What is Coinbase and how does it work?

    In a short period of time, cryptocurrency has gone from a small, alternative investment to one worth about $2 trillion dollars. You’ve probably heard of Coinbase if you’re wanting to invest in cryptocurrency or use it as a means of payment. After all, it’s one of the most popular cryptocurrency exchanges online, with tens of millions of users. It’s also one of the simplest ways to purchase cryptocurrency, which has contributed to its meteoric rise in popularity.

    What is Coinbase?

    Coinbase is a cryptocurrency exchange that allows you to purchase popular coins such as Bitcoin, Ethereum, and Litecoin. Although not every coin is offered by Coinbase, the platform does support over 90 distinct types of cryptocurrencies. Meanwhile, dozens of other cryptocurrencies are available all over the world. Coinbase, on the other hand, allows you to exchange the most common types of cryptocurrencies, so it’s suitable for most uses.

    Because of all of this, Coinbase is an excellent site for beginner crypto investors to buy and sell their favorite coins.

    Coinbase account creation

    It’s simple to open a Coinbase account. To open an account with Coinbase, you’ll need the following:

    • You must be at least 18 years old to participate.
    • A photo ID issued by the government, such as a driver’s license or state ID
    • A computer or smartphone that can connect to the internet is
    • For SMS verification, a phone number is required for SMS verification.
    • The most recent version of your web browser

    If none of these poses a difficulty, you’re ready to register. Enter your first and last names, email addresses, state of residence, and passwords to get started. You must also confirm that you are at least 18 years old by checking the box. After that, the only thing left to do is create a password. To keep your account safe, create a strong, one-of-a-kind password.

    You’ll also need to establish a payment method for your Coinbase account so you may deposit funds. Customers in the United States can pay with a linked bank account, debit card, PayPal, Apple Pay, or wire transfer, among other options.

    What cryptocurrencies does it support?

    While Coinbase does not offer all cryptocurrencies, it does support a large number of the most prominent ones. As a result, most customers who purchase and sell on Coinbase will have no problems. Advanced traders, on the other hand, may need to open an account somewhere else.

    We won’t list all of the coins available on it because there are over 90 of them. However, here are a few of the most popular ones that Coinbase offers:

    • Bitcoin
    • Ethereum
    • Cardano
    • Solana
    • Dogecoin
    • Chainlink
    • Litecoin
    • Tether
    • Bitcoin Cash

    Is Coinbase safe?

    It’s normal to ask if Coinbase is safe, especially if you’re investing a significant amount of money. Furthermore, it is still a new platform. While it is generally a secure platform with security features like two-factor authentication, it is not immune to hacking. A short internet search finds stories of Coinbase customers’ accounts being drained overnight. One of the causes of these instances, according to experts, is SIM shifting.

    While this may appear to be a frightening prospect, it does not necessitate avoiding Coinbase. You can take additional steps to make things more difficult for potential hackers, such as utilizing a non-custodial wallet. A hardware wallet is another possibility.

    The concept behind these different sorts of wallets is that you aren’t storing your money on them. You can use an app, software, or hardware to store your own cryptocurrency. Even if someone gains access to your Coinbase account, they will not have access to your wallet, which is where your cryptocurrency is kept.

    The disadvantage of this strategy is that you must remember your own password, also known as a private key. If you’ve heard stories about people losing millions of dollars after being locked out of their cryptocurrency wallet, it’s likely that they’re using a non-custodial wallet. While this technique is more secure, you are responsible for ensuring that you have access to your wallet.

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