It's no question that bitcoin and cryptocurrency have been a popular concept the past few years. Whether you're looking into getting started with cryptocurrency as an investment or using it as a methods of transfer, using a trusted platform to process your transactions is essential.
Coinbase has been around almost since the beginning of the cryptocurrency trend, and has since grown to be one of the largest and most trusted cryptocurrency wallets and exchanges available. Here is a brief overview of Coinbase and whether they are the platform for you.
The Best Place To Purchase Bitcoin Safely
In this article I'm going to give a brief overview of Coinbase including the good and bad features, with my ultimate opinion of the company and why I choose them to invest with and buy cryptocurrency.
What is Cryptocurrency, and what is bitcoin?
Cryptocurrency is the universal term for all types of online currency. Most people have heard of bitcoin as the online currency, but cryptocurrency is referring to bitcoin as well as hundreds of other types of digital currencies built on blockchain technology. Other popular currencies similar to Bitcoin are Litecoin and Ethereum.
Do you carry cash in your wallet at all today? If so I'm sure it's very minimal. Most people carry just their debit and credit cards due to the ease of use and the safety if your wallet is lost.
Due to the rising innovations of technology, people are even purchasing everything online now! Thus came the invention of cryptocurrency.
Bitcoin is the worlds first type of cryptocurrency and was invented by an unidentified entrepreneur named Satoshi Nakamoto. Back then it was more of an idea with some early investors, but now its growing at rapid paces!
Unlike the US Dollar, bitcoin was created and will only issue 21 million coins. Nothing more! The US dollar is being printed millions of times over on a daily basis, and as a result there is a large supply, creating a lower demand. If there were only 21 million us dollars created, do you think it's value would be much more than it is today? OF COURSE! It would be a rare currency and it's purchasing power would be much stronger.
Bitcoin had this basic economic principle in mind when created. It is also a means of even exchanging currencies between different countries. It can be bought with any currency, and sold for any currency. For example, I could buy $100 US Dollars of bitcoin today, then sell it for the equivalent value of Euro's tomorrow.
The nice thing about bitcoin is that it is universal, and cannot be regulated by any government entity like the US dollar can and is now days. It is said to be a much safer way to purchase things, and most cryptocurrency exchange platforms require multiple ways of verification to move any type of bitcoin from one account, making it a very secure way to keep your money.
Long story short, I like to think of bitcoin as the same thing as simply having a basic checking account, and never using any cash. You can look on your online banking and see how much cash you have, and thus know how much you have to spend for living expenses, but never actually use a physical paper dollar. Bitcoin is very similar, and is simply an electronic currency with limited supply, making the value of 1 bitcoin today worth over $6,000 US dollars!
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Why Coinbase Is The Best Option For Purchasing Bitcoin
There are many platforms that you can open an account, and link it to a basic checking or savings account to purchase bitcoin. Just as there are multiple banks to choose from for your money, there are also multiple platforms online that you can buy and sell bitcoin.
It is similar to having a basic investment account at Fidelity Investments. You can transfer money to it from your banking account, then invest that money into mutual funds with Fidelity. So it is with Bitcoin and Coinbase.
I've tried multiple platforms to work with and most of them charge a high transaction fee for each purchase of bitcoin. Coinbase has a low transaction fee of just 1.49% of the purchase. Most platforms like Xapo.com charge a minimum of $5.00 per transaction!
Aside from the low cost of transaction with Coinbase, they not only allow you to purchase Bitcoin, but Litecoin and Ethereum and many other cryptocurrencies can be purchased as well. Most other platforms only allow Bitcoin.
You know you're using a good platform when you see news headlines showing that large companies like Fidelity Investments are partnering with Coinbase to extend their investment options to cryptocurrency also. That alone sold me and gave me confidence in who I was using. Be aware, there are many fraudulent companies out there. Rest assured that if the top dogs are using them, your money is safe.
The last thing I'd like to mention about Coinbase is their forms of purchasing bitcoin. Most platforms require you link to a bank account using your account and routing number to sync up with them. And the hard thing with that is not all platforms work with every bank or credit union, only a select few. This normally takes days to set up and can be a hassle if you're wanting to take advantage of the rising trend. Not with Coinbase!
With Coinbase, you have multiple options to purchase bitcoin. You can link your checking account which like other platforms takes a few days, but you can also instantly use your debit card to purchase cryptocurrency within minutes! Not many platforms allow this yet, but Coinbase is ahead of the game and knows what consumers want.
The Good & The Bad
- Option to purchase any of the 3 top cryptocurrencies
- Multiple options to purchase bitcoin
- Used by some of the top investment banks
- Been featured in Bloomberg, The Wall Street Journal, New York Times, and Time Magazine
- Live market prices of each cryptocurrency
- Ability to transfer your bitcoin to other cryptocurrency exchange platforms
- Lowest fees
- Quick and easy setup
- Secure process of verification for new accounts
- Over $20 Billion in digital currency exchanged, 32 countries supported & 11.7 million customers served
- Free and easy to use smart phone and tablet app
- Only have 3 choices of cryptocurrency, where some exchanges may offer all cryptocurrencies (however that may be riskier since the new cryptocurrencies have not yet been well-established and recognized)
- Some may want to invest large amounts each week, Coinbase has limits on investment amounts to help protect against possible fraud. This can be a good or bad thing depending on the investor. As you establish your relationship with Coinbase, these amounts can be increased.
- As with most platforms, if you want to link bank account directly it will take a few days to initially sync the accounts.
Who is Coinbase for?
Coinbase is definatley for anyone just getting started out in cryptocurrency and want to test the waters. However it is not limited to new cryptocurrency investors, it also works perfectly well for those that have been investing in cryptocurrency since the beginning! After all, Coinbase has been there since the beginning as well.
If you want a convenient and trustworthy platform to use for buying cryptocurrency, Coinbase is the best bet and has no minimum investments! Start out with as little as $5 if you like and test the waters.
My Opinion on Coinbase
When I make a decision, I am thorough in my research. I've come to the conclusion that Coinbase is the simplest platform to use whether you are a beginner or an expert in cryptocurrency. Having said that, they aren't the only platform out there. The nice thing is, you can easily transfer your bitcoin from Coinbase to any other platform out there within minutes if you find a better option for your objective. You can't go wrong using Coinbase.
Coinbase Quick Review & Summary
Who is Coinbase intended for: Everyone
Coinbase Price: Free account, as low as 1.49% transaction fee
Overall Ranking out of ten: 9.5/10
When all is said and done, there are multiple options. But to save you the headache of finding out what works best for you, start out with Coinbase to get your feet wet, then over time you will become familiar with the market and who other potential options may be.
Who do you use to purchase Cryptocurrency and why? Post your comments below, I love to hear opinions and feedback!