4-Step Process to Get Started with Cryptocurrencies

bitcoin

Bitcoin, alt coins, cryptocurrency — these terms pop up everywhere these days. If you’re one of the many people who have heard about it, are interested in it, but don’t know how to get started, this article is for you.

I will show you in four easy steps how to set up an account that will enable you to start buying and selling cryptocurrencies. As my cryptocurrency example, I will use Bitcoin (BTC) to keep things simple. But, keep in mind that it’s just as simple to buy and sell the alternative cryptocurrencies (all those that are not Bitcoin).

We’ll use Coinbase as an exchange example. Coinbase was founded in 2012 and is based in San Francisco. It is one of the oldest and most well-known crypto exchanges. It also has one of the safest track records for crypto holders.

If you’ve done any online stock trading, such as with E*Trade and TDAmeritrade, you will find many similarities in using cryptocurrency exchanges. Coinbase has been especially successful in emulating stock exchanges and it’s one of the easiest exchanges to convert fiat currency, such as the U.S. dollar, to BTC.

Step 1:  Sign up and create an account

This step is as simple as going to www.coinbase.com and selecting the “Get Started” button at the top of the page. You’ll then enter your information (name, email, and password). You’ll finish this step by answering a few questions about privacy and whether or not you want to receive email updates.

Step 2: Verify your email and phone number

You’ll receive an email from Coinbase to confirm your email address and activate your account. You’ll then be directed to a page to enter your cell phone number so that you can receive a text message to confirm your phone number. Once you press the “Send Code” button you’ll receive a text with a code. On the web site you’ll be sent to the next page where you’ll enter the code received on your phone. You will now have confirmed both your email and phone number.

Step 3: Verify your identity

This meets the government’s Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements for money exchanges.

Enter the information requested on the “Verify your identity” page and press the “Continue” button. You’ll then be requested to select which form of identity you want to use, such as your passport or driver’s license. You’ll then photograph your ID, which can be done with your phone or computer camera.

Then follow the simple steps on the screen to submit the photos of your ID and yourself to Coinbase. Once you’ve submitted the photos, Coinbase will begin its automatic process of verifying you so that it can approve your account. At that point you’re ready to trade.

Step 4: Transfer fiat currency to the exchange and use it to buy BTC

You can use your credit card to purchase BTC but that typically incurs a fee. An alternative way is to link your bank account to Coinbase so that you can transfer money free of charge through an ACH exchange. Once you have funded your account you are ready to buy your first BTC.

In a later article I will discuss how to place buy and sell orders on cryptocurrency exchanges such as Coinbase.

I also will discuss different types of orders, such as market and limit orders, and how to enter protective orders. Stay tuned and learn more about the exciting and profitable world of cryptocurrencies.

pot stock

Pot Stock ‘Blood in the Streets’ Buy Signal Is Here

The cannabis market has been a volatile space in recent years. A wave in legalization, particularly in Canada but also through parts of the United States, led to significant growth

Use Options as Portfolio Insurance in Rocky Times

Since the beginning of September we have seen the main U.S. indices drop. There are a number of possible reasons for the decline, but more importantly I expect the increased

4 Foreign Countries Where You Can Retire On Social Security Alone

Someone once said that retirement is not the end of the road but a highway opening to a new chapter in life. Whoever said that clearly has never experienced a

We’re Beating the Index Off the March Low: Update

The Bulletproof Wealth Report model portfolio is continuing to perform well and is now up 27.4% since the inception of our monthly newsletter on April 13, 2018. Although the value

Terrible Tuesday: Fed’s Powell Says U.S. Faces Slow, Uncertain Recovery

Powell testifies before Congress today. We already know what he's going to say though, as his testimony is pre-released. Not that that will stop the market from acting shocked when

5 Best Online Banks, Highest Savings Rates for Your Buck

Finding an online bank can be difficult. Varying rates, hidden fees and simply having too many choices can cause confusion and make it hard to get started. Set aside some

Hiring a Financial Advisor: What Is a Fiduciary, and Why Should You Care?

“Fiduciary” is a funny word. You may have never heard of it until now, but you may actually have had a fiduciary in your life. More importantly, you may wish

Trading Cryptocurrency Using Limit and Stop Orders

This is the last of a five-part series to help new investors and traders start and grow a cryptocurrency account. In all five articles I’ve been using Bitcoin (BTC) in

3 Cheap ETFs Combine to Create a Powerful Value Stock Opportunity

As I steadily increase my overall equity exposure to a measurable value bias, I do so using just three passive ETFs that are consistently near the top of their respective

Options: This ETF Could Bring a Triple-Digit Gain as the Economy Gains Steam

If we go back to February 19, when the S&P 500 peaked at what was an all-time high at the time, the market has gone through five phases since then.

dividend stock investing

Make Money While You Sleep with Dividend Stock Investing

Famed investor Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Dividend stock investing is a exactly

5 Ways to Slash Your Food Spending and Save Money

The average American spends up to 10 percent of their disposable income on food, according to the USDA. Things are likely different due to the coronavirus, but the typical divide