Table of Contents
Introduction
Welcome to the world of cryptocurrency investments! If you are new to this exciting and fast growing area, you may have come across Coinbase. Coinbase is one of the most famous and easy to use platforms for purchasing, selling and storing cryptocurrencies. In this beginner’s guide, we will explain what Coinbase is, how it functions, and how you can start buying and selling cryptocurrencies on this platform.
What is Coinbase?
Coinbase is a company that was established in 2012 with the purpose of establishing a venue where people could purchase and sell digital currencies. It enables people to buy and sell different digital assets, including Bitcoin, Ethereum, Lightning Bitcoin, and many others. More than 56 million verified users in over 100 countries make Coinbase the most popular and recognized exchange platform for cryptocurrency trading.
Getting Started with Coinbase
If you are new to cryptocurrency investments, then getting a Coinbase account is quite straightforward. Following are the steps that you can follow to create an account and make the first investment:
- Go to the Coinbase website or download the app from your mobile device’s app store.
- Click the “Get Started” button and enter your email address and a strong password.
- Verify your email address by clicking on the link that was sent to your email.
- Give more information like your name, date of birth and phone number to finish the verification process.
- Set up two-factor authentication for increased security.
- Link your bank account or credit/debit card to your Coinbase account so that you can fund your purchases.
Buying and Selling Cryptocurrencies on Coinbase
After creating your Coinbase account and funding it, you can start buying and selling cryptocurrencies. Here’s how:
- Go to the “Trade” section on the Coinbase website or in the application.
- Select the digital asset you want to buy or sell.
- Choose the method of payment, for example, bank transfer or a credit/debit card.
- Enter the number of cryptocurrency that you want to buy or sell.
- Check the details of the transaction and confirm the purchase or sale.
Please note that Coinbase charges fees for purchasing and selling cryptocurrencies which depend on the type of transaction and the payment method used. It is advised to check the fees on Coinbase’s website before making any transaction.
Storing Your Cryptocurrencies on Coinbase
One of the main advantages of using Coinbase is that it has its own digital wallet that helps to keep your digital assets safe. When you purchase cryptocurrencies on Coinbase, the coins you buy are going to be stored in your Coinbase wallet. However, keeping your cryptocurrencies on a exchange like Coinbase is not without some risks.
Although Coinbase has put in place strong measures to ensure that your assets are secure, including insurance for digital assets, it is always important to have other forms of protection. One such option is to move your cryptocurrencies to a hardware wallet, which is a device that holds your private keys offline.
Understanding Coinbase Pro
Apart from the basic platform, there is also Coinbase Pro – a more professional trading platform designed for professional traders. Coinbase Pro offers more features compared to the basic platform including more advanced trading tools, order types, and lower fees for high traders.
For a beginner, it is advised to start with the basic Coinbase platform and progress to the simpler aspects of cryptocurrency trading. When you are more experienced and would like to try out other trading features, then you can try out Coinbase Pro.
Key Factors to Consider When Investing in Cryptocurrencies
Before you invest your hard- earned money in cryptocurrencies, you need to know the following factors:
- Volatility: Cryptocurrencies have high price volatility and their prices can change drastically within a short period of time. Be ready for this volatility and only invest what you can lose.
- Research: It is important to have a wide analysis of the cryptocurrencies that are of interest to you. Find out more about their technologies, their applications and their prospects for the future. Stay up to date with the latest news and events in the cryptosphere.
- Diversification: Avoid putting all your eggs in one basket when it comes to cryptocurrency investment, instead put your money into different digital assets to minimize losses and maximize returns.
- Security: Take all the necessary measures to protect your digital assets, including enabling two-factor authentication, using a hardware wallet, and not falling for phishing scams.
Conclusion
In conclusion, Coinbase is a good place for individuals who are new to the cryptocurrency market and want to start investing. As a result, with its simple and easy-to-use interface, strong hold of cryptocurrencies, and a wide selection of assets, Coinbase is a great product for anyone who wants to buy, sell, or hold cryptocurrencies.
Investment in cryptocurrencies is best done in small amounts, with a good degree of analysis, and with awareness of market trends. Even though trading in cryptocurrencies can be very lucrative, it also entails certain risks. With the help of the steps described in this beginner’s guide and the information about the key factors provided above, you will be well-equipped to make your way through the cryptocurrency investment process on Coinbase.
