Despite having slightly higher fees than some of the competition, Coinbase is probably the best cryptocurrency exchange in 2021. This platform is perfect for investors of cryptocurrency who are just starting out, but it’s also quite an amazing choice for experienced traders who need a powerful platform to help them maximize their gains.
What is Coinbase?
Coinbase is a leading cryptocurrency exchange platform that has been the crypto-fans haven since it has been founded back in 2012. This US-based company offers a plethora of unique features and tools, including but not limited to an advanced trading platform, cryptocurrency investing, wallets for retail investors, custodial accounts for companies, and even its own US dollar coin.
Coinbase offers a solid variety of altcoin choices, has very high liquidity, and boasts an extremely easy to use interface. These are just some of the Coinbase benefits.
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One of the biggest drawbacks of Coinbase to me was its non-discrimination policy, which is quite inexistent. Unfortunately, a private investigation conducted by a group of reports from New York Times revealed that the discrimination is real inside Coinbase’s own headquarters. I point this out as I want to be unbiased and disclose any cons as well to be fair and so you can be knowledgeable.
Coinbase Platform Overview
The Coinbase platform was launched back in 2012 in San Francisco by Fred Ehrsam and Brian Armstrong. Starting out as a Bitcoin brokerage service, which enabled customers to buy Bitcoin online, Coinbase slowly morphed into one of the largest and most trustworthy cryptocurrency platforms on our planet.
Coinbase is a fully-regulated platform, being licensed across numerous US jurisdictions. The company has also managed to raise millions of dollars from top investors such as Rabbit Capital or Andreessen Horowitz.
Main Types of Services Available on Coinbase
The main and most important service this platform offers to worldwide users is the capability to buy and sell crypto coins. Many new traders are reading about the high Coinbase rating and hearing about the Coinbase reputation and are deciding to give it a try. As a result, many people have embarked on their own journeys with Coinbase trading in 2021.
If you’re wondering if whether Coinbase is worth it, know that this platform is perfect for you as a beginner trader. Even as an experienced trader, you can leverage the power of Coinbase using your Nano Ledger device. You can easily transfer crypto from your Coinbase account to your Nano Ledger, so you can be 100% sure that your digital investment is safe from potential hacking.
Meet Coinbase Pro
When you open up your own account on this platform, your coins will be stored on their servers. Thus, Coinbase makes it safe for you to add your own bank account. The same is true for Coinbase Pro. This improved version is aimed at more experienced users, offering insurance protection, industry-leading API, and competitive fees.
In terms of the benefits of Coinbase Pro, I want to mention the intuitive interface that makes it super easy for users to automate their trades and leverage pro features such as charting tools, orderbooks, trade history, and order processes.
On this platform, there is room for more than just traders. Developers can build bespoke crypto tools using Coinbase cloud, while large businesses can use the Asset Lab and Custody tools to take control over their processes.
The Coinbase Wallet
Back in 2018, the Coinbase management team decided to launch their own wallet. This eWallet, which is available for both Android and iOS, can store your private keys. The wallet comes as a good alternative to the Nano Ledger or Blockfi for storing crypto assets.
Currencies, Payment Methods & Fees
Coinbase supports a multitude of currencies, including but not limited to Bitcoin, Ripple, Ethereum, Algorand, Dash, Stellar Lumens, Maker, Orchid, or Cardano. They are constantly adding new coins to the mix, enabling traders to enjoy the best trading opportunities out there.
For example, they’ve recently added Cardano and Internet Computer to the mix and soon Dodgecoin, allowing millions of traders to ramp up their profits. At this point, you should know that Cardano and Internet Computer have seen spectacular growth in May 2021, by over 100% at a certain point. However, despite losing their value after the crisis, experts agree that they will get back and be even stronger.
In terms of Coinbase payment methods, you can send money over to your digital account via bank transfer, credit card, debit card, or crypto wallet. You can also withdraw money to your PayPal account or bank account via wire transfer.
Now, the Coinbase fees to buy include a transaction fee and another 0.5% to the actual market price of the coin you buy. The bad news is that you’ll also have to pay some fees when withdrawing money. Nevertheless, overall, the fees on Coinbase are still lower than the fees offered by other brokerage services.
So how does Coinbase make money? First of all, they’re making tons of money from their transaction fees. With millions of users trading on this platform on a monthly basis, the profits from fees amount to tens of millions of dollars. They’re also making money from partnerships with other companies and from advertising.
Other Specific Info about Coinbase
Coinbase is an international platform that offers its services to users from more than 100 countries. If you want to know how to set up a Coinbase account, you should simply click here, tap Get Started, fill in the fields, verify your phone number & email, and finally verify your identity.
A Short Investment Guide on Coinbase
The best way to invest on Coinbase and learn how it works is to start small by investing under $100. First, you want to decide what to buy on Coinbase and then stick to it. For example, you can start by buying $50 worth of ETH and another $50 worth of Bitcoin. You can then hold for long term or wait for a few weeks or months, until the price goes up by over 50% and withdraw your profits.
Of course, if you have money to spend, you can start with $1,000 or more and invest in one coin or multiple coins. However, you would have to do your own research to make sure you’re not investing in a coin that might be dead in a few months or years. The only coins I would advise to purchase is Bitcoin and Ethereum. And I choose to hold them as a long-term investment.
The best way to trade on Coinbase is to purchase stable coins. However at this point, it’s super important to be aware that the cryptocurrency market is highly volatile. A single tweet can wreak havoc in the cryptosphere, making the price of Bitcoin drop by over 15% within minutes. Thus, it’s smart to buy your crypto assets when the prices fall and I have always chosen to hold long-term but you also have an option then sell them once the market goes back up (and it always got back up so far).
Is Coinbase Safe and Secure?
If you’re wondering if whether it is safe to use the Coinbase wallet, know that the apps are extremely safe and protected by numerous security measures. Coinbase does take security seriously.
All of the crypto assets are insured. The company holds only roughly 2% of their users’ assets online, and the bulk of 98% in offline cold storages that cannot be reached by hackers. In case they would suffer a cyber attack on their online servers, their policy would “pay out to cover any customer funds lost as a result”.
This site also offers full protection against theft, so your funds are insured. However, you can still lose money if hackers steal your passwords and find a way to withdraw your funds. That’s why I strongly recommend that you turn on two-factor authentication.
Coinbase Support
One of the most impressive things about this platform is its extensive knowledge base. You can find tons of useful articles that can teach you how to overcome certain issues and can educate you on how to trade correctly. You can also call Coinbase as well as submit service tickets. I haven’t had to contact Coinbase in some time but I read that you can get a response from service tickets within one to two business days.
Pros and Cons of Coinbase
Pros
– Very easy to use
– Professional onboarding process
– Great UI, perfect for beginners
– Good fees and tons of investment opportunities
– You can easily deposit and withdraw money
– Funds are insured against cyber attacks
– Great documentation
– Coinbase Pro comes as a perfect tool for experienced traders who need to use overlays, charts & indicators
Cons
– Certain discrimination issues uncovered by reports
-may have slighter higher fees than other competitors
Alternative Methods to Make Money out with Crypto
While Coinbase is definitely a legit way to make money in 2021 from cryptoassets, you can also boost your returns over the following months or years by leveraging two platforms: BlockFi and Watermine. On BlockFi you can earn interest by storing your crypto, while Watermine gives you the opportunity to generate income by investing in crypto mining. I wrote reviews on these two services as well.
Click here to read the Blockfi review.
Click here to read the Watermine review.
Both of these platforms are legit and offer a much higher stability in terms of profits compared to Coinbase. However, investing in a mix of these three tools is a surefire way to make more money in 2021 from cryptocurrencies.
Is Coinbase the Right Choice for you?
Coinbase is the ultimate crypto investing tool in 2021. Whether you’re just starting out with crypto and you want to test the waters, or you’re a well-versed trader who wants to make the most out of the free tools offered by Coinbase Pro, this platform is the right choice for you. Remember that investing in virtual coins is a highly speculative business, so you must be smart and create some safety nets for you. I would advise you that you invest in several coins at once on Coinbase, and alternatively open up your own accounts on Watermine and Blockfi.
If you want to learn more about investing on Coinbase, you can always contact me via message and I’ll be happy to answer any questions you might have.
FAQs
Q: How do I Get my Money out of Coinbase?
A: You can easily withdraw your profits or your entire investment via PayPal or bank account (for money) or via your cryptowallet (for virtual coins)
Q: Is it Safe to use Coinbase to Buy Coins?
A: Totally. This platform is regulated and insured, plus it has been used by tens of millions of traders over the past few years.
Q: Can I keep my Bitcoins or Ethers on Coinbase?
A: Sure. You can do that. However, I would recommend you withdraw your profits from time and time or reinvest them in other assets.