With the growing popularity of Coinbase, the demand for an effective Coinbase guide is also increasing. In fact, over the past few years, investment and interest in cryptocurrencies have increased rapidly. With this, the importance of secure and safe crypto exchanges is on a rise. In fact, there are many exchanges that facilitate the purchase of cryptocurrencies. However, not all of these are trustworthy. There are only a few exchanges that are worthy of our time and attention. Coinbase is one such exchange.
Coinbase was first launched in 2012, in San Francisco. At present, it is operational in 32 countries and has accumulated a massive user base of over 12 million. However, it has already served the exchange of over $40 billion in digital currencies. In 2013, within just a year of its launch, Coinbase became the largest exchange of cryptocurrency in the world. In addition, it also became the highest-funded Bitcoin startup at that time. There are various unique features of Coinbase.
One such feature is that it allows its users to trade their cryptocurrency at a set price. The set price is based on the current market values of cryptocurrencies. The other exchanges offer no such service to their users. Moreover, it is easy to use. If you wish to learn more about Coinbase, then keep reading this guide.
Opening an Account on Coinbase
If you wish to open an account on Coinbase, go through the following steps:
- You need to sign in first, by providing your email id, name, address and password.
- After confirming your email id, a startup page will appear. There you need to make a choice between a business account and an individual account.
- The next step will ask you to verify your phone number in order to create a form of 2-factor identification for security reasons.
- In the next step, you will have to select a payment method. Coinbase allows two payment methods- credit card and bank transfer. The platform will verify your bank account, in case of bank transfer, by setting up one or two small transfers to and from the account. For credit cards, a screenshot of the credit card is needed. In the US, a bank transfer can take up to 4 to 5 days to complete. On the other hand, transactions through credit cards are instant.
- After you add funds to your account, you can easily buy cryptocurrencies now. Before, finalising the transactions, Coinbase will show you the details of the service fee and the amount of cryptocurrency being purchased.
Coinbase Guide: Fees
Depending on your payment method, Coinbase will charge fees ranging from 1.49% to 3.99%. In fact, using credit cards are likely to result in higher fees. However, when compared to other platforms like Coinmama or CEX.
You can easily purchase Bitcoin, Litecoin, Ethereum and a whole range of other cryptocurrencies through Coinbase.In addition, this platform also handles Coinbase Pro Exchange, for pro traders.
Difference Between Coinbase and Coinbase Pro
This is an interesting section of the Coinbase guide. Coinbase Pro was initially named GDAX back in 2015. Later in 2018, the name was changed to the one that we now use. This was done to separate the exchange element of the platform from the casual consumer platform. Using GDAX as buying/trading platform will let you avoid Coinbase fees.
In fact, the platform automatically links a Coinbase Pro account to every Coinbase customer. However, Coinbase Pro appeals to more advanced traders.
Countries Supported by Coinbase
Coinbase supports the following countries:
- Czech Republic
- San Marino
- United Kingdom
- The United States.
Coinbase Guide: Limits of Transaction
Various countries have various transaction limits In fact, variation in transaction limits also occurs due to various payment methods. On the account’s limit page, we can also view our limits. The platform also allows users to apply for higher limits. However, these applications do not apply to credit card transactions.
If you wish to apply for higher limits, you will have to verify your identity. Those who are full residents of the US can make transactions up to $50,000 in a week. On the other hand, if you are a verified customer of Europe, then you will be able to make transactions up to $30,000.
Coinbase puts the top priority on the security of its customers, Therefore, the platform employs a number of security protocols to secure sensitive information of the users. For instance, the platform uses AES-256 encryption to store passwords and OAuth. Moreover, to prevent third-party monitoring, all traffic goes over SSL.
Coinbase also protects all personal data of the users, in accordance with Data Protection Act 2018 and the General Data Protection Regulation. Moreover, a Coinbase Card is fully regulated and issued by Paysafe Financial Services Limited.
The Coinbase guide would remain incomplete without references to the Coinbase Card and the Coinbase Wallet. At present, only Coinbase users based in the UK are able to use the Coinbase Card to easily spend cryptocurrencies both in-store and online. The users can use this card at any location integrated with the Visa network.
The cards also support ATM cash withdrawal. On the other hand, Coinbase Wallet is a non-custodial digital currency wallet. It is user-controlled and the Coinbase Wallet application is a decentralized app browser.