How to buy Bitcoin on Coinbase in 2020

In this comprehensive Review you will learn how to buy Bitcoin on Coinbase. We cover all the information you need to know completely about it. Coinbase is one of the best known Bitcoin exchanges in the American region. The company, based in San Francisco, California, was founded on June 20, 2012 by Brian Armstrong and Fred Ehrsam. The buying and selling of Bitcoin, Litecoin and Ethereum via Coinbase is already possible in 32 states. Coinbase is also available in Austria and Switzerland. The users from Germany unfortunately have to be patient.

The exchange has over ten million registered users, who own 33 million wallets. 46000 companies have integrated Bitcoin, Litecoin and Ethereum as a payment option via Coinbase. Already well-known companies like Expedia, Dell, Dish and Overstock use Coinbase to handle Bitcoin payments.

Why should you sell or buy Bitcoin on Coinbase?

Coinbase is a really great way to buy and sell cryptocurrencies like Bitcoin, Litecoin, Ethereum, Bitcoin Cash and many more. The crypto exchange is very clear. The interface is appealing to the user and above all easy to understand. Registration and confirmation of the identity card is already enough to unlock a limit of around 1000 US dollars per week for the Bitcoin purchase. Because of this clarity and simplicity, the exchange is ideal for beginners.

In addition, Coinbase is a secure and popular Bitcoin exchange that serves more than 18 million users per month.

Insurance against theft and cybercrime

In the field of crypto currencies, complete insurance is unusual, especially after the Mt. Gox fiasco in 2014, but the interesting thing is that Coinbase not only insures FIAT deposits (Euro, Dollar), but also digital currencies (Bitcoin, Bitcoin Cash, Ethereum and Litecoin).

All crypto currencies which are kept online on Coinbase (less than two percent) are insured against physical theft (also in case of insider theft) and cybercrime. However, the insurance is not liable for personal misconduct, such as for example if you forget your password or if you are a victim of a cyber attack and the coins are stolen from the stock exchange with the help of the faked data. You should therefore take your own precautions, such as having a clean computer or buying a hardware wallet.

The FIAT currencies are stored at an external bank. Your deposits are transferred to this management bank and always belong to the user. So in case of a Coinbase insolvency the deposits on this bank would still be protected. Coinbase and its creditors could not access them.

The advantages of sell or buy Bitcoin on Coinbase

How do I register to purchase Bitcoin on Coinbase?

The personal data (first name, last name, e-mail address and password) must be entered under the menu item Register. Then check “I am not a robot” and confirm that you are at least 18 years old. Finally, you accept the user agreement and the privacy policy. You should now receive an email with a link that you can click on to verify your account.

During the registration process you can see which features are supported for your country. As mentioned above, the purchase or sale of Bitcoin is not yet available in Germany. Nevertheless, you can create a Coinbase wallet and use it.

Earn crypto up to $164 - Coinbase Review

Verify Coinbase account

Store mobile number

After you have successfully mastered the upper steps, you will now proceed to the verification. The first step is to determine whether you are using your account as a private individual or as a company. Select the account that suits you to access the dashboard. Here you can see the exchange rate development of all available digital currencies as well as your personal account balance in the respective (digital) currency.

For full registration and verification, you must first enter a mobile number, which can be used for two-factor authentication – thus providing more security for your account. So insert your mobile number and click “Next” to receive an SMS with a code. You will then have to enter this code in Coinbase.

Leave your identity card, passport or driving licence

Once your mobile number is verified, you can upload photos of your ID card, passport or driving licence. You have two options for uploading. You upload the photos either via a webcam or via a smartphone camera.

  • When verifying via webcam, you must first take a photo of the front and then the back of your chosen document and wait about two minutes until verification is complete.
  • For verification via smartphone, you will first receive a link via SMS. Please click on this link and it will ask you to take a picture of the front or back of your chosen document and upload it. Here you also have to wait a few minutes until your verification is completed.

Once you have successfully completed the verification process, you will receive an email notifying you that your weekly limit to buy or sell has been increased.

Select payment method

After successful verification, a payment method can be selected to purchase Bitcoin, Bitcoin Cash, Ether and Litecoin. You can add a credit card (Visa, MasterCard, Maestro) or transfer money directly to Coinbase via SEPA transfer.

Payment by credit card (Visa, MasterCard, Maestro)

Payment by credit card offers the advantage that the desired digital currency is purchased immediately and then credited. There are no long waiting times and especially with the volatile digital currencies, an immediate purchase is an enormous advantage.

However, you pay considerably more for this, as fees of almost four percent are incurred when you pay by credit card. Furthermore, you can only pay small amounts by credit card – to protect Coinbase.

Payment by SEPA Credit Transfer

Anyone who has made purchases by SEPA transfer knows that longer waiting times are part of the equation. It can take one to three days before your credit is credited to your account. However, the higher fees, such as those charged by credit card, will not apply. This means you get more of the digital currency you want.

In order to be able to withdraw money via SEPA transfer, you must have already used the SEPA deposit service before. Again, there may be further waiting times. In addition, a fee of €0.15 is charged for a SEPA credit transfer (as of 07/2018).

Initiative for Mass Adaptation

Earn up to $166 in crypto currency. Learn how certain crypto currencies work – and try out the individual crypto currencies for yourself.

Coinbase Earn allows users to earn cryptocurrencies, while learning about them in a simple and engaging way. The idea is for users to understand more about an asset’s utility and its underlying technology, while getting a bit of the asset to try out.

Coinbase Review Conclusion: User friendly crypto exchange

Coinbase is a user-friendly Bitcoin exchange that is perfectly suited for beginners. In addition, the company’s deposits are (externally) insured – this creates confidence in the company, especially after the Mt. Gox fiasco that shook many users. With currently over 30 million users, one can say in good conscience that Coinbase is one of the best and largest Bitcoin exchanges worldwide.

We hope, that reading this article equipped you best on the initial question: How to buy bitcoin on coinbase?You may consider carefully your investment decisions. In case of doubts you may seek professional advise.

If you are from the EEA or UK, you may find a comprehensive guide about How to buy Bitcoin in UK interesting.
Disclaimer All content on our website is for information purposes only and does not constitute a recommendation to buy or sell. This applies to assets as well as products, services and other investments. The opinions expressed on this site do not constitute investment advice and independent financial advice should be sought whenever possible. This website is not intended for use in jurisdictions where the trading or investment described is prohibited and should only be used by persons and in a manner permitted by law. Your investment may not be eligible for investor protection in your country or country of residence. You should therefore carry out your own due diligence. This website is available to you free of charge, but we may receive commissions from the companies we offer on this website.
Spread the word if you like this article.
Sharing is caring, right?