Bitcoin continues to reach all-time highs it seems every few hours. Are you still missing out? Not sure what the best way to buy Bitcoin that is safe? Look no further! Below is an easy walkthrough of everything you need to do to get your first Bitcoin (or Litecoin or Ethereum).
The first thing you need to do it set up an account over at Coinbase.
Coinbase is headquartered in San Francisco, CA and is considered the safest and easiest way to convert your USD into your first Bitcoin. They make it extremely easy for anyone to get involved in buying and holding cryptocurrency.
Once you complete that then you simply go over to the buy tab and select the amount you wish to purchase and the method. If you purchase more than $100 they will give you $10 for free the first time you use their service.
Three ways you can load funds onto Coinbase.
Bank Transfer– This will link straight from your bank account. It requires some trust to link your account to Coinbase, however you will only pay 1% in transaction fees and can set up recurring purchases to dollar cost average which is my personal recommended way to buy Bitcoin. The drawback here is it will take about a week for funds to transfer but you can lock in the price at the time of transfer you just won’t have access until the funds arrive.
Credit/Debit Card– They do accept purchases through your credit or debit cards however you are looking at 4% in fees per purchase
Wire Transfer- Usually for larger deposits and the most cost-effective way to move large amounts of fund onto Coinbase. There can be a $10 fee from Coinbase and additional charges from your bank depending on your financial institution.
For a full breakdown of fees see Coinbase Fee breakdown as fees can vary by country.
Once you decide which way is the best way for you to deposit you just click on the buy tab and purchase whatever you like, simple!
What about cashing out?
A common question that often goes overlooked is how easy is it to get my Bitcoin off Coinbase and back into USD in my bank account? The process is quite simple. You click on the Sell tab, select what Cryptocurrency you want to sell and then either sell and place it in your USD balance on Coinbase or they will send it directly to your linked bank account or to a linked Paypal account (for a 2.5% fee). The only thing you will have to do prior to this is potentially upload documents verifying who you are (US Government wants to ensure you are paying your taxes). The process is smooth and easy to use from start to finish.
As of early December 2017, Coinbase is experiencing a high volume of new customers accounts due to the surge in Bitcoin prices so you may experience a delay in customer service if you run into a problem, but I usually receive answers back from helping people set up accounts within a few hours during the day.