If you are looking to buy or sell a cryptocurrency, then Coinbase could be the solution to your problems.
I personally use Coinbase on a daily basis to not only track the prices of crypto coins like Bitcoin, but as a digital wallet for my coins.
While Coinbase isn't perfect, I'm going to give my honest review using Coinbase and whether you should sign up or not.
What is Coinbase?
Coinbase is a digital cryptocurrency wallet and broker founded in June 2012 by Brian Armstrong.
Since 2012, 35 million people in over 100 different countries use Coinbase to buy, sell, and earn cryptocurrency.
In fact, Coinbase has grown so large that the company is planning an IPO in 2021.
Once the Coinbase IPO hits the stock market, you will be able to invest in Coinbase stock through your favorite brokerage account.
How Does Coinbase Work?
Cryptocurrency is a digital non-government asset that is traded on a blockchain.
You need a digital address to send and receive bitcoins along with a safe place to store them.
Coinbase provides a simple to use platform for trading multiple cryptocurrencies by linking a bank account or credit card to your account.
Here's a step by step guide to setting up your Coinbase account:
- Use this link to receive a free $10 credit for first time Coinbase Users (you must buy or sell at least $100 of cryptocurrency within 180 days of opening your account to receive the credit.
- Enter your personal information and create your account.
- Verify your phone number to reach Level 1 account access (Up to $9,500 limit + buy/sell ability with your bank account or credit card).
- Verify your personal information to reach Level 2 account access (Unlimited investing limit + wire transfers).
- Verify your photo ID to send and receive cryptocurrency.
- Link your bank account or credit/debit card to start buying coins
The signup process is a bit lengthy but make sure to follow the steps and confirm your ID (Driver's license or Passport) to unlock buy and sell features. If you skip this step, you cannot trade cryptocurrencies.
It took about 1 hour for my account to be verified. I'm a US citizen so it may take longer for non-US residents.
What Coins Can You Buy on Coinbase?
Once your account is activated, you can start buying the following coins:
- Bitcoin Cash
- Stellar Lumens
- Syntehtix Network Toxen
- OMG Network
- The Graph
- Kyber Network
- Ethereum Classic
- USD Coin
- Basic Attention Token
Coinbase doesn't support every single cryptocurrencies but you have enough choices available in your wallet.
I love using Coinbase because it's super easy to buy cryptocurrency using the platform.
Step 1: Go to Buy/Sell
Step 2: Choose the Coin & Funding Source
You need to select which cryptocurrency you want to purchase, the purchase frequency, and your funding source.
Coinbase allows you to choose either a one time purchase or recurring purchase.
Recurring purchases can be made for the following time frames:
- Every day
- Every week
- 1st and 15th of the month
- Every month
Automating your cryptocurrency purchases is a smart way to invest passively and use dollar cost averaging instead of “timing” the cryptocurrency market.
Coinbase accepts these payment methods:
- Bank accounts
- Mastervard or VIsa
- Wire transfers
Step 3: Preview Your Order and Buy
The final order preview lists everything includes fees before you buy.
Coinbase takes its fee out of your purchase total so you will receive less cryptocurrency instead of adding the fees to your total purchase amount.
Fees: How Much Does Coinbase Charge?
Coinbase has a complicated fee structure that changes depending on whether you use your bank account or credit card to purchase cryptocurrency.
Using a bank account is 1.49% while paying with a debit /credit card is 3.99%.
You'll save a bit of money over time if you link your bank account and use ACH transactions.
Here's a quick breakdown of the fee structure:
- If the total transaction amount is less than or equal to $10, the fee is $0.99.
- If the total transaction amount is more than $10 but less than or equal to $25, the fee is $1.49.
- If the total transaction amount is more than $25 but less than or equal to $50, the fee is $1.99.
- If the total transaction amount is more than $50 but less than or equal to $200, the fee is $2.99.
Want to Save on Fees? Sign Up for Coinbase Then Download Coinbase Pro
Coinbase offers two seperate trading platform based on your needs: Coinbase and Coinbase Pro.
Coinbase Pro is a more advanced digital trading app for active traders. I like using Coinbase Pro because the fee structure is much cheaper than regular Coinbase.
What I usually do is buy bitcoin on Coinbase Pro then transfer it to regular Coinbase.
If you trade bitcoin or other altcoins then just use Coinbase Pro to save time and money.
Coinbase allows you to earn rewards for completing quizzes on other cryptocurrencies.
When you watch a video and answer the question correctly, Coinbase rewards you with some free cryptocurrency.
Coinbase is currently offering rewards for the following cryptocurrencies:
- Band Protocol
- The Graph
Since I'm a bitcoin bull, I usually claim my rewards and transfer it into more bitcoin.
Many crypto bulls worry about security when storing their cryptocurrency.
Coinbase offers some of the best security measures in the entire industry including 98% offline storage for customer funds and 2-step verification requirements for all accounts.