Your first time buying Bitcoin or any other type of cryptocurrency can be intimidating and confusing. There is a ton of conflicting information out there and everyday in the media we hear cries of ‘Bitcoin is dead!’ and ‘Crypto is dangerous!’
Recently, I’ve been hit with a barrage of emails and messages from friends and followers asking me what the heck is going on with the cryptocurrency market.
The recent huge dips in price have panicked many investors and shaken out lose hands.
I myself am down over 50% of my portfolio – largely because I haven’t done any trading at all for about a month, on account of being in Iran.
Here’s the thing, there are plenty of genuine reasons for the recent cryptocurrency dip and, honestly, I could write 10,000 words about why cryptocurrency has entered a bear market, how long it is likely to last and when the price is likely to go back up.
But here’s the truth – nobody knows when crypto will go back up.
The key point in this is when – not if
I believe in cryptocurrency longterm – Whilst there may be a rough couple of years ahead of the market I wholeheartedly believe that crypto is the future and that now is an excellent time to stock up on coins whilst they are on sale in this current dip.
Here’s the thing – you don’t want to buy into anything, let alone something as volatile as cryptocurrency, when it’s on a crazy strong upward trend.
You want to enter cryptocurrency at a moment like, well…. at a moment like this.
Right now is the single best time to buy cryptocurrency for the last few months.
I personally believe that Bitcoin will hit $35,000 a coin by the end of the year. I could be wrong. I ain’t no crypto-guru. I’m an enthusiast who spends less than 4 hours a week trading and relies on the knowledge and predictions of those far more experienced than myself for guidance – to this effect, I often lean on trading bots.
In my opinion, if you DO plan to enter cryptocurrency then now is the time to do so. You should only enter with money you can afford to lose because heck, nothing is guaranteed.
So today, I’m going to teach you guys how to buy cryptocurrency online…
How to Buy Cryptocurrency
This leads me to our main topic today – how to buy cryptocurrency with Coinbase.
Thankfully – the whole process of purchasing cryptocurrency on Coinbase is super simple and Coinbase offers users one of the easiest ways to move hard currency into tasty cryptocurrency.
By the time you finish reading this guide, you’ll know exactly how to buy cryptocurrency with Coinbase, and then you can focus on your cryptocurrency investment strategy.
The best cryptocurrency exchange platforms
Exchange platforms are what people around the world are using to both buy and sell their cryptocurrency, and their are tons of options, each with their pros and cons.
Most exchange platforms list hundreds of coins but, annoyingly, do not allow you to transfer fiat (USD / GBP / EUR) to the exchange.
This presents the first, and biggest, problem with cryptocurrency for new users – how to buy cryptocurrency in the first place!
Coinbase is not perfect but it is the easiest, and one of the safest, ways to start trading cryptocurrency. You can buy your Bitcoin or Ethereum on Coinbase and then transfer it to a trading exchange where you can buy other coins with your Bitcoin or Ethereum.
If you already have your Bitcoin, check out my review of the best cryptocurrency exchange platforms.
Coinbase Review – My honest take
As mentioned, Coinbase is one of the many exchange platforms out there, but it’s my highest recommendation for newbies looking for how to buy cryptocurrency.
Technically Coinbase is less of an exchange service and more of a digital asset exchange service, but simply put, it’s the best place to buy or sell Bitcoin – which is currently the only way you can get into the world of cryptocurrencies.
Simply put – if you want to get into the crypto game, Bitcoin is the gatekeeper, and Coinbase is the easiest way to purchase Bitcoin.
Aside from allowing you to buy cryptocurrency, Coinbase also acts as a digital wallet where you can safely store all of your cryptocurrencies, but I prefer to keep my cryptocurrency in a TREZOR hard wallet.
Coinbase Pros and Cons
Founded in June of 2012, Coinbase is based in San Francisco, California, and in the last few years has become what is probably the most popular cryptocurrency buying service in the world.
At the time of writing, Coinbase’s platform has served over 10 million users, it’s had 50 billion USD traded through it, and has received over 200 million USD in investments.
While there can be a ton of hype surrounding Coinbase, I like it for beginners looking to purchase their first bit of cryptocurrency, and that’s about it.
In my personal opinion, Coinbase is the best cryptocurrency exchange platforms for beginners as it is easy to use, and most importantly – helps you get your hands on some Bitcoin.
Pros of Coinbase
Coinbase is one of the most reputable, trustworthy, and safe exchange platforms out there. They’re also one of the biggest, and plenty of media outlets, reviewers, and professional traders commend Coinbase for their platform structure and transparency. Myself included.
Easy to Use
While this might not be so important for professional traders, it is incredibly important if you’re just starting out with crypto.
Coinbase’s interface is clean and simple, and as opposed to some of the other best cryptocurrency exchange platforms out there, it’s a US based company. Some of the other platforms are Chinese or Korean based, and their English translations can be less than stellar…
Low Fees and Transaction Limits
Many want-to-be high traders skip exchange platforms until they come across Coinbase. That’s because this platform lets any verified US citizen move up to $50,000 per week, while European users might have a limit of holding up to $30,000 in their account.
Coinbase fees range from 1.49% – 3.99%, depending on what payment method you use. Compared to other cryptocurrency exchange platform it’s fees are fairly middle-of-the-pack.
Coinbase Allows Multiple Payment Methods
Possibly the most important aspect of Coinbase – they give you the option of buying cryptocurrency with a debit card, credit card, or bank account.
There is also the option to link your PayPal account to Coinbase, but only for receiving proceeds. You can’t deposit money with PayPal.
Is Coinbase safe? Yup.
To be straight – no crypto exchange platform is 100% safe. But, Coinbase is certainly one of the safest and most secure.
Coinbase uses the industry standard 2-Factor-Authentication – which is a must have for any cryptocurrency exchange. Turn on 2FA on ALL CRYPTOCURRENCY EXCHANGES WHERE YOU OPEN AN ACCOUNT – these caps are intentional. Fuck this step up at your own risk.
Coinbase is vastly considered one of the safest and most trustworthy platforms out there simply because they reside in the United States. This means that the platform itself, and those behind it are subject to and must adhere to US Federal and State law – giving it an additional layer of security.
- Coinbase App
The Coinbase app is also very well reviewed, I myself have not used it.
Cons of Coinbase
Mixed Reviews on Coinbase Customer Support
Coinbase offers a huge Knowledge Base and multiple FAQ pages to any user that feels like they don’t fully understand a certain feature within the platform. This is great, but if you find yourself having a specific, perhaps unique issue, you might experience frustration in getting a clear-cut email from their support reps.
Coinbase offers direct customer support through email only, and now that there’s been a huge spike in crypto-enthusiasts, it means they’ve had their hands full in support queries.
More queries = slower response times.
Some users have complained online of ‘’bot replies’’, or just being redirected to FAQ pages or the Knowledge Base.
Disclaimer – I personally have not had any issues with Coinbase or their customer support.
Monitoring User’s Transactions
One trending controversy about Coinbase right now is a huge fuss about whether or not Coinbase is tracking its user’s transactions. Apparently, Coinbase is monitoring how its users spend their coins, and may even be banning people using their cryptocurrency on the dark web or for gambling purposes. You can get around this by using a coin tumbling service.
It’s not a real cryptocurrency trading exchange
You will need to send your Bitcoin to a proper exchange – like Binance – so that you can diversify your portfolio into other coins. Coinbase offers very basic charts and not many trading options, plus a very limited listing of coins, so it’s not adequate for most folks who want to properly get into trading cryptocurrency.
Coinbase – Summary
While Coinbase (just like any other platform) has its downsides, it’s upsides far outweigh them and ultimately is the fastest and easiest way to move money into cryptocurrency.
Coinbase is incredibly user-friendly, which as far as I’m concerned helps serve it’s primary purpose – help newbies get into the world of cryptocurrency!
Add this with low fees, and a solid reputation, it shows why Coinbase is one of the best ways to start buying cryptocurrency.
How to Set up an Account on Coinbase
Follow this step-by-step guide and you’ll have your whole Coinbase account set up in less than 5 minutes!
Step One – Go to Coinbase (use this link and we both get $10 of free BTC).
See how it says “https” in the address tab?
‘https’ means the website is secure.
Word to the wise – always, always, ALWAWS make sure you verify websites are secure (‘httpS‘) before entering any personal information. This will ensure your cryptocurrency is safe and sound.
Keep that in mind, and to continue – click on “Sign Up” in the top right corner.
The next thing you see is the sign-up form, where all you need is your name and an email address.
Make sure you create a strong password right away.
This is one of the most important steps. Make sure you use your full name and create a strong password. The password should consist of at least 8 characters, contain a number, a special character, and at least one uppercase and lowercase letter.
Personally, my password consists of more than 8 characters, has multiple upper case and lower-case letters, and more than three special characters. This is my money after all, and I’ll do everything I can to keep it as secure as possible – and so should you.
You also need to choose what type of account you want to create. You can choose between “Individual” and “Business” account types. Choose accordingly.
Next, solve the captcha, certify that you’re at least 18 years old, and then click on “Create Account.”
After you’ve signed up, you will need to verify your email address.
Open your inbox to find this:
Click on “Verify Email Address.”
Step Two – Extra security: Enable the Coinbase 2FA
You’ve created your account, and you’ve clicked to verify your email address.
When you do, you’ll be taken to Coinbase – to this page:
Select the country you’re from, and then enter your phone number. As mentioned, Coinbase takes safety and security very seriously, and this is why you’re required to add an extra verification layer to your account.
Adding your phone number helps you get back into your account in case you forget your password.
After you select your country, and type in your phone number, and click on “Send Code.”
Next, you’ll see this:
After you’ve typed in your phone number and clicked on “Send Code,” check your SMS messages. You should receive a special code within a minute or two. When you do, type it in here and click on “Submit.”
You’ve just successfully created, verified, and secured your Coinbase account! You’ve got a strong password, you’ve verified your email, and you’ve also enabled Coinbase’s 2-factor authentication (2FA) by adding your phone number.
2FA is extremely important and makes your account much more secure. I don’t have to tell you (I hope) how important this is, especially when you’re going to be handling your money with this account.
How to Deposit Money into your Coinbase Account
Once you first log into Coinbase, this is what you’ll see:
Now, to buy Bitcoin on Coinbase, you’ll first need two things:
- Valid photo ID (driver’s license, ID card, passport)
- Bank account, credit card, or debit card
Remember, PayPal accounts can be linked as well, but cannot be used for money deposits, only for withdrawing proceeds.
Final Thoughts on How to Buy Cryptocurrency
This Coinbase review is meant to give you an understanding of how to easily get started buying cryptocurrency. There are tons of cryptocurrency exchange platforms, but few that allow you to buy cryptocurrencies with FIAT (US dollars, Euro, GBP, etc).
Due to it’s simplicity and safety, Coinbase is one of the best cryptocurrency exchange platforms of 2018, and is my highest recommendation to get into the world of crypto.
Please note: the market is in turmoil right now. I do NOT know what will happen this year however I do believe in crypto longterm. If you DO want to get into cryptocurrency or have been thinking about learning more about trading cryptocurrency, right now is probably the best entrance price we are likely to see this year. On the other hand, the value could continue to fall. Only risk money you can afford to lose.
Improving your cryptocurrency knowledge
Ultimately, if you want to make money with crypto you have a couple of options. The easiest thing to do is to build a diversified portfolio of carefully selected coins and then to simply wait a couple of years. However, this is not the most effective way to make mad money. If you want to truly crush it at crypto, you need access to truly knowledgable people.
I am not your guru. I’m a crypto enthusiast, not a professional trader, and I make plenty of mistakes. There are a huge amount of ‘gurus’ and ‘experts’ out there but the truth is that many of them haven’t got a fucking clue what they are talking about. Opinions in cryptocurrency are like assholes, everybody’s got one. It’s extremely easy to predict the market and hell, everybody seems like an expert, when cryptocurrency is experiencing a bull run.
It’s very very easy to make mad money when the market is on an upswing, less so when cryptocurrency enters a bear market. Talented traders, and those with information, can make money on the way up and on the way down.
One thing I’ve noticed is that the media, especially Twitter, can have huge effects of the market. If you decide that cryptocurrency is your new thing, if this is where you want to spend your time, then I strongly recommend that you educate yourself and improve your understanding of who to follow, who to trust, when to buy and when to hold.
There are many groups on Facebook where you can find likeminded folks who will happily talk crypto all day but the problem is that 99% of these groups are filled with people who have only a very basic understanding of cryptocurrency and the knowledge available here is not particularly strong. I have recently left almost every single group on Facebook as, in my opinion, they are largely filled with FUD.
Recently, I joined a paid cryptocurrency mastermind group and the tips in here have been pretty next level. Currently this group, which I cannot name, is not taking new members.
There are alternatives out there though. A friend of mine who is well connected in the crypto space, Derrick, has teamed up with the legendary Diggy Dirk and created a platform for newbie cryptocurrency traders and enthusiasts – Keys To Freedom.
Whilst I am not a member of this community myself, many members have reported tripling their investments by following Derrick’s advice.
If you are serious about cryptocurrency trading, I strongly recommend finding a mastermind group that suits your skill level and budget so that you can improve your knowledge, expose yourself to less risk, and gain access to news and tips before they hit the mainstream market – this is where the real money is to be made.
Disclaimer: I am not a professional (or even a veteran) trader. I am an intermediate trader with a passion for cryptocurrency. I am disclosing my own ventures in crypto because cryptocurrency trading does make up a chunk of my online income and I want to be 100% transparent with you when it comes to making money online. Investing in cryptocurrencies carries a risk – you may lose some or all of your investment. Always do your own research and draw your own conclusions. Again – this article is aimed purely at advising; draw your own conclusions on whether cryptocurrency trading is right for you.