Using Coinbase to Get Into the Crypto Markets
So you’ve seen all of the buzz on the news, you’ve heard Bitcoin mentioned by friends, family, and maybe even on the radio. You’ve heard about it, you’re interested in it, but do you know how to actually purchase any?
Take a seat, get your wallet ready, and we’ll break down just how easy it actually is to get your start in the world of cryptocurrency using one of the most well-known and trusted sites in the game.
Create a Coinbase Account
Coinbase is one of the easiest and most well known ways to get into the cryptocurrency exchanges. This big name is based out of San Francisco in the US and is one of the few exchanges that will allow users to purchase cryptocurrency directly with fiat currency (USD, AUD, CAD, etc.) while also FDIC insured for cash balances in your account.
1. Sign Up!
Sign up as either an individual or a business if you’re an institution, then fill in your information, prove that you’re not a robot via ReCaptcha, acknowledge that you’re over the age of 18, and create your account.
After your initial account registration, you’ll need to verify your email address and identity. Like all trading platforms, Coinbase will require your legal name.
2. Add Funds To Your Account
Next up, you’ll need some money to purchase with! You have a few different options here that you can see below.
(a) Link your bank account — this is the recommended way to add funds, especially for larger sums of money, though it will take a few days
(b) Purchase with a debit/credit card (Note: It is not recommended to purchase
cryptocurrencies with borrowed money)
(c) Wire Transfer — also ideal for larger sums being added to your fiat currency wallet
3. Select Your Cryptocurrency of Choice
This next step is where you’ll really get started. Choose from Coinbase’s cryptocurrencies to buy-in with. You can choose between Bitcoin (BTC), Ethereum (ETH), Litetcoin (LTC), and the most recent addition, Bitcoin Cash (BCH).
If this is your first time purchasing, it’s important to know that you’re able to purchase fractions of a coin (i.e. you can buy $500 worth of Bitcoin, you don’t need a full $14,290 to buy in with).
Go ahead and switch to the “Buy/Sell” tab from your dashboard where you’ll be able to see your buying options.
From here, you’ll be able to select your cryptocurrency. In this case, we’ve selected Ethereum above (you’ll see outlined with the green check mark). Next, you just need to select your payment method (bank account, credit card, or online USD wallet) and then the amount you’d like to spend on a particular coin.
Next up, all you need to do is hit “Buy” and you’re all set!If you take a look at the bottom right corner, you’ll see the box outlined in red is going to give you the details of what you’re paying. In this case, we’re purchasing via US Bank account, so there is a total fee of $7.34 attached to the transaction.
Instead of charging your account $507.34, Coinbase will automatically deduct this amount from your initial deposit and purchase $492.66 worth of Ethereum.
Take a look below at the fee structure.
As you can see, there are a variety of ways to mitigate your fees when purchasing. Purchasing with a credit/debit card is significantly faster than an ACH transfer, but will cost you nearly 4% in fees before you even purchase.
Likewise, when you’re cashing out, PayPal is going to be the most expensive way to do so since you’ll lose nearly 4% just for choosing it as a your payment method.
Whether it be Bitcoin, Bitcoin Cash, Ethereum, or Litecoin, you’ve officially acquired your first crypto asset that can now be traded for other currencies–but where do you go from here?
In our next article, we’re going to go through the steps necessary for bringing your newly acquired assets onto an exchange where they can be traded for altcoins that you may not know about.
Getting Started With Altcoins: A Primer