A Review Plus Guide on How to Use Coinbase for Cryptocurrency Trading: Is Coinbase Safe for New Beginners?
What is Coinbase?
Coinbase is a safe online platform that facilitates you to buy, sell, store, or transfer your digital currency. It is one of the largest cryptocurrency exchange platform globally and the most common in the US.
Coinbase main goal is to have an open financial system which allows the users to easily convert the digital coins into and out of the local currency. The Coinbase supports over 90 type of cryptocurrencies.
It has tens of millions of users globally which is why it is the most popular digital money exchange platform. So, is Coinbase safe to use for new investors in cryptocurrency? It is not only safe, but easy to use for all type of crypto traders, including the new traders. Let’s learn more about Coinbase in this article.
How Can I Start Using Coinbase?
When it comes to online digital platforms and investing your money, you are worried about the safety of the platform? For instance, before using this platform, you need to know, is Coinbase safe? To find out the truth, you need to do a deeper research of the platform, how it works, the cryptocurrencies it accepts and so on. Also, you should read reviews from people who have used the platform to ensure it is worth trusting with your finances.
Here is a guide on how you can start using Coinbase:
First, Coinbase is easy to set up and use. Details you need are: your legal name, date of birth, home address, a few digits of your identification document such as social security number. You must be 18 years or above to use this platform. Ensure all the information you provide is factual and can be easily confirmed.
1.First, download the Coinbase app in your device.
2.Open the app and click on get started icon
3. Create an account using your email address and tap the Start icon
4.Click on the link sent on your email to verify the email
5.Give your phone and use the code sent to the number to verify it.
6. Now, enter your personal details which includes your name, address, date of birth, your social security number.
7. Select how you intend to use Coinbase. For instance, do you want to invest, to make purchase, to make payments, or to invest other digital currencies.
8. Give out your source of income
9.Click on “let’s go”
10.Link your Coinbase account to your personal bank account
11. Log in to your bank account using your normal username and password. Click “continue”
12. You are now done setting your Coinbase account. You will be redirected to the main page of your account and you are ready to start digital currencies.
Buy and Sell Cryptocurrencies with Coinbase?
Buying and selling cryptocurrencies on Coinbase is easy and straightforward. Log into your account and follow these steps:
1.Click on the buy or sell button located at the top right corner
2.specify the nature of purchase. For instance, is it a one-time purchase, daily, weekly, or monthly.
3. Enter the amount of purchase
4. Pick the digital currency you want to buy
5. Select the mode of payment you want to use
Remember, when buying using your bank account, the transaction takes approximately 3-5 days to be complete.
When selling, enter the amount you intend to sell. Select the coin you want to sell and the mode of payment you prefer. The applicable fee when selling and buying are the same.
What is the Cost of Using Coinbase?
The cost of trading using Coinbase mainly depends with the type of account, the source of funding, and the size of the transaction among other factors. Other factors that affect the amount of trading fee are your location, the product, and the method of payment.
Generally, for smaller trades, you are going to pay 0.5 percent of the transaction value and the flat fee of the level of the transaction. Here is a breakdown of the payment:
The amount of transaction Fee
$10 or less $0.99
$10+ and less than $25 $1.49
$25+ and less than $50 $1.99
$50+ and less than $200 $2.99
For the transactions amount above $200, you are going to pay a mark-up spread value of 0.5 percent. The variable fee on more than $200 transactions are charged as below:
Method of Payment Fees Charged
U.S. bank account 1.49 percent
Coinbase USD wallet 1.49 percent
Debit card 3.99 percent
ACH transfer Free
Wire transfer $10 ($25 outgoing)
Instant card withdrawal 1.5 percent of any transaction and a minimum fee of $0.55
For advanced traders, you should consider the Coinbase pro. It has more trading options and better features. Also, it has lower and direct transaction rates. Before you start trading, it is wise to always check the rates and fees using the preview order.
Features of Coinbase
Trading Platforms- Coinbase is available in all states in the US except in Hawaii. It has two trading platforms which are the Coinbase Pro and the original Coinbase platform. The original Coinbase allows you to use US dollars. The Coinbase Pro has advanced features which allows you to conduct crypto-to-crypto transactions, to limit or stop orders, and to place market.
Cryptocurrencies Allowed- Coinbase supports more than 90 types of cryptocurrencies. You trade with all the popular coins at Coinbase. Common coins you can use at Coinbase are:
Cost of trading in Crypto- the charges that applies when trading with Coinbase depends on two factors: a 0.5% on cryptocurrency purchase and sales. This will depend on the market fluctuations. The second factor is a flat fee or variable fee depending on the payment methods or the amount of cryptocurrency purchased.
Features of Coinbase Pro
Coinbase is easy to use and great for new users. However, Coinbase Pro has far better features such as larger charting and trading experience. So, is Coinbase safe than Pro? Both the Coinbase platforms are safe.
Coinbase Pro allows you to place market, stop orders, and limit at a lower commission fee. It gives you an option of margin trading and great charting abilities.
When using the Coinbase Pro, you can see the short-term as line charts or 1-candle. You can use overlays such as exponential moving averages. The Coinbase Pro has two overlays and indicators available, the EMA (12) and EMA (26).
Coinbase has more than 100 trading pairs available globally which is more than 40 trading with USD and over 40 crypto to crypto trading pairs in about 42 locations. As compared to other leading trading tools in digital currency, Coinbase Pro comes first when it comes to the use of indicators.
Although the original Coinbase is good trading platform, especially for beginners, start using the Coinbase Pro. It has excellent features and lower fees for those who want to actively invest and trade cryptocurrencies.
How Secure is Coinbase?
Is Coinbase safe from hackers? Unlike regular wallets, the Coinbase wallet has added safety features that keeps your money tightly secure. In addition to the protection offered by the platform, as a trader you have to observe some safety measures to keep your account secure.
To enhance security, Coinbase uses two-step verification and biometric fingerprints to ensure safety of the account. Where your account has been hacked due to your failure to uphold security measures, the insurance does not apply.
Additionally, Coinbase stores up to 98% of the funds in offline cloud storage, which makes it hard for hackers to break in.
The whole of idea of Coinbase is to give you total control of your coins and trading deals without the need for intermediaries. While Coinbase is a safe platform, you need to educate yourself on proper security and storage of your cryptocurrency.
Pros and Cons of Coinbase
A wide variety of digital coins’ choice
Super easy user interface
High and great liquidity
High Safety measures
Require a low minimum to fund an account
The coins are insured in the event the website is hacked
It has price monitoring alert when it fluctuates
High trading fees not using Coinbase Pro
Tax information not well displayed
Coinbase is one of the biggest cryptocurrency trading platforms in the US with more than 68 million users and more than 100 digital coins. If you are still wondering, is Coinbase safe? The platform has attracted a lot of investors which means it is safe. The platform has a secure offline storage, where it stores all its digital assets. The digital assets owned by Coinbase are protected under a crypto insurance to a maximum of $250,000. Additionally, to enhance the safety of the platform, Coinbase has the best industry practices.
In addition, Coinbase is easy to use for beginners and more experienced traders. You can easily access the platform on any device, both the iOS and Android. It is the easiest and most secure place to start your crypto currency investment journey.