Buying, Selling, and Trading Cryptocurrencies on Coinbase

In my previous article I showed a four-step process for opening a cryptocurrency account on Coinbase, one of the largest and most successful crypto exchanges.

This exchange makes it relatively easy to transfer U.S. dollars and other fiat currencies from your bank to Coinbase. Once you have funded your Coinbase account, the next step is to buy your first cryptocurrency, such as Bitcoin (BTC) or one of the alt coins.

You can fund your account in advance and be ready to buy crypto or you can buy crypto right away with a transfer from your linked bank or by using your debit card.

The first purchase will typically be BTC because you can then use it to exchange some or all of it for any of the other alt coins that Coinbase trades.

After you log into your Coinbase account, the first step is to select the “Trade” button at the top of your screen. A small window will open and you’ll then have three choices: “Buy,” “Sell,” or “Convert.”

Since this is your first order, you’ll select “Buy.” The graphic is a copy of the trade window and the yellow markers refer to steps 1 through 7 below.

  1. Select “Buy” so that you can make a purchase.
  2. Enter the dollar amount you wish to use.
  3. By selecting the button to the right of the dollar amount you can cycle between a dollar or BTC amount for your purchase. Note that BTC will change to the coin chosen in step 5 below.
  4. The “One time purchase” button will present a choice for just a one-time purchase or an automatic repeat purchase (such as weekly or monthly).
  5. The next selection is for which cryptocurrency you want to purchase. You’ll then see a selection of coins that Coinbase offers on its exchange.
  6. The “Pay with” button selects the payment methods available to you — cash if you’ve already funded your account, otherwise you’ll be asked if you’d like to add an account (your bank or a debit card).
  7. The “Buy Bitcoin” button will change to “Preview Buy” and it will take you to an “Order preview” window. Carefully review the order and when you’re satisfied, press the “Buy now” button. Hit the back arrow if you want to make any changes before selecting “Buy now.”

Next steps

Congratulations! You just made your first cryptocurrency purchase. If you want to sell any of your crypto holdings, the procedure is very similar.

Other than selections to Buy or Sell, your other choice is “Convert.” You’ll select the cryptocurrency you’d like to convert from and then select which cryptocurrency you want to convert it to.

On the main page of Coinbase, where you started by selecting “Trade” at the top of the screen, you also have the ability to buy, sell, and convert cryptocurrencies through the selection of “Trade,” you can select “Send” or “Receive.”

I’ll cover these in more detail in a future article but for now, know that they enable you to send or receive cryptocurrencies to and from other people or crypto exchanges.

And finally, when you’re ready and you’d like to have a little more flexibility in your crypto trading, Coinbase Pro offers a trading platform that is similar to stock trading platforms. All of these things I will cover in future articles.

For now, just getting started with your first BTC purchase will be empowering. You will have taken the first step toward true financial freedom.

If you’d like to learn much more about cryptocurrencies, crypto exchanges, and the state of the crypto market, sign up for a free trial of my weekly Crypto Wealth Protocol newsletter.

Investing 101: Do Bonds Belong in Your Portfolio?

Portfolio diversification is a strategy that helps investors manage risk. Investors often choose to diversify among industries for stocks, for instance. But they also consider diversification within different assets types.

Should You Use Extra Cash to Invest or Pay Off Debt?

Deciding between repaying debt repaying versus investing may seem impossible. Everyone’s financial situation is different and only you know from an emotional standpoint what might work best. Start with your

6 Healthy Morning Rituals That Make the Most of Your Day

Whether you are a “morning person” or not, how much thought do you give to the start of your day? Do you realize that by adopting a few simple morning

How to Read and Understand an Options Quote

When you begin trading options you'll spend part of your research scanning for the right options to buy. When you find a list of options, then you'll need to learn

Test Your Financial Advisor’s Loyalty with These Simple Questions

You have a financial advisor in order to make certain you have budgeted your money correctly, have planned for future financial needs, and, in some cases, to turn some of

Sell Puts the Smart Way: Get Out Before Expiration Nears

Selling put options can be a great way to help increase the value of your portfolio without taking on too much risk. At its core, a put sale allows investors

refinancing

4 Pros and 1 Con of Refinancing Your Home

Two years ago the 30-year fixed mortgage rate was 4.6%. Today it is 2.9%. If your mortgage is in the high threes, you should consider refinancing. Refinancing would lower your

Easy Finance Tip: How to Calculate Your Net Worth

To calculate your net worth, just subtract your liabilities (what you owe) from your assets (what you own). While the equation is simple, it's important to get a snapshot of

Just a Few Bad Market Years Can Slam Your Retirement: How to Cut Your Risk

I believe one very underappreciated risk for investors preparing for retirement is the concept of “sequence of returns.” Sequence of return risk is the danger that the timing of withdrawals

Tai Chi Can Benefits for Those with Chronic Diseases

The Chinese martial art of tai chi can be beneficial to people suffering with chronic illnesses, according to research in the British Journal of Sports Medicine (2015), conducted by Dr.

Two Measures of Options Volatility That Matter

Most people often have a notion of what volatility means. They understand, at least conceptually, that it has to do with data of situations that vary over time. Weather is

3 Financial Habits to Adopt Before You Retire

Nobody wants to work until the day they die. We all want to get to a point where we can simply sit down, relax, and enjoy life.  Consider adopting these