By now, you’ve probably heard about the Bitcoin craze and how Coinbase serves as a digital wallet and exchange. These two are the major players in the cryptocurrency market. Understanding the ins and outs of Coinbase will help you to understand your investment opportunities. This post will focus on how to use Coinbase and how you can fully utilize it.
How to Use Coinbase | Walkthrough For Newbies
What is Coinbase?
Coinbase is an exchange and electronic wallet for holding electronic currencies. Basically, you can’t purchase Bitcoins or other digital assets if you don’t have an encrypted wallet you can send it to. You can exchange your fiat money to various cryptocurrencies like Bitcoin or Ethereum so you can proceed with your desired purchase.
What is its Purpose?
The company’s goal is to build an open financial system that is globally accessible and to become the top company that converts digital currency to countries’ respective currencies. Think of it as the Uber for the financial industry—it helps you get to where you want to go. But in this case, it connects merchants and buyers while serving as the middleman to complete the whole process.
How Does it Work?
Once you’ve created an account, you can then link your credit card. It will reflect on your dashboard and you’ll be able to trade whatever currency you are holding to any of the digital currencies that they offer. Then, all you need is to find sellers accepting the cryptocurrency you have at hand.
Is it Legal and is it an Investment?
Yes, Coinbase is a legit company and it has a license to operate in US states to trade Bitcoin, Ethereum, and Litecoin. It is authorized by the New York State Department of Financial Services (DFS) to accept fiat money and convert it to cryptocurrencies.
Some mistake cryptocurrencies as stocks that can be traded to gain profit. To set things straight, the factors affecting a cryptocurrency’s value are different from how a stock’s price changes. Cryptocurrencies are decentralized and are not regulated by any financial institution. However, since its value fluctuates, currency holders can do profit-locking, earning in the process.
Why Should You Use it?
If you are planning to engage in cryptocurrency trading, then you should use it by all means. The top reasons being:
- Buying or selling digital currency back to fiat money becomes more convenient.
- Sending, lending, or receiving digital currency is just a few clicks away, making transactions with merchants easier.
- It’s the most comprehensive site that has all the merchant tools and latest updates on the market within one simple interface.
- Coinbase is becoming a platform that merchants and applications are optimizing their API for.
If you’re planning to purchase cryptocurrency, Coinbase is a very popular option. This exchange platform has been around for a while and although it may sound ironic, it has established itself in a relatively new and volatile industry. Get started quickly and you might just reap the benefits of acquiring an appreciating asset.
What are your thoughts on Coinbase as a digital currency exchange platform? Share your thoughts in the comments section below.