Coinbase: A beginner’s guide to cryptocurrencies

In a short period of time, cryptocurrencies have grown from a small alternative investment to an investment with a collective value of around $2 trillion. Whether you’re looking to invest in cryptocurrencies or use them as a form of payment, you’ve probably heard of Coinbase.

After all, with tens of millions of users, it is one of the most popular cryptocurrency apps online . It is also one of the easiest ways to buy cryptocurrencies, which has helped its popularity explode.

In short, Coinbase is a cryptocurrency exchange where you can buy popular coins like Bitcoin , Ethereum , and Litecoin . Not all coins are supported on Coinbase, but there are over a hundred different types of cryptocurrency on the platform. Coinbase lets you trade the most popular types of crypto around the world.

All of this makes Coinbase a great place for new crypto investors to buy and sell their favorite coins. But is it safe to use? What about fees? We’ll answer these questions and more below.

How to Use Coinbase Properly: A Beginner’s Guide to Cryptocurrencies

If you’re new to the Coinbase app and maybe even cryptocurrency in general, this may all seem hard to understand. Don’t worry, it’s actually very simple, and we’ll walk you through how to get started.

How to Open a Coinbase Account

Opening a Coinbase account is easy. Here’s what you’ll need to create an account:

  • Be at least 18 years old
  • A government-issued photo ID, such as a driver’s license or national ID card.
  • A computer or smartphone with internet access
  • A phone number for SMS verification
  • The latest version of your internet browser

If none of this is a problem for you, you are ready to create an account. To do this, enter your first and last name, your email address, your country of residence and create a password. You will also need to check the box confirming that you are at least 18 years old. The only thing left to do next is to set a password. Be sure to set a strong and unique password to keep your account secure.

You will also need to add a payment method in order to be able to transfer money to your Coinbase account. You can use a variety of methods, including a linked bank account, credit card, PayPal, Apple Pay, or wire transfer.

See also  How to properly manage your cryptocurrency portfolio? 4 essential tips to follow

Once you’ve created your account and added a payment method, you’re ready to start trading cryptocurrencies.

What Cryptocurrencies Does Coinbase Support?

What cryptocurrencies does Coinbase support?

Although Coinbase does not support all existing cryptocurrencies, it does support most of the most popular coins. Most people buying and selling on Coinbase will therefore have no problems. However, more experienced traders might need to create an account elsewhere.

More than 100 cryptocurrencies are already available on Coinbase, so we will not mention them all. But here are some of the most popular coins you will have access to:

These are just a few of the coins available on Coinbase, but you can find a full list on their website.

How much does a transaction cost?

Fees on Coinbase can be a bit complicated, but they depend on your account type, transaction size, and funding source. Several factors can affect the fees you ultimately pay, including your country, payment method, and the cryptocurrency you choose to buy or sell.

For small transactions, you will pay a surcharge of 0.5% of your transaction value, plus a fixed fee based on the size of your transaction.

Coinbase lets you buy fractional coins, so you can still buy small amounts. The cost of the transaction markup is already included in your purchase or sale price.

Transaction fees gobble up a significant portion of your purchase for small amounts.

If you are a more advanced trader, Coinbase Pro may be worth considering. With the Pro version you will find additional trading options and improved charting functions. Coinbase Pro also offers a simpler (and lower) fee structure.

The easiest way to familiarize yourself with Coinbase fees is to preview a transaction, which you can do by following the steps below.

How to buy and sell cryptocurrency on Coinbase

How to buy and sell cryptocurrencies on Coinbase?

If you’ve already linked a payment method to the app, buying and selling is very easy. Once logged into your Coinbase account, here are the steps to follow to buy cryptocurrency:

  1. Click the Buy/Sell button
  2. Indicate if this is a one-time purchase or a recurring purchase (daily, weekly, monthly)
  3. Enter the amount of your purchase.
  4. Select the cryptocurrency to buy.
  5. Select your payment method.
See also  Discover the Filecoin ($FIL) blockchain

Keep in mind that when purchasing using a bank account, the transaction typically takes 3-5 business days, according to Coinbase.

Selling on Coinbase is even easier. Simply enter the amount you wish to sell (or select “sell all”). Then indicate which coin you want to sell and how you want to be paid. Note that the same fees apply to buying and selling.

Is Coinbase safe?

It is natural to wonder if Coinbase is safe, especially if you invest a lot. Moreover, it is still a relatively new platform. While Coinbase is generally a secure platform and has security measures such as two-factor authentication, it is not impervious to attacks.

A quick search online reveals reports of Coinbase users whose accounts were emptied overnight. Experts point to the swapping of SIM cards as one of the causes of these incidents.

While that may sound scary, that doesn’t mean you should avoid Coinbase. There are steps you can take to make things even harder for would-be hackers, like using what’s called a virtual wallet.

The idea behind this type of wallets is that you are not dependent on Coinbase to store your money. They allow you to store your own crypto using an app or software. So even if someone accesses your Coinbase account, they will not have access to the wallet, where your cryptocurrency is stored.

The downside to this approach is that it requires you to remember your own password, also known as a “private key”. If you’ve heard of people losing millions because they no longer had access to their cryptocurrency wallet, it’s probably a virtual wallet. Although this method is more secure, it is your responsibility to ensure that you can access your wallet.

Earn bitcoin by signing up on Coinbase

On the Coinbase app, there are different methods to earn some cryptocurrency tokens. Coinbase gives you the opportunity, for example, to learn more about some little-known cryptocurrencies, in exchange, it transfers you a few euros in these cryptocurrencies. You can for example win XLM , AMP, MLN etc…

See also  How to switch to NFT mode on Twitter (by cheating)?

The second method to earn money on Coinbase is to invite friends to register on the application. For each referral, Coinbase pays you $10 in bitcoin to your account.

Here are the steps to earn money with sponsorship:

  • On the Coinbase app , click on “invite friends”
  • Copy your referral link and share it on social networks, with your friends, your family
  • Each person who registers on Coinbase thanks to you becomes your referral
  • Once your referral spends a minimum of $100 on Coinbase, you receive $10 each in your account.

The sponsored user must make a purchase or sale of $100 (approximately €86) within 180 days of opening his account.

To conclude on Coinbase

Coinbase is an easy way for those unfamiliar with cryptocurrencies to get started. Its user-friendly interface makes it possible to buy and sell cryptocurrency in just a few clicks. Although not all types of cryptocurrencies are supported, you will find many of the most popular coins here.

One thing to keep in mind about Coinbase is that fees can add up, especially when buying small amounts of crypto. For example, you’ll pay a variable fee of $0.99 for buying cryptocurrency up to $10, which means your fee can reach almost 10% (on top of the transaction markup already included in the price).

These are some of the biggest reasons that while Coinbase is useful for beginners, it’s not for everyone. If you want to avoid Coinbase’s high fees and long processing times, there are plenty of other ways to buy cryptocurrencies like bitcoin.

And if you decide to invest in cryptocurrencies, make sure they are part of a diversified investment strategy. This means investing in proven assets such as stocks and bonds, and real estate if you wish.

Also, remember to keep cash on hand, ideally in a bank account or high-yield savings account. These measures should help you weather the volatility that often accompanies cryptocurrency investing.

If you liked this article, please subscribe to our reddit community to discuss it. You can also find us on Twitter and Facebook.

5/5 - (1 vote)
SAKHRI Mohamed
SAKHRI Mohamed

The blog of a computer enthusiast who shares news, tutorials, tips, online tools and software for Windows, macOS, Linux, Web designer and Video games.

Articles: 3757

Leave a Reply

Your email address will not be published.