase to Binance:

Start trading

Trading is very simple. I prefer the advanced view: https://www.binance.com/tradeDetail.html?symbol=XVG_ETH

Although the screen looks confusing, there are really just 4 sections:

  1. The chart area: Look at the trends and indicators over various time-frames. This allows you to establish the price you want to buy / sell at.
  2. The “buy/sell” wall: This contains the current buy-/sell orders as well as completed orders. It gives you an indication of where the coin is moving.
  3. You order section: This contains via various tabs your open orders as well as history and funds.
  4. The buy/sell section: This is where you execute the order to buy or sell

What is a “short” vs “long” and what is a bullish vs bearish market

In almost all cases you will come across the color GREEN (for buying) and RED (for selling). In trading-terms “shortening a trade” also means selling. Likewise, “going long” means to buy.

Many times you will also hear confusing terms such as “bullish” or “bearish”. The easiest explanation to memorise is this:

  • Bullish: The market is trending upwards and prices will increase. Think of a bull pushing the price up with his horns and you will never forget this.
  • Bearish: The market is trending downwards and prices will decrease. Think of a bear ripping prices down with it’s claws.

When you start trading I suggest to only use Limit– and Market-options. Many exchanges have more complex trading forms (such as stop-limit, margin trades, fill-or-kill etc) and I would avoid those in the beginning as you can really make horrible mistakes when using them wrong.

With a limit-buy/sell you will set a desired buy- or sell-price and specific the quantity. The trading platform will automatically execute the order once that limit is reached. A market-buy/sell will execute the order at the current market price. Use limit-trading to schedule buy-/sell-options and practise with those. Also take into consideration that most exchanges take a trading fee – so consider this when selling at a low margin.

When trading on Binance you will be able to get exposure to many #altcoins which are not traded elsewhere and could make a few thousand dollars in a short period of time if you are patient and do not panic.

DISCLAIMER: This is not investment advise. Do your own research and draw your own conclusions.

 

🍺 Pay it forward: If any of my content helped you in any way, then follow me on Twitter or send me some coins:

Affiliates: Binance (#altcoins), Coinbase (buy/sell ETH/BTC, get 10$), CoinTracking.info (get 10% off), TradingView (trend reports) or old-school PayPal.

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  • Johan

    Hi I am from south africa. I read through your post. I am interested in buying altcoins on Binance. I tried to deposit money on Coinbase apparently it’s not supported in South Africa. Can I buy coins from a south african exchange like luno or altcoin trader and transfer to Binance.

    Thanks in advance.

    • Yes you can buy from Luno or see if Changelly is not perhaps cheaper: https://changelly.com/?ref_id=0611bb818f58

      • Thulani

        Sorry i’m new in crypto space where will i find the Ethereum address if i buy using credit card through Changelly?

        • When you go through Changelly’s checkout process, they will ask you to which Ehtereum address you want to send the ETH. You can then for example pick your Binance deposit address.

          • Thulani Makhubu

            Sorted thank you. I transferred from Ice Cubed to Binance it took 42 minutes.

    • koos Du Preez

      Can I transfer my Luno wallet to Binance?

  • Juan Gerber

    You say you are from South Africa ? You recommend coinbase, yet it is not Supported in South Africa……?
    please rectify your article…..looks to me that your are trying to receive commission on your sales….

    • koos Du Preez

      @Juan Gerber, I would also like to get an answer to that Question

    • Most of the exchanges changed their signups and rules since I started using them in November. Coinbase/GDAX for example has started to cancel memberships of German users. Cex/Bitfinex/Bittrex have stopped accepting registrations. I was lucky when I started that I signed up to most of them and hence can trade anywhere (it also helps to be an EU citizen with secondary residence).

      For South Africans there seem to be very few options available for buying ETH/BTC in order to trader altcoins. All local exchanges charge a high premium. So it is either Luno and then send ETH to Binance or it is altcointrader to buy the altcoins. I update the blog post when I receive feedback from other users (hence the inclusion of Cex and Coinmama).

      I include referral links as writing those guides take time and people do benefit from those guides. Most affiliate links also award benefits to the person signing up (Coinbase gives you and me $10 when you trade over $100 / CoinTracking gives you 10% off and I will get a 10% commission on your purchase). In many cases people would have not found or known about some of those things, so I do think it is fair to to ask for reciprocal click on a link – or?

  • Eleni Lmt

    i bought some bitcoin on coinbase. then deposited into binance and switched it to xrp and tlm. now i just want tron. can i trade it from binance? i do not see that option/ please help

    • You would have to sell the xrp or tlm into eth and then buy trx. You can unfortunately not trade one altcoin into another (i.e. use xrp to buy trx)

  • Aashish Bharat

    What is the best platform for a fellow South African to invest in Tron? Binance has currently temporarily disabled new registrations.

    • Hennie De Bruin

      I am also currently unable to register with Binance,
      do you think a referral code will change the outcome?

    • Perhaps https://poloniex.com. Otherwise one of the expensive local ones such as altcointrader (I don’t use them)

  • Hennie De Bruin

    Hi there. I tried to register on Binance but it seems i need to fill in the referral Id. What can I use?

    • Binance announced a few hours ago that registrations are closed. One option might be https://poloniex.com or any of the expensive local exchanges (altcointrader?)

  • Juhann Rossouw

    Hi. Any feedback on Coin Direct? It seems that they charge about 20% than the actual price. Has anyone done an actual practical measurement by using the different options for instance using Coin Direct where we know that we pay 20% vs bying Ether at ICEx3, sending it to Binance and then bying the spesific coin at Binance. Then recording the price difference to buy the Ether on Luno vs the global price, plus the send fee to Binance and then the fees that Binance charge in terms of fees for their platform and also how the price compare against the global price at the time? I mean are we not also paying a 20% arbitrage on Ether on any exchange and then there is the extra send fees and conversion fees at the global exchanges. Will it not come to the same thing. I am just trying to figure out if it is actually cheaper to use global exchanges or not. Where you for instance use your credit cards to purchase directly from and exchange they charge you 3.5% credit card fees plus 0.25$. Will that work out cheaper? If someone want to try this experiment with me where I buy a specific coin on Coin Direct at a specific amount vs the other person use the other routes available then we have a clear way of comparing actual costs? Thanks