What is Coinbase Cryptocurrency?
Coinbase simplifies buying and selling Bitcoin, Ethereum, and Litecoin in 32 countries. It also offers a secure online wallet service. It is the world’s most popular bitcoin exchange for one reason: trust. When you sign up with Coinbase, it does not hold any of your money or data points (unless you want it to).
Transactions are processed on an external server just as if you were transferring money from one bank account to another. You can do everything from buy bitcoin (BTC), sell bitcoin, or transfer your funds to someone else’s wallet; all at the touch of a button on its app. The company even offers its own U.S. Dollar (USD) Wallet.
Coinbase charges a small fee for all crypto transactions (1.49% fee for credit card purchases). In addition, there is a .15% fee for bank transfers and wire purchases, which is typical of cryptocurrency exchanges. Most importantly, it is one of the most secure exchanges in the world with over 10 million customers and $20 billion in digital currency exchanged since 2012.
Coinbase Cryptocurrency: How It Works?
One of the first steps to using Coinbase is setting up your account using your name and email address. The Coinbase team will then send an email with a code to access your account. The first step is to create an account at Coinbase and verify your identity. From there, you can transfer funds from a bank account to Coinbase to start trading. Once you have funds in your account, you can browse the various cryptocurrencies available on the exchange by selecting “Buy/Sell” from the menu interface.
You can also buy bitcoin, ether, and litecoin directly through Coinbase if you are comfortable with trading digital currency directly from your bank’s site or app login page. In fact, most major U.S.-based banks offer direct access to their customers through this method for as low as $5 per transaction (per bank).
The purchase process for Coinbase is simple and straightforward. It requires you to enter the amount of crypto or U.S. Dollars that you want to buy, as well as the card or bank account from which you will be transferring funds. If the bank supports ACH transfers, they can be processed in a matter of minutes.
The final step in buying a cryptocurrency is entering your password for purchase authorization and confirming your transaction through email or text message. Once your purchase has been approved, Coinbase will credit your account within 5-10 minutes so that you can start transacting on its exchange platform and make trades right away.
Coinbase Cryptocurrency: Security and Verification
Coinbase provides banks with a sizable amount of information about their customers, including full names, birth dates, physical addresses, credit card numbers (VISA/MasterCard), social security numbers (SSN), and account balances.
It requires this information because it must verify the user’s identity as well as keep track of all the transactions that take place. However, Coinbase also ensures that all sensitive information is encrypted and handled in a secure way. In addition, some users may be able to cover a small portion of the fees in order to get faster transaction times.
Coinbase Cryptocurrency: Fees and Limits
The Coinbase fees are dependent on the method of payment; credit cards have higher fees than bank transfers, and ACH transfers (from bank to bank) can also get a lower fee.
The fees are 1.49% for credit card purchases, 3.99% for purchases by debit card, and 1.50 for ACH transfer purchases (debit/credit). There is also a .15% fee for wire purchases which most cryptocurrency exchanges charge. The fees are a bit higher than what is typical for other exchanges.
Coinbase’s transaction limits fall between $1,000 and $50,000. There is no limit on the volume of transactions. Using the Coinbase platform today, you can send funds to someone else in just a few clicks.
As long as you don’t have too much money and don’t want to be caught up in an unexpected chargeback situation, this is an excellent way to avoid having your account frozen by your bank if you have something like a credit card that doesn’t give refunds or chargebacks on unauthorized orders.
Coinbase Cryptocurrency: Is It Worth Using?
So is Coinbase worth it? If you have never used it, the overall user experience is very simple to use and it provides a lot of extra benefits that help to bring new customers in. The information Coinbase has about its clients isn’t particularly a problem, especially if it’s used with care and caution.
However, it can be difficult for those who only want to use their bank account or credit card to purchase cryptocurrency without being directly connected with Coinbase.
Also, because of the coverage by mainstream media which is often negative in nature, this has created a lot of fear within those who are not familiar with cryptocurrency trading.
Coinbase is very useful for those who want to buy or sell crypto on a regular basis. It has an excellent reputation and will likely continue to grow in popularity because of its large client base and growing pool of users.
If you are interested in buying cryptocurrency with credit or debit cards, whether you are a beginner or expert trader, this is most likely the best option available now.
If you don’t like Coinbase, at least try something similar before deciding that a popular exchange platform that has been around for some time isn’t worth using. Ranging from new players like Robinhood which is free to use for its first 7 days and offers commission-free trading.
To the old guard such as Coinbase, Kraken, and Bitstamp which have a more expensive monthly fee but are well known and reliable.
Top Cryptocurrency Exchanges: Compare Fees, Limits, and Margins
Coinbase rates are probably some of the most consistent in the marketplace because it has been around for a long time. However, it remains among the best cryptocurrency exchanges in terms of fees because it also puts security above anything else.
It operates as a regulated financial institution wholly owned by US investors so there is no room for theft or fraud on its platform. It is also based in the same state as its banking counterpart which is good for those who want to do business with a company that has a reputation to uphold.
The Best Cryptocurrency Exchanges: Coinbase, Kraken, and Bitstamp
Here are some of the best cryptocurrency exchanges to use today: Coinbase, Kraken, and Bitstamp. We haven’t really reviewed the other companies thus far but those are just some of the top ones out there. These three have been in operation for many years now and offer very low fees along with excellent security.
One thing that stands out is that they often go above and beyond when responding to customer service requests. You can rest assured that you will be able to quickly and efficiently get any issue resolved.
Coinbase is probably the most well-known digital currency trading platform among the public. It has been around since 2012 but was only recently made available in more countries. It is headquartered in San Francisco and offers a good security system and a seamless experience for those who want to trade Bitcoin, Ethereum, and Litecoin.
There are also other cryptocurrencies available for purchase such as Ripple, Bitcoin Cash, Zcash, and EOS. Their service is also available on mobile devices such as tablets and smartphones so that it can be accessed anywhere at any time.
Kraken is another cryptocurrency exchange that has been in operation since 2011. It was originally based in Canada but later moved to a more favorable location in San Francisco, California. One of the biggest advantages coming from the latter location is that there is a large Bitcoin community just around the corner.
Kraken offers some of the lowest fees on the market today. If you are a frequent trader of Bitcoin, then this platform might be a good fit for you because they offer high-frequency and margin trading options.
Bitstamp, another cryptocurrency exchange, has been around since 2011 too but only officially started operating as an actual company in 2015 after security issues emerged from earlier hacks and other problems it faced when it was first established. Bitstamp offers Bitcoin, Bitcoin Cash, Ethereum, and Litecoin trading pairs with lower fees than Kraken and Coinbase.
Although Coinbase is a US-based exchange that has been around since 2012, it was only officially launched as a cryptocurrency company in 2015. The exchange has a high degree of institutional support and liquidity in the market today which makes it popular among beginners. In fact, it was the first cryptocurrency exchange to list ETH/BTC markets (Ethereum-Bitcoin transactions).
Which Cryptocurrency Exchange Is Right for You?
Considering all the benefits associated with each exchange listed above, finding the right one for you can be difficult.
Good luck in getting started in your journey of finding the best cryptocurrency exchange for you. Whether you use Coinbase or not, remember that it is important to do your research on all the available options and learn as much as you can before diving into anything new and potentially risky to your finances or even your identity! For more information about Bitcoin and other cryptocurrencies.