Ever wonder how to quickly send Bitcoin from your Coinbase account? Many Coinbase users behave like investors and never leave the app, but there are many instances where you need to send coins elsewhere. For example, Coinbase can serve as an excellent intermediary between your bank account and third-party apps/other wallets.
With a reputable verification process, Coinbase is well-known for its compliance with large banks like Bank of America, Wells Fargo and Chase. This allows everyday users to purchase crypto with a low barrier to entry.
Let’s dive into our step-by-step guide for sending Bitcoin from Coinbase, including the do’s and don’ts behind making a proper transaction.
Bitcoin is a new currency created in 2009 by the anonymous developer Satoshi Nakamoto. Bitcoin transactions are made on a public ledger—there’s no middle man involved.
In other words, two parties can transact goods and services without the need for a bank.
Over time, Bitcoin has become more practical for real-world transactions. You can now use Bitcoin to purchase just about anything: a vacation getaway, Xbox games, a pair of shoes, even pizza. And more companies are hopping on the crypto bandwagon every day.
A lot of the media hype also comes from the wealth opportunities that exist when trading it. Because Bitcoin is so volatile, price speculators can make (and lose) big bucks on coin exchanges.
Coinbase is a popular software tool that enables you to buy, sell and exchange cryptocurrency. They have a mobile app and web interface where virtually anyone with a bank account can access a wide range of available cryptocurrencies.
Coinbase was founded in 2012 as a small startup in California, but has quickly become the largest cryptocurrency exchange in the United States by trade volume. Coinbase also launched an IPO recently, and were last valued at $86 billion.
As mentioned, their coin exchange is widely popular due to its low barrier to entry for new users. Many large US banks were initially hesitant to allow the purchase of Bitcoin, making it difficult for newbies to get started. Coinbase (and other popular exchanges with compliant KYC protocols) allow just about anyone to get skin in the game. You can use a traditional bank account with big firms like Bank of America, Chase, or Wells Fargo.
See also: 10 Best Crypto Wallets To Try in 2021
Setting up your Coinbase account is easy! You can download the app on iOS or Android, or you can make an account online. To set up an account, first create an email address and password.
Next, you’ll have to verify your identity using an approved ID (like a Driver’s license), your home address, and the last four digits of your social security. Coinbase may also ask you about your risk tolerance and how you plan to use their service. This is common practice for coin exchanges and helps them prevent criminal activity and/or fraudulent behavior.
Once your account is created and you verify your identity on Coinbase, you can then buy coins with a debit card, bank transfer or wire. These differ depending on your location. Typically linking your bank account is the quickest way to get things up and running.
With your bank account hooked in, you can now buy popular coins like Bitcoin or Ether. Choose the amount you want to buy, and you’ll then see the full price after Coinbase’s fee.
Now that you have coins in your wallet, you can send it out if you need to make a transaction, store your coins elsewhere, or use a different service. One of the coolest features in Coinbase is that your coins become instantly available. You don’t have to wait for the transaction to clear before using them.
After opening up a new transaction, choose your desired cryptocurrency (in this case Bitcoin) and enter the amount you want to send. In the below screenshot, I am sending $10 USD worth of BTC.
Select your recipient. If the other party is using a Coinbase account, you can send them funds using their mobile phone or email address. If the receiving party does not have a Coinbase wallet, you must use a wallet address to complete the transaction. Type in the address.
Alternatively, you can use a QR code if you have one available; Coinbase will auto-populate the address for you.
And voila, that’s how you send Bitcoin from Coinbase! This is especially useful if you need to reallocate funds to a third-party app like MetaMask, or add new funds to a different wallet that’s less compliant with your bank. Buying crypto through your bank account isn’t as easy as it should be.
While Coinbase is used by millions of happy customers, it is important to remain vigilant to protect your wallet and the funds that live within it.
- Always use 2FA
Please, always use two-factor authentication. I ran into a scam recently where someone tried to hack into my Coinbase account. I got a text message from a fake employee saying they needed my verification code through two-factor authentication to fix something on my account. That means my password was compromised. If I didn’t have 2FA installed, I would have lost my money within seconds. Never share your verification code with anyone. There is no reason why anyone at Coinbase would ever need it. When you are dealing with money, there is no reason to not use this feature.
- Always double-check an address before sending money.
Some wallets require that you double-confirm an address before completing a transaction. That’s because wallet addresses are really long, and it is easy to make a mistake if you don’t copy and paste it directly from the original source. Make sure it is correct before sending, because there is no way to get your money back once it’s gone.