Coinbase: What it is and how to use it

Coinbase: What it is and how to use it

Buying and selling cryptocurrencies is what, after all, allows you to do an exchange like Coinbase.

However, suppose you want to get the most out of financial investments in cryptocurrencies or own digital currencies for online purchases and payments. In that case, you certainly can’t limit yourself to looking for such an essential service.

It is for you, and for all those who – like you – are looking for an exchange full of services and advantages, that we wanted to dedicate this complete maxi guide to Coinbase.

What is Coinbase: Review

Let’s start with the basics 😉

Coinbase is a cryptocurrency exchange, a “place” to buy and sell digital currencies such as Bitcoin, Ethereum, Ripple, and many more.

Coinbase Developers founded it in 2012 in California, San Francisco. Over the years has ended up becoming a global leader in providing a digital currency platform where sellers and consumers can transact with digital currencies.

It also has a wallet, a wallet in which – if you want – you can keep your cryptocurrency.

Today, this cryptocurrency exchange is so important that dozens of global investors have joined its project, financing it with more than 200 million dollars.

From Andreessen Horowitz to BBVA, from MUFG to USV, many well-known names have chosen to trust Coinbase. A further guarantee of safety and quality!

How Coinbase works

Now that you have it in mind that Coinbase is a severe and professional trader, you probably wonder what you can do with Coinbase. How exactly does it work?

Well, to fully expose all that Coinbase has to offer you (and, believe us, it is no small thing!) First, we wanted to outline all the Coinbase products in the following list.

We will deal with each of the following points in the next paragraphs, but – in the meantime – we are sure it will be helpful for you to start orienting yourself in the wide range of services that Coinbase guarantees you between:

  • Exchange: buying, selling, and using cryptocurrencies;
  • Wallet: safe storage of your cryptocurrencies;
  • USD Coin: purchase and trading of a stablecoin, which is a cryptocurrency that has a stable price;
  • Earn a helpful function to improve your knowledge on cryptocurrencies and earn them for free;
  • Pro: it is the function intended for expert traders for advanced cryptocurrency transactions.

We, therefore, limit ourselves to mentioning the services of:

  • Commerce: acceptance of cryptocurrency payments;
  • Custody: conservation of cryptocurrency with a service dedicated to institutions;
  • Ventures: you can do fundraising for your startup.

Let’s explore each service in the following paragraphs!

Coinbase Exchange: account opening

Let’s start by immediately getting to the heart of Coinbase’s primary function: that of “Stock Exchange,” or rather a platform where you can buy, sell and use cryptocurrencies.

But how to do it?

The first thing you absolutely must do is register for free here on the official Coinbase website. Don’t be afraid – the procedure is quick, painless, and, most importantly, simple!

Opening an account on Coinbase

Opening an account with Coinbase is easy and will take you a few minutes!

You will find yourself in front of the “Create your account” screen, where you can register in a few minutes for this exchange. Insert:

first name,

last name,

e-mail,

password,

and put the checkmark on “I declare that I am at least 18 years old and accept the User Agreement and Privacy Policy documents.”

Then click on ‘Create an account.’

At this point, Coinbase will inform you that the exchange supports the RGPD, protecting your data and respecting general data protection.

From this point onwards, a pretty much registration process will begin. Coinbase will guide you step by step in carrying out each activity, starting with verifying the e-mail address (you will need to click on the link in the message you have just received) to filling in the financial questionnaires and sending the identity documents.

Once you have completed this process, you can finally start trading, getting to the heart of the platform.

Coinbase login

Now that you have registered on Coinbase, you can finally log into your account and operate as you like.

To log in to Coinbase, you need to access the official website and click on “Login,” which you can find at the top right.

On the new page that will be presented to you, enter your e-mail and password, choose whether to stay connected or not on the device you are using, and click on “Login.”

At this point, you’ll need to make another little effort and enter the verification code that the system just sent to you via SMS. Click on “Verify,” and that’s it: you’ve just logged into Coinbase!

But why these steps?

We remind you that Coinbase takes your security very seriously and, for this very reason, has adopted two-factor authentication:

  • username/e-mail and password;
  • verification code that you will receive on the mobile number indicated.

However, if you think that this double step is superfluous because maybe your account is empty or you feel safe enough, you can check “Do not ask for the code for 30 days when I use this computer”.

However, we recommend that you always leave two-factor authentication operational, mainly if – like us – you are used to connecting above all with the app and less from the desktop. In this way, it will guarantee your protection!

We also remind you that access to your account from the app does not require this double authentication. Therefore, it will be sufficient to download the application for iOS or Android and carry out the identity verification through the app to have even more streamlined access.

Coinbase trading platforms

Once you have logged in, all you have to do is get your hands on the Coinbase trading platform.

You will immediately notice that Coinbase offers you many opportunities for action. Still, it will certainly not be challenging to find your way despite this breadth of things to do.

The first thing you should do, however, is to get your account fully operational.

To do this, verify your account by confirming your e-mail address and telephone number and, immediately after, add a payment method of your choice between your current account or credit/debit card.

Complete the account on Coinbase How to complete the account on Coinbase by adding the payment method.

Even if this does not necessarily have to be the reason, Coinbase indicates the current account as the preferred payment tool for those who want to invest large amounts. At the same time, the cards are mainly addressed to users who invest small amounts.

Deposit on Coinbase Current account or credit/debit card; the choice is yours!

Whatever your choice, all you have to do is follow the brief instructions that Coinbase will provide you to connect your favorite payment instrument and, consequently, to be able to transfer your funds to and from your account in a few moments.

But at what prices?

Coinbase: fees and costs

Considering that we are now mentioning it, let’s pause the exploration of the Coinbase trading platform and tackle one of the most delicate issues: Coinbase’s fees and costs.

But why is the issue so delicate?

It’s elementary! The fees you will incur by carrying out transactions with exchanges could significantly impact the result of the dealings.

Let’s be clear: Coinbase is one of the best exchanges globally in terms of commissions, but despite this, it is good to have clear in mind what it means to use the Coinbase platform and services. And that’s why we are here!

Coinbase Wallet

Let’s start with the good news. To buy cryptocurrencies with Coinbase, you must have a wallet to deposit the digital currencies you have purchased.

Nobody forces you to use the Coinbase wallet but, if you want to do this, know that the digital wallet you can use within the exchange has no cost!

Coinbase offers a free dollar wallet. It means that the operator will deposit your currency and your cryptocurrency without any maintenance costs.

Not only that: Coinbase does not charge any costs for the transfer of cryptocurrency from one Coinbase wallet to another, with the operator who will bear the network transaction costs for you.

Costs of buying and selling cryptocurrency on Coinbase

Considering that the use of the wallet is free, the first commissions you will encounter on your way to using Coinbase are those related to the purchase and sale of cryptocurrency.

We remind you that Coinbase applies a spread of 0.50 percentage points for purchases and sales of cryptocurrency.

The spread can vary depending on the fluctuations of market prices, even if we do not register massive changes.

In addition to the spread, which we can define as an “implicit” cost, Coinbase also applies a commission that is the highest cost item between a fixed commission or a variable commission determined based on the type of payment asset and area ​origin.

The fixed commissions are equal to:

  • 0.99 euros if the transaction amount is equal to or less than 10 euros;
  • € 1.49 if the transaction amount is between € 10 and € 25;
  • € 1.99 if the transaction amount is between € 25 and € 50;
  • 2.99 euros if the transaction amount is between 50 and 200 euros.

Variable commissions, on the other hand, are equal to:

  • 1.49% for “standard” payments;
  • 3.99% for instant payments (only available for debit cards);
  • € 0.15 for bank transfers.

Note: You can visit the official website for further information.

Therefore, if, for example, you want to buy 100 euros of Bitcoin using a standard payment method, to find out what commission you will be charged, you will have to compare the fixed commission (2.99 euros) and the variable commission (1.49 euros).

Considering that the fixed commission will be greater than the variable commission, you will pay the fixed commission (in our example, 2.99 euros). Clear, right?

Cryptocurrency conversion on Coinbase

We conclude this in-depth analysis of Coinbase’s costs and commissions by discussing the latest rates for converting cryptocurrencies.

With the conversion operation, you can sell one cryptocurrency to buy another in a single transaction.

For example, you can convert Bitcoin to Ethereum or Ethereum to Bitcoin: In the first case, Coinbase will sell Bitcoin to buy the Ethereum equivalent, while in the second case, it will sell Ethereum to buy the Bitcoin equivalent.

To carry out these operations, Coinbase receives a spread of 2.00%. Again, we remind you that the margin can change according to market fluctuations. Coinbase does NOT receive any express commission for this operation.

How to buy and sell cryptocurrencies on Coinbase

Now you have a lot of information to proceed further, and, therefore, we can only try to simulate a purchase or sale of cryptocurrencies.

To do this, click on “Transaction” at the top of your dashboard:

Coinbase – button to access the functionalities – The button to access the operational functions of Coinbase.

At this point, Coinbase will ask you if you want:

  • purchase cryptocurrency using one of the payment instruments you have registered;
  • sell cryptocurrency by depositing into your euro wallet or other deposit;
  • convert the cryptocurrency into another digital currency.

The process is straightforward to follow, and you will certainly have no difficulty completing the transaction without room for error.

Moreover, Coinbase will allow you to establish the amount you want to buy and sell using your preferred reference currency, between fiat and cryptocurrency.

In short, you will not encounter any complexity or confusion in completing this transaction.

Once you have chosen:

  • cryptocurrency to buy or sell;
  • payment instrument to be used (for purchase) or deposit (for sale);
  • amount of the operation;

All you have to do is click on the purchase or sale confirmation button.

Instead of buying or selling cryptocurrency for fiat currency, what if you want to convert two of them?

Nothing simpler. Click on Convert and then choose the starting cryptocurrency (to sell) and the destination cryptocurrency (to buy).

Also, in this case, you will only have to indicate the amount (or click ‘Convert all’ if you want to convert the entire deposit into a specific cryptocurrency) and click on Confirm.

The operations are carried out very quickly, thus allowing you to find a good alignment between the price you see on display and the one at which the transaction is made.

You just learned how to buy and sell cryptocurrency on Coinbase.

Cryptocurrencies available on Coinbase

In the last paragraph, we got to understand how you can buy and sell cryptocurrencies. But what are the cryptocurrencies you can trade?

To date, Coinbase offers the possibility of trading dozens of cryptocurrencies, such as:

  • Bitcoin
  • Ethereum
  • XRP (Ripple) – currently NOT available
  • Bitcoin Cash
  • Litecoin
  • EOS
  • Tezos
  • Stellar Lumens
  • Ethereum Classic
  • Dash
  • and many others.

To find out the entire list, visit the official website here.

It is an extensive range of opportunities, which will allow you to respect your strategy in a reliable and influential way.

If you then click on one of the cryptocurrencies indicated in this list, you will access the details tab to find all the information you need to improve your knowledge of the specific digital currency.

Among the most interesting information, in addition to the graphs:

  • trading activities (how many traders buy/sell cryptocurrency);
  • typical retention time (i.e., the number of days you have held the cryptocurrency on your wallet);
  • popularity on Coinbase.

In the Wallet tab, you can also reconstruct the history of this cryptocurrency in your wallet (if present). At the same time, you can operate on the right side of the page by buying and selling the same digital currency.

At this address, you can open an account on Coinbase.

Coinbase Paypal

Can PayPal be used on Coinbase? Yes, but only to withdraw or transfer euros or US dollars from our Coinbase account to PayPal. It is not possible, at least for the moment, to do the opposite.

To connect our PayPal account to Coinbase, we will have to go to our name in the upper right corner of the page, choose Settings, and then Payment methods. From here, we can add our PayPal account, from which it will be possible to withdraw money for as long as we want.

To deposit the money within the platform, we will have to rely on the other systems allowed by Coinbase: credit card, bank transfer, or direct payment in cryptocurrencies.

To find out more, visit the official website here.

Cryptocurrency prices

One of the most exciting features of Coinbase is its transparency.

And it is precisely for this reason that one of the most prominent sections of its website is related to prices.

On the specific page of the exchange’s website, you will therefore be able to look at the prices in real-time of the various cryptocurrencies, not only those that you can trade on Coinbase but also those that are not yet available within the platform.

You will also be able to customize the tables based on the price in absolute terms, the positive or negative variation, market capitalization, and so on.

In short, you will have the opportunity to always have the evolution of the market under control without losing sight of every opportunity that may arise!

Coinbase security

In addition to the characteristics of simplicity, convenience, and professionalism, Coinbase convinced us for another reason: the excellent security of each operation.

For example, the exchange has strict controls when opening an account, thus allowing you to gain access to an account that closely connects to your person. With the maximum protection, you can enjoy at every stage of your relationship. with the exchange, including the registration fee.

Furthermore, every time you log into Coinbase, it will subject you to two-factor authentication. So, in addition to entering your e-mail and password, you will also need to enter the “disposable” code sent to you via your mobile phone.

Not only that: when you log into your Coinbase account for the first time from a new device, you will also have to make an additional step in terms of security by clicking the link you will receive via e-mail.

Of course, you can manage the various security settings as you like, but:

in any case, Coinbase will maintain an essential, fundamental, particularly advanced level of security;

we advise you to lower the safety levels too much, instead of keeping them as preventive as possible!

And if you need to know more, we remind you that on the Coinbase website, there is a rich section dedicated to security (you can find it by clicking on “Do you need help?” At the bottom of each page).

Open an account on Coinbase (free on the official website) and then log in to Coinbase Earn. This way, you will earn free cryptocurrencies, and, in the meantime, you will realize how great this platform is!