BUYING and selling cryptocurrency is an entirely online function.
Traders can store their data in what is known as a crypto wallet – something only the buyer themselves has access to.
What should you know first?
Before we get any further, keen investors should know that cryptocurrencies aren’t a guaranteed way to make money, and you could lose all the cash you put in.
Cryptocurrencies are highly volatile and can make large swings in value with no notice.
Crypto firms also aren’t regulated in the same way that other financial companies are, meaning you’re without protection if things go wrong.
Who owns Coinbase?
In June of 2012, former Airbnb engineer Brian Armstrong joined forces with Fred Ehrsam – a former Goldman Sachs trader – to create Coinbase.
Coinbase officially launched in October of the same year.
Currently the largest American cryptocurrency exchange platform, Coinbase does not have a physical headquarters.
The Coinbase company offers different products, including an crypto wallet app and a professional asset trading platform.
What is a crypto wallet?
A crypto wallet exists for the purpose of sending or receiving digital currencies.
A crypto wallet keeps one’s private keys – a term essentially meaning password – accessible and safe.
What is cryptocurrency?
CRYPTOCURRENCIES are a form of payment that can be exchanged for goods and services.
Within a crypto wallet, one can send and receive cryptocurrencies.
Cryptocurrency exchanges live on a blockchain, which is just another word for a list of records secured by cryptography.
Each blockchain can only be accessed with a private key, which is what a crypto wallet stores.
Without one’s keys, access to whatever cryptocurrencies they may have is gone.
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How are cryptocurrency transactions recorded?
Cryptocurrency exchanges are saved via blockchain.
Essentially, a blockchain is a collection of records stored electronically.
Blocks that make up a blockchain are what contain valuable information.
When one block reaches its storage limit, it links to a new block in a “chain.”
No blockchain exists in a singular place, however.
Because cryptocurrency is decentralized, transaction records are not stored in a bank or with the government as a typical money exchange would be.
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