Buying Bitcoin on Coinbase – Step by Step

Coinbase is the most popular and trusted bitcoin exchange in the US market today.

As long as you have a bank account and/or a credit card, you’re ready to go. (You may also need to verify your account, and they have been having difficulty with that lately)

Step by Step:

1. Registration:

Head over to www.coinbase.com and click on Sign Up

Fill in your basic details

Verify your email

You should receive an email from Coinbase, click on Verify Email Address

Depending on where you live, you may have to agree to certain terms

Verify your phone number

Type in the code sent to your phone:

Congratz! You’re Registered!

 

2. Completing your Profile:

Click on Settings, this will take you directly to My Profile

Scroll down and enter your basic details

That’s it! You’re ready to add a payment method and buy your first Bitcoin.

 

3. Adding a Payment Method:

While in Settings, click Linked Accounts

Click on Link a New Account

Since this tutorial is about buying Bitcoin TODAY, we are going to choose Credit/Debit Card.

This will allow you to purchase up to $400 weekly, without further verification. You can then later increase your weekly limit by completing your extended profile if you want.

Click on Credit/Debit Card, the following window will pop up. Complete the form, and click on Add Card.

Once you add your card, you will receive two small charges on your credit or debit card.

Enter these amounts as instructed in Coinbase, and that’s it!

You can now buy Bitcoin!

 

4. Buying Bitcoin:

Click on Buy/Sell and enter the amount of Bitcoin you want to buy, or the amount of US Dollars you would like to spend Buying Bitcoin.

As you can see, for this transaction, Coinbase will Charge a 6% fee for the purchase of $25 in Bitcoin, or 0.0015905 BTC (Bitcoin)

Click on Confirm Buy if everything looks OK.

Your Bitcoin will be available instantly in your Coinbase BTC Wallet.

Bear in mind that if you want to transfer these funds to an exchange or your own personal wallet, there is going to be a fee involved.

Head over to your Dashboard, you will see your purchase

Congratz! you’ve bought Bitcoin!

 

Now, if we wanted to transfer the Bitcoin to another address (an exchange, or a wallet for example) We would have to pay a network fee.

This isn’t another Coinbase fee. This is a flat Bitcoin Network fee which can be pretty high is you’re sending small amounts of Bitcoin.

If we stick to our example:

As you can see, it’s not practical to transfer small amounts of Bitcoin, since it involves a high network fee (Which is rising almost every day).

In our example, the fee was 0.001220207 at the moment. Which means it would cost $17.68 to transfer any amount of Bitcoin to another address.

This wouldn’t make sense at all for a small purchase of $25 Bitcoin.

That’s why Bitcoin is usually withdrawn or deposited in much larger amounts. This is also one of the reasons Bitcoin has been criticized as of late.

Other cryptocurrencies, such as Ripple’s XRP have much lower fees (0.005 cents), which is what’s making them more popular. But this goes beyond the scope of this guide, and will be addressed on another post.

Coinbase Pros:

* It’s highly recognized as the most popular and trusted bitcoin exchange in the US and other countries.

* You can easily buy and receive bitcoins today with a credit or debit card (up to $400 weekly at the time of this writing). More when you connect your bank account ($5000 weekly)

* Fairly fast verification process.

* Low transaction fees as opposed to other exchanges.

* You can also buy Etherum and Litecoin cryptocurrencies.

Coinbase Cons:

* Users report service outages, and the site fails to load. This is especially the case during trading peak hours. However, every other exchange has the exact same problem.

High fees to move your Bitcoins from your marketplace wallet to another wallet. There’s no flat fee for all bitcoin purchases. Fees are dynamic and can be very high depending on market movements.

* Customer Support can take days to respond.