If you want to buy cryptocurrency, you will most likely start with Coinbase. It is the most common choice for buying cryptocurrencies. Its beginner-friendly interface and numerous resources online make it the go-to platform among numerous crypto enthusiasts. In this guide, we will take a look at how to use Coinbase to buy your first cryptocurrency.
Step 1: Register
The first thing you need to do is to sign up. Once you visit the Coinbase website, click ‘Sign up,’ provide the necessary information, and verify your email address. After verifying your email address, log back into your Coinbase account and provide your phone number. You need to confirm the phone number by entering a code that Coinbase will send to you via text. This secures your account and also prevents spam.
Step 2: Set Up 2FA
Once you have confirmed your email address and you’ve added your phone number, the next line of action is to add a level of security known as two-factor authentication (2FA). This gives only the person that has access to the device access to your account. So after providing your password, you will need to enter the 2FA code as well before you can log into your account.
The two forms of 2FA are via SMS and Google.
Step 3: Verify Your ID
Before you buy any cryptocurrency, you will be asked to verify your identity by uploading a form of identification, like a driver’s license.
Step 4: Add Payment Method
After uploading your ID, the next step is to add a payment method that you will use to buy your coins. You can do this by going under the settings, from there, go to the ‘Linked Accounts’ tab and click on ‘Link a New Account.’
Once you do that, you will see a pop-up with different payment options. The ‘Bank Account’ option has no fee and a higher limit.
The credit card option allows you to buy cryptocurrencies quickly without waiting. But unlike the ‘Bank Account’ option, credit cards have a low limit on the amount you can spend.
Step 5: Buy Your Cryptocurrency
The final step is to buy your cryptocurrency. You can do this by clicking on the ‘Buy/Sell’ tab to see the coin selections. There are few coins on Coinbase; the major ones are Bitcoin, Ethereum, and Litecoin.
On the new page, you will see the total amount of cryptocurrency that you are buying, the value of 1 BTC, and the fees you will pay for using Coinbase’s service.
After making payment, you will see the payment information in the ‘Accounts’ tab of Coinbase. Your cryptocurrency will be stored in a wallet. A wallet refers to an address on the blockchain that allows you to send and receive cryptocurrencies. Since you purchased your coin through Coinbase, Coinbase will store your coins in their wallet that is linked to your account. You don’t need to use it if you have another wallet.
Congratulations, you just bought your first cryptocurrency. The cryptocurrency market keeps growing, and it is expected to grow into trillions in the future. So a tiny investment now can be worth thousands of dollars if you hold your investment.
If you’ve learned how to use Coinbase through this article, you should also check out this guide on the tips that will help you choose the best Bitcoin exchange.