Cryptocurrency has become extremely popular and it doesn’t look like it’s going away any time soon. If you want to join the cryptocurrency bandwagon, Coinbase is the most trusted exchange to manage your cryptocurrencies. It’s perfect for beginners but also has features for advanced traders.
What is Coinbase?
Coinbase is a cryptocurrency exchange suitable for beginners and advanced traders. It allows users to buy, store and sell cryptocurrencies.
Coinbase has 240 cryptocurrencies, including Bitcoin, Ethereum, Solana, Bonk, and Dogecoin.
Is Coinbase safe?
Coinbase is committed to the security of its customers. Before listing any tokens, they conduct a comprehensive review.
They evaluate each token to ensure it meets eligibility requirements for further legal, compliance, and technical security reviews. Listing a coin on Coinbase does not mean that Coinbase endorses the token, but it meets Coinbase’s listing requirements, and every cryptocurrency goes through the same evaluation process before being listed.
Of course, there are still risks associated with trading and storing cryptocurrencies online, and you should do your part.
To keep your information safe, keep all login information private, only log in when using a secure internet connection, and never share your verification codes.
How does Coinbase work?
Coinbase allows users to buy, sell, and trade cryptocurrencies. It offers several financing options, including PayPal or ACH transfers, wired funds, and debit card transactions.
Users can also get a debit card to spend cryptocurrencies and earn crypto rewards using the Coinbase card. You can use your debit card anywhere Visa® is accepted, including 40,000 merchants nationwide. The cryptocurrency rewards you can earn are unlimited, and there are no fees.
You can also earn crypto rewards by taking them Coinbase Educational Courses. Each spin tells you how much you will earn before you start.
One of the final ways Coinbase helps users earn cryptocurrencies is through staking. During the staking process, you can earn rewards while helping to make the blockchain network more secure. It’s a complicated process, but you can get cryptocurrency rewards from Coinbase for doing this, you can revoke your ownership of your cryptocurrencies at any time, and your cryptocurrencies will always be yours.
Coinbase also offers Coinbase Wallet, a self-managed wallet that puts you in control of your cryptocurrencies. You can store the private keys that reference each cryptocurrency versus storing the keys on a central exchange.
Features
Coinbase is very easy to use and great for beginners. Here are some of its most important features.
- Cryptocurrency selection: Coinbase works with hundreds of cryptocurrencies, including the most popular ones, like Bitcoin. They also offer trades in lesser-known currencies and new cryptocurrencies to diversify your investments.
- Educational content: Coinbase is excellent for beginners based on its comprehensive educational content. According to Coinbase, users can “earn while they earn.” Although you won’t earn much, it is a great way to learn more about the ever-changing cryptocurrency industry and increase your balances.
- Mobile app: The Coinbase mobile app is available at iOS and Android. The app offers similar features to its web platform: users can buy, sell, and trade. It has a 4.7-star rating on iOS and a 4.3-star rating on Google Play, so users are generally happy.
Fees and commissions
Coinbase charges fees and commissions. Your cash and hosted cryptocurrency balance don’t incur fees, but trades do, and fees depend on many factors.
Common factors that affect fees and commissions include:
- Market prices
- payment method
- Order size
- External factors
Pros and cons
Like any financial product, you should weigh the pros and cons of Coinbase to determine if it is the right platform for your cryptocurrency needs.
Pros
- Low minimum balance to open an account
- A large collection of cryptocurrencies
- Opportunities to earn free crypto
- Includes Visa® debit card
- Many opportunities for educational content
cons
- Trading fees can be high
- Limited protection against theft or hacking
How to start
Opening a Coinbase account is simple and works much like opening a bank account.
You will need personally identifiable information so they can verify your identity. This includes your name and address, and you must provide a photo of your government-issued ID (you cannot open an account anonymously).
Coinbase recommends funding your account to make an initial verification deposit as well as make a small withdrawal to ensure successful transactions.
Once approved, you can buy and sell cryptocurrency on the platform by simply clicking the “Buy/Sell” button and entering details, including whether this is a one-time or ongoing trade, the dollar amount, name of the cryptocurrency, and your payment method.
What is Coinbase Advanced?
Coinbase Advanced has replaced Coinbase Pro and is an advanced trading platform.
It offers more advanced tools and features, including:
- Interactive charts
- Advanced order types
- Staking
Frequently asked questions
Coinbase is a popular cryptocurrency platform. Here are some questions people ask about this topic.
Can you use Coinbase to buy and sell cryptocurrencies?
Yes, you can use Coinbase to buy and sell cryptocurrencies. It is one of the easiest and most user-friendly platforms available.
How long does it take to buy and sell cryptocurrencies on Coinbase?
All buy and sell transactions happen almost instantly on Coinbase but are shown as pending until there are enough Network confirmations. If you are selling and want to transfer funds from your Coinbase account, it may take 1-2 business days to transfer funds for bank deposits and 1 business day for wire transfers.
Can you deposit money into a Coinbase account?
To deposit cash into a Coinbase account, you must first deposit it into an external account and then make an ACH transfer. You can purchase cryptocurrencies via ACH transfer, debit card purchase, bank transfer, or PayPal.
Is there a minimum investment amount in Coinbase?
The minimum investment amount on Coinbase is $2. You can buy cryptocurrencies from $2 up to your personal limit.
How do I transfer cryptocurrency from Coinbase to my own wallet?
When you want to transfer cryptocurrency to your own wallet, choose the “Receive” option from the Coinbase menu and follow the prompts, selecting “Transfer from Coinbase” and the amount you wish to transfer.
Can I use Coinbase to store my cryptocurrency long-term?
It is usually best to store cryptocurrencies long-term in your wallet to manage them properly and not risk loss. While Coinbase takes security seriously, self-custodial is best for long-term storage.
Final thoughts
As a beginner, you can’t go wrong with Coinbase. Just remember that cryptocurrency is risky, so don’t put all your capital into it and protect your information as carefully as possible.
Coinbase can be a great way to learn about cryptocurrencies, earn rewards, and potentially increase your net worth.