HowTo Buy Crypto – Part 2: Coinbase
Based in the U.S., in San Francisco, California, to be exact, Coinbase began operations in 2012 and describes itself as “a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin”. You can buy Bitcoin, Bitcoin Cash, Ethereum or Litecoin from 32 different countries either by debit card, wire transfer, or ACH bank account linking, depending on your preferences and where you are located.
As well as having built-in BTC, BCH, ETH and LTC wallets, U.S. customers also have a USD wallet, which is pegged to the USD, and European customers have a EUR wallet that’s pegged to the Euro. These are legal USD and Euro equivalents, held in custodial accounts, and, for all intents and purposes, exactly the same as having USD or Euros, tax ramifications included.
The fee structure ranges from 1.49% to 3.99% 'effective' fees, depending on how you transact (with additional costs for wire transfers), and there is a modest spread to keep in mind as well when buying and selling.
Coinbase also adheres to industry Best Practices when it comes to security, as well as offering additional security in the form of “vaults” that require additional security steps for withdrawals.
To create an account you only need to provide your name, an email, and a password. Once your email has been confirmed you can proceed to account verification.
For answers to specific questions, visit Coinbase Support
Previous posts in this series:
HowTo Buy Crypto – Part 1: LiteBit
Read the "The Dos and Don’ts" here if you're not aware of my rules.
I'm pretty curious to see how competition shakes out in the "platform" side of crypto. Coinbase is obviously a leader in the space given its ease of use and its early mover advantage. For a lot of folks, Coinbase covers what they need out of their crypto platform.
That being said, I think Robinhood has an opportunity to disrupt this space IF they can iron out relationships with other wallets and platforms. That lack of interconnectivity is pretty brutal.
I think the inconsistency amongst different platforms and access points has partially choked liquidity in this market. My hope is that we'll see some preferred platforms bubble to the top to help smooth out liqudity.
Coinbase definitely has the early mover advantage and its their job not to fumble the ball. I'll also have to take a look at Robinhood. Thanks for pointing it out.
The no commission aspect is pretty attractive I must admit. But the inability to move your crypto to other platforms to invest in STEEM or BTS or EOS, for example, is crippling. I DO love the ability to put limit orders though
I started with Coinbase..still use them from time to time to exchange my fiat.
Actually, I just deposit my fiat there...I actually trade using GDAX which then eliminates the commission since you are now acting as a market maker.
The drawback is it is limited to just the 4 tokens you mentioned...no steem or bts is a big negative lol.
These days I tend to use it as a pass through...usually picking up LTC to buy something else.
Thanks for the discussion about this exchange and the education your are providing.
Perhaps you could put together a post about another exchange...educating the masses about that...perhaps one that is decentralized....one that a guy named Stan keeps talking about.....give me a second, the name will come to me.
It's coming. 😎
Let us see if @stan has a post about this...I am going to write something up for it in the morning.
Check this out...if it is legitimate, which it appears to be, we could see a major leap in activity...involving out two favorite currencies.
Notice the blockchain it is operating on...and that it accepts STEEM.
I am going to telegram to try and find more out about it...will report it if I uncover anything new.
http://palmpay.io/#services
It is supposedly going to be released this week...
There they are, BitShares and STEEM! It's going to be tougher and tougher to ignore these two powerhouses!
In order to purchase cryptocurrencies, Coinbase requires you to link a bank account, or credit or debit card to your Coinbase account. Using a bank account allows for higher limits ($100/transaction, $2,500/week), but it also takes longer to verify transactions, so you will not see money in your Coinbase wallet for two to four days (depending on your bank). And when selling Bitcoin, once the sale is confirmed, it takes two to four days for the proceeds of that sale to show up in your bank account. With a credit or debit card, limits are lower ($200/week), but you can purchase digital currencies by simply transferring funds from that bank account to the site. For these transactions, Bitcoin shows up in your Coinbase wallet instantaneously. You can also sell Bitcoin to your PayPal account, effectively cashing out, as your Bitcoin will be exchanged for local currency. This transaction, too, is instantaneous.
Read more: Coinbase: What Is It and How Do You Use It? | Investopedia https://www.investopedia.com/tech/coinbase-what-it-and-how-do-you-use-it/#ixzz56vFAcMbu
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A big part of life is resourcing!
Thanks!
No thanks, my friend.Thanks for your support...Can i resteem your post?
Indeed, Coinbase is pretty popular, but for the moment and for simplicity I will just buy cryptocurrencies from a local trader. It makes my life easier and they are available to offer support pretty fast. They actually called me today on my phone to tell me that I have made a mistake when I placed my order and inform me that my money will be sent back which is pretty nice.
It is great to see that you have made your footer I’ve got flags too sound promising, I wonder how many will try to fish them :))
I've got flags too and I'm using them!
Looks like it's working too.
I am glad to hear that it is working, soon spammers will be discouraged
Good summary for the exchange I use the most. I use Coinbase to convert from fiat. I then transfer to other exchanges as they don’t support other interesting assets. I have never had any issues although I have heard of some nightmares. From what I hear, they need to add more support resources to attend the large growth in users they have experienced.
Thanks for that first hand feedback. I think your experience is representative of the norm, and basically the same as mine too.
Coinbase is very good and easy to use exchange.Beginners immediately buy coins at this company because of its reputation and popularity. This exchange gives away bitcoins easily that is why it is user-friendly to first timers. You can now buy bitcoins using your PayPal and other major credit cards.It offers benefits and services such as purchase up to $1,000 worth of BTC per week, instant transfers among users, insured deposits, debit cards, well-documented API, and wallet services.But i prefer OpenLedger Dex and bitshares decentralize exchanges for trading.
You know, I'm still sooo old school. I use BitShares, am a big BitShares holder, but I've still never onboarded crypto through OpenLedger! It's on my list. Thanks for posting!
By the way, here's a great Steemit article on the subject from a few months ago that's still very timely.
https://steemit.com/bitshares/@heiditravels/using-openledger-for-the-first-time-basic-transactions
Buying cryptocurrency is confusing for a lot of people. It's not a stock or a typical "investment." It's not like anything most people have ever seen or experienced. You don't get shares; instead you get digital coins or tokens. The coins are "better" than a paper dollar bill because they actually support a greater cause, as in Ethereum's case, to build a decentralized internet and host code and apps on a decentralized platform. And coins help "fuel" that cause, so to speak, without getting technical.
and thanks for sharing sir
I think our number one job is to address that issue.
For most people in the U.S., coinbase 😎 would be the easiest option to buy Ethereum, Bitcoin, or Litecoin (it doesn't support any others yet). After verifying your account, you can add a number of payment methods including credit or debit cards, U.S. bank accounts, or even wire transfers of funds. Other options for exchanges that will take U.S. dollars for coins are Kraken, and Gemini in the U.S. Typically you will need to verify your account with a driver's license and add other details to expand your buy limits. Since cryptocurrencies are "hard currencies," the exchanges don't want to risk getting ripped off, since you can't reverse a cryptocurrency transaction once it's done...
Most ask you for a selfie as well, and, yes, they are getting regulatory compliant in a hurry!
I appreciate you
$ 116.5 million with the most invested formations of the bitcoin date. The bitcoin / litecoin / ethereum excange and wallet service I find absolutely reliable. It's another reason why it's the center and it's extra safe for me to be in America.
It has a pretty nice interface and advanced security measures. Highly recommendable.
The only thing I did not like: The commission rate is still very high compared to the other stock exchange, which is why;
Based on San Francisco-based major investors behind them. They should be the most secure virtual wallet.
Reliable but highly commissioned. I still recommend it.
You know what they say, a good product is worth the price you pay. If you want quality, and, in this case, safety too, it's going to have its cost. 😉
Absolutely. That's why I use Coinbase. This is the fact that prices are high. But I am satisfied and I will continue to use it. This is because of the service provided.
@cryptographic,
This is one of the best method to buy BTC and few other cryptos! But unfortunately it's not applicable to Sri Lanka! We can store and withdraw funds, but we can't add funds via credit card to coinbase :/ Hope you will write a review about CEX.IO too!
Cheers~