Buying, Selling, and Trading Cryptocurrencies on Coinbase

bitcoin

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.

Recommended Articles

Is the 4 Percent Rule Viable for Retirement? Consider the Evidence

Is the 4 percent rule viable for retirement anymore? And if not, what should retirees do about it? For decades, the cornerstone of retirement planning has been the 4 percent

7 Personal Finance Myths Preventing You From Being Rich

If you are someone who is looking to get rich, the last thing you need is bad financial advice. And there plenty of personal finance myths. Unfortunately, there is a

Drink Less, Live Longer: The Latest Research

It is very common in society today to drink alcohol on a regular basis. Teenagers may drink at parties on the weekend because of peer pressure, while adults may enjoy a

Claim Social Security, Keeping Working…Or Both?

Officials within the Social Security Administration are floating the idea of raising the retirement age. Though no proposal is in play just yet, Congressional staffers are studying a rise in

when you do need a will

When Do You Need a Will? Almost Immediately If You Invest

When you do need a will? Pretty much the moment you own any assets at all, assuming you want to leave those assets behind to a loved one. According to

Lose 20 Pounds In Just One Month by Adding This to Your Morning Coffee

If you love drinking coffee in the morning and you happen to be trying to lose a few extra pounds, you’re in luck. Adding just a few simple ingredients into

A Small Change to Your Investing Could Reap Big Retirement Gains

Many financial advisors have recommended the time-tested 60/40 portfolio to investors for decades. The 60/40 portfolio, which calls for 60% of a portfolio to be invested in stocks and 40%

build wealth

5 Things You Must Do Now to Build Wealth

Everyone wants to be wealthy. However, it takes dedication and sacrifice to build wealth. Being wealthy involves adjusting your financial mindset about money. You must continually view money as a

Reflexology: Press These Points On Your Palm to Relieve Any Pain

Alternative medicine is becoming more widespread and commonly used by people all over the world. This is true especially when used to treat pain. Western medicine often relies on medications that

Tricky Social Security Scams Hitting Millions of Americans

Social Security scams are on the rise. The November Retirement Confidence Index from SimplyWise reported that 47% of Americans were targeted by a Social Security scam in a recent three-month

Here’s the Truth About How to Retire Early

While the rule of thumb is to retire at the age of 65, here's the truth: Most Americans retire at the age of 62. In fact, in 2017 the average

Sitting May Be Even Worse for Us Than We Thought

As a culture, we spend so much time sitting. Think about it: many of us sit in our cars (or on buses) on our commutes to and from work, we