How To Buy Bitcoin On Coinbase Safely
What is Coinbase?
Coinbase is one of the largest online exchanges for virtual currency which has been operating since 2012. Since its founding, it has exchanged around 4 billion USD worth of digital currency, and it still continues to grow and develop.
They offer exchanges into 33 different currencies and are capable of both buying and selling digital currency. Being the most popular among the digital or cryptocurrencies, Bitcoin is the main product that Coinbase has to offer their users.
Potential customers can both buy Bitcoin from Coinbase using their credit card account or PayPal, or they can exchange the Bitcoin they already have into one of the 33 supported currencies and send it to their account.
To use Coinbase one has to register and for this, certain personal information is needed, making it not as privacy-centric as some other Bitcoin selling services like localbitcoins.com.
Setting Up a Coinbase Account
To successfully set up an account on Coinbase you will have to follow a few easy steps. Bear in mind that some personal information may be required, but for the purpose of creating the account, you can provide fake information.
- After arriving on Coinbase’s homepage click here, you will notice a “Sign Up” button located on the upper-right corner of the page. By clicking the “click here” above you will get a free $10 of bitcoin when you purchase over $100.
- By clicking it, you will be redirected to an account creation form that you will need to fill up. Make sure to provide an e-mail address that you have access to, as you will be prompted to verify it. Rest of the information needed can be made up.
- After verifying your e-mail address, you will be redirected to the main page of your account.
- On the right side of the page, you will see a “Settings” tab with a cogwheel icon, click on it.
- After that, at the top of the screen, you should have a “Payment Methods” tab, open it by clicking on it.
- Click on the “Add Payment Methods” button and fill out a form to link a bank account which you will use to buy your Bitcoin with.
Buying Bitcoin from Coinbase
Given the fact that Coinbase has its own built in Bitcoin wallet to hold your newly acquired Bitcoin, it may seem like a shorter and easier solution to send the Bitcoin from there to the website where you are planning to conduct a purchase.
While this does shorten the amount of steps you need to take to purchase something, it also opens up your Bitcoin to monitoring.
By following your Bitcoin through the blockchain, anybody can determine what you used your Bitcoin for.
It is highly advisable to have several additional Bitcoin wallets prepared and a tumbling service in mind that you can try out.
You will need a single Bitcoin wallet from mSIGNA that you will send the Bitcoin from Coinbase to.
Additionally, you will create another Bitcoin wallet using Electrum from your Tails OS booted computer.
This Bitcoin wallet should absolutely NEVER be accessed without the use of Tor and a good VPN.
This wallet will receive the Bitcoin that you will send to the tumbler from your mSigna wallet. The steps to begin the process are as follows:
- First, click on the “Trade” button located on the top right-hand side of your Coinbase account’s page.
- You will be prompted to select the method of payment for your Bitcoin and the amount of Bitcoin you wish to buy.
- After filling in and sending this form, you will have to wait up to 4 days for the payment to be processed in the blockchain.
- After your Bitcoins arrive to your Coinbase wallet, you should immediately move them to your mSigna wallet, and this is done by following the next steps:
- First, you need to log into your mSigna client, click on the “Open Vault” and select the .vault file you previously created.
- After that, you should click on the “Receive” button.
- You will be presented with the form that you need to fill out in order to get the wallet address.
- Choose the account you wish to send your Bitcoin to and optionally fill out the Label and the Amount fields.
- Click on “New Invoice” button.
- You will be presented with an address in the “Address” field under the “Invoice Details” tab.
- Copy this address as you will need it for the next step.
- On your Coinbase account page, click on the “Send/Receive” link located on the left sidebar.
- In the “Recipient” bar you need to paste the address you copied from the mSigna request form.
- Fill in the amount of Bitcoin that should be sent (all of the Bitcoin you currently have) and add a note if necessary.
- Click on “Send Funds.” There will be a processing period this time and every other time you decide to move your Bitcoin from one wallet to another.
What to Do After That…
After you have the Bitcoin in your mSigna wallet and in case you are planning to spend it on a Darknet marketplace, it is highly advisable that you tumble the Bitcoin as it is still connected to your personal identity.
By sending the Bitcoin to the tumbler and receiving it into the Electrum wallet that is not connected to you in any way, you are able to hide your tracks very well from anybody who might try to connect you to the Darknet market purchases.
This means that you can send the funds from your Electrum wallet to the Darknet marketplace wallet without the worry of anybody identifying you, in case you did everything right.
But with the recent reports of Law Enforcement increasing the monitoring intensity of any larger Bitcoin purchases and rumors of Coinbase tattling on users they discover are using Darknet marketplaces, it makes it a must that you NEVER transfer bitcoin directly from your coinbase account to a darknet market or vise-versa and use a VPN always.
This method will increase your anonymity and for those who are extra paranoid, an additional tumble should relieve you of the worry that someone will track their purchases.