Coinbase Bitcoin Investment: A Beginner's Guide To Getting Started

Coinbase is a popular cryptocurrency exchange that allows users to buy, sell, trade, and store cryptocurrencies. It is a good choice for beginners as it requires little technical knowledge and has an intuitive and user-friendly interface. This article will provide a step-by-step guide on how to invest in Bitcoin using Coinbase, covering topics such as creating an account, adding payment methods, making purchases, and finalizing transactions. By the end of this article, readers should feel confident in their ability to navigate the crypto market and build their portfolio using Coinbase as their platform of choice.

How to create a Coinbase account

To create a Coinbase account, follow these steps:

Choosing the Right Coinbase Account Level

First, you will be asked to choose which account level is the best fit for you. Account levels can unlock additional features within your Coinbase account, including sending and receiving cryptocurrency. Purchase or deposit limits are determined by several factors, including the verification completed on your account, your purchase history, and your payment type.

Identity Verification or Know-Your-Customer (KYC)

Next, enter your basic information, such as your legal full name and email address, to create a free account. After this, you will be asked to verify your email address by clicking on a link sent to your email and sending a code to your phone number. You will also need to provide a government-issued photo ID (not a passport card).

You will then select your country of citizenship and provide more personal information like your date of birth, address, and the last four digits of your social security number.

Intended Use of Coinbase

Coinbase will ask three key questions:

• What will you use Coinbase for (trading, investing, trading on other exchanges, online purchases, payments to friends, or online payments)?
• What is your source of funds (occupation, investments, savings, inheritance, credit/loan, or employment status)?
• What’s the total value (cash and crypto) you expect to transfer in the next 12 months?
• Connecting Your Payment Method

Coinbase uses Plaid's services to connect accounts for transferring payments. Plaid will text a verification code and then connect to your financial institution. Once connected, provide your routing and account number.

Buying Your First Cryptocurrency

The final step is to enable the sending and receiving of crypto. This requires verifying your financial institution and connecting it to your Coinbase account. After that, you can buy your first cryptocurrency and trade it immediately on Coinbase.

Coinbase does not charge a fee to create or maintain your account.

How to add a payment method

To add a payment method to your Coinbase account, you can use either a debit card or a bank account.

Using a debit card:

• Sign in to your Coinbase.com account.
• Select Settings.
• Select the Payment methods tab.
• Select "Add a payment method".
• Select "Credit/Debit Card".
• Enter your billing address and card information.

Using a bank account:

• Sign in to your Coinbase.com account.
• Select Settings.
• Select the Payment methods tab.
• Select "Add a payment method".
• Select "Bank account".
• Follow the instructions to add your bank account using either PayID or BSB + account number.

Please note that using a debit card to buy cryptocurrency does not require pre-funding a balance, but using a bank account does.

How to select Bitcoin from the list of assets

To select Bitcoin from the list of assets on Coinbase, you can follow these steps:

• Visit the Coinbase website or open the Coinbase mobile app.
• Navigate to the Exchange page, which can be found in the menu or by searching for it in the search bar.
• On the Exchange page, locate the All Assets filter. This filter will allow you to see all the cryptocurrencies supported by Coinbase.
• Click on the "All Assets" filter and select "Tradable" from the options. This will display all the cryptocurrencies that are available for trading on Coinbase.
• Scroll through the list of tradable assets or use the search function to find Bitcoin. You can search for "Bitcoin" or its ticker symbol "BTC".
• Once you find Bitcoin in the list, click on it to select it. You will be directed to the Bitcoin price page, where you can view detailed information about Bitcoin, including the current market price and market cap.

By following these steps, you will be able to select Bitcoin from the list of assets on Coinbase and access relevant information to help you make informed investment decisions.

How to enter the amount you want to buy

Once you've set up your Coinbase account and added a payment method, you can start investing in Bitcoin. Here's a step-by-step guide on how to enter the amount you want to buy:

• Sign in to your Coinbase account.
• On Coinbase.com, select 'Buy & Sell' from the upper right-hand side of the screen. On the Coinbase mobile app, tap the '+' sign on the Home tab.
• Select Bitcoin from the list of assets. You can use the search bar to find it quickly.
• Enter the amount you want to buy. Use the number pad to input the desired amount in your local currency. The app will automatically convert it into the equivalent amount of Bitcoin. You can switch between the local currency amount and the Bitcoin amount by tapping the arrow buttons on the right side of the amount field.
• Review your purchase details. You can tap 'Preview Buy' to see a summary of your purchase, including the amount in your local currency and the equivalent in Bitcoin, as well as any applicable fees.
• Confirm your purchase. If all the details are correct, click or tap 'Buy Now' to complete your purchase.

Remember that the minimum purchase amount for Bitcoin may vary, and you will be notified if you try to purchase less than the required minimum. Additionally, fees may apply to your purchase, and these fees can vary depending on factors such as your location, payment method, and market conditions.

How to finalize your purchase of Bitcoin

Once you've entered the amount of Bitcoin you want to buy in your local currency, you can finalise your purchase. Here's how:

Finalising Your Bitcoin Purchase

• Tap "Preview buy" when you're ready to buy. You'll be able to see the details of your purchase, including the fees.
• Review the details of your purchase. Check that everything is correct and that you're happy to proceed.
• Confirm your purchase by clicking "Buy now".
• Once the order has been processed, you'll be taken to a confirmation screen. Congratulations, you've bought Bitcoin!

Tips

• If you're using the Coinbase app, you can tap the arrow buttons to the right of the amount of money you want to spend to switch the number to the equivalent amount of Bitcoin.
• If the exchange rate changes while you wait, the purchase will fail, so be quick if you want to buy at the current Bitcoin price.
• You can tap the "trade" button to sell your Bitcoin for cash or convert it to other cryptocurrencies.

Frequently asked questions