Coinbase 2024: How to Buy Crypto and Is it Safe?

coinbase

If you’re new to cryptocurrency, figuring out where to start can be a little daunting. This article will discuss Coinbase Global, a leading crypto exchange in the United States. A significant percentage of the crypto market uses Coinbase for crypto trading or purchases. There will be information regarding the history, benefits, risks, fees, and how to set up a Coinbase account for trading or purchasing crypto assets.

History

Coinbase CEO Brian Armstrong founded the firm in June of 2012 and later was joined by co-founder Fred Ehrsam. They are located in San Francisco, California, and the office has been permanently closed due to their remote first policy. Coinbase allows people to buy and sell various crypto assets, such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, and Ethereum Classic. 

Coinbase has 118 million users and $101 billion worth of assets held on the cryptocurrency exchange. They also have transacted $159B of quarterly volume. On April 14, 2021, Coinbase went public through a direct listing. The Coinbase stock price is around $43, with an average trading volume of $13.5M. 

Interestingly enough, Coinbase ran a commercial during the Super Bowl this year. The ad featured a close-up of a person’s face as they typed on their computer, with the words “Crypto is here” appearing on the screen.

The ad was met with mixed reactions from viewers, with some praising Coinbase for bringing attention to cryptocurrency and others feeling that the ad was too cryptic. However, there is no doubt that Coinbase made a splash with its Super Bowl debut.

Coinbase has also been featured in prominent media publications like the Wall Street Journal when they release new products and offerings to their customer base.

Choose Your Coin

There are a ton of different cryptocurrencies out there, and it can take time to decide which one to buy. Before making your purchase:

  1. Research the coin that best meets your needs.
  2. When making a decision, look at something other than the market cap.
  3. Go to the project’s website, and check out the team, developers, history, and how much of the original coin supply was kept by the founders.
  4. Investigate their social platforms and see how active they are and what is in the pipeline and roadmap.

Register with Coinbase

Once you’ve chosen a coin and a wallet (more on wallets below), you’ll need to register with Coinbase. You can use the desktop version or the Coinbase app, which is specific to mobile phones. This is the easiest part of buying crypto – you only need a valid email address and password. Recently, Coinbase Pro was winded down, and all users have been migrated to Advanced Trade which will have the exact pricing as the prior platform.

How to Use Coinbase

Coinbase is easy to use. Just go to Coinbase.com and sign in. You will be asked for your email address and password. After you are logged in, click the “Accounts” tab at the top of the page. Under “Your Accounts,” click on the “Buy/Sell” menu item. You will see the menus below:

There will be menus to buy and sell the specific crypto you click on. For example, to buy Bitcoin, you will need to input your credentials and your payment method information (like your bank account number). After entering all this information, click on the “Buy Bitcoin” button. 

Once you have clicked the “Buy Bitcoin” button, Coinbase will show you a confirmation message and process your purchase. Please note that Coinbase takes a 3-5 business day processing time for all purchases. 

After purchasing crypto Coinbase, you must keep track of your bitcoin address and private key (a 32-character long string of letters and numbers). Your bitcoin address allows people to pay you with Bitcoin while your private key unlocks your wallet so that you can spend your bitcoins. It is best practice to write down your bitcoin address and private key, so you do not lose them. 

Do not leave it on an exchange – you will lose money if the exchange goes out of business. Instead, store your coins in a safe wallet like Ledger, Trezor, or even a core wallet. Contact customer support immediately to ensure your assets are safe if you have any questions.

Coinbase also offers a “Cold Storage” feature that allows people to store their crypto offline (offline means it is not connected to the internet). This feature is helpful for people who want more security when storing their crypto.

It is also wise to use two-factor authentication to add a layer of security to your account. Due to possible SIM Swap hacks, it is better to use Google Authenticator versus your cell phone. 

For folks willing to take the risk to store crypto assets on the exchange, they can use the Coinbase wallet solution. Recently, there has been a tremendous amount of news on Sam Bankman Fried and FTX. FTX was a competitor to Coinbase Exchange, and there was a severe loss of customer funds due to a lack of self-custody. Be careful.

Benefits 

Coinbase is one of the most popular cryptocurrency exchanges, and for a good reason. They offer a user-friendly platform, competitive fees, and a wide range of features. 

For the most part, Coinbase also has a solid security record, which is essential when dealing with digital currencies. They did experience a security breach in 2021, and any affected users were reimbursed.  

In addition, they have enormous liquidity to enter and assets due to their large user base and licensing in most of the US. They are continuing to work on global expansion as well. Coinbase is an excellent option for those looking to enter the cryptocurrency market.

Risks

Coinbase has been known to be unreliable in the past, with several outages preventing users from accessing their funds. Lastly, if you leave assets on the exchange and it goes bankrupt, the chances of recovery will be tough. This is not a specific Coinbase risk but for all exchanges.

Coinbase has an ‘F’ rating on the Better Business Bureau due to unresolved complaints and concerns. Trustpilot gives Coinbase a 1.6 out of 5 stars, which is not favorable either. 

If you’re thinking about using Coinbase, be sure to understand the risks involved.

Coinbase Offerings

  • Coinbase Custody is a digital asset custody service offered by Coinbase, one of the leading digital asset exchanges. The service provides institutional investors with a secure way to store digital assets, with features including multi-signature support, offline storage, and insurance protection.
  • Coinbase Commerce is a payment processing platform that allows merchants to accept cryptocurrencies as payments. The platform is designed to be easy to use and integrate with existing e-commerce solutions. Coinbase Commerce is currently available in 32 countries. There are no signup fees, but they do charge a flat 1% on all cryptocurrency transactions that are processed.
  • Coinbase Earn is an educational program that allows users to earn cryptocurrency while learning about new projects. The program is now only available to select countries, but Coinbase plans to make it available to more users in the future.
  • Coinbase Prime is a new platform for institutional investors. The exchange offers an aggregated view of liquidity from multiple exchanges, OTC trading desks, and dark pools. 
  • Coinbase Card is a debit card that allows customers to spend their cryptocurrency balances just like fiat currency at any merchant that accepts Visa. There are over 40M merchants, and the debit card has no hidden or annual fees. This is not eligible for customers that live in Hawaii.
  • The Coinbase NFT marketplace allows users to buy, sell, and trade digital collectibles. The platform is designed to be user-friendly and easy to use. It was one of the most anticipated platforms when it launched.

Coinbase Fee Structure 

Coinbase has a variety of fees, including a transaction fee, a conversion fee, and a deposit fee. These fees are subject to various factors, and you can learn more here.

  • Deposit Fee: This may include wire fees when sending over funds. Typically, an ACH does not have a fee.
  • Conversion Fee: You will need to pay when converting between assets such as BTC to USD Coin.
  • Transaction Fee: When you buy or sell assets, you typically pay a fee.

Does Coinbase Have Competitors?

There are a few significant players that compete in the space with Coinbase. This should be part of your due diligence before starting your crypto journey. Send in support tickets via customer support and see who responds. How quickly does your account get approved? Are you able to deposit and withdraw efficiently? Make a checklist of all the pros and cons. A few of the competitors are the following:

Is Coinbase Safe?

For the most part, Coinbase is a safe platform to buy and sell digital currency. It is always at your discretion how you take care of your funds. If you go through the appropriate verification process, the platform works seamlessly. If you have issues, contact Coinbase support or open up a ticket. 

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Ammar has started several online businesses and is a blogger who loves providing quality content to help others. He is involved with affiliate marketing, domain names, NFTs, and cryptocurrencies. Check out my blog if you want to learn more about these areas and business in general.

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