Dear Student,

Yesterday, I explained the differences between mining, buying, and trading crypto, thanks to an excellent student question I received. (Remember, you can message me here at any time, too)!

And today, as promised, I want to walk you through the process of getting started and opening a cryptocurrency account. This will focus on buying and selling coins – not stocks and options. But if you’re interested in learning how to set up an options trading account, you can check out my comprehensive Options Trading Primer.

Now let’s jump in…

To trade crypto, you can’t use your typical trading account. Instead, you need to open a digital wallet to buy and sell crypto.

Now, just like the regular stock market, there are plenty of platforms to choose from to hold your digital wallet. But I prefer to use Coinbase.

Coinbase is a digital asset exchange company widely recognized as one of the most credible platforms used to buy and sell crypto.

Here’s how to get started…

Step 1: Sign Up and Create a Coinbase Account

• Go to www.coinbase.com, and click “Get Started.” All you have to do is follow the instructions in the box.

Step 2: Validate Your Credentials

• Coinbase will send a verification link to your email inbox. Once you click it, you’ll have to enter your phone number to receive a verification code by text message. Simply enter the code into Coinbase, and then verify your identify by filling out the boxes in the form. It will look like this.

Step 3: Add Funds

• To add funds to your wallet, you need to connect either a bank account, credit card, debit card, PayPal account, or wire transfer. Simply choose which medium you prefer from the list – Coinbase recommends using a bank account.

Step 4: Buy Your First Crypto

• Once you’ve set up a way to add funds to your wallet, it’s time to buy your first crypto. Click on “Buy/Sell” at the top of the page.

• Coinbase allows you to buy several different coins on the Coinbase Exchange. Some of the most popular are Bitcoin (BTC), Ethereum (ETH), Litecoin (L), and Bitcoin Cash (BCH).

• To get started, buy some Bitcoin – you need it for the next step. I’d recommend adding $100 worth of Bitcoin to your digital wallet to get started.

• You can then view your wallet by clicking on your “Portfolio Balance.”

Note: One of the biggest misconceptions of crypto is that you have to buy an entire coin, but that couldn’t be less true. If you look at my purchase above, you’ll see I have entered $100 USD in the field above. That dollar amount equals out to .00959517 Bitcoin.

Step 5: Confirm Your Crypto Purchase

• Check your “Accounts” to see if the purchase was successful. Keep in mind that it can take up to a week before the coins are in your wallet if you’re using a bank card. If your purchase went through, you’ll see a confirmation that your purchase was successful and when your purchase will be reflected in your crypto wallet.

And boom, you’re ready to trade!

In your Coinbase account, you can select “Prices,” which will show you all of the available currencies along with their current trading prices.

You can search for the name or symbol of the recommended coin by using the search bar. Once you find the correct currency, select the blue “Trade” button to the right of that coin.

Then, you’ll be redirected to a page that looks like the one below for the coin you’ve selected. It will show the current price of the coin. Once this price hits our limit price, you can purchase your intended stake in that currency.

Enter the amount you want to purchase the coin for on the righthand side of the screen. Then, preview the purchase before completing the transaction.

By choosing “Convert,” you can also use currencies you already hold, like Bitcoin, to exchange for other currencies rather than USD.

After buying the coin, there’s just one more step – taking profits. Once the coin hits its profit target, it’s time to sell the coin.

Simply select the “Sell” option – pictured above – rather than “Buy.” Then, sell your stake in the coin – and rake in the profits!

One last thing…

Always take advantage of the “Earn More” feature in your menu:

This allows you to learn and earn free crypto in three steps:

1. Watch a video or a read a post on Coinbase

2. Complete the corresponding quiz

3. Receive crypto for every quiz completed

For example, this recent earn-while-you-learn campaign gave users the opportunity to get $27 worth of Aleo by simply spending a few minutes to complete the lesson:

Coinbase will email you when new rewards opportunities are available. And it’s a great way to grow your portfolio – for free!

Tomorrow, I’ve got a new episode of the Patterns & Profits Podcast coming that you won’t want to miss. So, keep an eye on your inbox around 3 p.m. ET…

Talk soon,

Tom Gentile
America’s Pattern Trader