In contrast to trading shares on the stock exchange, many people are still unaware how to buy or sell cryptocurrencies, like bitcoin. In this guide, I hope to get you started with buying and selling your 1st bitcoins or altcoins.
Today, various easily accessible methods exist for users to trade their cryptocurrencies, namely through so-called broker platforms.
These platforms are comparable to the traditional stockbrokers. In general, you have to open an account, deposit money into your account and start trading.
Just like stockbrokers, many cryptocurrency brokers exist. Within this guide, I will get you started on Coinbase. Coinbase is one of the three on cryptocurrency broker platforms. Kraken and Bitstamp are two other major platforms for cryptocurrency trading.
(Note: if you open a Coinbase account through a link on this site, we both receive 10 USD (8 EUR) as soon as you trade at least 100 USD (83 EUR) on cryptocurrencies through your newly created account)
Creating an account
To open an account at Coinbase, you will start with your e-mail address. You will then be asked for your name and password (ensure your name matches with the name of your actual bank account that will be linked later to this account). Also, you have to approve the user agreement before the account will be created.
You will then be given the choice between an individual or a business account. For this guide, I choose “Individual”.
After this choice, you will be asked for your mobile phone number, on which you will receive an SMS with a verification code you have to enter.
Validation of your identity
The next step in the verification process is to prove your identity by uploading a picture of an ID card (passport, drivers license or photo id card). This can be done through the webcam of your PC or through the camera of your smartphone. Both the front and backside of the id-card needs to submitted. The validation process takes at least a few minutes.
Validation of payment method
Next step is the validation of the payment method, where you will be given the choice between Credit/Debit Card or a Bank Account. For this guide, I will choose Bank Account.
After choosing Bank Account, you will be presented with a reference number you have to submit with your 1st bank transfer to Coinbase and asked for the amount that you will deposit. I recommend EUR 1,- or USD 1,-.
Next, you will see a screen with the bank account details to which you have to transfer above amount to. Ensure you enter the given reference number with your bank transfer.
The validation process of your bank account can take between 2-4 days.
Buying Bitcoins and Altcoins
When your bank account has been validated you are ready to start trading.
With Coinbase you can trade in Bitcoin, Litecoin, Ethereum and Bitcoin Cash.