How to Use Coinbase: Create An Account, Buy & Sell Cryptocurrency
Coinbase is one of the most popular cryptocurrency exchanges in the world, offering a secure platform to buy and sell digital assets.
- What is Coinbase?
- How To Create a Coinbase Account
- Does Coinbase Charge A Fee?
- How To Add Funds to Your Coinbase Account
- How To Buy and Sell Cryptocurrency on Coinbase
- How To Send and Receive Cryptocurrency with Coinbase
- How To Buy Bitcoin On Coinbase
- How To Cash Out On Coinbase
- Using Advanced Coinbase Features
- Storing Cryptocurrency in a Coinbase Wallet
- Securing Your Coinbase Account
- Troubleshooting Tips for Using Coinbase
Coinbase is easy to use, but there are several features and nuances that make it important to understand how the platform works before investing in cryptocurrency.
Users can also store their cryptocurrency on the Coinbase wallet.
Beginner cryptocurrency investing strategies can be used on Coinbase thanks to their range of assets and easy-to-use buying and selling tools.
In this guide, we’ll cover all of the details you need to know to confidently use Coinbase.
What is Coinbase?
Coinbase is an online platform that allows users to buy, sell, and store digital assets. The platform is based in San Francisco and was founded in 2012, making it one of the first crypto exchanges in the world. Coinbase supports over 200 digital assets, including Bitcoin, Ethereum, Litecoin, and many more, which allows for altcoin investing.
The Coinbase platform is consistently adding new digital assets. Each asset has a little blurb, link to whitepaper and to the website so investors can find the crypto picks and shovels in return for possible bigger returns.
Coinbase also offers users the ability to store their cryptocurrency in a secure cryptocurrency digital wallet, as well as the option to use advanced features such as margin trading and Coinbase Pro.
Coinbase is a trusted platform for users to buy, sell, and store digital assets. It is regulated by the Financial Crimes Enforcement Network (FinCEN) and is compliant with the Bank Secrecy Act (BSA).
Coinbase also offers users the ability to purchase cryptocurrency with a debit or credit card, as well as the option to use bank transfers. Coinbase also provides users with a variety of tools and resources to help them make informed decisions about their investments.
How To Create a Coinbase Account
The first step to using Coinbase is creating an account. Signing up for an account is easy and takes only a few minutes. To create a Coinbase account, you’ll need to provide your name, email address, and create a secure password. You’ll also be asked to verify your identity by providing photo identification. Once your account has been created and verified, you’ll be ready to start using Coinbase.
Once your account is set up, you can start buying and selling cryptocurrencies. Coinbase offers a variety of payment methods, including bank transfers, debit cards, and credit cards. You can also link your PayPal account to Coinbase for easy payments. Coinbase also offers a secure wallet to store your cryptocurrencies, so you can keep your funds safe.
Step by Step
- Download the Coinbase App or go to coinbase.com and click ‘create account’
- Fill in your name, email address, and create a secure password
- Verify your identity via photo
- Link your bank account, credit cards or paypal to start buying your chosen cryptocurrency
Does Coinbase Charge A Fee?
One important detail to understand when using Coinbase is the fees associated with buying, selling, and transferring cryptocurrency. Coinbase charges fees for each transaction on its platform, which can range from 0.99% to 4.99% depending on the type of transaction and if you use a credit card or other payment method. Understanding how the fees work before investing is important to help ensure you don’t end up paying more than you intended.
It’s also important to note that Coinbase fees are subject to change. Coinbase regularly reviews its fees and may adjust them based on market conditions or other factors. It’s a good idea to check the Coinbase website for the most up-to-date fee information before making any transactions.
How To Add Funds to Your Coinbase Account
Once your Coinbase account has been created and verified, you’ll need to add funds before you can start buying and selling cryptocurrency. Coinbase allows users to deposit funds with several different payment methods, including bank transfers, credit cards, debit cards, and PayPal. Depending on the payment method you choose, deposits can take up to several days to process.
Investors looking to dollar cost average invest into crypto can do so using Coinbase. For example, you can set up a direct debit and buy Bitcoin every month.
When adding funds to your Coinbase account, it’s important to keep in mind that there may be fees associated with your payment method. For example, bank transfers may incur a fee of 1.49%, while credit and debit card deposits may incur a fee of 3.99%. Additionally, PayPal deposits may incur a fee of 3.99%. Be sure to check the fees associated with your payment method before making a deposit.
How To Buy and Sell Cryptocurrency on Coinbase
Once your account has been funded, you can start buying and selling cryptocurrency on Coinbase. Buying cryptocurrency is simple; just select the asset you want to buy, enter the amount you want to purchase, and click “buy”. Once your order has been processed, your cryptocurrency will be sent to your Coinbase wallet.
Selling cryptocurrency on Coinbase is also easy; just select the asset you want to sell and enter the amount of that asset you want to sell. Once your order has been processed, your cryptocurrency will be exchanged for the currency of your choice (USD, EUR, etc.), and the funds will be sent to your bank account.
It is important to note that Coinbase charges a fee for each transaction. The fee amount depends on the size of the transaction and the payment method used. Additionally, Coinbase may also charge a spread fee, which is the difference between the buy and sell price of the asset.
How To Send and Receive Cryptocurrency with Coinbase
In addition to buying and selling cryptocurrency on Coinbase, you can also send and receive digital assets with other users. To send cryptocurrency with Coinbase, all you need to do is select the asset you want to send, enter the amount of that asset you want to send, and enter the recipient’s wallet address.
You can also receive cryptocurrency with Coinbase; when someone sends you crypto, just provide them with your wallet address and the funds will be deposited into your account.
Using the Coinbase wallet is great for long term cryptocurrency investing strategies, as well as an extra layer of protection.
How To Buy Bitcoin On Coinbase
- Sign in to Coinbase.
- Select Buy / Sell on the upper right-hand side.
- Click the Buy panel to select the asset you’d like to purchase.
- Enter the amount you’d like to buy denominated in crypto or your local currency.
- Select your payment method.
- Click Preview Buy to confirm your purchase (you can always click the back arrow to make a change).
- If the details are correct, click Buy to complete your purchase.
If you’d like to make this a recurring purchase, click One time purchase and select how often you’d like the purchase to repeat.
How To Cash Out On Coinbase
- Click Sell on the Home tab.
- Select the asset you want to sell and enter the amount.
- Tap Preview sell > Sell now to complete this action.
Using Advanced Coinbase Features
Coinbase has several advanced features for experienced traders who want to take their trading to the next level. For example, Coinbase offers margin trading that allows users to trade with leverage up to 3x their account balance. Coinbase also has a platform specifically designed for professional traders called Coinbase Pro that offers advanced trading tools such as limit orders and stop loss orders.
Those who understand cryptocurrency market cycles may choose to use Coinbase platform to trade on a regular basis.
Another feature on Coinbase crypto exchange is that investors can earn passive income on cryptocurrency assets. The feature is easy to use, just buy the crypto that offers yield and enjoy the benefits.
Storing Cryptocurrency in a Coinbase Wallet
Coinbase also offers users the option to store their cryptocurrency in a secure Coinbase wallet with their platform. The wallet is free and easy to use; just select the digital asset you want to store and click “add funds”. Once your funds have been added to your wallet, they are protected by industry-leading security measures.
Securing Your Coinbase Account
It’s important to protect your Coinbase account from unauthorised access by enabling two-factor authentication (2FA). 2FA adds an extra layer of security by requiring an additional code when logging into your account. You can enable 2FA on your account by downloading a 2FA app such as Google Authenticator or Authy.
Troubleshooting Tips for Using Coinbase
If you have any trouble using Coinbase, there are a few tips that may help. First, make sure you have verified your identity before attempting any transactions or withdrawals. Second, check for any errors in the information you entered when signing up for an account or adding funds. Finally, if all else fails, contact Coinbase support for assistance.
Coinbase is a great platform for buying and selling digital assets, but it’s important to understand how it works before investing. By following this guide, you should now have a better understanding of how to use Coinbase. Now that you know how it works, it’s time to start trading!