Find out whether Coinbase exchange is safe for trading cryptocurrencies
Holding the status of being one of the major crypto trading platforms in the United States, Coinbase exchange prides itself in being the ideal exchange for holding, purchasing, and selling top digital currencies including BTC and ETH. Since cryptocurrency has gained mainstream traction, there are numerous options available for selling, purchasing coins on digital wallets, trading apps, and mobile payment services.
But among them, Coinbase stands as the best pick with more than 70 million proven users. The exchange company went public for the first time in April last year. Many witnessed it as a vote of confidence for cryptocurrencies fully. Today, in this article we are going to let you know about how Coinbase works for trading, selling, and buying cryptocurrencies. So let us begin our exploration with:
Coinbase is one of the popular cryptocurrency exchanges in America operated by Coinbase Global, Inc. It is the best for selling, buying, and trading 30 distinctive cryptocurrencies. Coinbase is ideal for those who have no prior experience in cryptocurrency trading. Whereas, its premium service Coinbase Pro is mainly for the experienced ones indulging in high volume transactions and expecting more options in trading.
Robinhood, a trading app made a terrific rise with maximum investments in the current scenario. Cryptocurrency is no special case, Coinbase exchange has been gathering advantages. Last year, the approximate revenue of the crypto company reached around $1 billion in the 3rd quarter. Currently, Coinbase exchange services can be availed in hundred countries.
Use and facilities
When it comes to the use of Coinbase, it is not at all complex. Rather, much easier. No need to install anything to begin with Coinbase, when there is a provision of a web browser for available features. It features mobile apps that are user friendly. Akin to regular trading applications, it facilitates its users in viewing balance and watchlist. They can also track the price status of any digital currency.
Besides these, Coinbase also benefits traders in finding out which digital currencies are performing better. Moreover, the cryptocurrency company has also introduced their Visa debit card ‘Coinbase Card’. It can be used for earning rewards for spending the assets in a portfolio of users. A new direct deposit option was introduced to enable paychecks to be deposited to Coinbase exchange directly. The payment would also be deposited in any digital currency be it Bitcoin or any altcoin automatically.
Do Coinbase charge fees for trading?
Yes, Coinbase does apply trading fees through its trading platform Coinbase exchange. But there is a difference in fees on the latter crypto trading platform and Coinbase Pro. If we talk about the Coinbase exchange then fees are higher and much more complex. Whenever a person purchases or sells digital currencies, Coinbase charges a higher amount for a variable fee or flat rate depending upon what method has been preferred for payment.
As an example, if a customer purchases a $100 BTC with a digital wallet or with a bank account (United States), then $2.99 would be the flat fee and $1.49 for a variable fee. Hence, he or she has to make a fee payment of $2.99 on the transaction. If a customer chooses to pay with a debit card, then the variable fee would exceed $3.99.
In the case of Coinbase Pro, it features an easier fee row structure, especially for larger transactions. The fees are charged between 0% to 0.50% for each trade. Cost is minimal for larger transactions in dollars. If the transaction is below $10K, then the fee would be 0.50%, and if it is between $10K to $50K, then the fee would be 0.35%.
However, no fees are charged for holding assets in a digital wallet or by switching one crypto wallet to another like say from Coinbase to Coinbase Pro in the Coinbase network. But one must also note that the Coinbase fee can certainly affect your winnings by chipping away mainly on the condition of not using Coinbase Pro.
Opening account on Coinbase exchange
Opening an account on Coinbase exchange is not at all complex. All it needs is your photo identification issued by the government, your contact number, and SSN (Social Security Number) last four digits. A person must also have to mention the genuine purpose of using the trading platform. To ward off hackers from holding your account, make a password that appears unique.
Attachment of payment method either through a wire transfer, bank account, or debit card to one’s Coinbase account is a necessary step before starting trading. After setting your digital wallet, you can proceed to trade. Coinbase supports digital currencies including Aave, Bitcoin Cash, Chainlink, Cardano, Ethereum, Litecoin, Stellar Lumens, and Uniswap.
If an exchange fails to guarantee security to its users, then it is of no worth. But Coinbase excels in it with the provision of storing customer funds (98%) to vaults and cold storage. The remaining two percent left is kept online supported by the insurance policy of Coinbase. It deals with losses caused via a cyber breach of facilities provided by the latter. 2FA, biometric fingerprint logins, and AES-256 encryption are other examples of security features of Coinbase.