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What is Coinbase?

By March 3, 2022 May 13th, 2022 No Comments

As a Bitcoin investor or a user, you’ve probably heard of Coinbase.com. Given its massive user base and reputation as an extremely trusted platform, it is easy to see why it is so well-liked and one of the most popular cryptocurrency exchanges.

You can buy famous cryptocurrencies like Bitcoin, Ethereum, and a slew of others through Coinbase. More than 150 cryptocurrencies are supported by Coinbase, and new coins are being added on an ongoing basis. Because it supports the most common forms of bitcoin trading, Coinbase is a good choice for the vast majority of people who are interested in building a digital currency portfolio.

This makes Coinbase a logical choice for many new crypto investors. Let’s learn all about Coinbase as a cryptocurrency exchange down below.

What Are Cryptocurrency Exchanges?

Buying and selling Bitcoin is possible on a crypto exchange platform. Cryptocurrency exchanges allow you to buy and sell cryptocurrency for another using ordinary currency, such the US Dollar. The values of the cryptocurrencies that are traded on these exchanges are always up to date.

You can also use an exchange to convert your cryptocurrencies back to U.S. dollars or another currency, which you can then keep as cash in your account or withdraw to a traditional bank account if you so desire.

How to Open a Coinbase Account

It is simple to open a Coinbase account. According to Coinbase, you’ll need the following to open an account:

  • You must be at least 18 years old.
  • AA government issued photo ID, such as a driver’s license or state ID
  • A computer or smartphone with internet access is required.
  • A phone number to be used for SMS verification
  • The most recent version of your web browser

You can create a new account either on their website or by downloading the Coinbase app through the play or app store.

You can open a Coinbase account if you meet these prerequisites. Enter your first and last name, email address, zip code, and password to get started. You must also tick the box stating that you are at least 18 years old while registering. The final step is to create a unique password. Create a unique password to keep your account safe.

You can sign up for Coinbase through Swagbucks and get a new user cash back bonus of $30. Cash out the $30 as an Amazon gift card, PayPal cash, or put the funds towards buying more cryptocurrency.

Pro Tip: make sure to enable two factor authentication if you’re using the Coinbase app for added security measures.

A payment method is also necessary, so that you can transfer funds into your Coinbase account.

Coinbase users in the United States can use a linked bank account, debit card, PayPal, Apple Pay, or a wire transfer to pay for goods and services on the site. Be aware that PayPal is only available to customers in the United States and that it can only be used for the purchase or withdrawal of bitcoin.

Once you’ve set up a payment method you can start trading cryptocurrency and building your cryptocurrency portfolio on Coinbase.

Is It Safe To Buy On Coinbase?

From the time it was launched in 2012 till today, Coinbase has never been hacked or infiltrated . Coinbase should be very proud that they haven’t had any security issues for half a decade, knowing that Bitcoin and cryptocurrency exchanges have always and will always be a hot target for hackers, who could potentially get away with millions and billions of dollars worth of coins and tokens if they succeed. Coinbase app is safe and legal.

As an alternative to hackers attempting to steal Bitcoin from Coinbase, Coinbase’s bug bounty program allows them to simply notify Coinbase of any vulnerabilities they find in their system. Instead, hackers can generate money in a method that is moral, ethical, and legal.

For instance, Coinbase paid out a $30,000 bounty on February 14th, 2019 for a critical issue detected in their system.

According to Coinbase’s insurance page, Coinbase retains 98 percent of the assets they’re storing offline in cold storage; this greatly reduces the risk of the entire amount of funds being stolen from Coinbase.

It is safe to buy and sell your cryptocurrency through Coinbase or even Coinbase pro, but it is always safer to take your coins off the exchange and put it in your own cold storage or software wallets.

Is Coinbase good for beginners?

Everything about Coinbase is as simple as can be. Users can keep an eye on the price of various cryptocurrencies by adding them to a watchlist, much like they can in many other trading apps. It is also possible for traders to see which cryptocurrencies are making the most progress. Coinbase Card, a Visa debit card, allows users to receive rewards when they spend the assets in their portfolio.

Buying and selling cryptocurrencies, with the ability to buy fractions of a coin, through the Coinbase exchange is very user friendly and beginner friendly. They even offer Coinbase Earn which is a way to earn free cryptocurrency through education.

Coinbase users who are eligible for Coinbase Earn can learn about various cryptocurrencies through educational content and earn a small portion of that cryptocurrency.

Is Coinbase Free To Use?

Coinbase charges a fee to use the platform.

Trading on Coinbase versus Coinbase Pro entails different fees, with the latter being more expensive and requiring more effort to understand. Buying or selling cryptocurrencies on Coinbase incurs what is known as a spread of around 0.50 percent and a Coinbase Price, which is either a set fee or dependent by criteria such as where you are located and what type of payment method you are using.

Why Are Coinbase fees so high?

This flat fee is determined by the value of the transaction and is detailed on Coinbase’s Fees page. There is a minimum fee of $2.99 and a variable fee of $1.49, which means that if a consumer wants to buy $100 worth of bitcoin with a US bank account or digital wallet, they will have to pay $2.99 for transaction fees. It would cost $3.99 to pay with a debit card, so that’s what the customer would have to fork over for a payment method fee.

For larger transactions, Coinbase Pro offers a lower fee structure with a tiered fee structure that ranges from 0% to 0.50% of the trade value. Transactions between $10,000 and $50,000 have a 0.35 percent cost, while those under $10,000 have a 0.50 percent fee.

In order to transfer cryptocurrency from one Coinbase wallet to another, such as from Coinbase to Coinbase Pro, Coinbase does not charge users. However, if you don’t use Coinbase Pro, the cost on Coinbase can significantly reduce your winnings.

Can I make money on Coinbase?

Yes you can. Because the Coinbase platform allows you to buy and sell cryptocurrency, you have the opportunity to make money through crypto trading on the platform. You have the ability to track the price of different cryptocurrencies which allows you to buy and the dip and sell cryptocurrencies during a high.

Beginner Coinbase customers can earn cryptocurrency as part of Coinbase Earn, an incentive program offered by Coinbase. As consumers progress through Coinbase’s extensive educational curriculum, they are given the opportunity to unlock classes and begin earning cryptocurrency.

A simple, adaptable, and straightforward interface makes even first-time trading on Coinbase Earn a breeze. When you’re just getting started with cryptocurrency trading, Coinbase Earn makes it easy to learn the ins and outs of the market.

Videos about your preferred cryptocurrency are provided, followed by short quizzes to evaluate your knowledge. Right answers to the questions mean earned crypto free of charge!

How do I get my money out of Coinbase?

For the most part, Coinbase’s web and mobile platforms have an intuitive user experience. The process of withdrawing money from your Coinbase account can be a little complex. You’ll need to follow these procedures to withdraw money from Coinbase:

  • Crypto To Fiat Conversion
  • Withdraw Your Fiat Balance

These methods may appear difficult at first look, but they are actually rather simple.

Before you do anything further, you’ll need to convert your cryptocurrency to a fiat currency. To do this, you must:

  1. Log in to your Coinbase account
  2. Click the “Trade” button on the navigation bar; or
  3. Click the “Buy/Sell” at the top-right of your screen
  4. Input the amount that you want to trade for fiat in the dialogue box
  5. Go to the “Sell” tab at the top of the screen
  6. Input how much of your crypto you want to convert
  7. Pick the crypto asset whose balance you want to convert
  8. Choose the fiat currency you wish to withdraw in

After completing these steps, click “Preview Sell” to check the transaction information. Afterward, you’ll see a confirmation message on your screen, which includes both the amount of money you’ll receive and the costs you’ll pay.

Having converted your cryptocurrency into a fiat currency, you can now begin the process of withdrawing your Coinbase balance.

  1. Navigate to the “Portfolio” page
  2. Scroll down to the “Your assets” section
  3. Find the fiat balance you converted and select it
  4. Return to the “Your assets” page
  5. Click on the “Withdraw” tab
  6. Input in the withdrawal amount 
  7. Click on “Withdraw all”
  8. Click on the “Withdraw” button to confirm the withdrawal
  9. Choose the preferred payment option
  10. Click “Continue”
  11. Confirm or edit your transaction details
  12. Click “Withdraw now”

Depending on the currency you select, you may be charged a fee for withdrawing money from your account.

Withdrawing with a credit or debit card or a bank transfer is possible, as is using SEPA or other electronic payment methods.

It is important to note that this only works if you have already connected your preferred payment method.

Do I Own my Cryptocurrency Coins on Coinbase?

One of the main reasons to pull your coins off an exchange comes down to a basic cryptocurrency ethos: Not Your Keys, Not Your Bitcoin.

This phrase, while relating specifically to Bitcoin, can be applied to other cryptocurrencies. In order to prevent the loss of your coins if the exchange you use is breached, only use wallet services where you have full control over the private keys and recovery seeds.

Additionally, Bitcoin’s key selling feature is that it cannot be seized. It’s counterproductive to keep your money in centralized exchanges.

Exchanges in general have the power to shut your accounts, regardless of whether or not you’ve done anything illegal. In many circumstances, posting a support request to the exchange is not enough to resolve this issue.

You should only use cryptocurrency exchanges to buy Bitcoin and other cryptocurrencies. Just like you wouldn’t leave your hard-earned cash in money remittance centers or money exchangers, you should withdraw your funds after each transaction. Once you’ve transferred them to your own wallet, you’ll have full control over the private keys.

Final Thoughts on Coinbase

Coinbase makes it easy to purchase cryptocurrency and build out a cryptocurrency portfolio where buying and selling is relatively easily on their trading platform. It is well known that the crypto market is incredibly volatile so it is always best to seek an investment advisor especially if you’re looking to buy cryptocurrency in large fiat amounts. These types of financial decisions should not be mildly and remember that any opinions expressed about what and when you should buy and sell are just that–opinions.

Remember to always look at your portfolio balance to get a sense of the market and happy crypto trading!

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