Over the years Coinbase has played a major role in the introduction of new investors or traders to the crypto market. The exchange is currently one of the major gateways for traders to access the market. With this in mind, we have put together a guide to help new investors and customers access the various features and functionalities of the Coinbase exchange.
What is Coinbase?
Brian Armstrong, Fred Ehrsam, and Ben Reeves launched an exchange dubbed Coinbase in 2012. in just under a year of operation, the exchange had become the highest funded bitcoin start-up. Since 2013, Coinbase has managed to retain its status as one of the biggest exchanges in the world. The San Francisco based exchange operates in over 32 nations and has about 20 million users. Also, Coinbase also provides wallet services to its clients.
Why Should You Know About Coinbase?
Coinbase is one of the leading crypto exchanges in the world and it is one of the few exchanges that support fiat to cryptocurrency exchanges. In addition, the exchange has an easy-to-use and user-friendly interface, therefore, it is regarded as one of the best platforms for new investors. Coinbase provides its users with fast cryptocurrency purchases by selling them the cryptocurrency directly, unlike other crypto exchanges that require traders to make purchases directly from the market.
Coinbase sets itself apart as one of the few crypto exchanges that accept debit cards, bank transfers and PayPal. Another advantage of using Coinbase is that its transaction fees are the lowest among platforms offering similar services.
Differences between Coinbase And Coinbase Pro
Coinbase is the consumer platform which offers traders an easy-to-use access point to the crypto market while Coinbase pro (formerly known as GDAX) is more suited to professional traders as it comes with trade histories, charting tools and real-time orderbooks. However, users can use their Coinbase account login details to log into the Coinbase pro platform.
How to Open and Register a New Account on Coinbase
Opening an account on Coinbase is quite simple.
First, visit their website and click on the “sign up” menu on the drop-down menu located at the top right corner of your screen.
Once you are done with the step above, a verification link is sent to your email and you have to log in into your email to click on the link to proceed.
After clicking the link, you will be redirected to a page where you will input your country and phone number. A 7-digit will be sent to the number you provided and you need to enter these digits on the new page to proceed.
The next step is the KYC/ID verification. If you are not redirected to the ID verification page, then you will be doing this later as you will not be able to buy cryptocurrency without confirming your ID.
All exchanges based in the US must comply with the Anti Money Laundering and Know Your Customer (KYC) policies which demand that they verify that user details of their users. Therefore, Coinbase collects a lot of personal information of its users like their photo ID and the last four digits of their Social Security Number.
For people that were not redirected to the KYC/ID verification page, they can click the Buy/Sell button and then select the “Submit ID + Photo Verification” button.
Enter your personal information in the KYC page and proceed to submit a photo ID. To do this, use a mobile camera or webcam to capture the front and back of accepted photo ID and upload.
To add a payment method, simply click on the “Setting” tab and click on the “Linked Accounts” tab and thereafter the “Link a New Account” option on the Setting page. The payment methods available on the Coinbase platform are:
Debit Cards: this is the fastest payment option on the platform, however, its transaction fees are on the high side and the purchase limit is lower than other payment options. To choose the debit card option, simply click on the “Link Debit Card Option” and enter your debit card details. Once you enter your card details, Coinbase will send two charges to your account. Enter the last two digits of the charge in the provided space in order to verify your debit card.
Bank Account: using bank account gives you more purchasing power, however, it will take up to 5 days to receive the purchased cryptocurrency. Also, the transaction fees are lower than the debit card option. To choose the bank account option, select the “Bank Account” tab, choose your bank and enter your bank account details.
Wire Transfers: select the wire transfer option and enter the amount and include a reference code which Coinbase is required to generate. It takes 24 hours for the completion of the transfer.
Go to the dashboard and click the “Buy/Sell” tab and enter the amount of cryptocurrency you wish to buy or sell. If you are buying, you will select your payment method and wallet, confirm the order and click on the “Complete Buy” tab. If you wish to sell, simply select your wallet, enter an amount and confirm the transaction.
Deposits and Withdrawals
You can fund your Coinbase account by transferring funds from other wallets or exchanges to your Coinbase account. To do this, go to the trading view, select the “Deposit” button, copy the account address on the screen and enter it into the external wallet you wish to transfer the cryptocurrency from.
You can also transfer cryptocurrency from your Coinbase account to other external wallets. To do this, simply open the trading view, click on the “withdrawal” button and select the currency type. Next, enter the address of the external wallet as well as the amount you wish to transfer. Once you have done this, click the withdraw button.
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