There are many ways to purchase Bitcoin today. In this article, I’ll give you a step-by-step guide for exactly what to do and expect when purchasing Bitcoin on “Coinbase”.
In a nutshell, here is what we will be doing:
- Creating a new account
- Verifying your identity
- Adding a payment method (DEBIT CARD)
- Making your purchase
- (optional) Withdrawing your Bitcoin to a wallet or exchange
What you’ll need:
- An email address
- A phone number that can receive an SMS (Google Voice seems to work)
- Your passport or other ID (possibly depending on your country/state of residence)
1. Creating Your Account
First things first, you’ll need to sign up else. I highly recommend using a referral link to sign up, as you and your referrer will both receive a free $10 of Bitcoin after your first purchase of at least $100. My referral link ishttps://www.coinbase.com/join/594a48c47f0f770b359109c2 and I would be grateful if you used it, but of course you can also get a link and the same deal from any friend you might have who already has a Coinbase account.
2. Verifying Your Identity
The signup process for Coinbase is fairly intuitive, though it has changed several times and may vary according to your geographical location.
Some people find the number of steps involved annoying, which is understandable. You will probably have to verify your email, a phone number (by receiving an SMS code), and possibly even show your passport via webcam before you can start your purchase. While this can be a little tedious, Coinbase’s interface keeps it simple and friendly, and it appears they’re doing everything they can to keep your account secure.
3. Adding A Payment Method
You have a few different options for buying on Coinbase. You can use a debit card, bank transfer, or wire transfer. (Previously credit card purchases were also possible, but despite the fact that this is still true according to Coinbase’s help pages, it’s currently not possible to add a credit card as a payment method.)
Each of these options has pros and cons, in terms of the fee and the amount of time it takes for your purchase to be completed.
Debit card purchases are the fastest (our preferred option). As soon as you pay with your card, you will instantly have the Bitcoin in your account. However, debit cards also come with the highest fee. This method is probably good for someone who is thinking about trading their Bitcoin, rather than investing and holding it for the long-term.
Bank transfers have lower fees, but it takes about five days before you receive your Bitcoin. This may not be a big deal if you have no intention to sell/trade/use your coins. If you do want to trade, though, it could be a brutal wait if you see prices on the move. There’s a chance that any trading opportunity you find may be gone by the time your coins have arrived in your account. Bank transfers could be a good idea for the person who might want to purchase Bitcoin regularly over time, to dollar cost average their purchases (although there is an even better method for this which I’ll talk about in another article).
Wire transfers are also accepted, but this is probably not too interesting for most customers. You’ll have to go through a number of extra verification, and additionally you can’t use wire transfers to directly buy Bitcoin, but only to deposit USD into your Coinbase account, which you can then select as a payment method.
4. Making Your Purchase
Once you’ve added a payment method (and, probably, uploaded your passport/ID) you’ll be able to make a purchase. Again the website/app are quite user-friendly and intuitive. We recommend you buy using debit card as you get bitcoins instantly rather with bank account which will take up to 5 days for the coins to be delivered
5. Withdrawing Your Bitcoin (Optional)
Once you’ve determined the best method for your order, based on wait time, and gone ahead and clicked the “Buy Bitcoin” button, you are now the proud owner of some amount of BTC. Congratulations!
So what can you do now? On the homepage you click on Portfolio and then Bitcoin BTC, where you will have to send the equivalent amount of your order to our Bitcoin Wallet address provided on the order confirmation mail. Finally you will take a screenshot of the transaction confirmation and send to us as proof of payment, and your order is complete.