A fast and secure way to buy, sell, hold and convert cryptocurrencies

Plus, daily crypto analysis and news.

Back to Series

How do cryptocurrency wallets work?

How to open a Coinbase wallet

One of the aims of Coin Rivet is to try and make the complex and new world of blockchain and cryptocurrency as simple as possible

As well as commenting on this fast moving space, we’re going to try and do what millions of people do and buy and build our own portfolio of digital currencies. First step is to open a coinbase wallet.

Along the way we will explain how we are going about this and pass on our learnings and share our experiences. Hopefully making it easier for our readers to do the same should they so choose. We’re also going to track our investment and regularly update the performance of our various cryptocurrencies.

Before we start we need to point out that the currencies have been purchased by the author of this blog and not Coin Rivet. Coin Rivet is not endorsing any currencies or recommending cryptocurrencies as an investment choice. Rather the author is sharing the experience of investing in crypto and tracking the value of the portfolio over time.

The overall plan

Ultimately, we plan to invest in a few established currencies and a few Initial Coin Offerings (ICOs). Generally to buy into an ICO you will need to own one of the more established and traded cryptocurrencies such as Bitcoin. To hold cryptocurrencies the first thing we need is a wallet so here’s how we found the experience of opening a Coinbase wallet.

Opening a Coinbase wallet

Coinbase declares itself to be “the most trusted digital currency platform” and users can hold Bitcoin, Bitcoin Cash, Ethereum and Litecoin. As well as holding the currency it has other functionality (e.g. displaying the value of your portfolio, facilitating regular investments) which can be accessed via desktop or via mobile app.

I’ve made a note of date and time and the various actions for comedy purposes. We all use digital technology all the time and opening online accounts is second nature. This is going to be a breeze….

22/5/2018, 2.00pm

Clicked the register button on www.coinbase.com. To set up the account I was planning to use the password I use for all my online activity with a slight tweak (so I can remember it).

Anyway, apparently the cornerstone of my digital world is “too weak” for a coinbase wallet so I set up a much more elaborate password. One that is so elaborate it’s now written down in my notebook.

22/5/2018, 2.05pm

Verification email sent and clicked. Struggle to find an obscure character key on my keyboard for my uber strong password.

22/5/2018, 2.06 pm

Add a phone for two step verification.

22/5/2018, 2.08 pm

Code received. I’m in and ready to buy some coins to keep and to fund the purchase of other coins and to take part in ICOs.

22/5/2018, 2.10 pm

Try to add my credit card but I need to upload some picture ID first. Upload a hi-res copy of my passport (when I find it) taken with my phone.

22/5/2018, 2.23 pm

My identity has been verified and my “investment limit has been increased”. From what to what is not clear.

22/5/2018, 2.25 pm

Credit card successfully added. I also add the app to my phone with the link helpfully sent via SMS.

22/5/2018, 2.27 pm

Asked to log back in. and to enter the two step verification code sent via SMS

22/5/2018, 2.35 pm

Still no code, so try to log in via the app. The app is asking for the same two step verification process. Curses, I’m doomed.

22/5/2018, 2.51 pm

Code arrives by text. It’s invalid. Is it invalid because I tried to log in 16 minutes ago or has the log in via my phone superseded this code? Log in with my password again and the system asks for the two step verification code from my phone

22/5/2018, 3.20 pm

Code arrives by text. It’s invalid.

22/5/2018, 3.20 pm

Another code arrives; it’s invalid. I’m out of step with logins and codes. I wait. I give in I try again.

22/5/2018, 3.22 pm

Another code arrives; it’s invalid. Arrrrrrghhhh. I leave the office for a quick meeting. I am immediately bombarded with three codes when I am a millimetre over the threshold of our office door.

22/5/2018, 6.36 pm

Get back to office. Try again. My phone mocks me with its refusal to pick up a signal. I give up and go home. Once more the second I leave the office the code arrives.

24/5/2018, 7.07 pm

I’m at my home office and login successfully. Obviously, my phone network (three) finds our office like some kind of signal coverage kryptonite. OK, let’s buy some cryptocurrency. No, I’m being told I need to verify an email as “I’m signing in from a computer or device we haven’t seen before or for some time”. Even the login procedure is taunting me about being unable to get the two step verification code on my phone at work.

Verification email clicked. Log in again. As I’m at home I get the two step verification code instantly and I’m ready to buy. I want to invest £500 across the four currencies offered but I can see my deposit via credit card is limited to £50 per week until I have invested US$100 (when presumably it will be increased). So, I need to wait another seven days to invest another £50. I feel exhausted.

24/5/2018, 7.50 pm

With my £50 I buy Bitcoin. I am now the proud owner of 0.00842705 BTC. Although I have to pay £1.22 in fees, so I actually have £48.78 worth of Bitcoin – 0.00842573 BTC.

24/5/2018, 7.52 pm

I check my coinbase wallet dashboard to see how my investment is doing and immediately see the value is down to £47.79, even though I’ve only just bought it. Still early days – let’s see how it does overnight.

25/5/2018, 9.30 am

Back in the office to log into my coinbase wallet and take stock of my portfolio to see what’s happened overnight (OK not sure one coin constitutes a portfolio but this time next year, Rodders…*).

I’m still waiting for my SMS two step authentication code 30 minutes later…I give up for the day and get on with some work. My cryptocurrency empire will have to be managed from my home office.

*”This time next year Rodders” is a quote from the classic British sitcom Only Fools and Horses where the main character, market trader Del Boy, tells his younger brother, “this time next year Rodney, we’ll be millionaires” whenever a business venture ends disastrously.

Recent Guides

A guide to crypto trading terminology

Knowing technical analysis and crypto trading terminology can help you to understand market sentiments. This will help to you make educated guesses on cryptocurrency price movements. It’s important to...