How to start trading cryptocurrencies on coinbase
So, you have thought of buying your first cryptocurrencies. The first thing you need to decide on is which exchange you are going to use to purchase these currencies on. This article will walk you through setting up an account to start buying and selling your own cryptocurrencies on one of the most popular cryptocurrency exchanges worldwide called Coinbase.
Cryptocurrency exchanges can vary in factors such as reliability, security, processing fees, exchange rates, and cryptocurrencies available for trading. We are covering Coinbase in this article because of the simplicity offered and ease of use for beginners to start trading cryptocurrencies.
What is Coinbase?
Coinbase is the most popular and respected digital currency exchange in the United States and several other countries worldwide. Coinbase supports trading in multiple different cryptocurrencies at the moment, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ethereum Classic etc. and is adding more as time progresses. The exchange also offers a way to store all of your cryptocurrencies in one location by providing their users to make use of their software wallets.
The following article will guide you through step by step on how to get started trading cryptocurrencies on the Coinbase cryptocurrency exchange.
1. Register an account on Coinbase
- So, the first step is setting up your trading account on the Coinbase exchange.
- Simply head over to www.coinbase.com
You will be presented with a page that looks similar to the following depending on your area of residence:
Note that you can choose to open an individual account or a business account.
- After registering an account an email will be sent to you as to verify your email address and device used to register the account with. Just follow the links until all is confirmed and registered. You will also need to add your mobile number to receive an OTP (One Time Pin) to ensure you are a valid user.
- After registration, you will be able to sign into your account. Click on “Sign in “on the top right-hand side of the page and fill in your details of the account that you have just registered.
You have now finished setting up your account to the point of being able to get onto the exchange, the next step will show you the prerequisite steps before you can make your first deposit to start buying cryptocurrencies on the exchange.
2. Connect your bank account
Before you can start buying cryptocurrencies, you need to have the money to buy them. You do this by linking your bank account to your Coinbase account and depositing the amount of fiat currency (“regular” money) that you would like to spend, onto the exchange. This will enable you to exchange digital currency into and out of your local currency and vice versa all on the same platform.
- To start linking your bank account click on the Buy/Sell tab and on the sub tabbed called Payment Methods:
- You will then be able to click on “Link bank account “and the following list will appear:
Click on your bank of choice.
- Your online banking username and password will then be requested – these are used for a one-time verification step. Additional security questions (as well as a PIN) may be requested depending on your selected bank’s security procedures.
Just keep following the online prompts until verification is completed.
- If you are not comfortable sharing your online banking username and password or the bank you use is not listed, you may still proceed by selecting ‘Other Bank’ from the main menu and electing for the deposit verification process or entering your bank’s information in the required fields. This process usually takes a bit longer than usual.
- After your bank account has been linked, you will be given a chance to either go through an instant verification process or a deposit verification process. Choose your option of choice and follow the steps provided.
After all these steps have been completed, you are now able to start buying cryptocurrencies. The next step will guide you through buying your first Cryptocurrency or a portion of one.
3. Purchase a cryptocurrency of choice
The following steps can be followed to purchase your first cryptocurrency after you have completed both steps 1 and 2 (Registering and Connecting your bank account).
- Your first step is to go to the Buy/Sell page we used before.
- Secondly, select the type of digital currency you’d like to buy.
- After you have decided on which cryptocurrency you would like to purchase, you can now enter the amount you’d like to buy. There is an option to either enter the amount in the digital currency value or in your local currency, whatever makes you feel comfortable.
- Select the cryptocurrency wallet you wish to have your funds deposited into. Note that Coinbase has its own cryptocurrency wallet.
- Select your desired payment method. This can be the bank account you have just registered.
- Lastly, confirm the order is correct and click Buy.
Congratulations, you have just bought your very first cryptocurrency.
Coinbase is one of the best cryptocurrency exchanges to start out for beginners. All of the information provided above is accurate until date, the exchange may be updated and some tabs can move around, but this will not have a big impact due to the site being quite basic. Coinbase offers a reliable service and a great user interface. This exchange is best used for buying cryptocurrencies with the idea of keeping them (Holding) them for large periods of time, and not trading them actively, although this can be done on this exchange.
Good luck and safe trading.
All imaged provided are under the ownership of Coinbase themselves.