There are many methods through which you can purchase bitcoins, but one of the easiest and safest way to buy bitcoin is through a secure trading platform or exchange. In this article, we will show you a step-by-step guide on how to buy bitcoins by using Coinbase.
Coinbase is a popular exchange site due to it being very easy to use. It is also considered by many a reputable service which offers optimal trading services. With nearly 11.7 million, it one of the most extensive bitcoin community on the planet.
Before you start buying bitcoins on Coinbase, here are a few things you will be required during the acquisition process:
- A valid photo ID
- A bank account or credit card
There isn’t a minimum account size required. You can buy your bitcoins and then transfer them to your private wallet, and leave a zero account balance on the exchange. It is recommended that you don’t leave your holding on the exchange and store your coins in a secure private wallet.
Most exchanges ask their users to present valid documents and identification, such as a driver’s license or photo ID. Other might require you to take a selfie of you holding your identification card. But Coinbase just needs you to upload your ID directly its website. Coinbase does not allow its users to send ID photos via email for security reasons.
Before you’ll be able to use your bank or credit card account, Coinbase will send a small sum of money to your bank account, and then you must verify the sum on Coinbase. This is done in order to check if the account is valid and authentic. Due to the nature of its services, Coinbase must conform to Know Your Customer/Anti-Money Laundering regulations.
Sign Up for a Coinbase Account
- Head over to Coinbases’s website and create your free account.
- Once you’ve reached the account sign-up page, you will need to do the following:
- Just fill in the necessary fields to open your account.
- You will be required to upload your ID and verify your bank account or credit card during this process. Simply follow the reminders as they appear over the course of the account set up.
- After the sign up is complete, then proceed to connect your bank account. Some verification steps will need to be completed before you can start using the account.
- Once you have opened your account, the site will display a dashboard containing the price of bitcoin, Ethereum, and Litecoin, as well as a chart of bitcoin.
1. Now that you have your account, you can start buying some Bitcoin. To do so, just scroll up to the top of the main Coinbase page and click the Buy/Sell button. A screen will appear showing you which currencies you can buy, your payment method and your weekly card limit.
2. You then put how much dollars you want to spend for the purchase of your bitcoin, and the website will show you the amount of BTC you can buy for that specific sum.
3. After you’ve decided how much you want to buy, hit the “Confirm Buy” button. After this, a green check mark will appear to show you the purchase.
4. If you return to the dashboard there will be featured a summary of the account and its activity.
Making Recurring Buys On
One way of acquiring an asset that has a volatile value such as bitcoin would consist of dollar cost averaging. Dollar cost averaging means that you buy a set amount every month to average in your cost basis.
Dollar cost averaging is quite efficient for investors who purchase stocks or cryptocurrencies with a fixed budget every month.
Coinbase let such traders set up this type of recurring transaction form the command of their dashboard if they want to make such automatic purchases. All the user has to do is check the “Repeat this buy” box on the Buy/Sell page and select the rate of their recurring buys.
Coinbase is a user-friendly and straightforward exchange that allows traders of all levels of experience to safely purchase bitcoins and other altcoins such as Ethereum, Bitcoin Cash, Litecoin, and soon Ethereum Classic. As always, be careful where you store your account credentials and wallet address!