On April 14, 2021, netizens all across the globe said “today we can buy the company that helps us buy cryptocurrencies.” Coinbase – which is one of the most popular crypto exchanges and wallets out there – decided to go public with the ticker $COIN on Nasdaq.
This has made Coinbase even more popular, especially among people who aren’t aware of cryptocurrencies.
What is a crypto wallet?
Think of it as your traditional wallet. It’s a place where you keep your money and use it to buy the things you wish to buy. The same is with a crypto wallet, but it’s a digital wallet meaning it only keeps digital money (cryptocurrency) and can only be accessed with a digital device having a connection to the internet.
Crypto wallets are made to help keep your cryptocurrencies at a safe location so that they’re safe from a potential ransom attack or any form of a digital attack. There are multiple kinds of crypto wallets. However, the most common ones have hosted wallets and non-custodial wallets.
What type of wallet is Coinbase?
A hosted wallet is one where whenever you buy a cryptocurrency with the help of apps that also offer crypto-wallet services, whatever you buy is kept within your wallet. The most popular ones are Binance as well as Coinbase. For instance, if you purchase a cryptocurrency through Coinbase, you can either choose to keep it on the hosted wallet or transfer it to a non-custodial wallet.
A non-custodial wallet only provides minimal software functionality in order to store your crypto. Plus, the entire responsibility is up to you. In case a user fails to remember their password, you are potentially out of luck (unless you stored it somewhere safe).
Coinbase also offers a non-custodial wallet service that is simply called Wallet. However, this is not a common option and is not recommended for newcomers.
How to use Coinbase
Now that you’re aware of what Coinbase and a crypto wallet are, it’s time to discuss how to use Coinbase and what benefits it brings to you.
In order to start on Coinbase, it’s important to sign up first. This can be done through either desktop or smartphone. However, using a desktop is more recommended as it brings more clarity and convenience.
Go to coinbase.com and click on the “Get started” option in the top right corner.
Note: SBV Finance participates in affiliate programs to help cover hosting costs and other operating expenses. We may receive a small percentage of sales from affiliate links.
This will bring you to this screen where you will have to provide your details and certify that you are at least 18 years old. Once completed, click on the “Create account” option.
RELATED STORY: Dogecoin now available on Coinbase Pro
You will receive a confirmation email to ensure your email is connected to you. You will also be asked to provide your cell number and will receive a confirmation text. Once all of that is done, Coinbase will bring you to the main screen.
If you scroll down, you will find a screen where you can make a wishlist of your favorite coins. On the left is a panel where you get notifications and other options. On the top right is your profile picture and send/receive option through which you can send or receive money.
How to buy cryptocurrency on Coinbase
Now that your account is completed, it is time to invest in some cryptocurrencies of your liking. To do this, you can either transfer cryptocurrencies that you already own or you can add your bank details (although this option doesn’t work for many users outside of the US and other supported countries).
To add your payment details, you will have to click on your profile at the top right corner. Once you click, a drop-down toolbar appears.
On the drop-down toolbar, clicking on settings will bring you to the profile’s settings. In this option, you will have to click on the “Payment methods” tab.
By clicking “Add a payment method,” you can easily include your bank details. This allows you to connect your bank with Coinbase and make direct payments.
At this point, you can click the “Trade” tab and browse different cryptocurrencies to purchase. Alternatively, if you know what you want to purchase, you can click the Buy/Sell button. It will ask whether it is a one-time purchase, how much you want to buy, what coin you want to buy, and the payment method. The default is Bitcoin.
How to send crypto from Coinbase
Sending from Coinbase is fairly easy and straightforward once you have cryptocurrency in your account.
To send cryptocurrency from Coinbase, click on the top right Send/Receive option. This opens the following toolbar. In the toolbar, you can see which crypto to send and where to send it.
After figuring out which cryptocurrency to send, the amount, and where to send it (you can send it to a mobile phone number, email address, or crypto wallet address), you click on the “Continue” option. It will generally make you double-check and also show you any fees that Coinbase will deduct. Usually, the fee is about 1 percent.
Once you’re comfortable with everything, you can continue and send your funds. Please remember it can take about 15 minutes for the transaction to complete.