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Date: 2024-02-29

How to Buy / Sell Altcoins on Binance

"Alt" (alternative) coins are the many "crypto" coins that are not Bitcoin. IE they basically provide users with the ability to engage with the "crypto" world, but in ways different to the main cryptocurrency...

There are many "altcoins", ranging from the likes of Ethereum & Ripple all the way down the scale, to the likes of DeepOnion. Whilst none of the systems are really tied to any significant asset-base, they all have their own quirks and are able to provide users with the ability to utilize the "crypto" landscape in a number of different ways.

The most important thing to realize with "alt" coins - as is the case with the majority of the "crypto" world - is the system is designed to provide users with the ability to determine how they're going to engage with the various offers available in the new world of decentralized "crypto" currencies.

Ultimately, they're ALL software. They are not currencies, and are basically ways to transfer digital asset ownership between users of the various networks. The idea that you can "make money" with them is typically driven by the way in which Bitcoin grew massively in the run up to Q4 2017. People who bought the "coins" for $200 were able to sell at $15,000 for massive profit. That's the nature of the beast; you're buying speculative growth (not an actual asset).

If you're looking at "making money", there is one way to do it -- "buy low; sell high". There is NO other way, which means that if you're looking at getting into the "crypto" space - you need to realize that you have to be looking at the whole thing from the perspective of having something you can trade for more than you purchased it for. This is the core of capitalism.

As such, one of the ways many "investors" have looked at the "crypto" space is through the lens of buying the various "alt" coins for a fraction of the price of other systems, and then riding any growth they may have. This is done either through an ICO (Initial Coin Offering), or by trading the coins when they're very low in price. This trading activity has to be carried out through an exchange... the only one worth using being Binance.

Binance Exchange

Binance is the primary "crypto/crypto" exchange in the world. It's used as a way to "buy" various "alt" coins that may not be available elsewhere. To do this, the system has a central "pool" of coins into which you can trade yours.

For example, you may have a number of "Bitcoin" which you'd like to trade for Verge. Verge is only available on Binance, meaning that you would log into your Binance account and then "deposit" your Bitcoin. This is just a straight swap where you put your BTC into their system, and they will give you "Binance Coins" in return. These Binance Coins are then kept in your wallet...

With the deposit made, you're then able to then "use" the money to "buy" other coins - including the likes of Verge. These coins are made available in exactly the same way that you have just deposited your BTC into the system -- someone else will have deposited XVG in exchange for the Binance Coins.

Once you find a price that's suitable for your needs, you're able to exchange the funds on the Binance system. This is done automatically (IE you don't need to find anyone to accept the funds). You're basically swapping your allocated money for their allocated money.

Once this is complete, you're able to "withdraw" your new currency from Binance by exchanging your Binance Coins for the new XVG that's lying in your account. This not only gives you access to the underlying XVG but ensures that you're making the right progress with the various coins.