What is Coinbase

Coinbase is a secure online platform known as a cryptocurrency exchange for buying, selling, transferring, and storing digital currency known as crypto.

Coinbase enables you to trade, buy, and sell cryptocurrencies like Bitcoin (BTC), Ethereum, Litecoin, Cardano, Dogecoin, and Solana. As of July 2022, there are 20,268 cryptocurrencies in existence. Coinbase doesn’t support every type of cryptocurrency. However, Coinbase supports more than 120 different types of cryptocurrencies. Coinbase also has one of the highest trade volumes of all exchanges, making it one of the largest cryptocurrency exchanges in the US for crypto trading.

Like many trading apps, users can see their balance and a watchlist, which allows them to track the prices of different cryptocurrencies. Traders can also check which cryptocurrencies are the biggest movers.

Coinbase is suitable for beginner traders, while its premium sister platform, Coinbase Pro, is for avid and experienced traders. The premium service enables high-volume transactions and provides more trading options.

Alternative crypto exchange and trading platforms include Gemini, Uphold, Binance and Kraken.

How do you use Coinbase?

To use Coinbase to buy, sell and transfer cryptocurrency, you must create a Coinbase account.

Opening a Coinbase account is pretty straightforward. Using a computer connected to the internet, visit the Coinbase website from a browser, or use a smartphone to download and open the Coinbase mobile app on Android or iOS.

From the website or the app, you can click “sign up.” You’ll be asked to enter your full name, email address, password, and location and read through the user agreement and privacy policy. Be sure to select a unique password and use multi-factor authentication to prevent hackers from gaining access to your account. Once you click submit, Coinbase will send you a verification link to your registered email address.

Once you’ve verified your email address using the link, it’ll redirect you back to Coinbase, where you’ll need to sign in. Once signed in, the platform will prompt you to add your phone number. Once you’ve added your phone number and clicked submit, you will receive a code to this phone number. Enter the seven-digit code into the Coinbase platform to verify your number.

The next step is to add your personal information. On the Coinbase platform, enter the information shown on your valid government-issued ID. Then answer a few questions regarding how you intend to use the platform, your occupation, employer, and the last four digits of your Social Security number (if based in the US).

Once you have submitted this information, you will receive further instructions via email asking you to verify your identity. To do this, sign into your Coinbase account and complete the ID verification process by submitting a photo of the ID.

The final step is to link a payment method giving you access to a digital Coinbase wallet where you can store your digital assets. Payment methods differ by country. In the US, you can use your bank account, debit card, wire transfer, Apple Pay, or PayPal. Coinbase no longer supports linking new credit cards.

Once you’ve set up your crypto wallet, you’re ready to trade, sell, and buy bitcoin. If you want to cash out your crypto, you first need to sell your cryptocurrency for cash on the platform. Then, you can buy more crypto or withdraw crypto as USD, Euro, and 20+ other fiat currencies via the bank.

Coinbase users can also gain access to a Coinbase card, a Visa debit card that enables you to earn rewards for spending the assets in your digital wallet.

Coinbase has also released a new direct deposit option that allows users to have their paychecks directly deposited to Coinbase and converted into cryptocurrency.

What are Coinbase fees?

When Coinbase users make a cryptocurrency transaction on Coinbase, for example, buying or exchanging crypto assets back into U.S. dollars, Coinbase charges a spread and a transaction fee. This fee is called a Coinbase fee. 

The spread is the difference (or margin) between the market price and the price you actually pay for a purchase or receive for sale. You can compare it to the commission or trading fee you might pay when you invest using a brokerage account. 

Coinbase’s spread equals about 0.50% of your crypto sales and purchases, though it can fluctuate based on the market. The Coinbase Fee can also vary depending on your payment method, location, and other factors. It may be either a flat fee or a percentage of your transaction, but it will always be the greater between the two.

There’s no Coinbase fee for converting your crypto coins to other cryptocurrencies.