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Despite the initial doubts and volatility, the cryptocurrency market has seen some outlandish gains over almost two decades. Many coins are currently offering more than a 1000% ROI on your initial investment.
Many market analysts are suggesting that now is a key time to buy cryptocurrency as we sit at the beginning of a potential bull run. Coinbase one of the leading trading platforms has over 35 million users from all over the world, making it the #3 cryptocurrency exchange based on its trading volume.
Coinbase is a great place to start if you’re looking to where to buy cryptocurrency. In this guide, we’ll take a closer look at Coinbase and how to use it to buy cryptocurrency.
Coinbase is one of the most trusted cryptocurrency exchanges. Despite holding a huge amount of client funds, Coinbase has never once been hacked.
However, keeping cryptocurrency on an exchange does subject it to a heightened risk of cyber attacks, so it’s worth moving your coins off the exchange once you’ve finished trading. But more about this later.
Coinbase is used worldwide and can be used in over 100 countries. It supports around 50 different coins, but some of these coins may or may not be tradeable depending on your location.
The interface is simple to use and users even have the opportunity to transfer their coins from Coinbase.com to Coinbase Pro. This provides more control over their trading and fewer transaction fees.
Coinbase.com vs Coinbase Pro
Most experienced users will use Coinbase Pro because the transaction fees are much less.
When you trade on coinbase.com you simply choose the currency you want to buy or sell and the transaction is carried out at the current market price. This might be great for inexperienced traders, but the fees can quickly mount up, eating into your profit if you’re trading regularly.
Coinbase Pro offers users the full trading experience, allowing them to set limit orders and keep a close eye on fluctuations in the market. This is much better for people who are looking to trade regularly. The transaction fees are a fraction of those on coinbase.com.
So if there’s one word of advice, it’s this: Once you’ve set up your coinbase.com account, use Coinbase Pro for trading.
Money and cryptocurrencies can be transferred between one and the other instantly without any fees. Coinbase.com also offers a vault facility that allows users to store coins in a secure vault. This is a great place to put any cryptocurrency when you want to take it off the exchange.
To withdraw any coins from the vault, you require a two-email verification and the process takes 48 hours to improve security.
How to Get Started on Coinbase
Getting set up on Coinbase couldn’t be any simpler. All you need is a computer or smartphone with an internet connection, a phone number connected to your smartphone, and a government-issued photo ID.
When you sign up for your account, Coinbase will verify your email address, phone number, and identification. Once this is done you’ll be good to go.
Finally, all you have to do is link a payment method. Coinbase accepts bank transfers, wire transfers, and debit card payments. Please note that Coinbase does not accept credit cards.
Most payment transfers complete within a few minutes, but they can take up to one whole working day.
How to Buy Cryptocurrency on Coinbase
Once you have money in your Coinbase account you have two options: trade with coinbase.com or Coinbase Pro. Trading with Coinbase Pro is a little more complex, but it’s certainly worth learning if you’re looking at trading regularly.
Buying Cryptocurrency on Coinbase.com
To buy cryptocurrency on coinbase.com, you’ll scroll through the list of available cryptocurrencies and select the one you want to purchase.
Once you’ve selected your coin, you’ll be provided with a chart analysis of the coin and a current buy/sell ratio of the coin. This is great as it can give you a good read of how the market is feeling towards the coin.
To buy the cryptocurrency, just type in the amount of money you want to spend on the coin and hit ‘buy’. It’s that simple.
Before your transaction is finalized, you’ll be shown a breakdown of the price of the cryptocurrency against your fiat currency and a breakdown of the Coinbase fees. If you agree, then hit confirm and congratulations! You’ve just bought your first crypto.
Buying Cryptocurrency on Coinbase Pro
Coinbase Pro might look a little more intimidating, but it’s still straightforward as far as exchanges go. The first thing you need to do is deposit your fiat currency of cryptocurrency from coinbase.com to Coinbase Pro.
Simply scroll down the list of currencies and select which one you want to deposit. Select deposit and you’ll be given the choice of depositing from a crypto address or coinbase.com. Select coinbase.com and it will show you how much you have available in your coinbase.com account to deposit.
Once you’ve decided to purchase a particular type of crypto, you need to decide how you’d like to buy it. There are three options:
- Market – A market order buys the cryptocurrency at the market value
- Limit – A limit order allows you to set how much you’d like to buy the cryptocurrency for, and the limit order completes when/if the crypto reaches that price
- Stop – A stop-loss order is similar to a limit order, but the stop price triggers the order and the limit price is the highest you would pay
Once you’ve made the deposit you’re good to start trading. The same applies to your fiat currency, although you can top up your fiat currency directly with a bank transfer or card payment in Coinbase Pro.
Are You Ready to Buy Cryptocurrency?
This is everything you should need to get started on Coinbase.
Do remember that if you’re going to buy cryptocurrency you need to be aware of the risks. It can be a very volatile market and sometimes you can lose as well as win. If you’re looking to invest in crypto then make sure you only invest what you’re willing to lose, should the worse occur.
If you found this article useful or you’d like to make any suggestions or even just chat with us, then feel free to drop me a message.