The process of starting to exchange cryptocurrencies is basic, however, there are a couple of notes that are important to your understanding. These are connected to using Coinbase.
To start with, you have to sign up in Coinbase:
- Go to Coinbase.com to create a cryptocurrency wallet where you can safely store digital currency.
- Connect to your bank account so you can trade digital cash into and out of your local money.
- Purchase Bitcoin, Ethereum, and Litecoin (exchanging USD, otherwise known as US dollars, for digital currency).
- Sell Bitcoin, Litecoin and Ethereum (exchanging digital currency back to dollars).
- Consider signing up for another trading and exchanging one cryptocurrency for another digital money. You would then be able to exchange that back to Bitcoin, Litecoin, and Ethereum after that, and the exchange back to Coinbase, and back into USD. Bear in mind to record your exchanges for the tax man and to catch up on the tax charges.
TIP: Coinbase acknowledges some non-US currencies as payment, however choices might be restricted.