Here’s what Coinbase is and how to use it to buy and sell cryptocurrencies

Here’s what Coinbase is 

and how to use it to buy

and sell cryptocurrencies

 

• KEY POINTS

• Coinbase is an app that lets you buy and sell all sorts of cryptocurrencies, like bitcoin, ethereum, litecoin, and about 50 others.
  
  
• You can also use Coinbase to convert one cryptocurrency to another or to send and receive cryptocurrency to and from other people.
  
  
• Like stock trading apps you may already be familiar with, Coinbase shows you the current price and trends for cryptocurrencies, a look at your portfolio of holdings, and news stories about the industry.

Coinbase was the first big crypto corporation to go public in the U.S. when it began trading at $381 in April on the Nasdaq, giving the cryptocurrency exchange an initial market worth of $99.6 billion on a fully diluted basis.

Maybe you’ve never heard of Coinbase. Or maybe you’re unclear about what it even is. Here’s a simple explanation:

Coinbase is an app that enables you purchase and sell all sorts of cryptocurrencies, like bitcoin, ethereum, litecoin, and approximately 50 others. You can also use Coinbase to convert one cryptocurrency to another, or to transfer and receive Bitcoin to and from other individuals. Like stock trading apps you may already be familiar with, Coinbase displays you the current price and trends for cryptocurrencies, a glance at your portfolio of assets, and news headlines about the industry.

Here’s how to get started and how to purchase and sell bitcoins with Coinbase.

How to get started with Coinbase

Coinbase Todd Haselton | CNBC

Coinbase is straightforward to set up but requires some information, like your legal name, home address, date of birth, last four digits of your Social Security number, and how you plan to use Coinbase. That’s to comply with federal regulations. Here’s how to begin.

• Download the Coinbase app for iPhone or Android.
  
  
• Open Coinbase and tap “Get Started.”
  
  
• Create an account with your email address and tap “Start.”
  
  
• Verify your email by tapping a link that was delivered to your inbox.
  
  
• Enter your phone number and verify it by entering a code that was texted to you.
  
  
• Enter in your name, date of birth, and last four digits of your Social Security number. Note: you need to be at least 18 years old to utilize it.
  
  
• Enter your address.
  
  
• Choose how you will use Coinbase, either for investment, online payments, online shopping, or for investing in other exchanges.
  
  
• Confirm your source of income.
  
  
• Tap “Let’s Go.”
  
  
• Now you’ll start to link your bank account. Search for your bank.
  
  
• Log into your bank account with the username and password you normally use for banking.
  
  
• Select the bank account you want to link to Coinbase for purchases and hit “Continue.”
  
  
• That’s it. You’ll be dropped off on the main page of Coinbase immediately, where you can get started buying cryptocurrency.

How to buy cryptocurrencies on Coinbase

How to buy bitcoin with Coinbase Todd Haselton | CNBC

Now I’ll show you how to buy some cryptocurrency. Let’s acquire a fraction of a bitcoin since that’s the one you’ve probably heard about most. But this method is the same for all the currencies offered on the Coinbase platform.

• Tap “Get started” on the top of the screen.
  
  
• You’ll see a list of crypto assets you can buy. Select bitcoin at the top.
  
  
• Choose how much you want to purchase. Reminder: You can buy fractions of cryptocurrency, so you can spend $5 on roughly .0006204 bitcoin (at its $64,635 price) or as much you wish. The minimum order is $1.99.
  
  
• Tap “Preview buy.”
  
  
• Review the order: Note Coinbase takes a portion of the purchase, so if you’re intending to buy $5, it’ll take around a 99 penny share of the transaction. If you’re buying $500 worth of bitcoin, it’ll charge roughly $7.34.
  
  
• Choose “Buy now.”
  
  
• That’s it! You can trade your bitcoin quickly after you acquire it, but you’ll need to wait eight days before you send it to someone.

How to sell cryptocurrencies on Coinbase

How to sell bitcoin with Coinbase

Todd Haselton | CNBC

Now let’s imagine you’re ready to sell your crypto assets. Here’s what you do.

• Tap the blue circle icon on the main page. It depicts two arrows.
  
  
• Choose Sell.
  
  
• Select the asset you wish to sell, in this case, we’ll pick bitcoin.
  
  
• Choose how much you wish to sell, or press the “Max” button on the left of the screen to sell it all.
  
  
• Review the website, again note the Coinbase cost.
  
  
• Tap “Sell now.”

How to withdraw your money from Coinbase

How to withdraw funds from Coinbase

Todd Haselton | CNBC

Maybe you’re ready to take some gains off the table. You’ve sold your crypto but now you want to move it back to your bank account.

Note that if you’ve just acquired or sold the money you may still have a withdrawal-based limit. Something I just purchased and sold this morning for the sake of this tutorial can’t be sold for eight days, for example. Once that period has elapsed, here’s what you do:

• From the home page, tap your portfolio balance on the top of the screen.
  
  
• Choose the U.S. dollar option. If you’ve sold some crypto, this should have a value other than $0.
  
  
• Tap “Withdraw.”
  
  
• Choose “Preview withdraw.”
  
  
• Select your bank account. The transfer takes one to three business days. You can also elect to add a debit card for a quick transfer for a modest cost.
  
  
• That’s it. Now you’ve learned how to set up Coinbase and use it to buy and trade cryptocurrencies, and even withdraw to your bank when you want to.