This is an introduction to buying Bitcoin for those new to cryptocurrencies in general and to Bitcoin in particular. The first step is to open a ‘wallet’ – a software app or website – to hold your cryptocurrency.
Here I’ll show you how to do this in Coinbase. This claims to be “the world’s most popular Bitcoin wallet” and is certainly very well known. As well as being popular it is also very easy to use. It is not the cheapest nor the most fully featured wallet and so we’ll look at other wallets later for those more experienced with cryptocurrencies. It is, however, perfect for newcomers.
Go to the following website: https://www.coinbase.com/join/59e7d9f9cca2f100d9a1a773
Note this is an referral link – this means you’ll get about £7 ($10) of free bitcoin when you buy your first bitcoin and so will I. Your first purchase needs to be worth at least $100 (about £75) so I suggest you buy £80-£100 to be sure you get the free money.
When you follow that link you’ll see a webpage like the following:
Complete the form (First Name, Last Name, Email and Password), the Captcha, and agree to the Ts & Cs. Click Sign Up. A good place to get a password is PasswordsGenerator – choose a length of 16 characters and include symbols, numbers and upper and lowercase characters. Make sure at this point that you have record the password somewhere, e.g. a new document. You will need a lot of passwords when dealing with cryptocurrency and the general rule is that if you lose the password you can lose the money! Get into careful organisation now.
A Coinbase account will be created for you and you’ll see a screen that says ‘Verify Your Email: We sent a verification email to <your email address>. Click the link in the email to get started!’
Go to your email inbox, find the Coinbase email and click on the Verify Email Address button/link. Return to Coinbase and you’ll see a new Coinbase screen with a popup message that says ‘Your email has now been verified. Thank you!‘ Close the old Coinbase screen.
The new Coinbase screen will say ‘Welcome <first name> – Let’s get started > Complete the following steps to get your first bitcoin or ethereum!‘ Select the Individual button unless you’re working on behalf of a business. Press Next.
On the next screen choose your country (if it’s not already set) and enter your mobile phone number. The number is required for security – Coinbase will text you a ‘2 Step Verification’ security code to login with. Press Next.
Enter the code Coinbase sent to your phone on the form on the next page. Press Verify Phone Number.
Once that’s passed you come to a payment method screen. You can return to this later – for now Press Skip, I’ll do this later. You’re now into Coinbase.
You’ll see the main Dashboard, as show below.
This shows a chart and statistics of the current Bitcoin status (price, change since last month in £, change since last month in %). You can change the timescale to 1 hour, day, week, month, year, or All time. There are also tabs to see the same data for the Ethereum and Litecoin currencies instead of Bitcoin.
Below left you’ll see your account status. Below right you’ll see the value of coins in Your Portfolio (zero at this point).
Before you’re ready to buy your first Bitcoin you need to Verify your identity. To move to this step you can click on ‘Complete your account‘ bottom left, or just attempt to Buy (on the top menu) or add a payment method.
The screen will show ‘Select ID type‘, choose whatever you want (e.g. Driver’s License).
You will need to take a live photo of your ID so you are asked to choose to do this with either your mobile phone’s camera or your PC’s webcam, it’s up to you. I found it easiest to use the phone – once you select this you get messages on your phone to take you through the process.
I chose to photograph my driver’s licence – I did this with care in good lighting on a plain surface (white paper on a kitchen worktop) otherwise it can fail. Once you’ve taken front and back pictures on your phone control goes back to the PC. You get a message confirming that the ID is being verified:
Once it’s complete you’re back at the Coinbase Dashboard and ready to buy your first Bitcoin.