Cryptocurrency has become extremely popular and doesn’t seem to be going away anytime soon. If you want to join the cryptocurrency bandwagon, Coinbase is the most trusted exchange to manage your crypto. It’s perfect for beginners but also has features for advanced traders.
What Is Coinbase?
Coinbase is a cryptocurrency exchange suitable for beginner and advanced traders. It allows users to buy, store, and sell cryptocurrency.
Coinbase has 240 cryptocurrencies, including Bitcoin, Ethereum, Solana, Bonk, and Dogecoin.
Is Coinbase Safe?
Coinbase is committed to its clients’ security. Before listing any tokens, they conduct a thorough review.
They evaluate each token to ensure it meets the eligibility requirements for further legal, compliance, and technical security reviews. Being listed on Coinbase does not mean that Coinbase endorses the token, but that it meets Coinbase’s listing requirements, and each cryptocurrency goes through the same evaluation process before they are listed.
Of course, there are still risks associated with trading and storing cryptocurrency online, and you must do your part.
To keep your information safe, keep all login information private, only log on when using a secure internet connection, and never share your verification codes.
How Does Coinbase Work?
Coinbase allows users to buy, sell, and trade cryptocurrency. It offers several funding options, including PayPal or ACH transfers, wired funds, and debit card transactions.
Users can also receive a debit card to spend crypto and earn crypto rewards with Coinbase Card. You can use your debit card anywhere Visa® is accepted, including 40,000 merchants nationwide. The crypto rewards you can earn are unlimited, and there are zero fees.
You can also earn crypto rewards by taking Coinbase’s educational courses. Each course tells you how much you’ll earn before starting.
One final way Coinbase helps users earn crypto is through staking. While staking, you earn rewards while helping make the blockchain network more secure. It’s a complex process, but you can earn crypto rewards from Coinbase for doing it, you can unstake your crypto at any time, and your crypto is always yours.
Coinbase also offers Coinbase Wallet, a self-custody wallet, that puts you in control of your crypto. You store the private keys that signify each crypto versus storing the keys on a central exchange.
Features
Coinbase is very user-friendly and great for beginners. Here are some of its top features.
- Cryptocurrency Selection: Coinbase works with hundreds of cryptocurrencies, including the most well-known, such as Bitcoin. They also offer trades of lesser-known currencies and new digital coins to diversify your investments.
- Educational Content: Coinbase is excellent for beginners based on its extensive educational content. According to Coinbase, users can ‘earn while they earn. ‘ While you won’t earn a ton, it’s a great way to learn more about the ever-changing crypto industry and increase your balances.
- Mobile App: Coinbase’s mobile app is available on 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 happy overall.
Fees & Commissions
Coinbase charges fees and commissions. Your cash and hosted cryptocurrency balance don’t incur fees, but trades do, and the fees depend on many factors.
Common factors affecting the fees and commissions include:
- Market rates
- Payment method
- Order size
- External factors
Pros and Cons
Like any financial product, you should weigh Coinbase’s pros and cons to determine whether it’s the right platform for your cryptocurrency needs.
Pros
- Low minimum balance to open an account
- Large selection of cryptocurrencies
- Opportunities to earn free crypto
- Includes a Visa® debit card
- Many opportunities for educational content
Cons
- The trading fees can be high
- Limited protection against theft or hacking
How To Get Started
Opening a Coinbase account is simple and works much like opening a bank account.
You’ll need personal identifying information so they can verify your identity. This includes your name and address, and you must provide a picture of your government-issued ID (you cannot open an account anonymously).
Coinbase recommends funding your account for an initial verification deposit and also making a small withdrawal to ensure the transactions work.
Once approved, you can buy and sell cryptocurrency on the platform by simply clicking the ‘buy/sell’ button and entering the details, including whether this is a one-time trade or ongoing, the dollar amount and name of the cryptocurrency, and your payment method.
What Is Coinbase Advanced?
Coinbase Advanced replaced Coinbase Pro and is an advanced trading platform.
It offers more advanced tools and features, including:
- Interactive Charts
- Advanced Order Types
- Staking
FAQs
Coinbase is a popular cryptocurrency platform. Here are some questions people have about it.
Can You Use Coinbase to Buy and Sell Crypto?
Yes, you can use Coinbase to buy and sell crypto. It is one of the easiest and most user-friendly platforms available.
How Long Does It Take to Buy and Sell Cryptocurrency on Coinbase?
All buy and sell transactions occur almost instantly on Coinbase but show as Pending until there have been enough network confirmations. If you sell and want to transfer funds out of your Coinbase account, the money transfer can take one to two business days for a bank deposit and one business day for wire transfers.
Can You Deposit Cash into a Coinbase Account?
To deposit cash in a Coinbase account, you must first deposit it into an external account and then do an ACH transfer. You can buy crypto via ACH transfer, debit card purchase, wire transfer, or PayPal.
Is There a Minimum Investment Amount on Coinbase?
The minimum investment amount on Coinbase is $2. You can buy crypto 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 your Coinbase menu and follow the prompts, choosing ‘Transfer from Coinbase’ and the amount you’d like to transfer.
Can I Use Coinbase to Store My Cryptocurrency Long-Term?
It’s typically best to store long-term cryptocurrency in your wallet to properly manage it and not risk a loss. While Coinbase takes security seriously, self-custody is best for long-term storage.
Final Thoughts
As a beginner, you can’t go wrong giving Coinbase a shot. Just remember, 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 crypto, earn rewards, and potentially increase your net worth.
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