How to buy bitcoin with Coinbase? If you want to learn about bitcoin, Coinbase, and the step-by-step purchasing process, you are in the right place. Bitcoin is the world’s first and widely used cryptocurrency.
People with bitcoin have the advantage of sending and receiving digital money via the internet directly and securely. Satoshi Nakamoto is the person behind the creation of bitcoin. It is a digital currency that enables people to perform peer-to-peer transactions digitally securely.
Millions of people use bitcoin across the world. The primary reason behind its use is high convenience, ease of cryptocurrency, and Blockchain technology security. By looking at bitcoin’s value and growth rate, it will rise with more businesses and retailers accepting it as a payment method.
There are many places to buy bitcoin, such as eToro, Robinhood, BlockFi, Bisq, and CoinMama. However, research shows that Coinbase beats all these platforms for purchasing bitcoins. Let us talk about the step-by-step process on how to buy bitcoin with Coinbase. Read on!
What Is Coinbase?
Coinbase is a popular global cryptocurrency exchange, based in the United States, and operating at different capacities in over 100 countries. Research shows that besides the US, most people from the UK, Spain, and Mexico use Coinbase.
As the name suggests, Coinbase functions as a middleman in the cryptocurrency market and provides a high-quality platform for people to purchase and sell bitcoins and other currencies. The official website states that crypto exchanges vary in several factors. These include the type of coins, transaction fees, and processing times.
If you are looking to buy bitcoins with fiat money, Coinbase is the best place. In addition, the platform remains a secure and widely used option for people who are looking to purchase cryptocurrencies.
Not only does Coinbase have a simple user interface, but it also offers a good learning platform for beginners. It means that people who are new to crypto or bitcoins have the best platform, which is none other than Coinbase.
Some people think that the processing times are lengthy, which lasts between 3-5 days. However, it is an ideal platform for you if you want to make serious trades.
How To Buy Bitcoin – Step By Step Guide
Coinbase is one of the most reputable and leading digital asset organizations globally. The company headquarters is in San Francisco. Coinbase started its operations in 2011 and made efforts to bring bitcoin to hundreds of thousands of people. Today, the company has streamlined its business operations to create an open financial system.
Step 1: Sign up to Coinbase
The first step is to browse the internet and go to the official company website “Coinbase.com.” Click the “Get Started” button located on the top right of the screen. If you already have an account, you can skip this step.
Provide all the necessary or required information, including your full name, username or email address, and a password to create your Coinbase account. Coinbase will send you a confirmation email with a link. Click on the link to get access to the Coinbase platform.
On the other hand, you can go through the signup process using the Coinbase app. It is available for users of both iOS and Android. However, many people recommend sticking to the web-based version of the platform because it provides more details.
After completing the registration process and providing all the necessary information, you can access the Bitcoin Coinbase dashboard. You’ve now completed the first step of how to buy bitcoin through Coinbase. Keep reading!
Step 2: Add a Payment Method
Buying bitcoin through Coinbase is easy through a credit card. However, before you deposit funds (I will explain that in the third step), it is crucial to add your credit card. Click on the “Payment Method” page and then on the “Add Payment Method.” You can find it at the top of the page.
At the payment selector area, choose a debit card or credit card. The next step is to verify your ID. Coinbase requires you to carry out your ID verification if you haven’t verified the account.
After the platform completes the verification process, it will redirect you to the payments section. Here, you can enter your card details. Remember that the address you enter must match with your credit or debit card’s billing address.
Now, accept the prompt to allow Coinbase to bill your account and access your cardholder’s history. Then, see the charges that the company has made to your card. Verify your card and enter the amounts debited by the company.
After successfully verifying your payment, proceed to purchase your bitcoins. Bear in mind that the credit card method is applicable only for US, UK, European, and Singapore residents. The other way to deposit funds is as follows.
Step 3: Deposit Funds
Before purchasing bitcoin from Coinbase, it is crucial to deposit money in your account using fiat currency. For that, click on the button “Trade” and then on the “Deposit Funds.” Then, a pop-up window will open on your dashboard, where you can perform these steps.
For example, you can use dollars, pounds, euros, or any other currency to buy bitcoin with Coinbase. Likewise, you need to transfer pounds to your account, and you can do this easily through a wire transfer to your bank account at Coinbase’s banking partner.
Remember, before you carry out the bank transfer process for the number of bitcoins you want to buy, make sure you write the reference number. You will need this number for your bank transfer.
Therefore, make sure you note it down on a piece of paper or computer, or smartphone. Congratulations, you have completed the third step of how to buy bitcoin through Coinbase. Continue reading!
Step 4: Trade Crypto on Coinbase
After processing your bank transfer, the next step is to trade crypto on Coinbase. Bear in mind that you can initiate the third step once funds reach your Coinbase account. Besides, click on “Trade” and buy the number of bitcoin you want to own using dollar or pounds help on your Coinbase Wallet.
If you want to close out your bitcoin investment, follow the same process. However, there is one difference: clicking the “Sell” button instead of the “Trade button.” Likewise, if you want to expand your portfolio and strengthen your digital asset, you can convert them into other cryptocurrencies.
Coinbase does offer not only bitcoin but also a wide range of other cryptocurrencies. For instance, you can convert bitcoins into ether (ETH). The purpose is to gain some exposure to bitcoin cash. It requires you to click the “Trade” button and then the “Convert” button to access the platform’s exchange section.
Once done, you will have to enter the amount you want to convert from ether to bitcoin or bitcoin to ether or any other digital currency. Next, click “Convert” to start the process. Remember, the conversion process takes a few seconds. After the process completes, you can see the newly acquired digital asset in your Coinbase portfolio.
The exciting thing about Coinbase is that it supports over 26 crypto assets, which include ether, lite-coin, bitcoin, and bitcoin cash. The asset conversion facility is available in more than 100 countries. Besides wire transfers, you can use credit and debit cards to buy bitcoin or other currencies via Coinbase.
Step 5: Secure Your Bitcoins
Digital currency experts recommend holding private keys to secure your bitcoins. If you prefer to take custody of your crypto assets yourself, you can transfer your newly purchased digital currency to Crypto Wallet.
Although Coinbase can hold bitcoins for you, it is wise to store them securely in your own private Crypto wallet. Moreover, Ledger, Trezor, or Nano hardware are some wallets that you can use to safely and securely keep your bitcoins.
How long does it take?
Many people ask this essential question: how to buy bitcoin with Coinbase? Well, I have already explained the steps above. Before you follow these steps, make sure you know something vital – i.e., the speed of the buying process.
Coinbase has incorporated the ACH bank transfer system. The company uses it for payments with your bank account. The transfer system usually takes around 3 to 5 business days to transfer money after initiating the purchase.
You will receive bitcoins or see their availability once the transfer completes, which means you will see a completed transaction on the history page after Coinbase receives the payment. Remember, business days mean Monday to Friday from 9 AM to 5 PM.
Keep in mind that Coinbase does not count weekends and holidays as business days. We recommend not placing the order in the evening. It is because the transfer will not start until tomorrow or the next business day. ACH transfers typically complete by the end of the day – i.e., 11:59 PM PT. The reason is that Coinbase Company is located in San Francisco, California.
How To Buy Bitcoin Through Coinbase Using An App
Many people recommend buying bitcoin through a web-based method. However, you can also purchase them through your smartphone with either iOS or Android operating systems. Here is the step-by-step process:
Benefits Of Buying Bitcoin Through Coinbase
Coinbase is a leading cryptocurrency exchange in the US. The company is an ideal place for people to buy bitcoin and other cryptocurrencies. Coinbase offers a wide range of digital products, such as cryptocurrency investing, custodial accounts, advanced trading platforms, wallets for retail investors, etc. Further, Coinbase is a fully licensed and regulated cryptocurrency exchange in over 40 American states.
The company initially started its operations based on bitcoin trading. However, it quickly added other cryptocurrencies to its portfolio. Additionally, Coinbase expanded its list to Bitcoin cash, Lite-coin, Ethereum, XRP, and other digital currencies. In simple words, Coinbase offers:
Straightforward and Easy Signup Process
Signing up for Coinbase is very easy, simple, and straightforward. I have already explained all the steps above. For the reminder, let me tell you that you need to provide your personal information, including your email and phone number. Coinbase will use your phone number and send you a code. The reason is that the company uses two-step verification codes.
State-of-the-art Security Protocols
Coinbase has implemented various security methods for account holders. Keep in mind that your bitcoins on the exchange account are as secure as you make them. Coinbase recommends its account holders to set strong passwords and use the two-step verification security feature. It is because the two-step verification provides more security.
Besides, the company has biometric fingerprint logins and offers insurance to its customers if the company’s system is breached. Keep in mind that the insurance policy does not apply to compromised accounts due to a lack of security measures.
Moreover, Coinbase stores over 98% of its account holders’ funds in the offline cold storage. FDIC and SIPC do not back the digital currency. However, the company provides insurance by pooling balances and holding them in US dollar custodial accounts. It means that Coinbase delivers much more sophisticated security than other leading exchanges.
Affordable Fee System
Although Coinbase has a complex fee system, it is quite affordable, especially if you are using Coinbase Pro. Unlike other platforms, the cost of buying or trading on Coinbase is quite competitive.
If you are new to cryptocurrencies, you can use the platform to efficiently learn and execute different processes. Bear in mind that Coinbase’s fees vary from one country to another, but I will tell you about the fees within the US in this post.
Bitcoin Coinbase Fee System
A debit card or Credit card
Coinbase USD Wallet
Besides these fees, the company may charge variable spreads on your purchases and trades. According to Coinbase, the charges are usually 0.50% for the bitcoin purchase. The same applies to the sale of bitcoin. This seems affordable, but the market conditions can fluctuate the prices.
Bitcoin Coinbase: General Considerations
The amount of bitcoin you can purchase depends on many factors. For example, it depends on the verified details on the platform. If you are a verified user in the US, you can buy up to $50,000 worth of cryptocurrency daily.
For instance, European-based customers can purchase up to €30,000 bitcoins or other cryptocurrencies. Besides, the payment method available to you can limit the number of bitcoins at any point in time. You can carry out a $25,000 ACH transfers, and wire transfers do not allow for unlimited transfers. So, keep that in mind.
Keeping your bitcoins in a online wallet after a purchase is also a good idea. In addition, Coinbase offers a secure wallet, exchange, and broker. You can likewise send it back and forth from a safe and secure bitcoin wallet.
Bitcoin prices change due to demand and supply. Further, you can purchase a fraction (0.0052) of bitcoin for $100 (for example, as of December, the price of a bitcoin was $19,083 per bitcoin).
Research highlights that Coinbase allows users to spend their bitcoins for products and services online and offline. For example, you can buy books, pay for food at restaurants and cafes, and shop on Amazon.
Also, you can give out bitcoins as donations in countries where it is difficult to access financial services. Similarly, you can transfer your bitcoins to your family or friends fast and effectively. Coinbase allows you to turn bitcoins into cash. You can also withdraw money into your bank account via PayPal.
How To Buy Bitcoin With Coinbase – Final Words
Satoshi Nakamoto is the inventor of the bitcoin cryptocurrency. However, nobody knows still who he is. The smallest bitcoin denomination is called a “Satoshi.” Another interesting fact about bitcoin is that social media sites mention it every three seconds. Though, you can buy bitcoins in different places online, I recommend you to use Coinbase.
Coinbase is one of the best tools for new crypto investors. It is ideal for those who haven’t any other investment experience. Some people think the standard platform is a bit overpriced. However, it offers incredible features, such as the learning program.
It allows you to set up your recurring purchases easily. Coinbase provides beginners with a straightforward path to buy, invest, and sell cryptocurrency. Despite the fact that Coinbase Pro lacks some features, it is a good option for those who have some knowledge of trading.
It is because the Pro version is affordable and robust. However, the standard version of Coinbase is much better than the Pro version. Overall, Coinbase is an excellent platform for buying, trading, and selling bitcoins and other cryptocurrencies. Lastly, follow the early steps if you want to accurately buy bitcoins on Coinbase, and click the link below to get started!
Get Bitcoin With Coinbase
Some of the links within this article are affiliate links. This means if you click on the link and purchase the item or service, Financial Sorcery will receive an affiliate commission. This is at no cost to you and helps us fund our company.