Coinbase - things you need to know about Coinbase
One of the best places to start investing in crypto
If you're thinking about investing in crypto Coinbase is one of the best places to start. In this article we will cover the good and bad things you need to know about Coinbase.
Related: Find out how to learn about crypto before you start investing
What is Coinbase?Coinbase is an exchange where you can buy, sell and manage your cryptocurrencies. They are the most popular cryptocurrency exchange in the world and the largest Bitcoin broker.
A lot of their popularity is because Coinbase is the easiest way to buy bitcoin and crypto with your money. You can buy bitcoin and crypto in just a few taps and no technical experience is required at all. Coinbase is also available in 50+ countries.
Sign up for Coinbase here and get $10 free when you buy/sell $100 worth of crypto.
Who is it for?Coinbase is perfect for investors who want to buy bitcoin or cryptocurrency for the first time.
On their platform you will quickly learn how to buy, send and receive crypto. It is extremely easy to use and you can buy as little as $2 worth of bitcoin in just a few clicks.
If you’re new to crypto, other exchanges can be a little confusing. For this reason it’s good to at least start with Coinbase until you’re comfortable with making transactions. However, there are other exchanges that have lower fees. So depending on what country you’re in, you may want to sign up for another exchange, like Binance, later on.
Coinbase is perfect for first time investors and it has its advantages even for experienced investors which we will talk about soon.
Where is Coinbase available?
Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech, Denmark, Finland,Greece, Hungary, Ireland, Italy, Jersey, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Portugal, Poland, San Marino, Singapore, Slovakia, Slovenia, Spain, Sweeden , Switzerland, USA, UK, and more
What cryptocurrencies are supported?Keep in mind availability could depend on your country. But currently you can trade the following digital currencies on Coinbase:
- Bitcoin Cash
- Bitcoin SV
- Ethereum Classic
- Stellar Lumen
- Basic Attention Token
- USD Coin + more on the way
Should you use Coinbase?There is no perfect exchange and Coinbase is no different. You have to figure out what your needs are and pick the best exchange for you. The good thing is it's free to make an account. So you can try Coinbase for free and see if you like it. Here are the main pros and cons:
- Arguably the best UX and easiest platform to use
- Many deposit and withdrawal options (credit card, bank account, etc)
- You can get $10 free for signing up and trading $100. That's a no brainer
- Online and mobile wallet services
- You can find places with lower fees
- Limited altcoins. This is a con if you want to buy lesser known coins
- Customer support can be slow
- Withdrawals can sometimes be delayed
SecurityThere is only one thing you have to know for crypto security: If you don't hold the private keys you don't own the crypto.
Although, Coinbase offers a wallet it's not recommended to hold large quantities in it. Because if they get hacked you can lose everything.
Once your portfolio starts getting bigger, it's highly recommended to use a hardware wallet such as theTrezor or Ledger. Hardware wallets are the most secure wallets because they store your crypto offline.
In the short term, it's okay to hold small amounts of crypto in Coinbase but nothing more than you're willing to lose. They have 2FA and lots of security features that you set up when you sign up for an account.
Coinbase FeesCoinbase offers very fair fees for deposits. On top of that, you get the convenience of many deposit and withdrawal options which you can see below:
- 1.49% fee - Bank account
- 3.99% fee - Debit/Credit card
- 3.99% fee - PayPal
- $10 ($25 outgoing) - Wire Transfer
We recommend always funding with a bank account or the cheapest option. 4% may not sound like a lot, but on $100 you're automatically down to $96. That means you need MORE than a 4% return just to get back to even. So these percents really add up, always try to use the lowest fee option when investing.
Crypto to CryptoFor crypto to crypto trades Coinbase charges 0.5% fee which is a lot. For instance, Binance only charges a 0.1%. If you'll be making a lot of these transactions we recommend depositing your fiat in Coinbase, then sending it to your Binance account.
The Bottom Line
The downside: Depending on your country, you could find slightly lower fees somewhere else. Even if you find 0.4% lower fees (like on Binance) that can add up over time. But if you're not investing a lot OR if you just want to buy your first bitcoin, Coinbase is the option for you.
At the very least, test it out. It's free to make an account and you should take advantage of $10 free bitcoin as you try it out.
Sign up for Coinbase and get $10 free when you buy/sell $100 worth of crypto.