As the world of cryptocurrency extends its reach and capability, many more internet-users have acquainted themselves with the basics of buying, selling and exchanging them. Today, one of the most resilient and popular online cryptocurrency exchange platforms is Coinbase. For beginners to the crypto world, Coinbase might be a term that they have heard thrown around.
Our beginner's guide for Coinbase will help you kick start your crypto journey on one of the most popular cryptocurrency exchange platform!
If you are new to cryptocurrency and want to learn about the basics in a practical and engaging way, Coinbase is an essential first step. As one of the easiest-to-use interfaces for cryptocurrency exchanging, Coinbase has and continues to serve as an important introduction to the extensive world of cryptocurrency.
What is Coinbase?
Coinbase is an online platform that serves as both a cryptocurrency exchange and a cryptocurrency wallet. Today it is one of the leading crypto exchanges available, with over 40 million users worldwide. The platform currently has over 30 different cryptocurrencies to choose from and exchange between.
Coinbase is mostly popular for being an easy-to-use, fiat-to-cryptocurrency exchange. Here users can use their debit card or even a bank transfer to buy from many different available cryptocurrencies. In addition to providing an exchange platform and interface, Coinbase also offers users their own Coinbase Wallet, on which users can store their cryptocurrency.
With regards to exchanging one cryptocurrency for another, on Coinbase this function is not served at market-based trading. This means that unlike other online crypto exchanges, Coinbase acts as a middleman and sets the price for each crypto coin. While this does mean that transactions on the Coinbase exchange occur immediately, the disadvantage is that trades are indirect and do not take place on live market prices.
Setting Up a Coinbase Account
The very first step to using Coinbase is obviously setting up an account. Just like the rest of the process this is easy and only takes a few steps. To start, visit the Coinbase homepage. As shown below enter your email address in the dialogue box to get started.
As a beginner to cryptocurrency you may want to check out the ‘Learn’ tab shown on the top of the homepage. Here you can learn about the basics of cryptocurrency and crypto trading. Furthermore, the ‘Prices’ tab, also shown on the home screen, will show you the current prices and trends for various cryptocurrencies.
1. Create Account
Once you enter your email address and click ‘Get Started’ you will be redirected to a page where you will be asked to create a password for your account. To improve the security of your Coinbase account, try to create a complex password with capital letters and special characters.
2. Verify Account
Once you fill in your details, tick the box to confirm that you are 18 years of age and click ‘Create Account’. You will then be redirected to a verification page as shown below.
3. Two-Step Authentication
At this stage, check your email inbox. You should have received a confirmation email from Coinbase with a link. Once you click the link you will be redirected to the Two-Step Authentication step as shown below. Here you must provide Coinbase with your cellphone number in order to increase the security of your Coinbase account.
4. Coinbase Dashboard
Once you have entered the authentication code and clicked ‘Submit’, your Coinbase account will be made. Coinbase will automatically redirect you onto your account dashboard. Here you can begin your crypto journey by buying and selling cryptocurrency on the Coinbase exchange.
How to Use Coinbase
For beginners to the cryptocurrency game, the process of selling and buying crypto on Coinbase might start off as a little confusing. However, with just a little practice, you will see that the process is not difficult. Coinbase is known for its easy-to-use platform and accessible user-interface and hence acts as a great introduction to crypto for beginners.
1. Choosing a Payment Method
Before you can start selling and buying crypto on Coinbase you will have to set up a payment method with which you will perform your transactions. In order to do this click on your account name on the top right hand corner of the dashboard and from the drop down menu that appears select ‘Settings’.
On the Settings page navigate to ‘Payment Methods’ from the tool bar as shown below.
Coinbase will then provide you with a list of options to choose from. This includes bank account, debit card and wire transfer. Select the option with which you would like to make future crypto transactions.
Depending on the payment method you choose you will be prompted to add a particular set of details in order to confirm your payment method for Coinbase.
Once you complete this step you will be navigated back to the homepage of your Coinbase account. Coinbase will notify you when your payment method has been verified. Once it is, you’ll be ready to start selling and buying crypto on Coinbase.
1. Sending and Receiving Crypto
Even before your payment method is verified, you can use your Coinbase or other wallet to send and receive crypto currencies that are supported by Coinbase. By sending crypto you are essentially sending to an address that belongs to another Coinbase user. By receiving, you are being sent crypto by another Coinbase user.
Once you click here you will be prompted with the ‘Send/Receive’ dialogue box that looks as shown below.
To send crypto, enter the amount you would like to send. You can toggle between the crypto and fiat value for the chosen amount. Next, enter the address of the recipient you are sending cryptocurrency to. Select ‘Continue’ when you are done and you will be asked to preview the transaction details.
In order to use Coinbase to receive cryptocurrency, select receive from the top of the ‘Send/Receive’ pop-up box. Once selected, your wallet address and QR code will come up which you can then copy for the transaction.
That’s how easy it is! Coinbase truly makes exchanging crypto in 2021 an easy task even for beginners to the cryptocurrency game.
As a newcomer to the cryptocurrency trading game, there is no better choice to begin your journey other than Coinbase. For beginners, Coinbase has proven to be an accessible and engaging way to manage and exchange cryptocurrencies for beginners and veterans.