If you have heard about cryptocurrency, you must have heard about Coinbase. So, the question ‘What is Coinbase?’ must have popped up in your mind many times. Moreover, knowing about Coinbase is very important if you want to be involved in financial activity related to cryptocurrency. So, let’s become familiar with it first.
Coinbase is a cryptocurrency exchange that allows users like you to buy famous coins like Bitcoin, Solana, and Ethereum. As a matter of fact, Coinbase has played a massive contribution to the growth of cryptocurrency. In fact, there are more than 120 various cryptocurrencies available on this platform. In short, it can allow you to buy the most popular types of cryptocurrency.
Now, all this information should be enough for you to imagine the immense contribution of Coinbase to the world of cryptocurrency. It’s a medium that allows a new crypto investor to buy and sell their favorite coins.
Let’s know other helpful information related to Coinbase, which will help you understand it in detail.
What is Coinbase Wallet?
A Coinbase Wallet is a medium that allows you to send and get crypto assets on the blockchain. This wallet supports the Ethereum-compatible networks and Ethereum blockchains such as Polygon, Optimism, and Base. Therefore, you can use this wallet as a Defi cryptocurrency wallet, which means you can connect to many decentralized applications. Let’s take an example to understand this point:
It allows you to get connected to Uniswap and Open sea, the renowned decentralized exchange and the leading NFT marketplace, respectively. In addition, the Coinbase Wallet is helpful in self-custody storage for networks like Litecoin, Bitcoin, Solana, and Dogecoin.
Is Coinbase Safe?
When you use something directly related to your finances, you must ensure its safety and security. Moreover, when it comes to Coinbase, you must be more worried, as it’s a relatively new platform. Although Coinbase has advanced security measures like two-factor authentication, it’s not immune to attacks. In fact, many Coinbase users have found their accounts drained.
However, it doesn’t mean that Coinbase is not reliable. To keep potential hackers at bay, you can take security measures like using a hardware wallet or a non-custodial wallet.
Doing so means that you don’t bank on Coinbase to keep your money. In fact, these measures let you store your own crypto using a software, app, or hardware. Therefore, even if somebody reaches your Coinbase account, they can’t get access to the wallet in which you have kept your crypto.
However, doing so requires you to remember your own password, also called a private key. Those who lost a considerable amount of money because they are locked out of their crypto wallet (maybe having a non-custodial wallet). In short, this way comes with better security, but it requires you to have access to your wallet.
What is Coinbase App?
The Coinbase app is a way to use Coinbase on your mobile device, allowing you to buy and sell your cryptocurrencies. Moreover, it can also allow you to convert one cryptocurrency to another and get and send cryptocurrency to other people.
Apart from that, by using this app, you can know the current price and trends related to cryptocurrencies and see your portfolio of holdings.
In short, when you have a Coinbase app, you can use Coinbase just by using your fingertips.
What is Coinbase in Blockchain?
Blockchain is a shared ledger among a computer network’s nodes, helpful for cryptocurrency systems to maintain a secure and decentralized transaction record.
The cryptocurrency network provides its users with unique addresses. In fact, each user has a unique address. These addresses are made of a public key and a private key.
Anybody can send you money using your public key, which is like an email address. When you need to spend your money, you can use your private key. This key is your password to sign transactions digitally.
The most convenient way for your cryptocurrency management is software that is called a wallet. So, you can use this wallet from an exchange like Coinbase.
How to Open a Coinbase Account?
The following are the requirements for Coinbase account:
- Be at least 18
- Have a government-issued photo ID like a driving license or state ID
- With a computer or smartphone with an internet connection
- A phone number for the SMS verification
- An internet browser with the latest version
If you have all these things, you can create a Coinbase account. So, type in your first and last name, email, and residence state. Then, create a password. You are also required to check the box for the confirmation that you are 18.
When it comes to setting a password, you must create a strong and unique password. After that, add a payment method to transfer money into your Coinbase account. A US customer can use various payment methods like PayPal, debit card, their bank account, Apple Pay or wire transfer.
Note: PayPal is only for US customers to buy cryptocurrency or cash out.
How to Sell and Buy Cryptocurrency Using Coinbase?
When you have logged in to your Coinbase account, take the following steps to buy cryptocurrency:
- Tap on the Buy/Sell button available on the right.
- After that, mention if it’s a one-time purchase or daily/weekly/monthly.
- Then, type in the amount of your purchase.
- Thereafter, choose the cryptocurrency to buy.
- After that, select the payment method.
When using a bank account, it takes between 3 and 5 days to complete, as per Coinbase. On the other hand, to sell your cryptocurrency, type in how much you wish to sell (or choose ‘Sell all’). Thereafter, mention which coin you want to sell and the price you want.
Note: the fees are the same for selling and buying.
Let’s Conclude All:
What is Coinbase? is a well-reputed and safe cryptocurrency exchange platform that allows its users to buy famous coins like Bitcoin, Solana, and Ethereum. Although this platform is highly secure, it can be attacked. So, you should use a hardware or non-custodial wallet for robust security.