This article will cover everything you need to know before choosing Coinbase as your exchange for cryptocurrency trading.
Tom, Crypto Enthusiast
Cryptocurrency has proved to be a worthy source of investment. I have tried many forms of investments but I can say with certainty that cryptocurrency has offered me a chance of a lifetime as an investor.
There are many other cryptocurrency exchanges but the experience I get from Coinbase is quite good. I spent several months looking for a platform where I could trade cryptocurrencies without much assle, until a friend of mine introduced me to this crypto exchange.
Coinbase is a cryptocurrency trading platform that allows you to purchase, sell and exchange more than 100 cryptocurrencies. Some of the popular coins found on the platform include Ethereum, Bitcoin, and Dogecoin.
It is regarded as one of the largest crypto exchanges in the United States and in the world.
Coinbase was started in 2012 as a platform where people could send and receive Bitcoin. But the company has grown in leaps and bounds and currently supports hundreds of cryptocurrencies. It now employs over 2,700 people around the world.
The company operates two distinct platforms other than the standalone cryptocurrency wallet service. This means mean can never miss anything when it comes to managing a cryptocurrency portfolio or trading plan.
Coinbase is a decentralized platform that has no physical headquarters anywhere.
Yes, as it operates in over 100 countries and boasts of customer trades of about $327 billion per quarter. The company runs a robust cryptocurrency ecosystem that supports at least 9,000 financial institutions around the world. This makes Coinbase one of the most reputable crypto exchange available right now.
Due to its simplicity, its ease-of-use and the large amount of courses and educational materials available to its users, Coinbase is one of the best exchange for anyone just starting out trading and investing in cryptos.
If you are a beginner, I also encourage you to check out some cryptocurrency trading guides before getting started.
Below are just a few of the 100+ cryptocurrencies supported by Coinbase:
Stellar Lumens (XLM)
USD Coin (USDC)
It is important to understand that digital curencies have different trading restrictions or a limit as to how much you can withdraw. Some coins can only be exchanged for fiat currencies such as the U.S. dollar. A person can also be restricted depending on the state or country they are located in.
The good news is that the website gives an oversight of all the restrictions for each cryptocurrency.
Also note that if you have a Coinbase Pro account, you will get access to an additionnal 150+ coins to trade.
This exchange runs two different platforms, namely Coinbase and Coinbase Pro. You can trade on all the platforms but each one of them offers distinct features.
The simplicity of the platform, which only supports buying and selling, makes it ideal for those who are just getting started with crypto trading and investing. It is easily accessible on the website or via iOS and Android mobile devices. If you have ever used an online brokerage to trade stocks, then you will be able to relate the experience.
On the main dashboard, you can easily view your portfolio and start trading a few clicks away. Crypto markets operate 24/7 – meaning you can log in at any time and place a trade. You can use the funds in your wallet to make trades or through a connected bank account or card.
Coinbase Pro is a little more complex and is designed for professional traders. But this is not to say that others can’t use the platform. Sure there will be a learning curve, but anyone willing to put some time and effort in understanding the platform can trade with the pro version.
The good thing about the pro version is that it gives you access to several additionnal types of trades and features. These include limit and stop orders, real-time charting tools with moving averages and exponential moving averages, and more.
Coinbase now integrates with Paypal which makes it very simple to withdraw your gains from your trading account to your Paypal account.
It is also possible to buy cryptocurrency or add US dollars into your trading account using PayPal, but this option is only available to U.S. residents.
Coinbase is not very open with its fees and pricing structure. There have been complaints from traders that the charges on the platform are a bit high compared to other crypto exchanges.
Transaction costs are always shown on the trade screen whenever you place a trade. This helps you to know how much you will be charged before proceeding with the trade.
One way to save up on the fees would be to upgrade your account to Coinbase Pro, which uses a maker-taker fee structure based on the transacted amount as follow:
0.50% taker fee or 0.50% maker fee for transactions less than $10K
0.35% taker fee or 0.35% maker fee for transactions between $10K to $50K
0.25% taker fee or 0.15% maker fee for transactions between $50K to $100K
0.20% taker fee or 0.10% maker fee for transactions between $100K to $1M
As opposed to money in a bank account, coins are not protected by federal regulations. However, the company uses industry-leading security practices to guarantee the safety of customer deposits and assets.
Nonetheless, there are always risks associated with cryptocurrency trading. While the company has the responsibility to protect your deposits and assets, you should also play your part in following the best online practices to keep your account information private.
According to Coinbase, 98 percent of customer assets are kept offline through cold storage within a network of safe deposit boxes across the world. The deposits in cold storage are supported by digital and paper backups.
The company also utilizes bank-standard encryption and security to protect its website. Besides, it is mandatory for all accounts to use two-factor authentication. So yes, Coinbase is very safe even for beginners.
That been said and despite all the security measures, thousands of user accounts have been hacked and money stolen. It is therefore important to avoid using weak passwords and change them from time to time when accessing any financial websites, including Coinbase.
If someone gets access to your phone or email, they can easily log in to your account and steal your money.
It is quite easy to sign up for Coinbase, almost similar to opening an online bank account. You will need to enter your personal information such as Social Security number contact details to open a verified account. If you are opening an account for the first time, you will also be required to provide a picture of your driver’s license or government ID.
If you'd like to sign up for a new Coinbase account, you can do so by clicking the button below.
Coinbase provides a LOT educational materials and tutorials teaching you about different cryptocurrencies. This is perfect if you are new to the crypto world and are just starting out.
In addition to the great educational content available, Coinbase Earn allows you to earn free cryptocurrency while learning, which is not something I've seen anywhere else.
All you need to do is answer a short quizz after you completed any of the available courses.
Once you successfully gone through the course and passed the quizz, the coins will be deposited into your account and will be available for you to trade.
Although Coinbase has a lot of good things to offer, I can say that customer service is one area that they need to improve on. It is almost impossible to contact an actual person in case you have any issues on the platform. You should consider this exchange as a self-service portal.
Here's what I found to be the biggest strong and weak points of using Coinbase as my crypto exchange, based on my own experience and friends who are also using it.
Easy to use: It is very easy to use irrespective of whether you are a beginner or experienced trader.
Supports a large number of cryptocurrencies: You can trade more than 100 cryptocurrencies on the platform.
Easy to sign up and start trading
You can gain free cryptocurrency or earn interest on your balances.
Withdrawals via Paypal available
High transaction fees
Unreliable customer service
From personal experience, Coinbase is one of the best cryptocurrency trading platforms. I have used several crypto exchanges, but I keep coming back to it mainly because of its ease of use, its Paypal integration and the good number of cryptocurrencies available to trade.
This however doesn’t mean that it doesn’t have any downsides. For example, getting in touch with a human customer representative is almost impossible on the platform. You must also accept to pay higher fees than most of the other exchanges available.
But all in all, Coinbase is a great crypto exchange, especially if you are new to crypto.
So, open up your Coinbase account today and start trading & investing in cryptocurrency!
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