Coinbase: Is It Safe to Trade Crypto?

Is Coinbase a Safe Exchange to Buy Cryptocurrency

Overview

Buying and selling Bitcoin during its initial years was quite tricky as there were no cryptocurrency exchanges back then. Crypto exchanges are marketplaces that facilitate traders to buy, sell, or exchange cryptocurrencies using fiat currency or other altcoins. With many users accounting for over 43 million, Coinbase is the most popular cryptocurrency exchange globally.

Coinbase was launched in June 2012, only a few years after the inception of the world’s first cryptocurrency in 2009. It is headquartered in San Francisco, California, US, and is available in 100+ countries. Coinbase enables traders to buy Bitcoin and other cryptocurrencies using fiat money in more than 32 countries. People can also exchange or convert one crypto to another using the Coinbase exchange and broker platform.

Coinbase offers wallet services for storing, sending, and receiving crypto tokens like Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, XRP, Stellar Lumens, Dogecoin, among others. The exchange platform enables users to store 98% of their cryptocurrency funds offline, making Coinbase one of the world’s safest exchanges.

Is Coinbase Safe?

Coinbase allows users to store their cryptocurrencies offline. Moreover, Coinbase holds the record as an exchange that was never hacked. Users can also opt for two-factor authentication for enhanced safety. Coinbase is a fully regulated and licensed exchange with a simple yet stringent registration process subject to account verification.

Over 54 cryptocurrencies are available on Coinbase. However, some exceptions can be found based on the trader’s country of residence. For instance, traders from certain countries can only send or receive cryptos but not exchange them. The complete list of the available cryptocurrency tokens and their limitations is available on the Coinbase website.

Why choose coinbase?

Coinbase is suitable for both advanced traders and beginners. The exchange provides information on most of the cryptocurrencies, including their market caps, to help traders make informed decisions.

Some of the newly released cryptos are regularly updated at Coinbase. Users can find some of the lesser-known cryptos and also penny cryptocurrencies at Coinbase.

The registration process is straightforward and is processed after thorough verification of the user’s information.

Coinbase is among the few highly liquid exchanges in the world. High liquidity protects the trader from price slippage in the cryptocurrency market, a highly volatile market.

Cryptocurrencies supported by coinbase

Apart from Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH), Coinbase also supports other cryptos. The list includes and not limited to; Aave (AAVE), Algorand (ALGO), Cosmos (ATOM), Band Protocol (BAND), Basic Attention Token (BAT), Bancor Network Token (BNT), Celo (CGLD), Compound (COMP), Civic (CVC), Dash (DASH), Dai (DAI), Filecoin (FIL), Litecoin (LTC), Stellar Lumens (XLM), Ripples (XRP), Tezos (XTZ), Zcash (ZEC), etc.

How to buy cryptocurrencies from Coinbase?

Traders can buy cryptocurrencies from Coinbase either via the web browser or using the Coinbase mobile app. The steps are as follows:

  1. Sign in to Coinbase or sign up to create a new account
  2. After successful registration, click on the buy/sell option, which reflects on the top-right section of the homepage when using the web browser and at the bottom in the Coinbase mobile app
  3. Click on the buy option to choose a digital asset
  4. Enter the amount to buy either in crypto or its equivalent fiat currency
  5. Choose a payment method
  6. Complete the purchase

How to sell crypto in Coinbase?

Selling cryptocurrency can be done either using the Coinbase mobile app or the web browser for desktops. The steps involved are as follows:

  1. Click on the buy/sell option on the app or browser.
  2. Click on the sell option
  3. Choose the crypto to be sold
  4. Complete the action

Users can also withdraw cryptocurrencies using the Sell option by entering the amount that they want to withdraw.

Coinbase Fees

A spread margin of up to 2% applies for converting cryptocurrencies. The other transaction charges for withdrawals, buying, and selling depend on the type of currency and amount. Many believe Coinbase charges high for trading. However, Coinbase Pro is known for its low trading fees.  

For Buy/Sell transactions, the trading fee varies and is determined by the amount traded and payment method. For example: If the transaction amount is equal to or less than $10, the fee is $0.99 or its equivalent currency.

Crypto-crypto conversion possible?

Converting one cryptocurrency to another is possible for Coinbase wallet users. One can convert the currency available in their wallet by exchanging it with other decentralized exchanges.

Conclusion

Coinbase is a fully licensed and regulated exchange and is also among the first cryptocurrency exchanges launched soon after the inception of Bitcoin. Coinbase prides itself as an exchange that was never hacked. You can read about an in-depth coinbase review here. Also, users can store 98% of their crypto funds offline, making Coinbase one of the safest cryptocurrency exchanges. Trading at Coinbase is effortless and can be executed using the web browser or the Coinbase mobile app. 

ABOUT THE AUTHOR

Richard Wallis

Richard Wallis has began writing for finance industry since 2010. He holds post graduate degree in English language and literature. From the beginning of his career he was interested in world of finance. So, eventually he began writing news stories on it. In addition to that he is an avid trader.

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