Step by step how to buy and sell bitcoin

Social investment networks the new craze? In short: Expect to see more interest in bitcoin in the coming months. The same day Mt.

This is what the Coinbase app looks like on an iPhone.

Two years ago, the idea of buying the virtual currency even at that price was laughable. After a rapid rise in value inthe cryptocurrency’s value more than halved by mid Given the currency’s covert nature, the average person still may not understand how buying and selling actually works. Using the app Coinbasewhich lets anyone trade bitcoins for a small fee, we decided to find. A brief warning: If you’re going to do this, tell your bank you’re about to buy bitcoin.

Step 1: Find a good Bitcoin wallet

Using a couple hundred bucks, I bought, sold and owned less than a quarter of one bitcoin. My goal was to see how easy it was to deal in a virtual currency, how much of my personal information I would have to share and what kinds of fees I would have to pay. My first stop was Coinbase, a platform for buying and selling bitcoin. I signed up for a bitcoin wallet with Coinbase, handing the company my email address and creating a password. Similar to a physical wallet, a bitcoin wallet holds the private keys that allow you to spend or exchange bitcoin. Using bitcoin may feel similar to online banking, but there are no government-backed guarantees like your money has in a bank. If your bitcoin gets stolen or the exchange or company holding your wallet goes under, there is not much you can do.

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Two years ago, the idea of buying the virtual currency even at that price was laughable. After a rapid rise in value inthe cryptocurrency’s value more than halved by mid Given the currency’s covert nature, the average person still may not understand how buying and selling actually works. Using the app Coinbasewhich lets anyone trade bitcoins for a small fee, we decided to find.

A brief warning: If you’re going to do this, tell your bank you’re about to buy bitcoin. More on that later. And to read more about blockchain, the technology powering bitcoin, click. Oh, and a final thing: When I tried to buy lunch after all this, my card got declined. My bank had blocked the card after the initial purchase.

Search icon A magnifying glass. It indicates, «Click to perform a search». Close icon Two crossed lines that form an ‘X’. It indicates a way to close an interaction, or dismiss a notification. Chris Weller. This is what the Coinbase app looks like on an iPhone. When you first open the app, you’re presented with the latest price of bitcoin and its change within a certain period. You can see in the chart below how wild the latest moves have. We bought the bitcoin in January I happen to step by step how to buy and sell bitcoin one of the many who have never traded bitcoin.

There’s a certain level of wariness in buying into the cryptocurrency world. However, Coinbase’s interface makes it simple to enter the basic personal information it needs to create your account. User-friendliness quickly hit a snag. When I put in my address, the app didn’t recognize I had already selected it from the autofill menu.

I couldn’t proceed unless I switched to the desktop app. So switch I did. From the desktop portal I could easily enter more identifying info. The final step before entering my financial information was two-step verification for security, which Coinbase quickly sent to my phone. I decided to give the app another try and opted to use my debit card to buy the bitcoin. Entering all my information was just as straightforward as everything.

The problem was that I couldn’t exit this screen. Neither the «buy» nor «not now» option registered. I had to press the X and start all. Ultimately, and frustratingly, it was back to the desktop. So far, the actual process of buying bitcoin was simple — the app itself was my only nemesis.

No looking back! Until I sell, of course. It appeared the price was falling pretty fast the morning I decided to buy. I went back to try again, doing my best to outrun the falling price. I own bitcoin! Well, a small fraction of a bitcoin. But now this means I could sit on my hypothetical tiny pile of cryptocurrency and hope it amasses value. Instead, I decide to sell off immediately. But not before shedding a single tear for the 12 cents I’ve already had to part.

To sell the bitcoin, Coinbase only allows users to pair their bank account with the app; a credit or debit card won’t suffice. So I scrolled through the options to pick my bank. And we’re back to the desktop. When I tried to sell the bitcoin, the app told me either the amount was invalid or I couldn’t pay with the given method. I didn’t understand what that meant and didn’t want to enter a wrong number.

Luckily, the online experience is much smoother. My bank account showed up right where it should have, and I sold the bitcoin just like I bought it. Since Coinbase wasn’t linked to my bank account, the transaction needs a few days to process before the money is transferred. A small hiccup: When I went to sell the bitcoin, I had to estimate the. The numbers were inconsistent in certain places depending on the bitcoin value or the dollar value.

I ended up with one penny left. When I tried to close the account, that penny proved to be an issue. As much as I tried to send the lone cent with addresses I found around the internet, Coinbase didn’t let me. Here’s to hoping bitcoin skyrockets and my investment quadruples in value.

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How To Use Coinbase To Buy and Sell Bitcoin — Full Tutorial

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To send someone bitcoin, you need their bitcoin address — a string of letters and numbers. Although each step does take some consideration, these are the main points you need to think over when it comes to making your first Bitcoin purchase:. The company generally receives at least one order per day and sometimes as many as Since then, a bitcoin company has announced sponsorship of a college bowl game, and the U. Cookie Policy Bankrate uses cookies to ensure that you get the best experience on our website.