Module 3 - Making Your First Investment
Lesson 3 - Add Payment Methods
Now your ID has been verified, you will need to add your payment methods to allow you to start buying Crypto. There are two options here, and we will do both:
- Credit/Debit Cards: for smaller purchases (higher fees but instant)
- Bank Account: deposits for larger purchases (lower fees but relies on the time it takes the banks to make the transfer)
Step 1: Add A Payment Method
To add a payment method:
- Enter the Buy/Sell section of the website
- Click on Add Payment Method
- In the popup click on Credit/Debit Card
Step 2: Link Your Card
From the popup screen, add your card information:
- Firstly add the billing address for the card, then click on the button for Add Billing Address
- Secondly add the card information, then click on the button for Add Card
- Your card will now be linked to your account and you will be available to buy Crypto with it
Step 3: Link Your Bank Account
Before we buy some Crypto, we are also going to link your bank account. While a card is fine for smaller purchases, it is better to deposit and pay directly with bank transfers for more considerable investments, due to the fees. These range depending on which country you are in, but you can review them here.
To link your bank account:
- Click on the Settings tab
- Click on Linked Accounts
- Click on Bank Account (note you can add multiple cards and bank accounts from this screen)
Step 4: Enter Bank Information
To link your bank account to your Coinbase account, you will need to enter the following information.
Note: that the information required here is likely dependent on the country you are in. I am in the UK and transfers are to Estonia, thus are an international transfer. Without being in each country, I can't confirm how this works.
- Enter the name of the bank you have your account with
- Enter your IBAN number (you will likely find this within the settings of your online banking, with the company you bank with)
- Enter your SWIFT BIC (again, you will likely find this in the settings for your online banking)
Once you have submitted this information, the screen will change to highlight that Coinbase will need to verify your bank account.
Step 5: Verify Your Bank Account
The final step in verifying your bank account is my making a small transfer to Coinbase. As I mentioned previously, these instructions may change per territory. At some point I will reach out to Coinbase and try and develop per territory instructions, for now, all I can do is highlight the instructions I have received. If your instructions are different, then please follow what is on screen as best possible.
Based on my instructions you need to do the following:
- Login to your online banking for the bank account you have added
- Create an international payment
- Setup Coinbase as the recipient using the information they have provided
- Make sure you use the reference number they have provided
- Send a small amount of money
- You will then see a screen telling you that your account will be verified in 1-2 business days after sending the funds
Note: your bank will likely charge you a small fee for making an international payment, yet Coinbase is only asking you to send a small amount to ensure the transfer works and your bank account links correctly. If successful, the amount you send will be added to your Coinbase account, but your bank will take the fee.
Once your account is confirmed, you can then send a larger amount of money, if you so wish, but note that each time you do make a transfer, you will likely pay a bank fee. These bank fees should easily be covered by the savings you make from buying Crypto directly from your bank instead of a debit or credit card.
Module #3: Lesson 3 Summary
- You can buy instantly with debit and credit cards: but these need adding to your account
- You can also link your bank account for lower fee buying: to do this you need to link your account and send a test payment
Now your payment details are setup, you can move onto Module #3: Lesson 4 and buy some Bitcoin.