Yes, Pokémon and crypto are similar in that new characters/coins are added constantly and some of them are crap. Before we execute your first crypto investment, be sure to conduct your research and read my Crypto Research Basics post. Also, I hope that you appreciate the potential solutions that cryptocurrency brings to our society and not just view crypto as a way to make a quick buck.
*Remember, never invest money that you can't afford to lose and always be sure to conduct research from multiple sources.
First Crypto Investment with Coinbase
1. Navigate to the Coinbase website
Use my referral link to get $10 of Bitcoin for free: Coinbase Referral (Free $10 of BTC once you sell or trade $100)
*Confirm that the website is secured and accurate (refer to image below). If there are any differences in spelling, then you may have a virus/malware or unsecure connection that requires attention. If everything looks good, please proceed.
2. Sign up and Create your aAccount
Follow Coinbase's instructions. Please use a strong password that is not the same as any other password that you have and includes numbers, symbols, and upper/lowercase letters
*Refer to my 2FA post to learn how to set up a very secure 2 factor authentication (basically better security over your account): 2FA.
3. Connect a Bank Account or Debit/Credit Card
Don't rush! Be sure to read and understand what you are doing. Read Coinbase's conversion fees. Personally, I use my bank account since it has lower fees (I aim to lower fees when I can).
4. Execute your First Crypto Investment
Navigate to the Buy/Sell tab. Click on the cryptocurrency that you would like, what payment method, and then how much you want to invest. Be sure to understand the conversion fees. Coinbase will calculate the fee based on the amount you select (refer to the image below, the fee calculation is to the right).
Let's understand the Coinbase fee of $0.99 on a $10 USD exchange (image above).
*Math Refresher:
If you exchanged $10 and had a fee of $0.99, then your fee percentage is 9.9% which is very high (0.99/10 * 100 = 9.9%).
Whereas exchanging $50 and $200 has fee percentages of 3.98% and 1.495%, respectively (1.99/50 * 100 = 3.98% and 2.99/200 * 100 = 1.495%). Refer to images below:
Therefore, exchanging more money will result into better fees, but only invest money that you can afford to lose! For your first exchange, it's ok to go with $10 - just don't continue to make small exchanges or else the high fees will reduce your investment gains.
*Once you finish this post, read my next post to learn how to exchange on Coinbase's sister platform for 0 fees: ZERO Fees with GDAX.
However, if you're set on your first crypto investment then select how much you would like to exchange, double check everything, and click on 'Buy Etherum'!
5. Check your Account
After you initiate your exchange, you will see that cryptocurrency on your Coinbase account. Depending on what funding method you selected, it may take a few days for your crypto to appear in your account. Before you log out, check that your information is correct, you wrote down your password in a safe location, and know how to navigate Coinbase to access your cryptocurrency.
*I highly recommend you to explore all of Coinbase's tabs and settings. Its user interface is very simplified and very easy for beginners. The more familiar you are with Coinbase, the better you will understand the more advanced exchange platforms and tips that I will cover in the future.
Conclusion
Congrats! You now own cryptocurrency and are part of the future of money movement! As you become more invested in the cryptoworld, I hope that you advocate the adoption of cryptocurrency and support the solutions that it provides.
If you want to learn the intermediate and advanced tips, come and join the picnic!
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