Fakhri K.
Even if the current geopolitical context, marked by the war between Russia and Ukraine, has caused the price of the main cryptocurrencies to plummet, several analysts believe that it is still profitable to invest in virtual currency. Dedicated platforms, such as a Coinbase account, are therefore essential to support investors, including beginners.
Coinbase is part of the large family of platforms for buying and selling cryptocurrencies, such as eToro or Capital.com. There are the stars of digital currency, such as Bitcoin, Ethereum, Bitcoin Cash. As you know, it's a 100% virtual world unlike traditional finance. Also, going through platforms like Coinbase and e-wallets (digital wallet) is mandatory. What is Coinbase? How it works ? Here is everything you need to know to get started and invest in cryptocurrency.
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What is Coinbase?
It was in 2012 that Coinbase was launched. It is a project developed by Brian Armstrong, software engineer. He then teamed up with Fred Ehrsam, a former trader at Goldman Sachs. It is therefore an online trading platform. Users can buy, sell or store cryptos there. In its early days, Coinbase only allowed the exchange of Bitcoins. At the time, it was a real golden age for digital currencies, a real boom.
The designers therefore decided to adapt their tool and diversify the offers. Also, it has become capable of supporting several other digital currencies. Today, no less than 160 cryptos are present on Coinbase.
Ease of use
Coinbase is particularly distinguished by the simplicity of its use. It can be used on a computer or via mobile devices (smartphones and tablets).
What is Coinbase Pro?
The Pro version of Coinbase is more advanced than the basic one. It is also more complex. Through it, the user can access several useful statistics. The tool is therefore designed for experienced traders who want to invest in cryptocurrency. There are a number of features, such as “stop-limit” purchases.
There are other handy tools in Coinbase Pro. They relate, in particular, to safety. This is the case of address whitelisting. This allows you to limit the shipment of digital currencies to your trusted contacts.
Access to Coinbase Pro
To access Coinbase Pro, you must first create an account on the normal version of the platform. Once done, you must link this account to another Pro type in order to transfer your funds there.
Coinbase: what cryptocurrencies are supported?
Coinbase supports the most popular cryptocurrencies. This is the case for Bitcoin, Ethereum, USD Coin, XRP, Binance USD, Dogecoin, Shiba INU, Dai, Tether, CArdano, Solana, Polkadot, Avalanche or even BNB. Also, users should not have any particular problems buying or selling them. To access all of the cryptocurrencies supported by Coinbase, simply visit this link.
Trading on Coinbase: how much does it cost?
To create an account on Coinbase, there is no need to pay a penny. However, when it comes to trading, the game changes a bit. Indeed, on each transaction, the platform charges a commission. Its amount varies by account type, as well as the total amount of the transaction and the source of your funds. Your country of residence also comes into play.
For example, for small transactions, count almost 0,5% commission. For a transaction of less than 10 dollars, count 0,99 dollars. It takes 1,99 dollars for a transaction of 10 to 25 dollars… and so on.
Over $200
If your transaction exceeds $200, then you will have to pay 0,5% to Coinbase. It should be noted that fees and commissions are much simpler in the Pro version of Coinbase.
Buying cryptocurrencies on Coinbase: how does it work?
To be able to buy digital currencies, you must have a Coinbase account. Once connected, click on the list of assets and then enter the amount to invest. It is by fraction that you will buy these currencies - or by percentage -. At a minimum, you need to spend $1,99.
Thereafter, click on “Preview purchase”. All you have to do is place the order, validate it and click on “Buy now”. For each purchase made, a commission is paid to Coinbase.
Selling cryptocurrencies on Coinbase: instructions
Again, you must have an account. To sell, go to the blue circle icon. This can be found on the main page of the platform. Thereafter, click on “sell” and choose the active crypto to sell. If you want to sell everything, click on “Max”.
Withdrawing money from Coinbase: how does it work?
Selling your cryptocurrency on Coinbase allows you to earn money. It is therefore essential to withdraw your winnings. To do this, all you have to do is go to the Coinbase homepage. Then, click on the button that gives you access to the balance of your e-wallet. It's located at the top of your screen.
Thereafter, choose the currency with which you wish to be paid, such as the euro or the dollar. The next step is to choose the bank account to which you want to make a transfer. It takes between 1 and 3 days to receive your funds. Of course, you can request an instant payment, but you will have to pay some fees.
Is it profitable to invest on Coinbase despite the cryptocurrency crisis?
The year 2022 has been very difficult for cryptocurrencies, due to the unstable geopolitical context. Even Bitcoin has not been spared by this crisis, losing more than 50% of its value in dollars and euros. But then, should we continue to invest in cryptocurrency on Coinbase?
In fact, several experts recommend continuing with your investments despite the Crypto Crash. Indeed, the prices of virtual currencies are today at their lowest. For example, on date X, one Bitcoin is worth X euros. Profits should be seen in the medium to long term, knowing that experts expect that crypto prices could start to rise again. It is a risk worth taking and the odds are 50 – 50.
