Cryptocurrency has become one of the largest investment vehicles over the past years. Currently, it is one of the most bullish assets in the world, amassing a total market capitalization of over $2T. Crypto transactions and trades are conducted in different ways, including exchanges and peer-to-peer systems.
Trading and transacting through exchanges prove to be challenging for many. Therefore this guide will be a good companion for those seeking to use the Coinbase crypto exchange platform.
The History of Coinbase
Brian Armstrong, a former Airbnb engineer, founded Coinbase in 2012. He enrolled in the Y Combinator startup incubator program, where he received a cash infusion of $150K that he spent on developing the initial systems of the exchange. Fred Ehrsam joined him later on from Goldman Sachs, where he was a trader to become a co-founder of the exchange.
The company has since grown from just a startup to shaking the world. It was the first crypto exchange to list to the public. It listed on Nasdaq at $350 per share in April 2021. Its CEO, Brain Armstrong, says that his dream is “to increase economic freedom globally.”
How to Open A Coinbase Trading Account
The process of creating a Coinbase account is simple. However, there are some rules that one must abide by for successful registration and opening of their trading account. Those rules are as follows:
- Be of at least 18 years of age
- Provide a government identity card like a driving license or other IDs
- Have a computer or smartphone with access to the internet
- Provide a mobile phone number for use in SMS verification
- Update the favorite browser to the latest version.
After confirming the requirements, fill in their form with accurate personal details and wait for verification. Also, link the available payment methods in your location.
What Cryptocurrencies Can You Trade Through Coinbase?
Even though the crypto market has thousands of cryptocurrencies, Coinbase only offers 96 of them. It functions to shield investors against investing in risky crypto projects. It also offers over 80 crypto-to-crypto trading pairs to make it easy for investors to explore the market.
How to Trade Crypto Through Coinbase
After linking the available payment option to Coinbase, one is free to trade any coin that they are comfortable with. However, there is a process to follow and some fees to pay for their services. The process of buying coins using Coinbase is as follows:
- Click the buy/sell button on the upper right-hand corner of the application or website
- Specify if the desired trade is a one time purchase or recurs on a daily/weekly/ monthly basis
- Enter the amount of fiat to be spent
- Select the desired crypto
- Choose a suitable payment method.
Additionally, the exchange explains that bank transactions require 3 to 5 business days.
The process of selling the assets is simpler as all one has to do enter the desired sell amount and payment method.
Is It Safe to Trade Crypto Through Coinbase?
It is safe to transact on Coinbase, but they have been hacked before and funds lost from their online wallets. However, you could always explore hard wallets as a solution.
Coinbase is one of the most successful crypto exchanges in the world. It offers its users safe exposure to the crypto market through vetting crypto projects carefully before listing them. It also has an active customer support team and well-prepared FAQs to help people solve their issues properly. However, it is best to go through the exchange’s site and guidelines before trading to avoid any inconveniences.