Coinbase is the third largest cryptocurrency exchange by volume.
With Coinbase, you can buy and sell cryptocurrency like Bitcoin.
The exchange is available in over 100 countries including the United States, France, and Singapore.
They are also the first cryptocurrency company that went public in the United States.
Coinbase has a simple user interface that is great for beginners.
You can use various payment methods to buy cryptocurrencies including bank account, deposit, PayPal and debit card.
However, Coinbase charges a fee that is a bit higher than other exchanges like Binance.
Coinbase charges a fee of 1.49% to 3.99% depending on your country and the payment method you’re using.
To avoid these fees, you can use Coinbase Pro instead.
In this guide, you will learn how to use Coinbase to buy cryptocurrencies.
Table of Contents:
How to use Coinbase
To use Coinbase, you need to sign up for an account and verify your identity.
Then, you can add a payment method to buy cryptocurrencies like Bitcoin and Ethereum.
Signing up for a Coinbase account is a bit complicated because you need to go through the Know Your Customer (KYC) process.
The KYC process requires you to provide your information and verify your identity.
Cryptocurrency exchanges like Coinbase must follow compliance and regulatory standards set by the government.
So, you need to go through the KYC process for security reasons.
Once your identity is verified, you will be able to buy and sell cryptocurrencies on Coinbase.
But first, you need to add a payment method.
If you live in the United States, you can add a wide range of payment methods.
However, it is not allowed to buy cryptocurrencies on Coinbase in some countries.
So, before you sign up for Coinbase, you need to check if your country is supported on the exchange.
1. Sign up for a Coinbase account
The first step is to create a Coinbase account.
You can use this link to sign up for a Coinbase account: https://www.coinbase.com/join/lim_di1 ($10 USD Bitcoin bonus).
First, download the Coinbase app on the App Store or Google Play Store.
You can also visit Coinbase’s website to create an account.
In this guide, we will use the Coinbase app.
However, if you are using the desktop version of Coinbase, you can still follow this guide since the steps are similar.
Once you are on Coinbase, tap on “Get Started”.
After tapping on “Get Started”, you will land on the “Create Your Account” page.
Enter your first name, last name, email and password.
Then, select the checkbox to certify that you are at least 18 years old.
Then, tap on “Start” to continue with the next step.
After tapping “Start”, you need to verify your email.
Check your inbox for a verification link from Coinbase.
Then, click on the verification link to verify your email.
After verifying your email, you need to provide your information.
This includes your phone number, citizenship, date of birth and address.
You are also required to indicate your purpose, source of income, the amount of cryptocurrencies you expect to trade, and the industry you work in.
This is part of the KYC process that customers are required to follow before they can open an account.
2. Verify your identity
After providing your information, you need to verify your identity.
There are 3 ways to verify your identity.
This includes your ID card, driver’s license and passport.
If you have selected the “ID Card” option, you need to take a front and back photo of your ID.
After verifying your ID, you need to upload proof of address.
This is because regulators require Coinbase to collect a second document to verify your address.
There are 3 ways to verify your address.
This includes a bank statement, utility bill, or credit card statement.
Select one of the options and upload the document to verify your address.
3. Add a payment method
After providing your information and verifying your identity, your Coinbase account will be successfully created.
Now you will be able to buy and sell cryptocurrencies on the app.
But first, you need to add a payment method.
First, log in to your Coinbase account if you haven’t already.
Then, tap on the “Settings” icon on the bottom navigation bar.
If you are using Coinbase on a desktop, click on your profile picture followed by “Settings”.
If you haven’t added a payment method yet, you need to do so.
To add a payment method, tap Add a payment method.
After tapping “Add a payment method”, you need to select the payment method you want to add.
In countries like Singapore, you can only use a credit or debit card to buy cryptocurrencies on Coinbase.
In this example, we will use the “Credit/Debit Card” option.
First, put the name on your card.
Then, enter the card number, expiration date, and CVC.
Finally, enter your zip code and tap “Add Card” to add your card to Coinbase.
4. Buy a cryptocurrency
Now that you’ve added a payment method on Coinbase, you’ll be able to buy cryptocurrencies!
In this section, you will learn how to buy Bitcoin on Coinbase.
First, tap on the reverse icon in the bottom navigation bar.
If you are using Coinbase on a desktop, click the “Buy/Sell” button in the top navigation bar.
After tapping on the reverse icon, a navigation drawer will open.
In the navigation drawer, you will see more options.
This includes “Buy”, “Sell”, “Convert” and others.
Tap “Buy” to buy a cryptocurrency with cash.
After tapping “Buy”, you will land on the “Select assets to buy” page.
On the page, you will see a list of cryptocurrencies that you can buy on Coinbase.
Tap on the cryptocurrency you want to buy.
For example, if you want to buy Bitcoin, tap “Bitcoin”.
After tapping on “Bitcoin”, you will land on the “Buy Bitcoin” page.
First, enter the amount of Bitcoin you want to buy (e.g. $10).
Keep in mind that there may be a limit to the amount of cryptocurrency you can buy.
Then, tap “Purchase Preview” to see a preview of your order.
After tapping “Purchase Preview”, you will see a preview of your order.
This includes the Bitcoin price, payment method, purchase, commission, and total.
Tap “Buy Now” to buy Bitcoin.
You can check your wallet balance by tapping “Portfolio” in the bottom navigation bar.
Selling cryptocurrency on Coinbase is similar to buying, but instead of tapping “Buy”, you need to tap on “Sell”.
You have successfully learned how to buy a cryptocurrency on Coinbase!
Conclusion
All in all, Coinbase is a great cryptocurrency exchange for beginners.
If you are an experienced user, Coinbase may not be suitable for you as it has high fees and a lack of features.
In that case, Coinbase Pro or Binance might be a better option for you.
Coinbase Pro charges a fee of 0% to 0.50% while Coinbase charges a fee of 1.49% to 3.99%.
On the other hand, Binance has a commission of 0.1%.
