In this review I will talk about everything that you need to know about the platform, trading, payment methods, commission fees, security, user-friendly and many more.
Whatis Coinbase?The coinbase is an online exchange company “broker” for digital currencies”cryptocurrency” its allow their user to buy and sell a range of digital currencies listed on their platform easily. The coinbase established in 2012 now it has about 10 years in the business, with a good reputation in the cryptocurrencies space.
Note that the coinbase is just an exchange broker for buying and selling simple which suited for everyone who want to buy or sell cryptocurrency. But not a platform for experience trader who required tools for technical analysis before taking a trade.
Coinbase Pro
The coinbase pro is a subsidiary platform of the main coinbase platform, coinbase pro is integrated with advanced tool for technical analysis, drawing, charts that make it more suited for experienced trader/investor unlike main coinbase, and the coinbase pro is based suited for scalper who need to trade on short-term basis in a day. In addition the coinbase pro offer a low commission fees for buying and selling more cryptocurrencie different from the main coinbase.Coinbase – Pros and Cons
Pros:
- Over 10 year in business with a good reputation
- Good for selection of digital currencies
- Easy process of buying and selling cryptocurrencies
- Supports debit cards and bank transfers
- Top-rated mobile app
- Offers a crypto asset wallet
- Easy to use for cryptocurrency beginners
- Support for a large number of cryptocurrencies
- Opportunities to earn cryptocurrency
- Lower pricing available with Coinbase Pro
Cons:
- 3.99% fee to buy crypto with a debit card
- Standard trading commission amounts to 1.49%
- Limited or no trading tools for advanced trading
- No copy trading or social trading features
- Crypto only – unable to invest in other assets like stocks
- Potentially high transaction fees
- Customer service issues
- No access to trade many altcoins
Coinbase Pro Markets
The coinbase pro offer different market from main coinbase market, in coinbase pro a user can trade crypto-to-fiat, and crypto-cross pairs. And this kind of trade is advisable only for experienced trader.
Crypto-to-Fiat Pairs
Trading crypto-to-fiat pair in coinbase is just a speculation on the future price exchange rate between a fiat currency i.e. United States dollar USD and a cryptocurrency i.e. ETH. And this kind of trade would be identified as ETH/USD.
Example if you got a quoting $30,000 this mean you need to predict whether the pair will rise or fall in value within a speculated time frame you choose to trade. This kind of trade is like trading binary option.
Crypto-Cross Pairs
Trading crypto-cross pair is similar to crypto-to-fiat trading but in this case you trade crypto-to-crypto pairs not crypto-to-fiat. This means that you will be speculating on the future exchange rate between two competing digital currencies.
Example if you were to trade Bitcoin against Ethereum - this pair would be identified as ETH/BTC. Crypto-cross pairs are more complex to trade, as you don't have a fiat currency to assess the value of your position.
Payment Fees
The coinbase offer payment method with cryptocurrencies, debit card, and local bank transfer system of payment. But coinbase charge extortionate fee of 3.99% for debit card payment method.
Example if you purchase any digital currency worth of let say $300 would set you $11.97 transaction fees.
The local bank transfer payment method is free no charge attach to it, but you will need to wait for the deposited money to arrive which may take atleast 1-3 days.
Commissions Fee
The coinbase charge trading standard commission fees of 1.49% per slide.
Note that the term 'per slide' mean when viewing fees. This simply means that you will be charged the stated commission when you enter the market and again when you close the position.
Example:
- Let's suppose that you deposit $1,000 via bank transfer - which is fee-free
- When the funds arrive, you decide to buy $1,000 worth of etherium Cash
- On a commission of 1.49%, you pay a fee of $14.90
- This leaves you with $985.10 worth of etherium Cash
- A few months later, your etherium Cash investment has grown to $2,300
- You decide to cash out - so once again you pay a commission of 1.49%
- This time, your commission amounts to $34.27
For the above example, you paid total of $ 49.17 commission’s fee, for two trade buying and selling this may be quite expensive for small investors.
Withdrawal Fees
The coinbase withdrawal fees charge based on the payment method you deposited.Example:
- If you deposited funds with a debit card and wish to withdraw your proceeds back to the card - you will pay a transaction fee of 2%.
- For instance, a debit card withdrawal of $2,300 would cost you $46.
- This would be in addition to the previously discussed trading commission of 1.49%.
- On the other hand, there are no Coinbase fees when you withdraw funds back to your local bank account.
The coinbase charge a fees of 2% for spread. The spread is a gap between the ‘buy’ and ‘sell’ price of the respective pair of trade.
Example: let's suppose that you were in possession to convert or exchange Bitcoin to Etherium. However you won’t have any transaction fees from your account to make that exchange the amount of Ethereum that actually gets will 2% less than the current market spot price.
As such, you are indirectly paying 2% to make the conversion.
Coinbase Wallet
The Coinbase wallet comes with a plethora of security features that ensure your funds are kept safe at all times. This includes:
Cold Storage
For just keeping your digital assets on their platform you will be benefit from cold storage.The coinbase stored at least approximately 98% of client funds are kept in wallets that are never connected to a live server and thus - this makes it super-difficult for a remote attacker to gain access. Then the remaining balance of approximately 2% if kept in hot wallets, which allows Coinbase to facilitate withdrawals and ensures that there is sufficient liquidity on the platform.
2FA
Two-factor authentication (2FA) is another crucial security feature that will ensure your Coinbase wallet cannot be accessed by anyone other than yourself. In a nutshell, Coinbase will send you a one-time password every time you log in to your account. This can come in the form of an SMS that is sent to your mobile phone. As such, the only way that somebody would be able to gain access to your account is if they [A] knew your Coinbase password and [B] physically had access to your mobile device. When you add in the screen lock setting that you have on your phone - this adds an additional layer of security.
Whitelisting
Whitelisting this is a more way of secured this came in various forms.
Example: if you attempt to log in to your Coinbase account from a new device, you will need to verify this via email. This is in addition to the 2FA feature. You will also need to verify an attempted login from a new IP address.
You can also elect to whitelist a cryptocurrency wallet address. For example, if the unlikely happened and somebody was able to access your Coinbase account, they wouldn't be able to withdraw your funds to their own wallet. To do this, they would need to go through a 2FA verification process - which wouldn't be possible without access to your mobile phone.
Coinbase Mobile APP
The coinbase has mobile wallet which is compatible with both android and iOS devices. As a mobile wallet. You can easily send and receive funds and even check the value of your portfolio and to do so exchange no matter where you are located. Also coinbase wallet are more safety, the Coinbase wallet offers biometric authentication, Secure Enclave, and the option to back up your private keys on the cloud.
Coinbase User Experience
The coinbase is user friendly for someone who want to buy cryptocurrency for the first term without going to any more complex process. This make its good platform for novice or unexperienced trader but the main coinbase is not user friendly for an experienced trader. But coinbase pro can be user-friendly for experience trader/investor.
coinbase process of buying and selling could not be easier for small investors because its more expensive due to its commission fees.
Coinbase Trading Tools and Features
The main coinbase platform has little or no trading tools, but coinbase pro has advanced trading tools for advance trader/investor
USD Coin (USDC)
The coinbase has its own digital token stablecoin (USDC), stablecoin mean each USDC is equivalent to $1 worth. A coinbase user can benefit for holding some amount of USDC. The coinbase can lend it’s to other user and the owner can get some interest in their platform
Coinbase Card
The coinbase has its own debit card which can be used to make payment online, buy goods and services and even withdraw cash at ATM machine. For those services who support cryptocurrencies payment method.
Education and Research Materials
The coinbase has offer some education material for their user to learn and understand everything about what is going on, in and out in crypto space with a comprehensive guides, tips and tricks, market update and blogs.
Coinbase Payment Methods
The coinbase offer three types of payment method for deposits and withdrawals in their platform. Which include, cryptocurrencies, debit card, and direct payment or wire transferCryptocurrency Payment Method
The coinbase accept crypto payment if you own some cryptocurrency, what you need to just transfer it to your coinbase wallet and buy any digital assets you wish to, in their platform. Also you can sell them likewise. And you can convert the digital assets to your local bank money i.e. USD, GBP and cash back to your local bank account. This make them a great market place to sell your digital asset even if you own it, outside their platform. What you need to is to deposit the coins into your coinbase wallet.
Debit Card Payment Method
The coinbase offer debit card payment, this payment is instantly. But coinbase will ask you to go through some process KYC mean know your customer. You will require to upload some identification (ID) issued by government.
Bank Transfer Payment Method
The coinbase offer bank transfer payment, this payment is direct deposit from your local bank and its cost zero fees. You will first need to copy the bank account details provided to you by Coinbase. This will include the name of the beneficiary, account number, and sort code. You will also be provided with a reference number
Coinbase Customer Service
Coinbase offered customer support. However, the platform has a poor reputation when it comes to customer service. You can only contact coinbase via support ticket or email, you can also have a live chat on their platform, operated by chat bot that give automated replies to your queries.
Coinbase Conclusion
Coinbase offer a simple and easy buying and selling digital assets for both experience and unexperienced trader/investor with coinbase pro. However, the exchange may not be best for more experienced cryptocurrency traders, as the fees can be quite high, and the cryptocurrency assets are limited. However, though, this exchange is probably the safest, most secure, and easiest cryptocurrency exchange for buying and selling Bitcoin and a few other popular cryptocurrencies.
RISK DISCLAIMERS
This website includes information about cryptocurrencies, (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money. knowaboutcryptocurrency.blogspot.com encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved. All contents on this site is for educational, and informational purposes only and does not constitute any financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. Knowaboutcryptocurrency.blogspot.com may receive compensation from the brands or services mentioned on this website at no additional cost to you.
Risk Warning: Trading CFDs on leverage involves significant risk of loss to your capital.
No comments:
Post a Comment