PotCoin is a cryptocurrency designed specifically to allow users to buy and sell cannabis products without the need of banks to facilitate the transactions. This guide shows you how to buy PotCoin in 2020.
Compare where to buy PotCoin, and open an account
Read on to find out more about PotCoin and how it works or skip ahead to our step-by-step buyers guide if you’re ready to buy PotCoin.
What is PotCoin?
PotCoin was launched in 2014 and was one of the original forms of digital cash aimed at the Cannabis industry. Initially created by entrepreneurs and developers based in Montreal, PotCoin was designed to solve issues with banking for buyers and sellers of legalised marijuana.
Trading PotCoin is peer-to-peer and completely independent of banks and clearing houses. The aim of PotCoin is to unite people who want to buy and sell legalised cannabis products and give them an industry-specific cryptocurrency to do just that, and now there’s even a PotCoin ATM in Colorado.
How does PotCoin work?
PotCoin started life as a fork from Litecoin and the two cryptocurrencies were almost identical until the PotCoin developers made some slight adjustments and increased the maximum cap of coins available to 420,000,000.
As it came from Litecoin, PotCoin initially used a script-based proof of work algorithm, but this has now been changed to a proof of stake velocity algorithm, which is a better model as it rewards ownership of PotCoins in the form of interest.
How to buy PotCoin online – step-by-step guide
Step 1. Get a suitable wallet
It might seem easier to keep your PotCoin funds in the exchange, but it’s much safer to use a hardware or software wallet. As PotCoin increases in popularity, the number of compatible wallets also increases, so it’s a good idea to check a few out before committing. To get you started, here are a few of our favourites:
- PotCoin Wallet: This is the official PotCoin wallet so it has to be our top pick, and as it’s compatible with Windows, Mac OS and Linux, it’s a great all-rounder and should be the first place you look when considering which wallet you want to use.
- Coinomi: One of the oldest and most reliable multi-chain wallets, Coinomi is compatible with PotCoin and offers desktop and mobile versions, and as they’ve never been hacked or compromised, they are one of the most trusted and dependable wallets out there.
- Coinbase Wallet: As well as offering an exchange and developer API, Coinbase also provides a compatible digital wallet you can use to store your PotCoin funds.
Step 2. Find an exchange to buy PotCoin
When looking for a PotCoin exchange, there are a few things to keep in mind. Firstly, you want to look for an established exchange that you can trust and secondly, you want to make sure you won’t get stung by unnecessary fees. Here are a couple of our preferred exchanges for PotCoin:
- Coinswitch: This slick-looking exchange has a great interface and is simple to use even if you’re a beginner, it is one of the better places to buy PotCoin. They accept fiat currency in the form of US dollars and Euros and aggregate offers from other exchanges so you can find the best price for your PotCoin.
- Potwallet: Another great place to buy PotCoin. Potwallet was designed with PotCoin in mind, so you won’t have any problems buying your PotCoin here.
Step 3. Withdraw your PotCoin
While it may be tempting to leave your funds in the exchange after you’ve paid for them, we recommend you withdraw them at your earliest convenience. The exchanges are more secure than they used to be, but it’s still a lot safer to store funds in a hardware or a software wallet on your desktop or on your phone.
How to trade PotCoin – step-by-step guide
You won’t need a digital wallet if you only want to trade PotCoin as you’ll be speculating on the fluctuation in value rather than buying funds.
Step 1. Find a broker
Right now there aren’t many cryptocurrency brokers out there that will allow you to speculate on PotCoin so you’ll need to do some digging.
Step 2. Deposit money
As with any cryptocurrency, you’ll need to deposit funds before you can start trading. Some brokers accept fiat currency – usually USD but sometimes EUR and GBP. If that’s not the case, then you’ll need to buy Ethereum or Bitcoin (and in some places you could buy Litecoin) and use that.
Step 3. Decide how you’d like to trade
Once you’ve found a broker and deposited some cash, you’ll find that there are two main ways to trade cryptocurrencies. these are Spread Betting and CFDs. While they do have some significant differences, they both involve speculating on fluctuations of the value of your chosen cryptocurrency. If you’re just starting out, it’s worth doing some research on the difference between the two methods.
Step 4. Start trading
Before you start trading, it’s worth setting up a demo account to get to know the trading platform and find out how things work. A demo account will also give you a good idea of how wildly the value of certain cryptocurrencies can fluctuate, so you can see first hand how money can be made and lost very quickly.
- Fulfils the needs of a niche market
- Medical marijuana patients receive free PotCoin for their cannabis-related purchases
- Transactions are highly scalable and secure
- Allows investors access to the $250 billion-dollar marijuana industry
- There’s growing competition for PotCoin as more cannabis user-focused cryptocurrencies are created
- There’s currently no way to buy PotCoin with GBP
- PotCoin could be seen as a bit of a novelty