What is Coinbase?
Coinbase is one of the most well-known cryptocurrency exchanges in the world. The exchange was launched in San Francisco in 2012 and was the highest funded Bitcoin startup. Only one year later, Coinbase became the largest cryptocurrency exchange in the world. Today it serves 12 million traders in 32 different countries across the globe.
How to trade on Coinbase
To create a Coinbase account, go to their website and enter your name, email, and a password. You’ll receive a confirmation email, and then Coinbase will ask you whether you want to create a business or individual account. You can enable 2-factor authentication by supplying your phone number and then set up a payment method (credit card or bank transfer) to get started. Once your payment method is set up, you can buy cryptocurrency tokens. A quick way to get started is to purchase a Coinbase Bundle.
What is a Coinbase Bundle?
The Coinbase exchange currently offers five tokens: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin. You will receive a bit of all give when you buy a Coinbase Bundle. The bundle can be any amount you want and will split your investment into 75.2% Bitcoin, 6.11% Bitcoin Cash, 15.58% Ethereum, 0.78% Ethereum Classic, and 2.33% Litecoin.
Coinbase Fees and Transactions
The fees on Coinbase are between 1.49-3.99% depending on which payment method you use. Credit cards incur higher charges than bank transfers but are also faster.
You can check your transaction limits on your account screen. Different transaction limits will apply to your account depending on where you are based. Verified US residents can make transactions worth $50,000 per week, while verified European residents can hold a maximum of $30,000 in their account.
Institutions trading on Coinbase will also be able to enjoy their pioneering custody program. It costs $100,000 to set up, and requires you to hold at least $10,000,000. As you can see, this service is aimed at banks and other institutions that have large amounts of money at the disposal that they need insured.
Coinbase Shift Card and UK Bank Purchases
Two cool features of Coinbase is the Shift Card and the UK bank purchases.
The Shift Card is essentially a Visa debit card you can use to spend your Bitcoin in any US store that accepts Visa.
UK residents can link their bank accounts to Coinbase and buy cryptocurrency tokens instantly, avoiding the extra fees incurred by international bank transfers.
Where Coinbase is for the average cryptocurrency consumer, the Pro section (formerly GDAX) is designed for the professional trader. Coinbase Pro comes automatically with your Coinbase account and will allow you to trade on a more advanced level.
Coinbase recently acquired another cryptocurrency exchange called Paradex, which focuses on ERC20 tokens. You will perhaps recognise the ERC20 tokens as the utility tokens found in many ICOs. Coinbase plans to integrate the option of buying ERC20 tokens once they are fully merged with Paradex.
Hope you enjoyed this short guide to Coinbase — head over to our main guide to read about more cryptocurrency exchanges!