Coinbase: A Smart Investment Move?

Coinbase is a cryptocurrency exchange that allows anyone with an account to buy, sell, and exchange cryptocurrency. It has a simple user interface, making it ideal for beginners, and supports an extensive list of cryptocurrencies. It also features a native NFT marketplace and offers passive earning opportunities on over 100 assets. Coinbase is available in over 100 countries and has a user base of 110 million verified users. It is considered the default bitcoin bank for millions of users. Coinbase stock is now trading under the ticker COIN, and the company has become one of the biggest crypto exchanges globally.

How to create a Coinbase account

To create a Coinbase account, you will need:

• A valid government-issued photo ID (passport cards are not accepted)
• A computer or smartphone with internet access
• A phone number connected to your smartphone
• The latest version of your browser (Chrome is recommended) or the latest version of the Coinbase app

Coinbase is available via a browser on a computer or as an app on Android or iOS. It is not recommended to access Coinbase through a browser on a mobile device.

To get started, go to https://www.coinbase.com or download and open the Coinbase app.

If you are using the app:

• Select 'Create a free account'
• Enter your first name, last name, and email address, then select 'Continue'
• Create a password and select 'Create Account'
• Verify your email address by entering the code sent to your email
• Verify your phone number by entering the seven-digit code sent to your phone
• Add your personal information, including the details shown on your government-issued photo ID, what you will use Coinbase for, your source of funds, and the last four digits of your SSN
• To buy and sell crypto, you will also need to verify your identity and add a bank account
• Link a payment method

If you are using a desktop browser:

• Follow the prompts and select 'Get started'
• Provide your legal name as it appears on your government-issued ID, the email address you want to use, and create a password
• Read the User Agreement and Privacy Policy
• Verify your email address by entering the code sent to your email
• Verify your phone number by entering the seven-digit code sent to your phone
• Add your personal information, including the details shown on your government-issued photo ID, what you will use Coinbase for, your source of funds, and the last four digits of your SSN
• To buy and sell crypto, you will also need to verify your identity and add a bank account
• Link a payment method

Payment methods

When investing in Coinbase, there are several types of payment methods that you can link to your account. These include:

• Bank account
• Debit card
• Wire transfer
• PayPal

Coinbase does not accept physical checks for payment methods. Any checks received will be voided and destroyed.

You can also use a digital gift card purchased from online merchants to redeem on Coinbase accounts for the purchase of Bitcoin. However, gift cards are currently only available in the US, with redemption excluded in Hawaii.

When choosing a payment method, it is important to consider the fees associated with each option. For example, PayPal and debit cards may have higher fees than using a linked bank account. Additionally, the purchasing limit may vary depending on the payment method, with linked bank accounts typically offering higher maximums.

It is worth noting that the availability of certain payment methods may differ depending on your location. For instance, PayPal is only available for US customers to buy Bitcoin or add US dollars, while UK customers can only use PayPal to cash out or sell.

Coinbase fees

Coinbase offers a cash and Hosted Cryptocurrency balance service free of charge, allowing users to store their cash and supported cryptocurrency at no cost. Users can transfer crypto from one Coinbase user's primary balance to another user's primary balance without any charges.

However, there are fees for transactions on cryptocurrency networks, i.e., transfers of cryptocurrency off the Coinbase platform. When users send cryptocurrency from their Coinbase wallet to another wallet, Coinbase charges a fee based on its estimate of the prevailing network fees for a standalone wallet-to-wallet transfer. The final fee that Coinbase pays may differ from the estimated fee due to factors such as batching transactions or changes in network congestion levels. All fees are disclosed at the time of the transaction.

Coinbase also charges fees for buying, selling, or converting cryptocurrencies on its platform. These fees are calculated when the user places their order and can be influenced by factors such as the chosen payment method, order size, market conditions, jurisdictional location, asset, and other costs incurred to facilitate the transaction. These fees can be viewed in the trade preview screen before submitting the transaction.

Additionally, Coinbase includes a spread in the quoted price when buying or selling cryptocurrencies or in the exchange rate when converting from one cryptocurrency to another. The spread may vary for similar transactions and is not included for Coinbase Advanced since users interact directly with the order book.

Coinbase One is a subscription service that offers fee-free buying and selling of cryptocurrencies, with certain limitations. Members may still have spreads included in their quoted prices.

For ATM transactions, Coinbase does not charge any transaction fees. However, users may be charged fees by the ATM operator.

Coinbase also charges a commission for staking, which is based on the rewards received from the network. The standard commission is 35% for ADA, ATOM, AVAX, DOT, MATIC, SOL, and XTZ.

If users send an unsupported cryptocurrency to their Coinbase account, Coinbase may charge a network fee for the recovery attempt. For recoveries with an estimated value of over $100, a 5% recovery fee is charged on the amount over $100.

Coinbase security

Coinbase is the world's most trusted cryptocurrency exchange. It became the largest public crypto company in April 2021, meaning it operates with more financial transparency. Coinbase publishes financial statements quarterly and is audited annually by an independent third-party as required by law.

Coinbase offers the most secure and multifaceted risk management programs to protect its customers' assets. It uses state-of-the-art encryption and security, and its security team constantly works to protect users and their assets from emerging threats. Coinbase also offers powerful security features to its users, including auto-enrolled 2-factor authentication (with security key support), password protection, and multi-approval withdrawals in Coinbase Vault.

Coinbase only collects the necessary personal data to provide users with the best protection and services and is transparent about how it uses and shares this data. It recommends following good security practices such as enabling two-factor authentication, regularly updating passwords, and being cautious of phishing attempts.

Coinbase stores up to 97% of bitcoins in encrypted, geographically separated, offline storage. This means that even if Coinbase's online servers were compromised, the majority of funds would be safe.

Coinbase customer service

Coinbase offers 24/7 customer service through a live messaging feature that can be accessed on its official website and mobile app. When you first use this feature, you will interact with a virtual assistant. If the virtual assistant is unable to resolve your query, you can then speak to a live support agent.

To access live support through the mobile app, select the menu option (represented by three lines or a "hamburger" icon), then choose 'Get support', and finally select 'Chat with Us'.

You can also contact Coinbase customer support by dialling 1-888-908-7930. This line will connect you to an automated system that will guide you through various options corresponding to different types of inquiries or concerns. Pertinent account information, such as your account number or details surrounding the nature of your issue, will be required.

Additionally, you can contact Coinbase customer support via email at [email protected] or [email protected].

Frequently asked questions