Buying Bitcoin on Coinbase, Step by Step (With Photos)
There are multiple ways to buy bitcoin, but perhaps the easiest and safest way to buy bitcoin is through an exchange like Coinbase.
This article will show you the easiest way to buy bitcoin on this popular exchange.
Founded in June 2012 and based in San Francisco, California, the company has 20+ million users with over $150B traded in digital currency.
If you are a United States resident, your Coinbase USD Wallet is covered by FDIC insurance, up to a maximum of $250,000. This is in addition to a $255 million insurance policy for its crypto holdings.
This is why I recommend Coinbase for new users. Your money and cryptocurrency are protected and safe.
Here is what you need before you get started:
- A valid photo ID (such as a driver’s license)
- A bank account or credit card
You will need valid identification, such as a drivers license or photo ID. Some exchanges require a selfie of you holding your identification card. You will upload your ID directly on the Coinbase website.
You need a bank account or credit card. During due diligence, Coinbase will send a few pennies to your bank account, then you must verify the amount to Coinbase. All this is for verification and authentication purposes.
Like any bank or money transmitter, Coinbase must comply with Know Your Customer/Anti-Money Laundering laws.
Open Your Coinbase Account
(Read the fine print to receive the Free $10 Bitcoin)
Simply fill in the required fields to open your account. Follow the prompts to upload your ID and verify your bank account. In 3 easy steps you will have opened your account at Coinbase.
You should see this dashboard once you’re complete!
Easiest way to buy Bitcoin
To buy Bitcoin, scroll up to the top of the main Coinbase page and click on Buy/Sell. A screen will pop up that looks like this:
You can specify a dollar amount of bitcoin you want and the website will display the amount of BTC you would receive for that amount.
In this case, the purchase is for $200 worth of bitcoin or 0.01369407 BTC.
You will see the order to buy 0.0141 BTC for $200, with a $7.67 Coinbase fee, which is 3.8 percent of the purchase price.
The price of bitcoin was $13,627.81 at the time of the sale.
Hit “Confirm Buy.” Then you will see a green check indicating the purchase was successful.
Return to the dashboard and there will be a summary of the account and its activity, including the purchase of $200 worth of Bitcoin.
Setting Up Recurring Buys
One approach to buying an investment with volatility like bitcoin is dollar cost averaging. Dollar cost averaging is buying a fixed amount every month to average in your cost basis. Dollar cost averaging works well for investors who are buying stocks or cryptocurrencies on a fixed monthly budget.
Coinbase allows you to set up this kind of recurring transaction straight from your dashboard if you wish. Simply check the “Repeat this buy” box on the Buy/Sell page and choose the frequency of your recurring purchase.
Coinbase is by far the easiest way to buy bitcoin and altcoins because it’s fast, safe, and easy to use.
Coinbase’s mission is to create an open financial system, where anyone in the world can participate on equal terms from their computer or smartphone.
To bring this vision about, they needed to make blockchain technology more accessible. To accomplish this they needed to make cryptocurrencies easier to obtain and easier to understand.
In addition to being the easiest way to buy Bitcoin, Coinbase created Coinbase Earn where you can learn and earn FREE Bitcoin and crypto.
Coinbase also offers sales of Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), Stellar Lumens (XLM), Ethereum Classic (ETC), Zcash (ZEC), Basic Attention Token (BAT), USC Coin (USDC) and 0x (ZRX).