[Short Guide 2018]
Coinbase is a virtual exchange that allows you to buy and sell the world’s most popular cryptocurrencies such as: Bitcoin, BitcoinCash, Ethereum, Ethereum Classic. Coinbase was founded in 2012 and as an Exchange Platform provides access to three of the world’s 10 biggest cryptocurrencies.
You can also find Wallet and Merchant services. This makes it good first choice for any newcomers to the Crypto Trading.
Coinbase is available for residents of 33 Countries, including US and most of West European Countries. Customers have access to different payment methods to buy or deposit cryptocurrency, including:
-ACH bank transfers
-Price or fee?
Like many solutions of its kind, Coinbase doesn’t charge a fee to for its wallet service. Instead, they charge Payment fees for the transactions you make. The fees are set by the blockchain community.
Ea: For US customers, Coinbase charges a base rate of 4% for all transactions.
Your funds will be available in your account as soon as Coinbase receives payment. However, Coinbase warns that the timing of some payment providers can vary.
Purchases made using your USD wallet or credit card (if you’re an old member and actually have CC listed as a payment method) are available instantly.
When using a bank transfer, payments are normally processed in three to five days. After the banks clears your transfer, the funds enter the Coinbase system and make their way into your account before the end of the estimated delivery date.
Coinbase implements weekly buy and sell limits on all accounts. The company says it calculates your limits based on your account information. This includes verification and successful purchases made on the account.
To increase your weekly limits, you may need to verify your account by:
- Verifying your phone number
- Providing your personal details
- Providing photo ID
- Establishing a purchase history by buying and selling through the exchange
One of the perceptions of cryptocurrency among newcomers to the platform is that it is still risky to invest in. And although it is correct that there have been issues around cryptocurrency exchanges in the past, Coinbase is considered to be one of the most secure platforms currently available.
First of all, Coinbase is US based and is therefore required to comply with US State and Federal law. This can be contrasted with some of their competitors that operate in countries that may have lighter regulations when it comes to such platforms.
Coinbase has received investment from a number of high-profile bankers, including the Bank of Tokyo and BBVA, which boosts its legitimacy
In terms of its cryptocurrency storage, Coinbase states that 98% of customers’ cryptocurrency funds and stored offline, through hardware wallets and paper wallets that are stored in vaults and safety deposit boxes worldwide. In addition, Coinbase states that the remaining portion of cryptocurrency that is stored online is insured, and that in the event of a hack, customers will be entitled to receive any funds lost through this insurance policy.
Coinbase offers customers a 2-factor authentication method, which can be through SMS to your phone, or through third party apps such as Google Authenticator or Duo. In addition, Coinbase notifies users if a new device or IP address attempts to access your customer account.
However, despite this, if customer accounts are compromised, Coinbase does not accept any liability for funds being lost. For that reason, it is typically recommended that once you have purchased any cryptocurrency on the Coinbase exchange, you store this cryptocurrency offline in a wallet that you control.
By following the below step by step guide, you will be able to buy cryptocurrency through Coinbase.
Signing up – To create an account on Coinbase, all you need is your name, email address and password.
Account Type – Upon request, you will be asked to confirm your email address. Once completed, you will be redirected to the startup page, where you will be first requested to confirm whether you want to create an individual or business account.
Verify your Phone Number – The next step is verifying your phone number. The reason for this is to create a form of 2-factor identification in order to ensure that your account remains secure. Other 2-factor identification methods are also available, as set out below.
Set up Payment Method – As stated above, Coinbase allows customers to choose from two payment methods – bank transfer and credit card. For bank transfers, Coinbase will often set up one or two small transactions to and from your account, in order to verify your account. For credit cards, a screenshot of the credit card is necessary. Bank transfers in the US can take up to 4 to 5 days to complete, or 1-3 days by SEPA transfers in the EU, while credit and debit card transactions are instant. Coinbase also allows for users to link their Paypal account to the platform, but this can be used for proceeds made from selling cryptocurrency only.
Buy Cryptocurrency – Once you have funds in your account you can buy currency. It’s important to make sure that you are on the right tab of your account to purchase the correct currency. Before confirming the transaction, Coinbase provides you with details of the service fee and the amount of cryptocurrency being purchased in the transaction. Once confirmed, the amount of cryptocurrency that you have purchased will be credited to the relevant Coinbase wallet.
The sign up form is as simple as every other website you have registered along the way.
Tha tha thaaat, that's all folks! You're ready to trade Cryptocurrencies with Coinbase.