What is coinbase?

Coinbase, coinbase.com, is the most trusted digital currency exchange platform in the world.

​Launched in 2012, it now holds the title of “largest exchange of cryptocurrency in the world” serving over 12 million customers across 32 countries. Coinbase is easy to use, and you can access it via their website (www.coinbase.com) or download it on your Smartphone (iOS and Android).

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What is coinbase.com

Coinbase presents its users with an easy to understand interface, suitable for beginners. It offers a platform where you can mine, trade, convert, store and exchange cryptocurrencies including Bitcoin, Bitcoin Cash, Etherium, Litecoin, and Etherium Classic. They also provide learning resources and responsive customer support to new traders.

​More experienced users, on the other hand, prefer to use Coinbase Pro which offers more features such as real-time order books, price charts, market orders, limit orders and so on.

​Coinbase.com enables you to purchase crypto using traditional currencies like dollar, euro, pound and more.

​Moreover, you can earn crypto coins through the Coinbase Earn learning portal by watching tutorials on digital currencies and resolving quizzes. You can get rewarded for referring the program to your friends.

​How Does Coinbase Work?

How to setup a coinbsase.com account

​Trading cryptocurrencies for the first time can be a bit intimidating and overwhelming, but Coinbase.com is known as beginner-friendly crypto exchanging platform.

​Listed below are a few steps to create an account that you will later use to start trading:

​1. First, you will need to sign up on their website to create an account; fill in your necessary information (name, email, address), set up a password, certify your age (18 and above) and click to agree with their terms and conditions.

​2. Second, Coinbase will send you a verification email and once verified; you will have to choose your account type (personal or business). After,

​3. In the third step, input your country and phone number. You will receive a code of 7 digits that you directly enter.

​4. After entering the code, the next step is ID verification where you will enter your full personal information and an ID photo. At this step, you can enable a 2-factor authentication method for more security.

​5. Once your ID verified, add your payment methods. Coinbase.com accepts credit/debit cards and bank transfers as payment methods. It also accepts wire transfers but only for single large payments.

​This process means that you will link your bank account or credit/debit card to your Coinbase account.

​At this point your set up is complete, and you can start using the platform. However, note that a bank account verification takes longer to verify compared to credit/debit cards (5 business days).

How to buy or sell on coinbase.com

​Buying or selling on Coinbase.com is easy, thanks to their simple interface: if you want to buy, for example, click on "Buy/Sell" button, select the currency you wish to trade, payment methods, the amount in dollars, enter your password and other security codes.

​Coinbase imposes higher limits and a fee for each transaction. However, the price depends on your method of payment:

​Bank account: Bank accounts are better for a more significant transaction, but the transfers (both deposit and withdrawal) can take 2 to 5 days to complete. Coinbase.com charges you 1.5% per transactions and set a higher limit of 7500$ per week. You can apply for a higher limit of 50.000$/week depending on the money in your account.

What is Robinhood, Robinhood.com

​Credit/Debit card (Visa, MasterCard): Credit/Debit card is the best choice for smaller and instant transactions. Coinbase imposes lower limits of 300$/week and charges 3.99% per transaction.

​The real downside of this payment method is that you cannot use credit or debit card to sell crypto on Coinbase.

​Both of these payments methods are safe, knowing that Coinbase is a regulated and an FDIC insured company; it also backed by many US investors such as Manhattan Ventures Partners, Tiger Global Management and so on. Also, use a "cold storage" system which means that your information can not be accessed through the internet.

Coinbase wallets

​Coinbase provides you a “wallet” feature that you can use to store, receive and send money (digital or traditional currencies) to other accounts. The wallet also allows you to store USD funds and manage multiple cryptocurrencies (Coinbase currencies plus ERC-20 tokens).

​As a Coinbase.com account holder, you can use the Coinbase wallet app by downloading it on your smartphone and connect it to your Coinbase account; it usually takes two days to process transactions.

​To deposit crypto into your account, first, select "Account" tab on your screen and click on "Receive." Coinbase will then give you a QR code address to which you will send the money. To access your funds, you will need to use a private key which is a number encrypted and protected in the browser that only you can access.

​However, you need to make sure that you are depositing or sending the cryptocurrency to the right wallet because Coinbase doesn't allow you to store different crypto in the same wallet. For instance, you cannot send Ether coins in a Bitcoin wallet.

​To send cryptocurrencies to another account, select the “Send” button, fill in the recipient's address and input the amount you want to send in dollars (it will automatically show the amount in crypto).

Coinbase offers three types of wallets:

  • ​Coinbase wallet: With this type of wallet, you have a private key but, Coinbase can track how you use your crypto coins but rest assured that your account information will never leak. However, Coinbase has the right to block you from accessing your account if they detect unusual transactions like a new device multiple attempts to access your account.
  • Coinbase Vault: If you have a large amount of money in your account, Coinbase provides you with a unique and secure solution to store it. This vault accepts multiple users, and each one has their private key; each participant has to approve of withdrawal before action. Coinbase Vault accounts can also be shut down following alarming behaviors from your account.                    
  • Coinbase Vault: If you have a large amount of money in your account, Coinbase provides you with a unique and secure solution to store it. This vault accepts multiple users, and each one has their private key; each participant has to approve of withdrawal before action. Coinbase Vault accounts can also be shut down following alarming behaviors from your account.          

​In conclusion, Coinbase is a flexible platform with many pros but also some cons:

Pros

  • ​Easy to understand interface, great for beginners
  • Provide learning programs
  • ​Safe storage for your funds and personal information
  • Easy access to your Transaction history from the link to your bank accounts
  • You can cash out your funds and use it for your everyday purchases or use the coins to buy online services (apps, games, and so on)
  • You can easily switch to Coinbase Pro if you are looking for a more advanced experience on trading crypto.

Cons

  • ​Instant monitoring of users’ accounts: Many people are bothered by Coinbase tracking their financial affairs
  • High Costs
  • ​Limited cryptocurrencies

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