How to use Coinbase: A beginners guide to using coinbase
Bitcoin, and other cryptocurrencies, have recently gained a lot of attention from the media and investment community. Their recent meteoric rise in value, the dangers of a cryptocurrency bubble, and the bankruptcy of one high-profile cryptocurrency exchange have led to concern about them as a legitimate investment vehicle. Fortunately, there are many trustworthy cryptocurrency exchanges and wallets out there that can help you buy, sell, and store your cryptocurrency. Coinbase is one such platform, and this blog will examine how it works and how it can help you manage your cryptocurrency portfolio.
1. What is Coinbase?
Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency. There are over 73 million users on Coinbase and more than $255 billion worth of cryptocurrency exchanged through the platform. Coinbase allows their users to trade Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ethereum Classic. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. It is headquartered in San Francisco with offices in Chicago, New York, Portland, London, Dublin, and Tokyo.
2. What is a digital wallet?
A digital wallet is a piece of software or hardware used to store, send and receive digital currency. An online digital wallet is often referred to as a hot wallet, as opposed to an offline digital wallet referred to as a cold wallet. Hot wallets run on an internet connected computer or mobile device. A cold wallet is a device or piece of software that is not connected to the internet. It is usually a USB drive used to store private keys to digital currency. It is important to keep your private keys safe because they provide access to your digital currency.
3. How to get started with Coinbase.
a. Coinbase Sign Up Process
Signing up with Coinbase has been made very easy. The sign-up process only requires an email and a password to begin. You will also be asked to verify your email address. You can also sign up with your phone number, but you will need to verify your phone number with a one-time SMS code.
After you successfully verify your phone number, you will be sent a confirmation link to your email address. Click the link and you will be taken to your Coinbase dashboard.
In addition, you should have a government-issued ID. All that’s left is to create your Coinbase account by choosing a username and password. When choosing a password, make sure it is unique and uses multi-factor authentication so as to prevent hacker from getting access to your account.
b. Coinbase Security
Coinbase is known as one of the most secure platforms to buy, sell, and store cryptocurrency on. But how secure is Coinbase? What steps does Coinbase take to ensure your account remains secure?
Coinbase’s security protocol is known as a multilayered security system. Multilayered security systems are a common way to maintain a high level of security on a website. This is because a multilayered security system employs multiple levels of security, which makes it harder for hackers to get through.
Employees at Coinbase undergo a criminal background check when they begin their employment there. To ensure that this background investigation is as thorough as possible, they use separate usernames and passwords across each service that their employees need to access. They implement two-factor authentication to help secure accounts online. They require all employees to encrypt the contents of their hard drives, use strong passwords and enable screen locking so that any important information cannot be accessed by unauthorized people if a laptop or computer were stolen or misplaced.
c. Coinbase Account
The Coinbase account dashboard will be the main interface for managing your cryptocurrencies. If you’re new to the world of cryptocurrency, you’ll need to create a free account. You can do so by entering your email address and creating a password.
Once you’ve done that, you’ll be taken to a page that asks you to provide your personal details and verify your identity. You’ll also be asked to provide your mobile phone number to verify your identity via text message. After you’ve verified your identity, you can start trading. To do so, click on the “Buy/Sell” tab in the main navigation bar on the home screen.
4. What cryptocurrencies does Coinbase support?
The Coinbase Wallet supports all ERC-20 tokens (including USDC and DAI), as well as BTC, BCH, LTC, XRP, XLM, and DOGE.
For a list of all the supported ERC-20 tokens you can send and receive on Coinbase Wallet, Tap the Receive button in the mobile app, then use the search bar to find the asset you want.
Coinbase Wallets support the purchase and transfer of crypto from Coinbase.com to Coinbase Wallets. Keep in mind that not all the coins are available on both Coinbase Wallet and Coinbase.com.
Transfers between Coinbase.com accounts and Coinbase Wallet are subject to network fees and proceed via the blockchain.
5. How to Use Coinbase?
a. How to Buy / Sell / Transfer / Store Bitcoin and Ethereum
Sign into Coinbase (or sign up if you haven’t already and get $5 off your first order), then click “Buy/Sell” in the upper right-hand corner. Select the assets you’d like to purchase from the Buy panel, then enter the amount of crypto you’d like to buy.
Select your preferred method of payment. Click Preview Buy and click Buy if the details look correct. If they do, click Checkout to complete the transaction.
You can always click the back arrow to adjust your purchase (your details can always be changed).
You can make this a recurring purchase by clicking One time purchase and selecting the frequency of the purchase.
You can follow the same process if you want to sell your crypto.
b. Coinbase Pricing and Fees
You can store your USD, supported cryptocurrency, and transfer crypto from one Coinbase wallet to another for free thanks to Coinbase’s USD Wallet and Hosted Cryptocurrency Wallet services.
You should note that this does not refer to Coinbase Wallet, which is a separate, self-hosted wallet.
The fees for transactions on cryptocurrency networks (e.g., for transfers of cryptocurrency off the Coinbase platform) are determined by their estimation of the network fees. Consequently, Coinbase charges a fee for transactions on these networks.
It is possible that the actual fees Coinbase pays vary from the estimated fees. All fees that Coinbase charges are disclosed at the time of the transaction.
You may need to pay fees to buy, sell, or convert cryptocurrency with Coinbase. Fees are based on various factors such as the selected payment method, size of the order, market conditions such as volatility and liquidity at the time you place your order. Before submitting your transaction, you’ll receive a trade preview screen that indicates your fees. These fees may differ from those for similar transactions.
When you use Coinbase to buy or sell cryptocurrency, or convert cryptocurrency, you will also see a spread in the price that Coinbase charges. When using Advanced Trade, no spreads are included since you are directly interacting with the order book. We can temporarily lock in a price for trade execution while you review the transaction details.
Conclusion: Coinbase is a good place for those who want to get into cryptocurrency but aren’t too familiar with blockchain. It is a safe, simple, and affordable place to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more. Coinbase is one of the most popular platforms for cryptocurrency, so why not give it a try?
Disclosure: This post contains affiliate links. Meaning I’ll receive a commission for every purchase you make via the links at no additional cost to you or to the decision you make after reading this post.