I’m sure by now you’ve heard all about the Bitcoin frenzy after the market price just recently exceeded $1000 USD per coin. All of this bit-hype finally persuaded me to take a closer look into what all the fuss was about.
In doing so, I learned about Altcoins, which are basically these alternate, lesser-known digital currencies that are out to compete with Bitcoin. Nobody really knows how viable these things will be in the future, and the markets are pretty volatile, but I had a few hundred bucks that I was willing to invest on the off-chance that one of these things blew up just like Bitcoin.
I decided to go with QuarkCoin due to the recent strong performance and fast transaction times. It also helped that it was only $0.22 per coin when I decided to buy. The whole process was kind of confusing, so here are the steps you can take to purchase and secure your own Quarkcoins.
Disclaimer: this whole process will take a few days because of security verification measures taken by the accounts you will be signing up for.
1. Set up a new account at virwox.com
Virwox, or the Virtual World Exchange, is the main hub that I used to convert my actual USD into a digital currency. You can sign up for an account by clicking on the “Not registered yet” link under the customer login box.
You’ll be emailed a password that you can use to sign in to your account for the first time. Once you’re logged in, you’re ready to deposit your “real” money.
2. Deposit to Virwox via PayPal or Credit Card
Under the “My Account” section of your Virwox account, click on the “Deposit” link. You’ll be taken to a page where you can choose your method of depositing to your Virwox account.
Each method restricts the amount of “real” money that you can deposit per day/month, and at the time of writing this I was only able to deposit about $100 a day. I used PayPal, and the transaction completed instantly.
3. Exchange your “real” money for digital currency
You can’t straight up buy Bitcoins or Quarkcoins like you would a pair of jeans on Amazon, rather, you need to first convert your “real” money into Linden dollars (SLL) – these are the virtual dollars of Second Life, an insane online virtual world developed by Linden Lab.
To do this, visit the USD/SLL page under the Exchange section and place an order to SELL the real-world currency for your Linden dollars. As of writing this, you get about 230SLL per $1 USD
4. Exchange your Linden dollars for Bitcoins
Virwox doesn’t support exchanging your new Linden dollars directly to Quarkcoins, so you’ll need to now swap out your Linden dollars for Bitcoins first.
Visit the BTC/SLL exchange and buy Bitcoins of your desired amount. With $100 USD, you’re only really able to purchase less than a tenth of a Bitcoin, but it still has value so don’t be too sad.
5. Sign up for a Cryptsy account
As I mentioned before, Virwox doesn’t deal with Quarkcoins at all, we just use them to convert your “real” money into Bitcoins. Now, we need to sign up for another new account, this time over on cryptsy.com
Once you’ve created your new Cryptsy account, login and visit the “Balances” section. You’ll see a bunch of big fat zeroes, since your account is empty right now.
Scroll down the page to the BitCoin account balance, click on the green BTC Actions button, and click on Deposit/Autosell BTC from the flyout menu.
Now, click the Generate New Deposit Address button. You’ll see a long password-looking code appear. Select it and copy it – this is the address where you’ll send your Bitcoins to.
6. Send your Bitcoins to Cryptsy
Now back to Virwox account, go to “Withdraw” section under “My Account”. The first option that appears on that page is “Withdraw to Bitcoin”. Paste your deposit address into this withdrawal box and click the withdrawal button.
For new Virwox accounts, they verify your withdrawal requests by manually processing the first two. In my experience, the first withdrawal took about 48 hours and I received an email when it was complete. The second withdrawal took around 8 hours, and the third was instant.
7. Buy Quarkcoins with your Cryptsy Bitcoins
Once your withdrawal has been approved, you should see your Bitcoins in your Cryptsy account under your account Dashboard.
To buy your Quarkcoins, visit the “Balances” page, scroll down to Quark, click the green “QRK Actions” button and select Go to BTC Market. You’ll see a chart and a section that reads “Buy QRK with BTC.”
Simply enter the amount of Quark you’d like to purchase based on your current BTC balance and click “Submit Buy Order.” Your order should be processed almost instantly, but no longer than a few minutes.
8. Download your QuarkCoins to a Quark Wallet
You may have heard about some nightmare stories of online accounts being broken into and coins being stolen. Since we don’t want that to happen, visit http://www.quarkcoin.com/ and download the Quark wallet for either OSX or Windows.
A wallet is basically an app that holds your coins for you on your actual computer instead of in your online account. This makes it a lot easier to feel safe about your new coins and also allows you to encrypt them in case your coins are stolen.
After installing and opening the wallet, it will take about an hour to automatically sync up with the Quark transaction history. Once that is done, click on the “Receive” tab and copy the Payment address that was automatically generated listed in that window.
You can then visit the “Balances” page, scroll down to Quark, click the green “QRK Actions” button and select Withdraw QRK.
Enter the amount of Quark you’d like to withdraw, paste in your Quark wallet address and retype your Cryptsy password. Then, click “Process Withdrawal.” The withdrawal will appear automatically in your Quark wallet under the “Overview” section in just a few minutes.
Did this guide help you?
You can show your appreciation by sending Bitcoin to 1GHbZLLui92EAPLYwgTxMuf4FhQuc5y8Yj or Quarkcoin to QLf7DUNA5JFrWN5vkohQhcGdsfetcdT36F
Hopefully this helps clear up the confusing waters of digital currency. It’s certainly an interesting use of software and I am looking forward to seeing how it plays a role in online transactions in the near future.