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.

5 Best Stocks to Buy If Biden Wins the Election

If Vice President Joe Biden wins the election on November 3, 2020, you might want to consider adding these five equities positions to your portfolio: XLU, TSLA, XLV, MLM, and

TGIF — Ending the Week with a Whimper

Everything is proceeding as I have foreseen. In Monday's "The Week Ahead — 200,000 Deaths Weigh Heavily on the Market," we knew the 200,000th American death would put Covid back

Even If the Overall Market Continues Lower, This Staple Could Maintain Its Upward Trend

Since peaking in early September, the main indices have all three stumbled for the last few weeks with the S&P and Nasdaq falling over 10% from their highs already. Three

tesla stock

TSLA Too Volatile? Two Option Strategies for Tesla Stock

Tesla Inc. (TSLA) is one of the most popular stocks amongst investors. Led by CEO Elon Musk the electric vehicle manufacturer has disrupted the transportation industry, bringing hype to a

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