How Hard Is It to Invest in Bitcoin Right Now?
You might have been told investing in Bitcoin is hard, but it’s easier than opening a checking account.
I love cryptocurrency investing, and I’m always thinking of questions people might have about it. Today, while I was out for a walk in the park, I stopped to talk to someone, and they asked, “isn’t investing in Bitcoin complicated?” I answered their question, and then I proceeded to sprint home because I had some writing to do — what a great question.
It isn’t hard to invest in Bitcoin at all. In fact, it’s easier than opening a checking account:
- Go to a well-known exchange like Coinbase and open an account using the same methods for a checking account, including I.D. verification.
- Add your debit or credit card information to your account.
- Buy $10 worth of Bitcoin.
- Congratulations, you invested in Bitcoin.
You can follow me, literally (appropriately used), step by step to open an account on Coinbase, provide all the required information, add your debit or credit card to the account, and then buy $10 worth of Bitcoin, or more if you’re feeling like it. You’ll see how easy it is, and the stigma of complexity will melt away, and you can tell your friends about it. Oh, and I included a video.
Alert: I am not a financial advisor.
Let’s get it.
Step 1: Opening an account on Coinbase
I’m not shilling for Coinbase, and I get no money if you go there and set up an account. Hence, no affiliate link. The reason I’m using them is they’re one of the biggest names in crypto exchanges, and I want you to feel confident and comfortable in your actions. In fact, Coinbase reached 56 million users earlier this year with $228 billion in assets. Now, they have more than 68 million users. Also, remember, I’m doing this with you, and you’ll be able to see it in the additional video. So, take ease, and let’s get started.
Open your browser and go to the signup page. You should see a page like this.
Go ahead and fill out all the information fields and check the box. Then, click Create Account. The system will think for a minute. Then, you should see a page like the one below.
The welcome screen shows you the $5 in free Bitcoin offer if you verify your photo I.D. So you can go ahead and click Continue. Now you should see the Verify Email Address screen like below.
Go ahead and check your email for the verification request from Coinbase. Open the email, and you should see something like the screen below.
Now, you can click the Verify Email Address button. Once you’ve done that, it should open another tab so you can proceed with the next step, which is Two-Step Verification. These security precautions can be annoying, but you’ll be glad they’re there later.
Here, you will enter your mobile number. Then, the system will send you a text with a code to punch in on the next screen. Once you’ve entered your number, click Send code. Then, you’ll see the screen below.
Enter the code and click Submit. Next, you’ll be prompted to Select Your Citizenship. Following that, choose your country, then hit Submit.
Afterward, you’ll see the Verify your identity screen below. Go ahead and fill out all the fields. One note, there is a field for the last four of your social. That information is required as part of KYC (Know your client), but don’t worry. The connection is encrypted, so your data is safe. Also, that’s why they only ask for the last four to minimize any danger of data leakage. See below.
Once you’re done, click Continue. Next, Coinbase presents you with the following screen.
Coinbase is legally required to know how much you plan on trading per year and what industry you work in. If you couldn’t tell, this is the SEC at work. So choose your options and click Submit. If you’re unsure, choose under $2000 for the first option. More than likely, you’re going to start light on buying Bitcoin with zero to minimal trading. That should take you to the next screen below.
Congratulations! You’ve set up the base account, but we’re not done. We have two more steps. In the next one, we’re going to verify your photo I.D.
Step 2: Verifying your photo I.D.
Verifying photo I.D. is part of KYC, but more importantly, it gets you your $5 free Bitcoin. So, let’s get it.
Go ahead and click the Verify your I.D. located mid-page on the right-hand side. Once you’ve clicked it, you should see the screen below.
The above screen is where you’ll choose which I.D. type you have. Click the appropriate one. I decided on Driver’s License. Then, you’ll come to the next screen.
I chose Mobile Camera because it’s easy. After clicking Mobile Camera, Coinbase will send you a link via text. Tap the link, and it will take you to the place to snap a photo of the front and back of your I.D. Also, you’ll see the screen below in your computer’s browser.
That screen shows Coinbase is waiting for you to upload your pics from your phone. Once you’ve taken pics of the front and back of your I.D., tap the Submit button on your phone. If all goes well, you should see your computer’s screen change in a moment. It’ll look like the one below.
Verification might take a minute or two. Afterward, you’ll be back at the main screen like below.
And bam, there’s your free $5 in Bitcoin. So now, you can move on to the next step, adding a payment method.
Step 3: Adding a payment method
Now, click on the add payment method button. As you’ll see from the screen below, you have several options to choose from for payment methods.
Since you are just starting, and your first investment is small, I recommend choosing Debit Card from the options. If you want to make more significant transactions, you can always add your bank account later. So, go ahead and click Debit Card, and you’ll see the screen below.
This part of the process wants your billing address. Typically, it’s the same as what you entered earlier. So, you can click Add Billing Address if everything looks right to you. Next, you’ll see the screen to add your card information.
Go ahead and fill out all the fields. Remember, it’s all encrypted, so your data is safe. Once you’ve done entering the data, click Add Card. Afterward, you should see another verification screen.
Open another tab or use your phone and check your bank account. Look for 1–3 withdrawals of $1.XX if there are two, enter them. However, if there are three, enter the two biggest ones. Click Verify card when you’re done. It’ll spin for a bit while verifying your account. If everything went well, you should be back on the main screen. However, the button that read Add payment method now reads Buy crypto.
It’s time. Let’s buy $10 worth of Bitcoin.
Step 4: Buy Bitcoin
Go ahead and click the Buy crypto button. You’ll see a screen like the one below.
As you can see, there are three convenient options: $10, $50, and $100. Also, you can see further down you are buying Bitcoin and are paying with the Debit card you added earlier. So go ahead and click on the $10 button. The system will take you to the screen below.
On this screen, you’ll see how much Bitcoin you’re buying at the top, the current price of Bitcoin per one BTC, how much you’re purchasing, the Coinbase fee, and the total. Coinbase takes $0.99 for a transaction fee. That’s how they make their money. So, you’re actually buying $9.01 of Bitcoin. But, Coinbase adds that to your free $5, which puts the account at $13.95, keeping you above the $10 minimum to have an open account. So, go ahead and click Buy Now. Then, you’ll see a screen like below.
After you get the successfully purchased checkmark, click View transaction. That will take you to your wallet, showing you both your Bitcoin reward and the purchase you just made. Your screen should look like the one below.
Now it’s time for the genuine congratulations! You’ve done it. You’ve made your first investment in Bitcoin. The next time you buy Bitcoin, it’ll take you about 30 seconds, if that long.
Conclusion
Investing in Bitcoin isn’t hard, and it need not be scary. Whether you used the written guide in this blog post or watched the video, you should be a successful crypto investor now. And now that you’ve done the frontend work of setting up the account, further investments will be a snap, especially if you get the Coinbase app.
I wrote this intending to show that people sometimes talk about things they don’t fully understand, and they can paint a dire picture of an easy situation. I’ll always tell you to do your research in my posts, and that statement stands for this post most of all. Eliminate fear with knowledge, and get yourself in a financial place where you can experience some freedom in your life.
Oh, one more thing, if you’d like to support my writing directly, you can do so by signing up to Medium through my link. When you do, part of your subscription goes to me.
