How to setup a Coinbase account and purchase cryptocurrency

These instructions will provide the steps required to set up an account and purchase a cryptocurrency.
However, before we get into the detailed steps, what exactly is a Coinbase account and what is a
cryptocurrency? Coinbase.com is a currency exchange or online platform that provides for buying,
selling, transferring, and storing digital currency [1]. Cryptocurrency is one kind of digital money that
exists within a specific network known as a blockchain. Digital money is a currency that exits purely in
digital form unlike cash, which is a tangible asset [2].

Cryptocurrency investing, trading, and use is rapidly gaining popularity. The purpose of this document is
to provide instructions to those who have researched digital currency but have yet to take action to
open an account with a currency exchange and make their initial purchase. There are security
considerations beyond the scope of these instructions, such as protecting your cryptocurrency using
software or hardware wallets. Do your own research and be security conscious when online.

Consider the following:

• In 2008, you could buy one Bitcoin for around 10 cents. Assume you purchased fifty Bitcoins for
$5.00.
• In 2020, one Bitcoin is valued at almost $18,000. Those fifty Bitcoins would be valued at almost
a million dollars.
• Keep your passwords and your digital accounts as secure and protected as possible.

A small purchase today might be worth a great deal more tomorrow. But cryptocurrency is a risky
investment. There is no guarantee that those same fifty Bitcoins will be worth anything in the future.

Disclaimer: The following examples are not a recommendation for or against any exchange or
cryptocurrency. This is not a recommendation to use or purchase either. The following instructions are
not legal advice nor financial consultation. Refer to the proper experts in those fields for the
appropriate information.

The items required to complete these instructions are a computer, an Internet connection, a cell phone,
a driver’s license or passport, and a bank account.

The instructions contain five main topics:

1. Creating the account

2. Securing the account
3. Verifying your identity
4. Funding your account
5. Making the initial purchase

Create the Coinbase account

1. Using a browser (Chrome is recommended), navigate to www.coinbase.com.

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Figure 1: Main page

2. From the Main page, as shown in Figure 1, click on the Get started button.

Figure 2: Create your account

3. From the Create your account window in Figure 2, enter the required information:

• First Name
• Last Name
• Choose a password (see notes below)
• Select your state of residence
• Click the box to certify you are 18 years or older
• Click the Create account button

Notes:
1. Make sure the password is hard for someone to guess but easy for you to remember.
2. One suggestion is to use a phrase but make the phrase complex by replacing some of the
letters in the phrase with numbers and characters. The phrase Goodtogo becomes Go0dtog@.
3. The password must be long enough and complex enough to produce a green circle in the
password field as shown in Figures 3a, 3b, and 3c below.
4. As you type the password, a circle begins to form in the password field. The longer and more

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 complex the password becomes, the more the circle takes shape and begins to change color
from red, to yellow, and finally green.
5. A green circle means the password is strong enough (length and complexity).

Figure 3a. Password

Figure 3b. Password

Figure 3c. Password

The next screen may vary, depending on any offers being promoted at the time you create your account.
In this example, the promotion was $5 in free Bitcoin.

Figure 4. Promotion screen

4. At the Promotion window shown in Figure 4, click the Continue button.

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Figure 5. Check your email

5. Follow the directions in the Check your email window as shown in Figure 5. From your Email
software, open the recent email from Coinbase (typically sent from [email protected]) and click
the embedded link.

Note: It can take up to 10 minutes for the email to arrive. If after that time you still have not received
the email, check your spam folder. If the email is not in the spam folder then check the Coinbase Help
Center notes at https://help.coinbase.com/en/coinbase/managing-my-account/identity-
verification/why-didnt-i-receive-a-verification-email.html.

Depending on your email software, mail in your spam or junk folder may need to be moved back into
the inbox for the link to become active.

Figure 6. Verify Email Address

6. Once you have clicked the link embedded in the email, a new browser window will open as shown in
Figure 6. Click the Verify Email Address button.

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Figure 7. Coinbase sign in

7. From the Sign in to Coinbase window, enter the email and password used to setup the account.

Note: Check or uncheck the Keep me signed in on this computer checkbox. As a matter of personal
preference and for an additional security measure, I do not check this button as I want it to prompt me
for a username/password everytime I log into this application.

Secure the Coinbase account

Once the account has been created and you sign in from the previous step, the next few actions will be
to secure your account starting with a 2-step verification process. A 2-step verification is an additional
security method requiring two authentication activities. One activity is providing something you know,
such as a password. A second activity, as seen in the steps that follow can be to use something you
have, such as a cell phone to receive a security code.

After logging in to Coinbase in the previous step, the Let’s secure your account window appears as
shown in Figure 8 below.

Figure 8. Secure your account

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1. Click on the Get started button.

Figure 9. 2-step verification

2. Click on the Get started button from the Secure your account window as shown in Figure 9.

Figure 10. Mobile number

3. Enter your cell phone number in the Mobile number field shown in Figure 10 and click the Continue
button.

4. A message will be sent to your cell phone. The message will be similar in format to the example
below.

Example: Coinbase: 1234567 is your verification code. Do not share this code
with anyone. @coinbase.com#1234567.

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Figure 11. Verification code

5. Enter the 7-digits in the Code box shown in Figure 11 and click Submit.

This completes securing your Coinbase account with 2-factor authentication.

Verify your Identity

After submitting your code, the next step is to verify your identity.

Figure 12. Let’s verify your identity

1. Click the Get Started button from the Let’s verify your identity window as shown in Figure 12.

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Figure 13. Verify your identity

2. Read the information required to verify your identity from the Verify your identity window, as shown
in figure 13. Click the Get started button.

Why does Coinbase need this info?

• To comply with federal Know Your Customer (KYC) regulations [3]. This helps prevent fake
accounts or someone opening accounts in your name.
• According to Coinbase, this information is securely stored by Coinbase to comply with federal
regulations and to protect you from fraud.

Figure 14. Enter your personal info

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3. Enter the required information in the Enter your personal info window, as shown in Figure 14 and
click the Continue button.

Figure 15a. Enter your address

4. Enter your address in the Search for residential address field shown in Figure 15a. As you begin
typing, a list of suggested addresses appears as shown in Figure 15b. When your address shows up as an
option, click on your address to auto populate the field. If your address does not appear, click on the
Add address manually button.

Figure 15b. Enter your address

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Figure 15c. Enter your address

5. Once the fields are fully populated in the Enter your address window, click on the Continue button
shown in Figure 15c.

Coinbase is then going to ask several questions to comply with federal regulations.

Figure 16. Primary reason

6. From the options listed in Figure 16, click on the one that most closely matches your primary reason
for opening a Coinbase account.

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Figure 17. Primary source of income

7. In the What is your primary source of income window, as shown in Figure 17, click on the button
appropriate for your situation.

Figure 18. Employment status

8. In the What is your employment status window, click the appropriate option button from those
given, as shown in Figure 18.

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Figure 19. You’re verified

9. And that is it – you are verified. Click the Let’s Go button shown in Figure 19.

Fund your account

The next step is to fund your account.

Figure 20a. Fund your account

1. Click on the Fund your account button in the You’re verified window, as shown in Figure 20a.

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Figure 20b. Fund your account

2. Click the Continue button in the Fund your account window, as shown in Figure 20b.

Figure 21. Select your bank

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3. Select your bank from one of the provided tiles or enter your bank’s name in the search box, as shown
in the Select your bank window in Figure 21.

Suggestion: Do not use your primary banking account to fund cryptocurrency accounts. Always use a
secondary banking account that you can transfer money into and out of as needed to fund and
withdraw from your currency exchange account. This is not legal advice nor investment consulting but
rather a suggestion from someone who is cautious about online account security.

Note: The banking screens in steps 1-5 below are not shown for security reasons. After selecting your
bank in step 3 above:

1. You will be prompted to log onto your bank account.

2. If your bank has 2-factor authentication setup, you will be sent a code from your bank and
prompted for the code in the browser window. Enter the code.
3. Once the bank verifies your credentials, a window will appear showing the last 4 digits of your
bank account. Click the Continue button.
4. The bank account will be linked to your Coinbase account.
5. Once the link is completed, your account is funded, and the window shown in Figure 22 will
appear.

Figure 22. I’m ready to buy

Purchase your first cryptocurrency

1. Click the I’m ready to buy button shown in Figure 22.

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Figure 23. Preview Buy

2. In the Your first purchase window shown in Figure 23, enter the amount of money you wish to spend
in the area above the One time purchase icon. In the example shown, I entered $5.00.

3. Click the > symbol in the Buy field to select from a choice of cryptocurrencies. For this example, I
chose XRP.

4. The Pay with field will be prepopulated with your banking account.

3. Click the Preview Buy button.

Figure 24. Order Preview

4. If you are satisfied with the results, click on the Buy now button, as shown in Figure 24.

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Figure 25. Successful purchase

5. Once the transaction completes, a screen similar to Figure 25 shows that you are the proud owner of
crypto currency. In this example, you now own 6.348527 of XRP Crypto coin. How exciting! Click the
Continue button.

Figure 26. Done

6. Click the Done button.

You will be returned to your Coinbase account Home screen where you can see additional information
on the purchase you have just made. As you add to your crypto portfolio, the details on this screen will
change to reflect changes to your account.

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Figure 26. Home screen.

Verify Identity
You should also setup additional security using a photo ID to verify your identity. In the top bar of the
Home page, in the right corner, you will see a small icon with your first name beside it. The icon is
shown is Figure 27.

Figure 27. Icon

1. Right click on the icon to show the dropdown menu[]

Figure 28. Dropdown menu

2. Click on Settings from the dropdown menu, as shown in Figure 28.

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Figure 29. Settings

3. From the Settings window shown in Figure 29, click on Crypto addresses on the right side of the top
row.

Figure 30. Verify identity

4. A red box will appear, as shown in Figure 30. Click on the Verify identity button.

Figure 31. Enable Send and Receive

5. The Enable Send and Receive window will appear, as shown in Figure 31. There are three levels of
security. You have already completed the steps to qualify for Levels 1 and 2. In order to send a receive
currency, you must also qualify for Level 3. To do so, click the Enable send and receive button.

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Figure 32. Select ID type

6. Select either Driver’s License or State Issued ID button from the Select ID window as shown in Figure
32.

Figure 33. Upload method

7. Select an upload method from the Choose an upload method window as shown in Figure 33. For the
description below, I clicked on the Mobile Camera button.

Figure 34. Upload from mobile phone

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8. As shown in the Upload from your mobile phone window in Figure 34, a text message will be sent to
your phone. In the text message, click on the embedded link and follow the instructions to take a
picture of the front and back of your driver’s license. On your phone click on the Upload button.

Figure 35. Verifying ID

9. Once the upload process begins from your phone, a We’re verifying your ID window, as shown in
Figure 35, will appear on your computer.

10. When the ID verification is complete, which should take only a few moments, you will be returned
to the Coinbase account Home screen.

Congratulations on setting up your crypto currency account on Coinbase.com and making your first
purchase!

References:

1. What is Coinbase? (2020, November 27). Retrieved from

https://help.coinbase.com/en/coinbase/getting-started/general-crypto-education/what-is-
coinbase#:~:text=Coinbase%20is%20a%20secure%20online,out%20of%20their%20local%20currency.

2. What is Digital Money? (2020, November 27). Retrieved from

https://www.investopedia.com/terms/d/digital-money.asp

3. FinCEN: Know Your Customer Requirements. (2020, November 29). Retrieved from
https://corpgov.law.harvard.edu/2016/02/07/fincen-know-your-customer-requirements/

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