After hitting an all-time high price of almost USD 20,000 per Bitcoin in the middle of December last year, Bitcoin took a steep plunge towards USD 6,000, losing roughly 70% of its value and sending most of the cryptocurrency newcomers into a huge panic. Many people were left in surprise, not expecting to see their portfolios shrink that much in just a few weeks. Price corrections are quite common even in stock markets, especially after a rapid rise in the price of an asset in just a short time. Once Bitcoin reaches mass adoption, this hurdle will become almost negligible compared to the huge gains that are waiting down the line.
Whether you want to purchase Bitcoin to hold as a long-term investment, to swing trade, or to use for fast and cheap payment transactions, finding the best cryptocurrency exchange should be your number one priority. Coinbase is arguably the largest and most trusted cryptocurrency exchange today. It features four of the most popular cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Bitcoin Cash) and serves almost 10 million individuals in 32 countries worldwide. Among the advantages of using Coinbase over other hosted wallets and exchanges include instant transfers, insured deposits, and well-documented API (application program interface).
While Coinbase is a user-friendly website where you can start buying your first cryptocurrencies easily, some things can be tricky for beginners. Here are three tips to help you in purchasing Bitcoin using Coinbase. You may also read Reddit’s take on Coinbase for a more detailed and comprehensive guide on this topic.
Choose your preferred payment method.
There are three different methods in which you can use to purchase Bitcoin in your Coinbase account. The first and most recommended method is payment through a Bank Account. Although the transfers may take four to five days to complete, the prices will already be locked in at the time of your purchase. Similar to bank transfers, wire transfers are also great for direct single large deposits to your Coinbase account. For smaller transactions, credit and debit card payments through Visa or MasterCard are the highly recommended methods.
Know more about the fees.
You will encounter three different types of fees when you buy, sell, and transfer Bitcoin using your Coinbase account. Expect to pay Conversion and Exchange fees when you exchange cryptocurrencies to and from fiat money. Transfer fees are charged when moving Bitcoin from one wallet to another, unless the sender’s wallet and the recipient’s are both registered with Coinbase. Mining fee is also another per transaction rate that changes depending on the status of the Bitcoin network.
Secure your Coinbase account.
Even if you are not planning to keep your Bitcoins in your Coinbase wallet, securing your account is still highly advised before you begin with your regular buy and sell transactions. Make sure that the two-factor authentication is activated for your account and you have your passwords backed up properly. Coinbase also has a Vault with a time-locked feature; it also requires authorization from multiple trusted accounts to confirm your withdrawals.