Cryptocurrencies for Dummies III - How to Buy Your First Cryptocurrency
Where to buy cryptocurrencies?
We are finally ready to start getting into the meat of the series. In today’s post you are going to learn to buy your first cryptocurrency. There are many options available to do this, each with their own pros and cons. Some practical options are Coinbase, BitStamp, Kraken, Gdax, Local Bitcoins, and Wall of Coins. The most popular option available is Coinbase, which we will be focusing on here.
Coinbase is a platform for purchasing cryptocurrencies with FIAT currencies and storing them. In December when the market was flooded with new buyers they experienced some volume issues. This caused a lot of maintenance and customer support issues that have now been remedied. Coinbase has been very reliable for me and that’s what I recommend new users to use. The platform is easy to use you just need to verify your identity and maybe endure a short wait time.
How to buy cryptocurrency on Coinbase
Buying cryptocurrencies is very easy once you have done it once. The first step is to simply sign up at the Coinbase website. Do you love free money? If so then use my referral link below for Coinbase because we both get $10 of bitcoin if you spend $100 or more! Just click the link, hit the sign up button, and provide valid information to start the process.
(https://www.coinbase.com/join/5a28b844fe44a1014a7eb2d1)
The next step is to provide a payment method for Coinbase to use. With coinbase you can use either Paypal, a credit/debit card, or a direct bank account for purchasing. I tend to use a debit card or paypal for my cryptocurrency purchases. I do this because some banks have issues with cryptocurrency purchases and they can delay the transaction or cause un needed trouble. However, using a bank account does allow for a greater purchase limi. If you want to use this option, make sure you work with your bank to ensure everything goes smoothly.
We can finally buy our first cryptocurrency now that we have a payment method provided! Click the Buy/Sell link at the top of the Coinbase menu. Now we need to figure out what cryptocurrency to purchase. If you want to purchase an alternative coin such as IOTA or Ripple, I would suggest purchasing Ethereum or Litecoin. You will have to transfer the cryptocurrency to an exchange to purchase an alternate coin. The fees for bitcoin transfers are high and the transaction can take a long time. With Ethereum or Litecoin the transaction fees and completion time are much smaller. Now just select the payment method, enter the amount you wish to spend, and click the buy button.
After successfully purchasing your first cryptocurrency, it will be deposited into your Coinbase account. Click the accounts button on the menu, and you will be taken to your personal wallet. Here you will see the coins you purchased as well as a few options. You can send or receive tokens and you can also see your transaction history. This is where you transfer the tokens to your own personal wallet or exchange. When transferring, make sure you triple check that you have entered the correct addresses. You don’t want to send it to the wrong account or lose the tokens you just bought.
Helpful tips & tricks
Make sure you are always careful with your online information. Don’t fall for scam emails or give your password to anyone besides yourself. You can either use a browser password manager for your account or write it down somewhere in a secure notebook. If you are having problems purchasing cryptocurrency or verifying your information, contact coinbase customer support or your bank. Coinbase has stepped up its services so they are able to handle a much greater number of users now.
I hope you guys have fun investing in the world of cryptocurrencies. If you have any trouble or suggestions let me know in the comments below! The next two issues of Cryptocurrencies for Dummies will talk about securely storing your cryptocurrencies and using exchanges. Resteems and upvotes are deeply appreciated for this series!
Click this link to go to part IV of the series!
If you guys are interested in learning more about trading and investing in cryptocurrencies, then feel free to join our new telegram channel in the link below!
Join the Telegram
I have only ever earned Steem by writing my posts - I've never purchased any! I've been looking to do that soon, and guess which tutorial I'll be using? :)
@bluefinstudios wasn't kidding when he said that we'll be learning from one another!
Excellent post @kennynneken!
Well thank you very much I appreciate the kind words :) Let me know if there is anything I can do the help out!
Nice informative post, well written and thought out :)
Thank you so much I appreciate the kind words!
Very very informative post by you, thanks for sharing, but what of if I want to change Ethereum or Litecoin to steem, how would I do that?
Have try it, but unfortunately Coinbase does not currently support buys and sell in my country.
Hi there @youngboss I hope you're doing well. Sorry that I haven't got back to you now as I have been away from home! If coinbase doesn't work you could also try alternative websites such as kraken. To change ethereum or litecoin to steem you would transfer the coins to an exchange, and then trade them for Steem! Let me know if you have any more questions, thank you for reading!