Here we go again with our series! Today I will speak to you of Coinbase, one of the largest exchanges.
These articles are mostly informative and are intended to give a general overview of a small part of the cryptocurrency world but they can be a good starting point for those who are still a beginner.
Coinbase is an exchange generally much loved by the community: in fact, the criticisms it receives are mainly related to the lack of teaching material for beginners and the limitations of technical analyzes that do not allow advanced research.
For the rest the platform is reliable, safe and transparent.
Coinbase and cryptocurrencies: what is it; and how it works
Unlike Plus 500, Coinbase is an exchange and therefore gives you for example the possibility to buy and sell cryptocurrencies directly and not to operate only through Contracts For Difference. Basically, if with Plus 500 you can earn by speculating on the price of cryptocurrencies, here your capital will increase depending directly on the buying and selling of cryptocurrencies.
Today nearly 90 million traders have chosen Coinbase from more from 100 different countries. The point is to understand if the modalities and the investment options it offers you are in line with your needs or not.
This year it turns 10 and, according to the main forums, it has shown a certain consistency and seriousness. Although there are users from all over the world, the platform offers only 13 languages and therefore it does not allow you to find your preferred language such as Plus 500.
Coinbase is one of the most important platforms, safe for the purchase and sale of cryptocurrencies, in fact only 2% of the funds are not securely stored offline. It means that if a hacker wanted to try to compromise the exchange only this small percentage would be compromised.
Already in the authentication phases, you can register with a "two-factor authentication (2FA)" that will allow you to reduce the odds of a cyber attack.
The wallets are also protected by several backup copies which in turn are not located in the same storage space but are scattered around the world. If also in this case a hacker tries to enter the your wallet, the exchange guarantees you an insurance policy that covers your entire capital.
Coinbase is listed on the stock exchange, winning a high-level role on Wall Street and as we saw with Plus 500 this allows greater transparency regarding the performance of the platform towards customers and future traders.
To get started, Coinbase.com is one of the the main platforms and even the more suitable for beginners. It allows you to play more operations simply and less risky.
The basic version gives you the possibility to buy and hold cryptocurrencies as an investment for the future without the need to buy and sell like traders. You will be able to access Coinbase wallet for more information about opening a wallet, fees and conditions.
As a fourth point there is the Coinbase card, a credit card that you can use through the appropriate App to make purchases with your cryptocurrencies where they are accepted.
The commissions that Coinbase imposes are NOT among the lowest for the performance it offers.
Also the total number of cryptocurrencies it makes available is not among the most high. In fact we are talking about only 10 cryptocurrencies, all of which are part of the Ethereum Blockchain. For the online wallet the amount of cryptocurrencies, this is even lower and drops to 6 cryptocurrencies.
Once you have defined the limitations of the platform, you may be wondering what the benefits are. Among the most popular platforms, Coinbase can be considered among the most intuitive and easy to use even for beginners. In fact, starting to invest in cryptocurrencies in small steps and with lower earnings. It is possible to enter the dynamics without losing large sums of your capital.
You can say that Coinbase is a good option for those who want to invest in the long term and with low risk. In the event that you are immediately interested in investing in the short term for a greater gain (even if with a higher risk) I advise you to shift your attention, for example, to Binance or eToro.
Coinbase and cryptocurrencies: the credit card
Coinbase was one of the few exchanges to offer its customers a credit card where they can find their wallet and be able to spend it for online payments. The service relies on the Visa circuit and therefore is recognized by many online platforms.
One of the advantages of the card is that you won't need to convert your cryptocurrencies into physical coins and move them to their current accounts but you can make purchases directly and quickly.
The cost of the card is of 5 euros and there are also fees for payments and withdrawals unless you plan to use USD Coin. In this case there would be no costs in stages of purchase of withdrawal.
Coinbase: bad surprises
Although cryptocurrencies have the fame, but better still, the basic principle of being neutral, things are changing and every year you can observe how cryptocurrencies are getting closer to central government decisions.
One of the last and saddest examples is the case of the conflict between Russia and Ukraine where some countries have decided to sanction Russia economically by blocking most of the financial transactions.
What has happened to the account of many Russians? At the beginning, the main exchanges and brokers did not want to submit to political decisions, as they are not among their cornerstones, but in the end they froze several Russian accounts as hypothetical escape points for not respecting the sanctions imposed on the country.
Coinbase and cryptocurrencies: conclusive opinions
Coinbase is one of the many options for trading but also for other types of reversals. It is recommended by most of the community of traders for those who are interested in investing for the long term and who are new to the world of cryptocurrencies.
In case you want to continue with Coinbase but at a more professional level, I suggest you take a look at the pro version which on the cost-benefit scale could be a good choice. And don't forget to read the pricing section carefully before you start!