Beginner’s Guide to Coinbase and Its Benefits
The first step in trading in cryptocurrencies is signing up with a platform that will enable you not just to trade, but also have an intermediary. The platform allows you to be communicating with the blockchain, and also helps in the storage of the cryptocurrencies. The digital currencies are stored in wallets. One such platform is Coinbase.
What is Coinbase?
Coinbase will enable you to trade and speculate in digital currencies such as Litecoin, Bitcoin and Ethereum. It is found in many countries and currently has close to 12 million customers. The value of digital currencies that Coinbase has traded in is slightly over 50 billion dollars.
Purchasing and selling of cryptocurrencies require that your ban and Coinbase accounts are linked. This is a requirement that all those trading on the platform must adhere to since it allows Coinbase to verify transactions. Linking of the bank account to the Coinbase also helps in combating money laundering which many countries around the globe are fighting.
How Coinbase Works
When money is transferred from your bank account to the Coinbase account, it takes about four days for it to be reflected. You should, therefore, give yourself a window of time before you start trading.
When a sale of the cryptocurrencies has been made, it takes an equal number of days for the sales proceeds to reflect in your bank account. However, your Coinbase account is updated immediately you sell your digital coins. Due to the use of technology, clients can use PayPal to transfer money to Coinbase. Debit and credit cards have been added to the list of payment methods for Coinbase.
Advantages of Coinbase
- Low Fees – the fees are charged as a percentage of the purchases made. Currently, it is pegged at 1.49%. Deposits are, however, free of charge. The payment method used may attract other charges of the merchant banks and may very much depend on the country of one’s residence. Other digital exchanges either charge exorbitantly or their fees are levied on a graduating scale. Clients purchasing cryptocurrencies in small quantities pay less compared to those purchasing in large volumes.
- Guaranteed liquidity – the amount of cryptocurrency you can buy depends on the level of verification you are with your account. If an account is almost 100% verified, then the amount that they can trade in is very high. Secondly, the amount of cash one can hold in their accounts vary from one account to the other.
The platform has features that allow clients to engage members of the support team continuously. These can be done through emails, chat or telephone. All questions asked and issues raised are attended to. There is good customer care.