Often a new user will start their first crypto account by either putting in a fiat currency (USD, CAD, EUR, etc.) or buying some crypto right away through your bank. This is a great way to get your trading started because once you one type of crypto, you can start buying and selling other types of crypto as well.
Let's look at an example of how funding your account in bitcoin allows you to invest in many different crypto currencies.
Let's assume I've funded my account by buying $500 USD of bitcoin (BTC) directly from my bank. My current account holdings are:
Now you can buy things in BTC! Let's say you get a signal for buying etherium/BTC (ETH/BTC) and you buy .414 ETH/BTC. Now you have the following in your account.
You've spent half your BTC but got ETH in return. You are now able to do a couple things.
1. You're invested in etherium. If the price of ETH goes up, you now benefit from the gains!
2. If you want to spend ETH to purchase something, say Bitcoin Cash (BCH) you can now do that with the pair BCH/ETH.
Lets see what that looks like if you buy .08 BCH/ETH.
Great! Now you've spent around .014 of your etherium and are invested in a third crypto currency.
All of this is fun, but what happens when your trades are up, and you want to get your money out? The answer is selling your cryptos into USD (or whatever base currency you prefer)
Here I am going to sell 0.033 BTC/USD, 0.4 ETH/USD and 0.008 BCH/USD.
In this example, we assumed the prices of everything stayed the same while we made our trades. But, had the price increased while I had the currencies, we would be left with more than $500 in our account.