A Beginner's Guide To Investing Via Coinbase

Coinbase is a popular cryptocurrency exchange that allows users to buy, sell, or store cryptocurrencies. It is one of the largest crypto exchanges in the world, offering trading solutions for beginners and advanced traders alike. With over 10,000 assets to choose from, beginners can use Coinbase to trade popular cryptocurrencies such as Bitcoin and Ethereum, as well as less popular but highly sought-after options. The platform has an intuitive and user-friendly interface, ideal for those new to crypto investing. This paragraph will explore the key features of Coinbase, including its advantages and disadvantages, to provide an overview of how to invest using the platform.

How to create a Coinbase account

To create a Coinbase account, you must be at least 18 years old and have a government-issued photo ID, a smartphone or computer with an internet connection, and a phone number connected to your smartphone. You will also need to ensure that your browser is up to date.

Coinbase does not charge a fee to create or maintain your account. To get started, go to https://www.coinbase.com from a browser on your computer, or download and open the Coinbase app on Android or iOS. If you're using the Coinbase app, make sure your phone's operating system is up-to-date.

You can choose to sign up using your Google account, or you can enter your email address and create a password. It is important to enter accurate, up-to-date information to avoid any issues. You will also need to provide your legal full name, and you may be asked for proof of your name and age.

Coinbase may send you a verification email to your registered email address. You will need to select 'Verify Email Address' in the email and enter the code on the email verification screen. You will also need to verify your phone number by entering the code sent to your phone via SMS text.

Next, you will be asked to add your personal information, including the information shown on your valid government-issued photo ID, which you will need to submit a photo of later. You will also need to answer questions about how you will use Coinbase, your source of funds, and the last four digits of your SSN.

How to link your bank account to Coinbase

To link your bank account to Coinbase, you must first sign in to your Coinbase.com account. Then, select Settings and choose the Payment methods tab. Next, select 'Add a payment method' and choose 'Bank account' as your preferred option.

You can add your bank account by making a deposit using the PayID, or BSB + account number uniquely assigned to your Coinbase account. Follow the instructions to add your bank account details, and then select 'Ok'. You will see a confirmation once you make a successful bank transfer. Your first deposit may take up to 24 hours to complete due to your bank's security measures.

Note that you can also add a debit or credit card as a payment method. However, using a debit card to buy cryptocurrency does not require pre-funding a balance, but using a bank account does.

How to buy and sell cryptocurrency on Coinbase

Coinbase is a popular cryptocurrency exchange that allows users to buy, sell, transfer and store cryptocurrencies like Bitcoin and Ethereum. It is intuitive and user-friendly, making it a good platform for beginners to start their crypto journey.

Setting up your Coinbase account

To start buying and selling on Coinbase, you must set up an account first. Here are the steps to follow:

• Sign up for Coinbase by entering your name, email address and creating a password.
• Verify your email address by clicking the link sent to your inbox.
• Complete identity verification by providing personal details such as your date of birth, address and phone number. You may also need to upload a photo ID.
• Link your bank account by inputting your bank login credentials. This connects your bank account to Coinbase and allows for micro-deposits to confirm ownership.
• Add a payment method such as a debit card, credit card or PayPal account. This enables you to cash out your funds from Coinbase.

Buying cryptocurrency on Coinbase

• Log in to your Coinbase account.
• Navigate to the "Buy/Sell" or Trade" tab.
• Choose the cryptocurrency you want to buy, enter the amount and select your local currency (e.g. USD).
• Review and confirm the transaction details.
• Your crypto assets will now show in your account balance.

Selling cryptocurrency on Coinbase

• Log in to your Coinbase account and go to your assets page to view your account balances.
• If you want to sell your crypto and convert it into fiat currency (e.g. USD), select the Sell tab.
• Choose the crypto asset you want to sell, enter the amount and select the fiat currency you want to convert to.
• Review and confirm the transaction details.
• Your crypto will now be sold and converted into fiat currency in your Coinbase account.

Cashing out your funds from Coinbase

• Go to your fiat wallet (e.g. USD wallet) and click "Withdraw".
• Enter the amount you want to withdraw and select your preferred payment method, such as a bank account, PayPal or debit/credit card.
• Review and confirm the transaction details.
• Click "Withdraw Now" to process the withdrawal request.

Additional considerations

• Be aware of Coinbase withdrawal fees and limits, which vary depending on the withdrawal method, your account verification level and the currency being withdrawn.
• To have a smoother experience on Coinbase, consider enabling two-factor authentication for added security, using Coinbase Pro for lower fees, and turning on purchase notifications.
• Always double-check recipient addresses when sending crypto from your Coinbase wallet, as transfers on the blockchain are irreversible.

How to send and receive cryptocurrency on Coinbase

Sending and receiving cryptocurrency on Coinbase is a straightforward process once you get the hang of it.

Sending Cryptocurrency on Coinbase

Firstly, you will need the recipient's wallet address. A wallet address is a long string of characters that identifies where the cryptocurrency should go. As crypto wallet addresses are long, they are often shown as a QR code that can be scanned in your crypto app.

Once you have the wallet address, open your crypto wallet and enter the wallet address. Then, select how much crypto you want to send. You can also write a note with your transaction to let the recipient know what the transaction is for.

If you are a Coinbase customer, you can also send crypto to any email address in 100+ countries for free. Just open your Coinbase app, select the crypto and an amount, enter the recipient's email address, and hit send.

There are two ways to send crypto on Coinbase: on-chain or off-chain. On-chain sends are used to send funds from the Coinbase platform to an external address on the blockchain. On-chain sends are irreversible, so ensure that you have the correct wallet address. On-chain sends also incur network fees and take time to process. Off-chain sends allow you to send funds to another Coinbase user instantly and with no transaction fees.

Receiving Cryptocurrency on Coinbase

To receive cryptocurrency, you can share your address, select Copy, or allow the sender to scan your QR code. You can share your unique cryptocurrency address to receive funds through your web browser or mobile device after signing in.

Important Things to Note

• Each type of crypto has its own address, so make sure you are sending Bitcoin to a Bitcoin address, and Ethereum to an Ethereum address, for example.
• All sends to crypto addresses are irreversible. Coinbase cannot retrieve funds sent to an incorrect address.
• If you are sending crypto to an external wallet, be sure to select the right blockchain address for the cryptocurrency you wish to transfer.

How to use the Coinbase wallet

The Coinbase Wallet is a mobile app that allows you to store, send, and receive cryptocurrencies and NFTs. It is a self-custody wallet, meaning that you are responsible for keeping your login details and recovery phrase safe. Here is a step-by-step guide on how to use the Coinbase Wallet:

Setting Up Your Coinbase Wallet:

• Download the Coinbase Wallet mobile app.
• Select "Create a new wallet".
• Review and accept the Privacy Policy and Terms of Service.
• Choose a username and set your privacy preferences. This will allow other Wallet users to find you and send you payments.
• Select your preferred security method: biometrics or a passcode. Coinbase recommends biometric authentication.
• Back up your recovery phrase. This is a 12-word phrase that is the key to your wallet. Keep it safe, as Coinbase cannot recover it for you if it is lost. You can choose to back up to the cloud or manually back it up and store it in a secure location.
• Confirm the first and last words of your recovery phrase to complete the setup.

Importing or Recovering an Existing Wallet:

If you have an existing wallet, you can import it into the Coinbase Wallet app. Here's how:

• Install the Coinbase Wallet mobile app.
• Open your existing wallet and access your recovery phrase. For most wallets, you can find this in the Settings menu.
• Copy down your recovery phrase. It should be 12 words. Keep this safe.
• Open the Coinbase Wallet app and click on "I already have a wallet".
• Select "Restore with recovery phrase" and enter the 12-word recovery phrase.
• Choose your preferred security method and set your privacy preferences.
• Your existing wallet has now been imported into the Coinbase Wallet and is ready to use!

Connecting Your Wallet to a Coinbase Account:

You can connect your Coinbase Wallet to a Coinbase account to easily buy crypto or transfer crypto between the two. Here's how:

• Open your Wallet app and navigate to the Settings tab.
• Select "Coinbase link" from the Settings menu under "Connections".
• If you already have a Coinbase account, select "Connect my Coinbase Account". If not, select "Sign up for Coinbase".
• Follow the instructions to sign in or create a new account.
• Authorize the connection between your Wallet and Coinbase account.

Funding Your Coinbase Wallet:

To start using your Coinbase Wallet, you'll need to deposit some crypto. Here are a few ways to do this:

• Buy or transfer crypto from Coinbase: Link your Coinbase account to your Wallet app and purchase crypto directly from Coinbase.
• Transfer or receive funds from another wallet: You can receive crypto from another wallet by providing your wallet address or QR code.

Sending and Receiving Crypto:

With your Coinbase Wallet, you can send and receive crypto with peer-to-peer transfers, without any financial intermediaries. Here's how:

To send crypto:

• Open your Wallet app and select "Send" from the top section of the home screen.
• Choose the crypto you want to send and the amount you want to send.
• Enter the recipient's information, such as their wallet address or username.
• Review the transaction details and confirm the send.

To receive crypto:

• Open your Wallet app and select "Receive" from the top section of the home screen.
• Select the crypto you will be receiving.
• Share your wallet address or QR code with the sender.

Additional Features:

The Coinbase Wallet also offers additional features such as the ability to trade tokens, buy and sell NFTs, and explore decentralized apps (dApps). You can also use your crypto to earn interest or participate in decentralized finance (DeFi).

Frequently asked questions