The cryptocurrencies They are once again the center of attention for many people who want to make the money they have saved profitable. This year, from mid-March until now, Bitcoin has gone from $ 4,000 to $ 19,400 (currently $ 18,500), returning to near record highs. That is why many people want to enter the market right now. If you are one of them and you still do not have experience in the world of cryptocurrencies, let me tell you some things that you should know to start buying bitcoin or another cryptocurrency on Coinbase.
The first thing you need is register in an exchange (online platform for buying / selling cryptocurrencies) that allows the entry of fiat money (euros, dollars, etc.) and then buy the cryptocurrencies you want. Although there are many, one of the best known and safest is Coinbase. So, the first thing you should do is register with Coinbase.
What to keep in mind when using Coinbase
Once you have registered, you can add money to your account by bank transfer or credit card. Both options are safe, although both have their positives and negatives. With a credit card, the money reaches your Coinbase account in a few seconds / minutes, however, the commissions are very high. In the case of a bank transfer, the money takes about 1-2 business days to arrive, but there is no commission from Coinbase. Therefore, my first advice is to make a bank transfer and avoid paying commissions.
Once you have the fiat money (euros, dollars, etc.) in your Coinbase account, now you can buy cryptocurrencies. What cryptocurrencies? Well, there are thousands and not all of them are on Coinbase. Each exchange has certain currencies, but the most popular are usually in all exchanges. In the case of Coinbase, you can buy Bitcoin, Ethereum, Litecoin, Stellar Lumens, XRP, Tezos, Orchid, Basic Attention Token, Uniswap, USD Coin, EOS, Algorand, Compound, Dai, Maker, 0x, Zcash, OMG Network, Augur, Balancer, Band Protocol, Bitcoin Cash, Chainlink, Civic, Cosmos, Dash, Decentraland, Ethereum Classic, Kyber Network, Loopring, Numeraire, REPv2, Ren, UMA, Wrapped Bitcoin, district0x, and yearn.finance. Although it is a small number compared to the thousands of cryptocurrencies that exist in the market, it is enough for you to start buying. Also, the ones on Coinbase are usually the most recognized.
Continuing with the analysis of the praises and criticisms of Coinbase, once you have decided which cryptocurrency you want to buy, again you have to keep in mind the commissions that you are going to be charged for your purchase. Coinbase has a commission rate for every purchase and sale of cryptocurrencies What you do. This rate is 1.5% of the value you buy, having a minimum of 4.5 euros, so it is recommended that the minimum purchase is 300 euros, otherwise you would be paying more than 1.5%.
Trading on Coinbase?
The answer is resounding, NO. Due to the high percentage of commissions that Coinbase charges for each purchase / sale of cryptocurrencies, trading becomes meaningless. Most of the profits you could have would be lost in commissions. In addition, it is a platform that does not have trading tools, such as interactive charts with technical analysis options, as well as options for the programming of buy / sell orders, among others.
That said, Coinbase is more focused on making medium and long-term investments. However, if your idea is to trade, once you have bought a cryptocurrency, you can transfer it to another exchange that does have trading tools and the commissions are minimal (there are many).
Even though Coinbase is a totally secure platformIf it is true that if you are going to invest a lot of money and you want it to be a medium / long-term investment, it is advisable to transfer your cryptocurrencies to a private / offline wallet in which only you can have access to your cryptocurrencies. Enter the following link if you want to have more details about private / offline wallets.
conclusion
Coinbase is the platform par excellence for those who start buying Bitcoin or another cryptocurrency. On the one hand, for its ease of entering or withdrawing money, but even more for its security. However, it has certain disadvantages compared to other exchanges (exchanges). Its disadvantages are basically the small number of cryptocurrencies available, as well as the commissions it charges for each operation that is carried out.
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