Where to Buy Bitcoin – Start With Coinbase – Exchange Review for Beginners

9 min read

Coinbase is one of the most popular bitcoin exchanges, partly because first-time buyers are able to purchase bitcoins using PayPal, debit cards, credit cards, and bank transfers. At present, the website supports tens of different cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.  

Because Coinbase is the most popular cryptocurrency exchange, it’s the ideal exchange for beginners. Coinbase offers cryptocurrency investing, an organization-focused trading system, a wallet for investors, and a stable coin backed by the U.S. dollar. 

Since its inception in 2012, Coinbase has been approved and regulated as a cryptocurrency exchange. There have been a number of cryptocurrencies added to Coinbase’s list since the platform was established, including Ethereum, Litecoin, Bitcoin Cash, XRP, and many others. Coinbase’s conditions must be met for more to come.  

Coinbase is a cryptocurrency exchange:

Coinbase (COIN) is a cryptocurrency exchange where users can store and trade cryptocurrency. As CEO of the company, which was founded in 2012 by Brian Armstrong and Fred Ehrsam, Brian Armstrong now leads the company. Cryptocurrencies powered by Coinbase aim to improve accessibility, efficiency, and transparency to the financial markets. In the first quarter of 2021, the site had 6.1 million active users and 56 million verified accounts. It is also listed on the NASDAQ under the ticker COIN.  

What does Coinbase offer?

The Coinbase website, iOS, and Android apps offer easy access to buying, selling, exchanging, receiving, and sending supported cryptocurrencies. Coinbase Wallet allows users to keep all their funds in one place. Over 50 cryptocurrencies are supported, including popular options such as:  

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Cardano (ADA)
  • Dogecoin (DOGE)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Litecoin (LTC)
  • Uniswap (UNI)

Market orders are available for buying and selling cryptocurrencies on the Coinbase Marketplace. By using market orders, bitcoin orders are filled at current market prices. The interface is easy to learn as long as you know which cryptos you would like to invest in, and your region supports them. 

Coinbase imposes a fee for the purchase and sale of cryptocurrencies. These fees may vary depending on the transaction value. Spread fees of 0.5 percent are charged when you use dollars to buy or sell cryptocurrencies. You might also be charged a 99-cent flat fee or a 1.49-3.99 percent percentage fee, depending on your location, the product you buy, and the payment method. If you want to exchange bitcoin from one currency to another, you must pay a 2% spread fee. Coinbase allows you to make recurring payments in fiat currency (US dollars). This way, dollar-cost averaging can be used to create a bitcoin portfolio over time.  

Cryptocurrency investors can choose between two levels of Coinbase accounts. The Coinbase Pro account allows you to buy bitcoins with a lower fee structure, more cryptocurrency tools, and an advanced user interface in addition to Coinbase’s standard account. Furthermore, 99.8% of all Cash on Coinbase is cold-stored, so its value is protected from unauthorized access. Cold storage is provided by safe deposit boxes and vaults throughout the world. As a measure of security, all accounts require two-factor authentication.  

Is Coinbase Legit?

Currently, Coinbase operates in more than 30 states and has obtained multiple licenses to accommodate different dealers. According to various reviews, Coinbase appears to be a reliable cryptocurrency exchange. Apart from ensuring that all firm procedures are legal, various licenses also ensure traders’ money is kept safe, and that cryptos can be sent, received, and saved on this platform in several countries.

As mentioned Coinbase offers its buy/sell product in a limited number of countries. Additionally, Coinbase fights against the underground market that also deals in Bitcoin, which is a major source of revenue for the company. If a transaction appears to be connected to illegal activities like the black market or gambling, the account is frozen or closed. The Coinbase developer platform allows developers to create APIs that retrieve historical prices and real-time data for the cryptos that Coinbase supports.

Features of Coinbase:

As a result of Coinbase’s API documentation, firms are now able to develop a simple and safe way to accept cryptocurrencies as payments using Coinbase’s products. The Coinbase platform now allows members to purchase cryptocurrency. Comparing prices, checking balances, and making buy-sell orders takes just a few clicks. Coinbase’s interface is intuitive and user-friendly. Beginner traders used the platform as an entry point into the bitcoin market. Cryptocurrencies like Bitcoin (BTC), Cash (Cash), Ether (ETH), and others can be bought by traders.  

Compared to other brokers, Coinbase’s costs are reportedly higher, but considering the services it provides, they appear to be worth it. A fee is charged when you buy and sell, as well as when you withdraw money. Coinbase allows investors to securely store their cryptocurrency, as well as access their private keys with a seed phrase. In addition, you can download their app from Google Play, Apple App Store. Consumers can then easily purchase cryptocurrency on the go. Crypto traders who want to spend their cryptos can also get Visa cards through the crypto exchange.  

Coinbase’s program for affiliates and advertising partners lets interested parties receive For the first three months, affiliates and advertising partners who refer users to Coinbase.com will receive commissions. Bitcoin and several other cryptocurrencies can be purchased at Coinbase with fiat currency, including credit cards, debit cards, and bank transfers. This makes Coinbase one of the most popular cryptocurrency exchanges. 

With Coinbase’s Instant Exchange, users will be able to transact in fiat currencies as well as bitcoins. Utilize an immediate exchange feature if you don’t want to use fiat currency to buy Bitcoin. Anyone who wants to buy, sell, and trade coins with GDAX will be offered free upgrades. You can easily transfer cryptocurrencies with GDAX and Coinbase Pro. With GDAX, you can trade cryptocurrencies across multiple exchanges.

A number of important features are offered by the cryptocurrency exchange Coinbase, including the fact that 99 percent of its assets are stored in cold storage. Only one percent of internet-based information is backed up, meaning traders have financial security. Additionally, Coinbase’s customer care staff is available at all times.  

Can anyone use Coinbase?

Coinbase is an easy-to-use and easy-to-understand platform for new traders who want to learn more about the GDAX platform. Trading multiple currencies with Coinbase will be the quickest and easiest. With Coinbase, you can buy bitcoin with fiat cash. A small business investor can benefit from Coinbase. In contrast, Coinbase’s fees may be too high for large corporations or investors who invest large sums of money in cryptocurrencies or bitcoins.

Getting started with Coinbase

Sign-up is quick and easy, and the service is free. To comply with the platform’s policies, certain information must be shared. The following is needed to get started:

  • A document of identification issued by the government
  • Internet access (using a secure home network is best).
  • This number is functional and is associated with
  • If you are using a mobile device, you will need the latest version of Chrome or Coinbase.

You can access Coinbase on your desktop or mobile device by following the steps outlined below, which can be completed within about 15 minutes

Create a Coinbase account:

Visit the Coinbase website on your desktop computer to get started. The Coinbase mobile app can be downloaded and launched from the Coinbase website or app. Click “Get Started.” on the home page. You will be prompted for some basic information. Don’t try to trick the system with a false email address. A later stage will involve validating your email address and verifying your location with your identification card.

Create an account by entering your name, address, email address, and password in the form. Then click “Create Account” if you have read the policies agreement.  

Verifying your email address:

Your email address needs to be verified. A noreply@coinbase.com email will be sent to you immediately after completing step one. There will be an official link in the email that you can access by clicking on. A redirect will then take you to the Coinbase website, where you must enter your password.  

Phone Number:

The reason you need to verify your phone number is so Coinbase can reach you if there are any issues. It is a straightforward process. After verifying your email address, you will need to enter your username and password. When you enter your mobile phone number, it will be renamed “Continue” on the mobile app. Within seconds to minutes, you’ll receive a text message with a 7-digit code.

Once you click “Submit” or “Continue” on Coinbase’s website, the 7-digit code will be validated. It can also be entered in the Coinbase app. If a message does not arrive in a timely manner, “Resend SMS” will send another message. Data plans may apply, based on your deal with the mobile network operator. It would be best if you were mindful of texting charges in that case. Coinbase does not charge for this service.  

Personal information:

This step requires you to provide your social security number and answer a few questions. We need your name, birthdate, address, and Social Security number last four digits as basic information. This data may be required differently, depending on the area you live in. If you want to invest as a business, your company information and the reason you wish to use the exchange will be asked during the registration process. Click “Continue” to proceed.

Identification:

If you want to keep your account secure, we recommend setting up a two-step verification app (TOTP) that requires you to enter the information from your government-issued ID card. You will need to provide your government-issued ID card information to verify your account. Users of Coinbase should be aware that Authenticator uses a time-sensitive security code to secure their accounts  

Methods of payment:

Last but not least, cryptocurrency exchange cannot be used unless currency can be converted into dollars using the same account. If you visit the Coinbase site and click on “Supported Countries” before selecting your country, you can find detailed instructions.

I am interested in learning more about Coin. How can I do that? 

Coinbase lets you purchase and sell cryptocurrencies directly from the company, rather than trading them with other users. Only Coinbase lets you directly purchase cryptocurrencies instead of trading them. Deposits and withdrawals from Coinbase are subject to fees. A fee is also charged when you purchase or sell cryptocurrencies.

You can withdraw or store cryptocurrency purchased on Coinbase as soon as you purchase it. For leveraged trading (options) Coinbase only offers long positions. Therefore, if you expect the markets to decline, then you cannot make a profit.

Coinbase’s advantages include:

Cutting through noise:

With Coinbase, you don’t have to learn about the complicated technology behind currencies such as Bitcoin. You can reap the benefits of bitcoin’s volatility through the Coinbase trading platform. Between January and September 2017, the volatility of bitcoin increased by fivefold.  

How to Margin Trade profitably:

For more advanced or expert users (or for companies), Coinbase can be used to trade margin (although it isn’t available to UK residents). Depending on your broker, you may be able to borrow money to make more trades. Think of it as a short-term loan. You get a lot more leverage and purchasing power with margin trading.

Consequently, you will be able to increase your revenue much more than you could have otherwise. At the moment, there are no interest payments or additional expenses due. A margin account requires a minimum investment amount of $5 million in a discretionary account.  

Investors have a bright future:

Before GDAX, it took several days before clients could buy bitcoins. Now you can buy bitcoins and other cryptocurrencies immediately. Even though Coinbase was previously only accessible to institutions and large companies, the update will make it easier for day traders to trade on Coinbase. The price of Litecoin rose over 12 percent immediately after the announcement, followed by a rally on Coinbase.

Don’t be afraid to trade:

Traders using Coinbase’s platform will find everything they need for intraday trading. Additionally, the platform has an intuitive interface that is easy to use. The program includes logbooks, graphing tools, and an easy purchase process. Coinbase provides easy access to your account and keeps track of your trading history. 

App:

Like mentioned, Coinbase has is also available through the mobile app. Because Coinbase’s mobile app runs on both Apple and Android devices, you’ll never miss crucial price moves while on a train or in the middle of cooking.  

Taking security measures:

A major advantage of Coinbase is its security. Cryptocurrency exchanges will hold 98 percent of assets in the future. Coinbase states that “critical data, which would normally reside on our servers, has been encrypted and transferred to flash drives and paper backups, which are then stored in vaults around the world.”

Coinbase has a 48-hour grace period for withdrawals, as well as a mortising vault.  It may be a good idea to secure your Coinbase investments if you’ve made a substantial investment. Thanks to the Coinbase vault, this is possible.  

Usage fees:

Consequently, all crypto exchanges charge fees, whether formally or implicitly. Even Coinbase’s more complex crypto trading platform, Coinbase Pro, charges much higher fees due to its convenience and simplicity than many other platforms.  

Is Coinbase right for me?

Because of its simple tools and security features, Coinbase is a convenient place for beginners to get started in bitcoin investing. Coinbase makes it easy to invest in bitcoin for the long run. As you become more familiar with cryptocurrency, you can simply buy your coins on Coinbase and store them there, so you can keep track of their value.

The Coinbase Wallet is a solid choice because it supports a wide range of currencies. In addition to the fact that Coinbase isn’t a viable option for investing in anything but Bitcoin, it has one minor downside: high fees. Nevertheless, they’re a small price to pay if you get convenience, variety, and security in return.  

What are the risks associated with Coinbase?

Coinbase allows you to trade cryptocurrencies. To calculate how much you make with Coinbase, you could consider the asset’s price at the time of purchase as well as your purchase amount. However, investing is a risky business. Make sure you choose wisely. Individual choices will impact financial futures in different ways, so it is wise to consider your options carefully. The value of an investment in cryptocurrency can rise, but it is not guaranteed.

Final verdict:

Coinbase’s success can be explained by the fact that it has over 30 million users. With platforms such as this one, anyone can enter the bitcoin market very easily. The registration and verification processes are quick and straightforward, allowing you to buy and sell popular coins such as Bitcoin and Ethereum instantly.

Newcomers can also purchase with credit or debit cards, bank transfers, or even PayPal. Compared to its competitors, Coinbase has higher trading costs. The average cost for orders over $200 is 1.49 percent, reducing profits slightly. In addition, if you pay by credit or debit card, the cost of each purchase is multiplied by 4.99 percent. However, the Crypto Market’s volatility and future prospects are very promising. Therefore, investors can expect high returns in the near and medium-term. This should minimize the effect of fees.

The most reputable Crypto Exchange in the crypto market has an easy-to-use interface, is secure, and has a stellar reputation.