HowTo Buy Crypto – Part 2: Coinbase

in investing •  7 years ago  (edited)

coinbase.jpg

Based in the U.S., in San Francisco, California, to be exact, Coinbase began operations in 2012 and describes itself as “a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin”. You can buy Bitcoin, Bitcoin Cash, Ethereum or Litecoin from 32 different countries either by debit card, wire transfer, or ACH bank account linking, depending on your preferences and where you are located.

As well as having built-in BTC, BCH, ETH and LTC wallets, U.S. customers also have a USD wallet, which is pegged to the USD, and European customers have a EUR wallet that’s pegged to the Euro. These are legal USD and Euro equivalents, held in custodial accounts, and, for all intents and purposes, exactly the same as having USD or Euros, tax ramifications included.

The fee structure ranges from 1.49% to 3.99% 'effective' fees, depending on how you transact (with additional costs for wire transfers), and there is a modest spread to keep in mind as well when buying and selling.

Coinbase also adheres to industry Best Practices when it comes to security, as well as offering additional security in the form of “vaults” that require additional security steps for withdrawals.

To create an account you only need to provide your name, an email, and a password. Once your email has been confirmed you can proceed to account verification.

For answers to specific questions, visit Coinbase Support

Previous posts in this series:

HowTo Buy Crypto – Part 1: LiteBit


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I'm pretty curious to see how competition shakes out in the "platform" side of crypto. Coinbase is obviously a leader in the space given its ease of use and its early mover advantage. For a lot of folks, Coinbase covers what they need out of their crypto platform.

That being said, I think Robinhood has an opportunity to disrupt this space IF they can iron out relationships with other wallets and platforms. That lack of interconnectivity is pretty brutal.

I think the inconsistency amongst different platforms and access points has partially choked liquidity in this market. My hope is that we'll see some preferred platforms bubble to the top to help smooth out liqudity.

Coinbase definitely has the early mover advantage and its their job not to fumble the ball. I'll also have to take a look at Robinhood. Thanks for pointing it out.

The no commission aspect is pretty attractive I must admit. But the inability to move your crypto to other platforms to invest in STEEM or BTS or EOS, for example, is crippling. I DO love the ability to put limit orders though

I started with Coinbase..still use them from time to time to exchange my fiat.

Actually, I just deposit my fiat there...I actually trade using GDAX which then eliminates the commission since you are now acting as a market maker.

The drawback is it is limited to just the 4 tokens you mentioned...no steem or bts is a big negative lol.

These days I tend to use it as a pass through...usually picking up LTC to buy something else.

Thanks for the discussion about this exchange and the education your are providing.

Perhaps you could put together a post about another exchange...educating the masses about that...perhaps one that is decentralized....one that a guy named Stan keeps talking about.....give me a second, the name will come to me.

It's coming. 😎

Let us see if @stan has a post about this...I am going to write something up for it in the morning.

Check this out...if it is legitimate, which it appears to be, we could see a major leap in activity...involving out two favorite currencies.

Notice the blockchain it is operating on...and that it accepts STEEM.

I am going to telegram to try and find more out about it...will report it if I uncover anything new.

http://palmpay.io/#services

It is supposedly going to be released this week...

There they are, BitShares and STEEM! It's going to be tougher and tougher to ignore these two powerhouses!

In order to purchase cryptocurrencies, Coinbase requires you to link a bank account, or credit or debit card to your Coinbase account. Using a bank account allows for higher limits ($100/transaction, $2,500/week), but it also takes longer to verify transactions, so you will not see money in your Coinbase wallet for two to four days (depending on your bank). And when selling Bitcoin, once the sale is confirmed, it takes two to four days for the proceeds of that sale to show up in your bank account. With a credit or debit card, limits are lower ($200/week), but you can purchase digital currencies by simply transferring funds from that bank account to the site. For these transactions, Bitcoin shows up in your Coinbase wallet instantaneously. You can also sell Bitcoin to your PayPal account, effectively cashing out, as your Bitcoin will be exchanged for local currency. This transaction, too, is instantaneous.

Read more: Coinbase: What Is It and How Do You Use It? | Investopedia https://www.investopedia.com/tech/coinbase-what-it-and-how-do-you-use-it/#ixzz56vFAcMbu
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A big part of life is resourcing!

Thanks!

No thanks, my friend.Thanks for your support...Can i resteem your post?

Indeed, Coinbase is pretty popular, but for the moment and for simplicity I will just buy cryptocurrencies from a local trader. It makes my life easier and they are available to offer support pretty fast. They actually called me today on my phone to tell me that I have made a mistake when I placed my order and inform me that my money will be sent back which is pretty nice.

It is great to see that you have made your footer I’ve got flags too sound promising, I wonder how many will try to fish them :))

I've got flags too and I'm using them!

Looks like it's working too.

I am glad to hear that it is working, soon spammers will be discouraged

Good summary for the exchange I use the most. I use Coinbase to convert from fiat. I then transfer to other exchanges as they don’t support other interesting assets. I have never had any issues although I have heard of some nightmares. From what I hear, they need to add more support resources to attend the large growth in users they have experienced.

Thanks for that first hand feedback. I think your experience is representative of the norm, and basically the same as mine too.

Coinbase is very good and easy to use exchange.Beginners immediately buy coins at this company because of its reputation and popularity. This exchange gives away bitcoins easily that is why it is user-friendly to first timers. You can now buy bitcoins using your PayPal and other major credit cards.It offers benefits and services such as purchase up to $1,000 worth of BTC per week, instant transfers among users, insured deposits, debit cards, well-documented API, and wallet services.But i prefer OpenLedger Dex and bitshares decentralize exchanges for trading.

But i prefer OpenLedger Dex and bitshares decentralize exchanges for trading.

You know, I'm still sooo old school. I use BitShares, am a big BitShares holder, but I've still never onboarded crypto through OpenLedger! It's on my list. Thanks for posting!

By the way, here's a great Steemit article on the subject from a few months ago that's still very timely.

https://steemit.com/bitshares/@heiditravels/using-openledger-for-the-first-time-basic-transactions

Buying cryptocurrency is confusing for a lot of people. It's not a stock or a typical "investment." It's not like anything most people have ever seen or experienced. You don't get shares; instead you get digital coins or tokens. The coins are "better" than a paper dollar bill because they actually support a greater cause, as in Ethereum's case, to build a decentralized internet and host code and apps on a decentralized platform. And coins help "fuel" that cause, so to speak, without getting technical.
and thanks for sharing sir

Buying cryptocurrency is confusing for a lot of people.

I think our number one job is to address that issue.

For most people in the U.S., coinbase 😎 would be the easiest option to buy Ethereum, Bitcoin, or Litecoin (it doesn't support any others yet). After verifying your account, you can add a number of payment methods including credit or debit cards, U.S. bank accounts, or even wire transfers of funds. Other options for exchanges that will take U.S. dollars for coins are Kraken, and Gemini in the U.S. Typically you will need to verify your account with a driver's license and add other details to expand your buy limits. Since cryptocurrencies are "hard currencies," the exchanges don't want to risk getting ripped off, since you can't reverse a cryptocurrency transaction once it's done...

Most ask you for a selfie as well, and, yes, they are getting regulatory compliant in a hurry!

I appreciate you

$ 116.5 million with the most invested formations of the bitcoin date. The bitcoin / litecoin / ethereum excange and wallet service I find absolutely reliable. It's another reason why it's the center and it's extra safe for me to be in America.

It has a pretty nice interface and advanced security measures. Highly recommendable.

The only thing I did not like: The commission rate is still very high compared to the other stock exchange, which is why;

Based on San Francisco-based major investors behind them. They should be the most secure virtual wallet.

Reliable but highly commissioned. I still recommend it.

You know what they say, a good product is worth the price you pay. If you want quality, and, in this case, safety too, it's going to have its cost. 😉

Absolutely. That's why I use Coinbase. This is the fact that prices are high. But I am satisfied and I will continue to use it. This is because of the service provided.

@cryptographic,
This is one of the best method to buy BTC and few other cryptos! But unfortunately it's not applicable to Sri Lanka! We can store and withdraw funds, but we can't add funds via credit card to coinbase :/ Hope you will write a review about CEX.IO too!

Cheers~

@cryptographic - Coinbase was first to receive US regulatory approval. As a result, Coinbase has AML (Anti-Money Laundering) and KYC (Know Your Customer) practices much like any bank.
https://99bitcoins.com/coinbase-review-6-controversial-issues/

Sir, this is what I heard about coinbase & it's one of the most recommended crypto purchases method... But Sir, they added limitations to my country... As a result of that, we have to buy sell BTC from/to locals... No a good idea Sir, but I have no option to proceed Sir...

+W+

I'm sure it has to do with legal issues. As you point out, Coinbase is very concerned about doing things right and respecting the law. I imagine that it's just a matter of time though until they're available in your country. Who do you buy and sell with in your area?

Also, for future reference, it you post the active link to your quotes, it's that much easier for readers to resource. Thanks! https://99bitcoins.com/coinbase-review-6-controversial-issues/

  ·  7 years ago (edited)

Hello @cryptographic,

Extraordinary good article which discuss of one of the best & secured methodology to buy few reputed crypto currencies. Here I'm listing Pros & Cons of Coinbase. Hope it'll helpful to further discussion:

PROS

  • Excellent Reputation
  • FDIC Insured (Federal Deposit Insurance Corporation)
  • Easy to Use
  • Very Secure
  • Accepts Credit / Debit Cards

CONS

  • Slow Customer Support
  • Limited Currencies Available

Reference: https://blockonomi.com/coinbase-review/

~@mywhale

Nice pro and con summary @mywhale.

I myself happily use Coinbase. I'm sure that your article will be very useful to someone. I like this heading. I'm waiting for the third part.

Я сам с радостью использую Coinbase. Я уверен, что Ваша статья будет кому-то очень полезной. Мне нравиться эта рубрика. Жду третей части.

I feel that Coinbase is going to remain a staple among the crypto world for a while, but I wouldn't mind seeing some of the other exchanges that are completely decentralized gain some more ground in the game. I have used Waves platform a bit and I like the idea behind it. I'm not saying that it should be a replacement exchange or anything remotely close to that, but I like that it isn't going to be interfered with by the government like Coinbase has been. I feel that all the beginners start at Coinbase kind of like how I feel the rest of us did, but it will be cool when there are a bunch of offers to choose from.

I don't know if you were going to have a part 3 or not, but would you mind perhaps give your perspective on Kucoin? I'm kind of attracted to their shares program, but I'm not really smart on these sorts of things. Any thoughts? Thank you.

I can't comment on Waves since I don't know that much about them (I don't like their technology's security vulnerabilities). I wasn't aware that they are emphasizing the anti-regulation stance.

BitShares, on the other hand, makes gala of the fact that they are 100% regulatory ready, something which I think is very smart since nobody's going to ever hide from or cheat governments. It's my opinion that those who are not regulatory friendly will be shut down, and that would obviously hurt holders very much.

Thanks for mentioning Kucoin. I've got it on the list now.

Yeah, I agree that being 100% complaint is a good strategy since those who don't play nice will get burned, but if an exchange were truly decentralized, shouldn't they be safe? I guess when I mentioned about Waves being decentralized I wasn't automatically thinking anti-regulation (although, I was talking about getting around government involvement which is technically the same,) but is being de-centralized in it's own automatically anti-regulatory..or I should say anti-government? It's kind of a weird debate, because the notion of being non-localized makes it hard to control from the government, but it doesn't inherently make it against it. I don't know... any thoughts? Are decentralized exchanges at risk of being shut down due to not being able to be governed, or is it even possible to target them? After all, with the whole Bitconnect thing, aren't they mainly going after the promoters of it so hard because they can't find all of the creator of it? Perhaps I'm mis-informed.

Perhaps I misunderstood what you were saying. Yes, I agree that decentralized means independent of governmental involvement in so far as the creation of money goes, much like gold and silver are independent of government "sponsorship", to use another word that helps define what we're talking about. "Money" or "currency" has traditionally been backed by governments, mainly in order to create the faith and trust necessary so that everyone agrees that it has value and to use it. Gold and silver, on the other hand, have never needed any kind of governmental backing in order to be commonly accepted as units of value. Crypto is very much within that second group, in my opinion, independent of any kind of official support to make it viable as a storage of value and means of exchange.

What I thought you were referring to was the "anonymous", governments can’t see what you’re doing, aspect of crypto. ZCASH is probably the most famous in that they claim that their transactions are completely anonymous. DASH and Monero are two others that seek to do the same. There are tons of others starting with PIVX and working your way down the line. It’s everyone’s main selling point: privacy! And that’s where governments and regulators step in to say enough is enough – you can have your privacy, but up to a point, and that point where you have to pay taxes. That’s what I thought you were referring to. As I said, I think the absolute privacy idea is a dead end road, and not a strong long term marketing point at all. Coinbase, at the end of the day, in spite of being privately owned and therefore not decentralized, is only "controlled" by the government to the extent that they have to comply with existing laws – like we all have to do, even decentralized organizations. Any cryptocurrency that is basing their long term strategy on anything but being fully compliant is in for a very bad surprise sooner or later . . . as I see it.

@cryptographic ! Thanks for sharing about coinbase. What is the basic account for coinbase giving in total deposit and withdrawal? Is there id verification needed for basic?

By the way, did you know about Bitcoin Latina and the free Airdrop to bitshares users. I know you also like BTS in addition to Steem are your favorites, so you have a chance until February 14th to register in 1 minute or less to get 2 BCL that are worth 30 USD in total.

Here is the post I made today about it:
https://steemit.com/bitshares/@gold84/bitcoinlatina-bcl-with-bitshares-bts-bcl-is-airdropping-to-bitshares-accounts-if-we-register-on-their-website

Regards, @gold84

Yes, you have ID verification at every level.

Newbie questions? Are those transaction rates "good" when compare to coinbases rivals? Any thoughts on the strength of their wallets when compared t other hot wallets?

Their security it top notch in my opinion, and I also think their rates are reasonable, certainly not excessive.

This series is going to be very helpful for all thanks for sharing about the coinbase in full details for all the people is informative and will always be :)

Thanks a ton again for sharing

Coinbase customers may see some changes to their cryptocurrency wallets and transactions in the weeks to come. The largest cryptocurrency brokerage and exchange in the world announced this week that it would officially complete the process of integrating Segregated Witness (SegWit) by the end
thank for sharing sir

Coinbase was the first choice for all crypto enthusiasts earlier . But after allegations of insider trading bitcoin cash , there rep has been harmed a little . But still coinbase is most trusted gateway to buy cryptos . More competition will be good , maybe from robinhood and bitshares decentralized exchange .

sry, i'm disagree a bit. coinbase is not a good option to buy sell crypto currency. their fee is much higher & not supporting all countries. but i know coinbase is doing a decent job.
one of my local friend bought btc when it was at $4. he bought 100 & forgot his coinbase account. few months ago he heard btc rise & checked his account & found there are no btc there. but he contacted coinbase support & they agreed to pay $ worth for all missing btc. now that guy is a millionaire in my country.
excellent article & valuable information you provided to all crypto investors to find out the best solutions to buy crypto in safe way. @cryptographic

@resteemia

Great story. Usually the ending is the opposite and those "old lost" coins are never recovered. Lucky guy!

yes, he was a lucky millionaire, he got wallet transaction of 'in' coins, but not found transaction of 'out'. so he won the case. @cryptographic

@resteemia

You covered all the aspect of buying crypto by coinbase. This time you told us about the countries where it is applicable, unfortunately my country is missing from the list. The day i started following you my crypto knowledge is increasing. may be it is good for me to have a solid knowledge of crypto before entering crypto business.

I hope coinbase adds SegWit compatible sends,receives . If coinbase use Segwit, Bitcoin will be able to process many more transactions per second than it could otherwise, and everyone can expect to be able to pay lower fees on their transactions.

Beyond that, Segwit paves the way for other powerful Bitcoin innovations (like Schnorr signatures, scripting improvements, and second layers like the Lightning Network), so if Coinbase implements it, they are a lot more "future-ready" than they would be without it.

thanks for sharing helping us a lot

Excellent post and thanks for sharing such nice information with us to buy crypto through coinbase and it help me a lot, Stay blessed friend.

I like the coinbase AUTHY 2 factor authentication. Also create an account on GDAX which is a coinbase company and you can send money GDAX to other exchanges for free.

I'm a bit disappointed with Coinbase, they had so much time to go Segwit and they didn't. It's almost like they want high transactions fees.

You secured all the part of purchasing crypto by coinbase. This time you educated us regarding the nations where it is relevant, sadly my nation is absent from the rundown. The day I began tailing you my crypto learning is expanding.

@cryptographic..yes bro coin base is a good platform to buy cryptocurrencies and also exchange to the multiple coins which are availble in the coin base.i like this coin base but in india it is not availble for buy and Exchange it so we are using zebpay and some indian traders.in zebpay also now recently new coins trading also availbe and we can trade here but not good compared to coin base..thank you for sharing with us..

i agree with you sir coin-base is the most popular place to buy and sell
i have a coin-base account i feeling better
thank you so much for helpful post

  ·  7 years ago (edited)

Thank you @cryptographic for sharing this
You explained everything in best way
Have never seen such simple explination of buying crypto in coinbase before
This will help alot...... Hope this will be better then poloniex
I am Very excited to trade on coinbase

@cryptographic..thank you for sharing such a greate information to us.. know a days their is a so many ways we have to buy a crypto currencies..but the transaction charges are different in different sites and different traders..so we have to know the correct place to buy the bitcoin and others..thank you for sharing valuable information with us..

Right now people are having trouble signing up for coinbase because of the sms verification. They seem not to be sending out the codes. Another alternative for coinbase is gdax which is a part of coinbase and has lower fees. For new people i just recommend using the buy and sell part because if not things could get confusing.

I appreciate your post..actually you are great one in this steemit..
I am always follow your post..
Cause I like your post always..
And your every post is mind blowing ..
Thanks for sharing your valuable post..
My support will for your every .

Thankyou soo much@cryptographic for sharing,you are doing great job in a best way,keep going to best,stay blessed

Good luck trying to use a credit card though. :(

This post has received a 11.43% upvote from thanks to: @cryptographic.
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nice

thankyou for giving information about coins, i think this is the best way to secure our coins in our wallet.
i think Next month is a fair estimate of rising BTC.
my question is that why is happening bitcoin prices is downworth. And how to convert the coinbase into fiat?

Articel anda sangat membantu, dalam meninvetigasi platformll mata uang digital

using their services daily and i must say it is one of the best in the cryptos pace thanks for sharing :)

coin base is good bro but it would like to know to begin does they require verification ??

Coinbase is really simple and easy to use love it user interface the most thanks for sharing the post about it :)

You got a 1.12% upvote from @buildawhale courtesy of @cryptographic!
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thanks for shareing Part 2: Coinbase @cryptographic its very helfull for evry steemarsthank you again sir

I tried setting up SEPA transfer with coinbase early January and it has been a complete disaster - I’ve lost several hundred pounds in transactions, numerous emails from the service “team” with no resolution - they are totally incompetent- I have got to the point where SEPA has finally been set up but when they agreed to refund some money they paid it back into the wrong bank account ! So someone else now has my money - this is a complete joke! So now I have told them where they can shoe it and I’ve joined another organisation - take my advice do not go anywhere near coinbase !!

The fee from 1.49% to 3.99%, it's not bad, but it's not good too. Does Coinbase add SegWit?

Thanks for sharing!

This post has received a 14.71 % upvote, thanks to: @cryptographic.

This post has received a 0.70 % upvote from @booster thanks to: @cryptographic.

@cryptographic very awesome posts....but I have some question....
Is account verification necessary....???
What if I am an Asian citizen...???
Is there a way to bypass the verification process...

In this cryptocurrency world, Coinbase is a giant company. No one can beat CoinBase at this time. But recently there are few companies are trying to grab the market. They are trying to grab the market with decreasing the fee. But trust is the big issue right now. So, I think Coinbase will remain best. @cryptographic

I appreciate your post..actually you are great one in this steemit..

Coinbase is entirely prevalent, yet for the minute and for effortlessness I will simply purchase digital currencies from a neighborhood dealer. It makes my life less demanding and they are accessible to offer help really quick. They really called me today on my telephone to reveal to me that I have committed an error when I put in my request and advise me that my cash will be sent back which is quite decent.

Great post sir
I follow you sir
I saw your all post
Your are really awesome

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