Coinbase Investment Guide: Getting Started And Strategies

Coinbase is a major US-based cryptocurrency exchange that allows users to buy, sell and store cryptocurrencies like bitcoin and ether. It is a publicly traded company, with its shares opening at $381 on the Nasdaq stock exchange under the ticker symbol COIN. Coinbase stock gives investors exposure to the cryptocurrency market without directly investing in cryptocurrency. In this article, we will discuss how to invest in Coinbase stock.

How to open a Coinbase account

To open a Coinbase account, you will need an internet connection and a smartphone. You must be at least 18 years old and have a valid form of identification, such as a passport, Medicare card, or driver's license. You will also need a computer or smartphone connected to the internet, a phone number connected to your smartphone, and the latest version of your browser (Google Chrome is recommended).

• Visit the Coinbase website (https://www.coinbase.com) or download and open the Coinbase app on your Android or iOS device.
• Click or tap "Get started" and choose your account type.
• Enter your legal full name, email address, and password. Make sure to use your real name as shown on your valid ID and an email address that you have access to. Choose a strong password that you can memorise.
• Read and accept the User Agreement and Privacy Policy.
• Verify your email address by clicking on the link in the confirmation email sent by Coinbase.
• Verify your phone number by entering the code sent to your phone via SMS.
• Add your personal information, including your residential address and any other details requested.
• Provide a photo or copy of your valid ID, such as a passport, proof of age card, or driver's license. The requested documents may vary depending on your country.
• Select your account type, such as an "individual" account for personal use.
• Provide your country of residence and phone number.
• Add your desired payment method by linking a bank account or credit/debit card to your Coinbase account.
• Once your payment method is linked and confirmed, your Coinbase account is ready to use!

By following these steps, you can securely set up your Coinbase account and start exploring the world of cryptocurrencies. Remember to conduct thorough research and stay informed about the latest trends and security measures in the crypto space.

Payment methods

Coinbase offers a variety of payment methods for users to choose from when investing. In the U.S., these include:

• Bank account
• Debit card
• Wire transfer
• PayPal account
• Apple Pay
• Google Pay

However, it is important to note that not all actions, such as cashing out, are available with every payment method. Additionally, credit cards are no longer supported by Coinbase, and prepaid cards or other cards without an associated billing address are not accepted.

For UK residents, payment methods include:

• Bank account
• Debit card
• Wire

The availability of certain payment methods may vary depending on your location.

When purchasing crypto, it is important to review the confirmation screen carefully before finalizing your transaction. Additionally, ensure that your device or browser is updated to avoid any issues during the payment process.

Coinbase also offers the option of setting up recurring purchases. This allows you to automatically make purchases at regular intervals without having to manually initiate each transaction.

Buying crypto on Coinbase

To buy crypto on Coinbase, you'll first need to create a Coinbase account. You can do this by downloading the Coinbase app and signing up. You will need a valid ID, and you may be asked for proof of address, so have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.

Once you have an account, you'll need to add a payment method. You can do this by tapping on the payment method box and connecting a payment method. You can use a bank account, debit card, or initiate a wire.

Now that you have an account and a payment method set up, you're ready to make your first crypto purchase. On Coinbase.com, navigate to the "Buy/Sell" page. On the Coinbase mobile app, tap the "+" or "Buy" button on the Home tab.

Select the crypto you want to buy from the list of assets. You can search for a specific cryptocurrency by typing its name into the search bar, or browse the list of available assets. When you've found the crypto you want to buy, click or tap on it to open up the purchase screen.

Enter the amount you want to buy in your local currency or the desired amount of cryptocurrency. The Coinbase app will automatically convert the amount into the equivalent amount of crypto. You can also tap the arrow buttons to switch between the local currency amount and the crypto amount.

Review the order details, including any fees and the total cost of the transaction. If everything looks good, confirm the purchase by tapping or clicking "Buy now".

That's it! You've now bought crypto on Coinbase.

Coinbase fees

For example, when buying, selling, or converting cryptocurrencies on Coinbase, fees are influenced by your chosen payment method, order size, market conditions, jurisdictional location, asset, and other costs incurred to facilitate your transaction.

Coinbase also includes a spread in the price, which is the difference between the asset's market price and the price you're buying or selling it for. This spread is included in the quoted price to increase the likelihood of a successful transaction and allow Coinbase to lock in your quoted price temporarily while processing your order.

Additionally, there are network transaction fees for transactions on cryptocurrency networks. When you send cryptocurrency from your Coinbase wallet to another wallet, Coinbase will charge a fee based on their estimate of the prevailing network fees for a standalone wallet-to-wallet send.

Coinbase One is a subscription service that offers zero trading fees for a monthly fee. However, limits and spread fees may still apply, and there is a trading volume limit.

It's important to note that all fees and charges are subject to change, and users should review the most up-to-date information on the Coinbase platform.

Coinbase Card

The Coinbase Card is a Visa debit card that allows users to earn crypto rewards on everyday purchases. The card is issued by Pathward and runs on the Coinbase platform. It is currently available to all Coinbase customers based in the US (excluding Hawaii) and can be used anywhere that accepts Visa debit cards, including over 40 million merchants worldwide.

The Coinbase Card offers a simple rewards structure, allowing users to earn crypto back on every purchase. There are no spending fees or annual fees, and users can spend cash or crypto, with Coinbase automatically converting cryptocurrency to US Dollars for purchases and ATM withdrawals. The card also offers industry-leading security features, including two-factor authentication, card freezing, and the ability to change your PIN.

To be eligible for the Coinbase Card, there is no credit check or requirement to stake your assets. However, users must have a Coinbase account and can link their bank account or deposit part of their paycheck into Coinbase with zero fees. The card can be used instantly once approved, and Coinbase provides 24/7 dedicated phone and email support.

While the Coinbase Card offers an easy entry point into crypto, it is important to note that cryptocurrency is a volatile and high-risk investment. There are also monthly spending limits that cap rewards earnings, and the cash-back offerings may not be as competitive as other cards on the market.

Frequently asked questions