Coinbase is a cryptocurrency exchange where you can buy popular coins like Bitcoin, Ethereum, and Litecoin. Not every coin is supported on Coinbase, but there are more than 90 different types of cryptocurrencies on the platform.
The invention of cryptocurrency genuinely solved the problem of financial centralization. On the other hand, it necessitates a certain amount of risk-taking. Bitcoin was launched in 2009, and as we all know, it introduced decentralization. Instead of replacing cash, it was employed as a store of value. In 2018, the value of this currency increased, making every possessor wealthy in a matter of months. Unfortunately, people’s worth dropped by more than 80% the next year. By the way, volatility is one of its hallmarks. However, in 2021, bitcoin regained its value and is now worth over $30,000. (as of the time of this writing).
The hot topic these days is buying and trading bitcoin and other cryptocurrencies. Bitcoin is understood by even a 10-year-old. Coinbase is one of the most prominent exchanges nowadays. We’ll look at coinbase as a crypto exchange in this article.
Founded in July 2011 by Bryan Armstrong, Coinbase is a licensed and regulated cryptocurrency exchange that operates under federal and state oversight. It is now one of the world’s largest crypto exchanges, with over $500 million in funding and more than 30 million customers. Coinbase and Coinbase Pro are the two platforms operated by the corporation. Buying, selling, storing, and trading digital currencies are all functions performed by each of these services. Then again, each one has its own unique characteristics.
FEATURES OF COINBASE PRO
Because it is called “pro,” many people assume it is exclusive to crypto professionals, however, anyone with a Coinbase account may log in and utilize the pro version. This is not the case. More trade kinds, such as limit and stop orders, which are not available on the core Coinbase platform, are available through this add-on. Advanced capabilities for seasoned traders are available to Coinbase Pro members. Charting features, including moving averages and exponential moving averages, are available in an easy-to-use program. View your trade history, orders, and price charts all in one convenient place.
Coinbase has a variety of transaction kinds, including buy, sell, transmit, and receive, which is a big difference. Stop orders, limit orders, and margin orders are just a few of the more advanced features available in Coinbase’s pro version.
COINBASE TRADING FEES
Coinbase has lately deleted its complete fee schedule from the Coinbase online support section, making it difficult to get an accurate price quote. When you enter a deal, the costs are displayed on the trade screen, so you know exactly how much you’ll be paying. When it comes to fees, Coinbase is more expensive and more difficult to understand than Coinbase Pro.
For a fraction of the price, Coinbase Pro offers a maker-taker model. As stated by Coinbase, the “base rate for all U.S. purchase and sale transactions is 4%” The costs, on the other hand, are dependent on your location and mode of payment.
Depending on the payment option, Coinbase charges a higher flat rate or variable cost. Tiers in Coinbase Pro are used to reduce transaction costs as you increase your dollar amount. By trading on the Coinbase Pro platform or withdrawing funds from your bank account or digital wallet, you can avoid access fees. It’s possible to rack up hefty costs on Coinbase even if fees on other exchanges are equivalent. There is a percentage-based transaction fee for transactions over $200. If you use a less common service or method of depositing or withdrawing money from your account, you may be charged an additional fee.
Coinbase employs field-tested security measures to protect customers’ cash and assets. Following online best practices is vital to protect your account information while dealing with cryptocurrencies.
Coinbase stores 98% of its customers’ money in cold storage, which is a type of safe deposit box. To protect the remaining 2%, Coinbase has an insurance policy in place to pay for any losses incurred as a result of security breaches at Coinbase’s facilities.
Hackers and scams have been able to deplete the accounts of thousands of people, despite the employment of these high-tech measures. Coinbase and other financial websites require unique, random passwords in order to avoid this kind of loss. Always keep your email and phone accounts private, because anyone who has them can access your account.
The Coinbase platform is just as secure as Coinbase and Coinbase Pro. The Federal Deposit Insurance Corporation (FDIC) protects up to $250,000 in cash deposits for each individual in the United States. The exchange is quite open when it comes to the security measures it has in place for traders who trade on the website or mobile app. Biometric fingerprint logins and two-factor authentication (2FA) are available on all accounts. AES-256 encryption is used to protect the digital wallets and private keys. Your password is, of course, your responsibility to ensure it is safe and strong. You can also store your funds in your own offline cold storage with Coinbase Pro
HOW TO CREATE A COINBASE ACCOUNT
- In your web browser of choice, go to Coinbase.com and click on the Sign-Up button in the top-right corner.
- A form will appear with fields for your first and last name, your email address, and a password. Make sure to use your real name as shown on your passport or driver’s license as using an alias could delay the confirmation of your identity later on. Double-check that your email is written correctly as well.
- Choose your password. Make sure to use a combination of upper and lowercase letters in addition to at least one number.
- Press the Create Account button.
- A confirmation email will now be sent to your chosen email address. Visit your email inbox and open the email. Within it should be a confirmation link. Clicking on it will open a new browser window which will activate your Coinbase account.
- You will now be presented with a set of steps for confirming your identity. You can skip this for now and do it later but it is worth setting up as the more information you give them, the more cryptocurrency you’ll be allowed to buy per week and the more secure your account will become.
BENEFITS OF COINBASE
- Beginners may easily purchase, trade, and swap bitcoins using Coinbase’s main website or mobile app because they are simple to use.
- More than 100 cryptocurrencies are presently supported by Coinbase, and this figure is constantly increasing.
- There are many ways to make money with cryptocurrency: The Coinbase Earn program allows you to earn interest on your qualified amounts, or to obtain a small amount of a different currency.
- Switch to Coinbase Pro, the trading platform that offers lower costs and a wider range of trading options: Anyone can do so.
DISADVANTAGE OF COINBASE
- High transaction fees: Transaction fees on the principal Coinbase platform are sometimes high.
- Coinbase’s customer response is abysmal, even in the event of a significant account security breach.
- Even though Coinbase has an amazing range of currencies, many altcoins aren’t available for trading.
- Coinbase’s centralization is a key drawback for the service.
- Managers have access to the funds of the users.
- Decentralization is at the heart of the blockchain, and if it becomes overly centralized, it defeats the point of the technology.
Frequently Asked Questions
How Do Coinbase and Coinbase Pro Work?
Whatever method you pick, creating a Coinbase account is required regardless. A new password and your email address are required for this. The second step in the two-step authentication procedure is to validate your phone number once you have verified your email address.
Users in the United States are required to supply their Social Security number, while those in other countries are required to provide a form of identity that is acceptable to the site. The next step is to enter your payment information, such as a credit, debit, or bank account.
Go ahead and set a budget before clicking “exchange.” You can buy coins in wholes or fractions, depending on your preference. Select the altcoin you want to buy, the method of payment, and press the “preview purchase” button. On this page, you’ll find your Coinbase fee, payment method, pricing, and purchase amount. For the final step in the buying process, click “purchase.”
Should I Use the Coinbase Wallet?
The Coinbase digital wallet is available as a stand-alone app for iOS and Android mobile devices. You’re not required to use the Coinbase platform to conduct your trading. Control over your crypto assets is provided through Coinbase Wallet, which stores the keys on your smartphone. It is possible to save digital tokens and collectibles in your account as well.
Because the Coinbase Wallet uses two-factor authentication instead than one, it is more secure than other wallets. Managing cryptocurrency from different wallets is also possible. After selecting a third-party wallet and entering your 12-word keyphrase, you will be able to access your cash. In order to choose a wallet that meets your requirements, you must compare the top Bitcoin wallets available.
Who Should Use Coinbase or Coinbase Pro?
For those who are new to bitcoin investing, both Coinbase and Coinbase Pro include user-friendly smartphone applications. Restricting the types of transactions you can do, makes things easier for you.
Coinbase Pro is a terrific option for expert investors. It’s simple to use, but there are a lot of options. While fees on the Coinbase Pro platform will save you a significant amount of money, you’ll be able to accomplish a lot more on the platform. Most people can begin using Coinbase Pro after taking a cryptocurrency trading course.
Coinbase is, in spite of its flaws, an excellent platform for beginning traders to begin their careers. Since this location is still very new, there is still room for further development and enhancement. One piece of advice that we will leave you with is to make sure that you take all the necessary safety measures before using any platform. Find out what you’re doing, do your homework, and implement stringent safety precautions to prevent the loss of your money.