How to buy your first Cryptocurrency with Coinbase
- 1How to buy your first Cryptocurrency with Coinbase
- 2What is Coinbase?
- 3Congratulations, you have bought your first cryptocurrency
Getting started in the world of cryptocurrencies can be daunting, but buying your first Bitcoin, or any other altcoin or cryptocurrency, is much easier than you think. For most first-time buyers, Coinbase is the preferred choice for purchasing Cryptocurrencies because Coinbase is safe, easy to navigate, and packed with decent features that will make things easier.
Here’s our guide to buying your first cryptocurrency using Coinbase.
What is Coinbase?
Coinbase is a cryptocurrency broker. Coinbase trades various cryptocurrencies in exchange for a regular fiat currency:
- Bitcoin cash
- Ethereum Classic
Coinbase is definitely one of the easiest cryptocurrency brokers to use. It is also one of the most popular. However, before other cryptocurrency users jump on our article: Coinbase is by no means the best crypto-broker.
The thing is, Coinbase has a number of stop controls for new users, and that means it’s forgiving. That is, you can use Coinbase as temporary storage for your cryptocurrency, but you shouldn’t use it for long-term storage. Which is why you’d be better off with a cold cryptocurrency wallet instead.
Step 1: Create an account on Coinbase
Head over to Coinbase and hit the sign up button in the upper right corner.
Enter your details in the account creation panel. Use a strong one-time password. Next, go to your email account and verify your email address.
When you return to the Coinbase site, you will need to add a phone number to protect your account. Coinbase then sends you a verification code. Next, add your personal information. The information that Coinbase requires varies slightly by location, but you will need to confirm your date of birth, an address, your source of funds, etc.
Finally, you must use an official document with a photograph to complete your verification. In the United States, Coinbase only accepts state-issued driver’s licenses or ID cards. A US passport is not acceptable. However, outside of the United States, Coinbase will accept a passport or a DNI in Spanish case.
For more information, see the official Coinbase documentation on identity verification.
Account verification time varies greatly. Coinbase can verify an account in as little as five minutes, but for other Coinbase registered accounts that use the same verification image and phone number, Coinbase may request additional information from you, so be sure to check your email account with frequency.
What is Coinbase Pro?
Coinbase Pro is the crypto exchange of Coinbase, formerly known as GDAX. Let’s say the next step, in which you will use Coinbase Pro for “advanced” currency trading cryptocurrencies. In this case, advanced means more options than the usual Coinbase website. For example, you can place a purchase order for a price higher or lower than the current market rate for a cryptocurrency, or directly exchange your Bitcoin for Litecoin, or for the support of other cryptocurrencies that Coinbase and Coinbase Pro work with.
Step 2: Add a payment method
When your Coinbase account is finally verified you can enter the Coinbase dashboard. The dashboard displays the current price of cryptocurrencies available for purchase through Coinbase, your current portfolio, and any information related to account updates.
In the lower right corner, select Complete your account. Depending on your location, you now have two or three options:
- EU and UK residents can add: EU bank account, UK bank account or debit card. Additionally, UK and EU residents can use SEPA payments or make instant cryptocurrency purchases using a 3D Secure debit or credit card.
- US residents can add: a bank account, their debit card, or add details for a bank transfer.
Please note that Coinbase no longer supports linking of new credit cards Also, some credit card providers reject cryptocurrency purchases or add additional fees to existing cards. Coinbase won’t remove existing credit cards, but it does suggest using a debit card or regular bank account.
Debit cards and bank accounts come with a small verification fee. Unfortunately, the account verification process can also take up to three business days.
Step 3: Buy Cryptocurrencies using Coinbase
Once Coinbase verifies your bank account or debit card, and you have some funds available, you are ready to buy some cryptocurrency. Coinbase is a crypto-broker that exchanges Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin.
Select Buy / Sell on the Coinbase dashboard. Select the cryptocurrency you want to buy. Enter the amount of cryptocurrencies you want to buy in your local currency. Alternatively, if you have a specific amount of crypto that you want to buy regardless of cost, for example 1.4 BTC, enter that and then review the cost.
When you are ready, press the Buy Cryptocurrency button at the bottom of the panel. The description of this button changes depending on your payment method. For example, if you are using your debit card authorized in Spain, it means that you can make an instant purchase of any of the Coinbase cryptocurrencies. Payment methods have different delays.
When you return to your Coinbase dashboard, your portfolio will show your new cryptocurrency, and your Recent Activity dashboard should show your purchase.
Step 4: Sell Cryptocurrencies using Coinbase
Do you want to sell the cryptocurrency you bought? Go back to the Buy / Sell tab.
Using the Sell from drop-down menu, select your cryptocurrency. Next, in the Deposit to drop-down menu, select the currency portfolio in which you want to deposit your funds. Keep in mind that you have to deposit your funds in a foreign exchange account before making the withdrawal to your bank account.
As in the purchase panel, you can enter the amount of cryptocurrency you want to sell in your local currency or specify the amount of cryptocurrency. The cryptocurrency box also has a Sell Max button that you can use to enter the maximum cryptocurrency account while posting the Coinbase transaction fee.
Step 5: Withdraw funds from Coinbase
Once your funds clear into your current local Coinbase wallet, you are ready to withdraw them from the site entirely, back to your bank account.
Select Accounts on the Coinbase dashboard. It will show your current stock on all your accounts. Find the local currency you want to withdraw and press the Withdraw button. The withdrawal panel appears and asks you for the amount you want to withdraw. You also have the option to Withdraw All. Select the bank account to which you want to withdraw the funds from Coinbase and press Continue.
It may take up to five business days for funds to appear in your account in local currency. In my experience, it is generally faster than that, but I advise you not to have that money for at least five days after making the charge.
Congratulations, you have bought your first cryptocurrency
Coinbase is a great place to start your adventure in the world of cryptocurrencies. Its interface is easy to use, offers the most popular core of cryptocurrencies you need to get started, and is secure enough that you don’t have to worry.
Sign up using this link and you will get $ 10 of Bitcoin for free after buying or selling your first $ 100 in Bitcoin.
We go with a video where all the necessary steps to create the account are explained: