PART SIX

Setting up an account on a friendly exchange

Choosing the right cryptocurrency exchange is very important. You need to make sure it is a regulated platform for several crucial reasons, primarily centered around safety and trust.

Regulated exchanges must comply with various legal and operational standards set by governing bodies, which can include Know Your Customer (KYC) and Anti-Money Laundering (AML) practices.

By sticking to these regulations, these exchanges demonstrate a commitment to transparency and accountability, reducing the risks associated with fraud, hacking and other illicit activities.

Furthermore, regulated exchanges often offer enhanced consumer protections and better overall user experiences. Regulatory compliance typically means that these platforms have undergone rigorous audits and assessments to ensure their operations are secure and reliable.

In contrast, trading on an unregulated exchange can expose you to significant risks, including the lack of recourse in cases of theft or fraud, making the choice of a regulated exchange essential for anyone involved in cryptocurrency trading.

There are a number of regulated exchanges in the US, some of which are Coinbase, Kraken, Gemini, Bitstamp and Toro USA. In our example below we will use the exchange Coinbase to open an account however the procedure is basically the same with most exchanges

With regulated exchanges there are fewer scams and fake coins.

Coinbase and other regulated exchanges list a small number of trusted cryptocurrencies after they go through a review process.
This reduces the chance you’ll buy a “scam coin” or fall for a shady scheme.

On unregulated exchanges, it’s easier to run into fake tokens or risky investments with no warning signs.

Bottom Line:

If you’re just getting started — or if you like your crypto experience to feel more like using a bank than gambling at a sketchy casino — Coinbase and the other regulated exchanges are a safer and simpler place to begin. There are other exchanges located in the US and worldwide that also can be trusted and are as safe and secure as Coinbase. These you can study when you are more familiar with crypto purchasing and perhaps, trading in the future.

Opening an account

Coinbase is a regulated exchange in the USA. It is licensed to engage in money transactions and is registered as a Money Services Business with FinCEN (Financial Crimes Enforcement Network). As it is regulated it is used by people all over the world.

Why is it safer to use Coinbase and other regulated exchanges than non-regulated exchanges?

Think of it like this. Coinbase is like a well-lit, trusted bank in your neighbourhood, as some non-regulated exchanges are more like mystery booths at a flea market. Here’s why the regulated exchanges are usually the safer choice:

1. Coinbase is Regulated and Complies with the Law

• Coinbase (and the other regulated exchanges) are based in the United States and follow strict rules and financial regulations.

• That means they have to protect your information, follow anti-fraud rules and work with U.S. regulators.

• If something goes wrong there are legal protections in place — not always the case with other sketchy platforms.

2. Strong Security and Insurance

• Regulated exchanges like Coinbase use top-level security to protect your money and your personal information.

• They also insure some funds stored online — so if there’s a hack on their end, your money might be covered.\

• Unregulated platforms? Not so much. If they lose your money, it’s probably gone for good
  

3. Real Company, Real People

• Coinbase is a publicly traded company (you can even buy shares in it on the Stock Exchange) and it’s been around since 2012.
  

How to Open an Account on Coinbase (Step-by-Step)

Step 1: Go to the Right Website

• Open your web browser and go to www.coinbase.com

• Or download the Coinbase app from the App Store (iPhone) or Google Play (Android)

Step 2: Click “Get Started”

• You’ll see a “Get Started” or “Sign Up” button — click that to begin.

Step 3: Fill Out Your Info

• Enter your name, email address, and create a password

• Make sure your email is correct — you’ll need to confirm it later

Step 4: Verify Your Email

• Coinbase will send you an email — click the link inside to verify your email address

Step 5: Set Up Two-Step Security (Highly Recommended)

• Coinbase will ask for your phone number and send you a text code to verify

• This adds extra protection to your account

Step 6: Prove Who You Are

• Because Coinbase is regulated, they’re required to check your identity (this is normal!)

• You’ll need to upload a photo ID (like a driver’s license or passport)

• It may take a few minutes for them to review it

Step 7: Add a Payment Method

• You can link a bank account, debit card, or sometimes use PayPal

• Bank accounts are best for larger purchases or transfers

• Debit cards are quicker, but might have smaller limits

Step 8: Start Exploring!

• Once your account is set up and funded, you can browse different cryptocurrencies, buy a little Bitcoin, or just look around and learn.

2 Factor Authentication (2FA)
How to Set Up Google Authenticator

Step 1 : Download the App

• On your smartphone, go to the App Store (iPhone) or Google Play (Android)

• Search for “Google Authenticator”

• Tap to Install

Step 2: Log In to Your Account

• On your computer, go to the website you want to protect (like Gmail, Facebook, or a crypto exchange)

• Log in like usual

• Go to your account settings or security settings

• Look for something called “2-Step Verification” or “Two-Factor Authentication”
  

Step 3: Choose Google Authenticator

• When it asks how you want to get your codes, choose Google Authenticator

• The website will show you a QR code, a little square barcode that looks like this below:
  

Step 4: Open the App and Scan the Code with your mobile phone

• Open the Google Authenticator app on your phone

• Tap the plus (+) sign or “Set up account”

• Choose “Scan a QR code”

• Point your phone’s camera at the QR code on your computer screen
  

Now the app will add your account and start showing a 6-digit code that changes every 30 seconds

Step 5: Enter the Code

• On the website, it’ll ask you to type in the 6-digit code from your app to finish setup.

• Type it in — and you're done! That's it!

Now, whenever you log in, you’ll:

• Enter your password

• Open the Google Authenticator app

• Type in the fresh 6-digit code it shows you

A Few Friendly Tips:

• Take your time. There’s no rush and it’s okay to just explore at first.

• Write down your login info somewhere safe, especially your password.

• Use 2-step verification to keep your account secure.

Pro Tip:

If you ever get a new phone, make sure to transfer your Google Authenticator codes or re-set them up, or you might get locked out of your accounts.