There are several digital currency exchanges available online with the increase in cryptocurrency recognition. However, in most cases, they each have distinct features. Available exchanges are either Hybrid exchanges (HEX), Decentralized exchanges (DEX), or Centralized exchanges (CEX).
Centralized exchanges are known for their customer support which makes them suitable for cryptocurrency beginners. Compared to DEXs, CEXs offer smoother transactions and support large transaction volumes.
Although hybrid exchanges have been developed to make up for the limitations of the CEX, in this article, we will be considering Coinbase, a prominent Centralized Exchange. We will look into what Coinbase is, its prominent features, and how to start trading with Coinbase in simple steps.
What Is Coinbase?
Coinbase is one among the several cryptocurrency exchange platforms that have made a name for itself. It currently ranks among the top 5 cryptocurrency exchange platforms with a user satisfaction rating of 86%. Since its founding in 2012, in line with its mission to ensure easy access to the crypto–economy, Coinbase has put in place extreme measures for the security and relative financial stability of assets in its holding.
Coinbase provides an array of security measures even for its free accounts. For starters, once you create an account with them, you are immediately made to set up a two-step verification. To ensure that no intruder is setting up an account using your details, email verification is also required.
In addition to these, a security prompt is enabled. In other words, whenever your Coinbase account is logged into, your linked phone number will receive a notification. Other security measures are; enabling a security key, installing an authenticator, and the lock account options.
Coinbase enables both beginners and experts in cryptocurrency to build and manage a portfolio. This comes in handy as a crypto portfolio works like an inventory that reflects assets including crypto and NFTs of the portfolio holder.
The Coinbase card is one feature that has been developed to make crypto transactions easier in regions where fiat currencies are the norm. The card allows you to spend your crypto assets in places where visa cards are accepted. Although, this feature is currently open only to users in the US and the UK.
For convenience, Coinbase has a mobile app that functions in the same way as the web version. The Coinbase mobile app is available on both Android and iOS.
This feature allows you to schedule your cryptocurrency investments. Depending on what you set the schedule to, Coinbase automatically purchases cryptocurrencies of your choice gradually. Schedules can be set to span across days, weeks, or months.
Coinbase Learn – the section of Coinbase that proves most helpful to beginners. This section holds video and written content that relay answers to several questions cryptocurrency beginners ponder over.
Unsurprisingly, most exchanges and currencies are not backed by financial insurance, considering how these deal with non-fiat currencies. However, unlike these, Coinbase provides custodial accounts where cash like USD and euros are held and insured by FDIC insurance. The current coverage limit is $250,000. This custodial account with insurance provisions is available to both US and non-US citizens.
Like most cryptocurrency exchange platforms, Coinbase works in these simple steps;
- Set up an account with Coinbase
- Connect your bank account
- Engage in trade
- As in most cases, the bold blue “Get started” option is the initiator for setting up your Coinbase account. Clicking on the blue button leads you to a page where you are required to provide basic data on yourself. You are required to fill in all fields on this page. The provided spaces are for your first and last names, email, password (a password strength-checker is attached here), and an agreement to their terms.
- Next comes email verification. The email sent to your provided email address would contain a link. By clicking the verify email addresses button, you will be redirected to Coinbase.
- Now, you need to log in using your email, and your password. After this, you will be asked if you would like to receive notifications and offers through email.
- The two-step verification is immediately set up after this. Here, you must provide your country and phone number. The phone number you provide will receive a code some seconds after you click the send code option.
- Once you input the code, you will find the message “you’re verified” on the subsequent page.
- The two pages that are displayed after this contain options to link your bank account and to transfer your current Crypto assets to your Coinbase wallet. However, both steps can be skipped till later.
- Once you are verified by Coinbase, you will immediately find the option to set up your bank card. Select the option that says to set up bank card.
- If you skipped this step during setup, the option to do so will be displayed on the home page.
- Alternatively, tap on the hamburger menu at the top right corner when you log in. This action opens the notifications tab by default. However, if you click on the drop-down arrow, you will find the “add payment method” option listed.
Using any of these, you can link your current bank card. You can use any card (Visa or MasterCard) for Crypto purchases. However, you would need a Visa card to spend your crypto.
With your Coinbase account connected to your debit/credit card, you can proceed to utilize the trade, assets, and pay sections on your Coinbase account.
If a long-standing crypto exchange platform is what you need, you will find that the services you will receive from Coinbase are far from disappointing. You can work with the Coinbase free account without any extra fees. Although, like almost every service out there, the paid plan implies added benefits. You can try for yourself using the free plan to see if you would want to opt for the paid plan in the long run. As one with interests in cryptocurrency, the choice to start trading with Coinbase is entirely up to you.