COINBASE
What is Coinbase?
Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency (crypto). Our mission is to create an open financial system for the world and to be the leading global brand for helping people convert crypto into and out of their local currency.
1) We make buying and selling crypto easy.
2) Sending or receiving crypto between online crypto balances, friends, or merchants on Coinbase is free!
3) We handle security and backups so you don't have to worry.
4) We are a "one stop shop" - we offer our primary balance service, an exchange, and merchant tools within one simple interface.
5) Coinbase is a platform on which many applications are being built using our API.
In a nutshell, Coinbase is a cryptocurrency exchange where you can buy popular coins like Bitcoin, Ethereum and Solana. Not every coin is supported on Coinbase, but there are more than 120 different types of cryptocurencies on the platform. Meanwhile, there are thousands of different cryptocurrencies available worldwide. Still, Coinbase lets you trade the most popular types of crypto, so it works well for most purposes.
This all makes Coinbase a good place for new crypto investors to buy and sell their favorite coins. But is Coinbase safe to use? What about the fees? We’ll address these questions and more below.
Customer is responsible for miner's fees on external transactions. Sending between Coinbase users is always free.
About Coinbase
We are building the cryptoeconomy – a more fair, accessible, efficient, and transparent financial system enabled by crypto.
We started in 2012 with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin. Today, we offer a trusted and easy-to-use platform for accessing the broader cryptoeconomy.
Coinbase powers the cryptoeconomy
Customers around the world discover and begin their journeys with crypto through Coinbase.
Approximately 108 million verified users and 245,000 ecosystem partners in over 100 countries trust Coinbase to easily and securely invest, spend, save, earn, and use crypto.
How to use Coinbase
If you’re new to Coinbase and perhaps even cryptocurrency in general, it can all seem overwhelming. Don’t worry it’s actually quite simple, and we’ll explain how to get started.
How to open a Coinbase account
Opening a Coinbase account is easy. Here’s what Coinbase says you’ll need to create an account:
1) Be at least 18 years old
2) A government-issued photo ID, such as a driver’s license or state ID
3) A computer or smartphone with internet access
4) A phone number for SMS verification
5) The latest version of your internet browser
If none of this is a problem, you’re ready to create an account. To do so, enter your first and last name, email, state of residence, and create a password. You’ll also have to check the box confirming you are at least 18 years old. The only thing left to do after that is to set a password. Be sure to set a strong, unique password to keep your account safe.
You’ll also want to add a payment method so you can move money into your Coinbase account. U.S. customers can use a variety of methods, including a bank account, debit card, PayPal, Apple Pay, or wire transfer. Note that PayPal is only available to U.S. customers, and you can only use it to buy cryptocurrency or to cash out.
Once you create your account and add a payment method, you are ready to start trading cryptocurrency.
How to buy and sell cryptocurrencies on Coinbase
If you have already linked a payment method to Coinbase, buying and selling couldn’t be easier. When logged into your Coinbase account, here are the steps to buy cryptocurrency:
1) Click the Buy/Sell button in the upper right-hand corner.
2) Specify whether this is a one-time purchase or daily/weekly/monthly.
3) Enter the amount of your purchase.
4) Select the cryptocurrency to buy.
5) Select your payment method.
Keep in mind that when you buy using a bank account, the transaction typically takes 3 to 5 business days to complete, according to Coinbase.
Selling on Coinbase is even easier. All you have to do is enter how much you want to sell (or select “sell all”). Then indicate which coin you want to sell and how you want to be paid. Note that the same fees apply whether buying and selling.
How much does it cost to trade?
Fees on Coinbase can be a bit complicated, but they depend on your account type, the size of the transaction and the funding source. Several factors can affect the fee you ultimately pay, including your country/region, payment method, and the product.
For smaller transactions, you’ll pay a spread mark-up of 0.5 percent of your trade value plus a flat fee based on the size of your transaction, as follows:
Transaction amount - Fee
$10 or less - $0.99
More than $10 and up to $25 - $1.49
More than $25 and up to $50 - $1.99
More than $50 and up to $200 - $2.99
Although one Bitcoin costs well above these dollar amounts, Coinbase lets you buy fractions of coins, so you can still buy small amounts. The cost of the spread mark-up is already figured into your purchase or sale price.
At amounts above $200, you’ll pay a spread mark-up of 0.5 percent of your total trade value, and Coinbase’s variable fee on transactions above $200 is charged as follows, depending on how you pay for the crypto:
Payment method - Fee
U.S. bank account - 1.49 percent
Coinbase USD wallet - 1.49 percent
Debit card - 3.99 percent
Instant card withdrawal - Up to 1.5 percent of any transaction; minimum fee of $0.55
As you may have also noticed, the fee eats up a significant chunk of your purchase for those small amounts.
If you’re a more advanced trader, Coinbase Pro may be worth considering. With Pro, you’ll find additional trading options and upgraded charting features. Coinbase Pro also offers a more straightforward (and lower) fee structure, too.
The easiest way to familiarize yourself with Coinbase’s fees is to preview an order, which you can do using the steps below.
Is Coinbase safe?
It’s natural to wonder whether Coinbase is safe, especially if you are investing a lot. Plus, it’s still a relatively new platform. While Coinbase is generally a secure platform and has security measures such as two-factor authentication, it’s not impervious to attacks. A quick search online reveals reports of Coinbase users having their accounts drained overnight. Experts point to SIM swapping as one cause of these incidents.
While this may sound scary, it doesn’t mean you have to avoid Coinbase. There are measures you can take to make things even more difficult for potential hackers, such as using what’s called a non-custodial wallet. Another option is a hardware wallet.
The idea behind these different types of wallets is that you aren’t relying on Coinbase to store your money. They allow you to store your own crypto using an app, software, or hardware. So even if someone gains access to your Coinbase account, that won’t give them access to the wallet, where your cryptocurrency is actually stored.
The downside to this approach is it requires you to remember your own password, also known as a private key. If you have heard reports of people losing millions because they got locked out of their cryptocurrency wallet, they probably have a non-custodial wallet. While this method is more secure, the onus is on you to ensure you can access your wallet.
The Coinbase referral program
The referral program lets you and a friend both earn a bonus. As soon as your friend (or “invitee”) signs up for a Coinbase account using your unique referral link and makes an eligible crypto trade, you’ll both receive the bonus. The bonus amount may vary from time to time and by country.
Important: Coinbase reserves the right to withdraw, suspend, or change the terms of the referral program at any time, at its sole discretion. Coinbase Pro and Advanced Trade accounts are not eligible for a referral bonus. Buys made on Coinbase Pro or Advanced Trade accounts do not count toward referral bonus eligibility.
What is referral link?
Referral links are a link to Coinbase.com with a special code on the end that makes your link unique. For example, your referral link may look like this: https://www.coinbase.com/join/YOUR_REFERRAL_ID
How do I earn a referral bonus?
To earn a referral bonus:
1) Go to Settings in your Coinbase mobile app or visit the Invite page on Coinbase.com to get your referral link.
2) Copy and share your referral link in an email, text message, or through your favorite messaging app.
3) Your invitee signs up for a Coinbase account after opening your referral link.
4) Your invitee completes their account set-up and initiates a minimum buy or sell.
Once your invitee completes the minimum buy or sell for your listed offer, you’ll both receive the bonus amount listed at the time your invitee signed up.
More details:
1) Your invitee must be in the same country of residence as you.
2) Your invitee's buy or sell must be completed within 180 days of opening their account.
3) Please wait four full business days after the trade is completed to receive a bonus.
4) There is no limit to the number of invitees you can refer, however there may be limits on the amount of referral bonuses you can receive.
5) The bonus amount may vary from time to time and by country.
When will I receive my referral bonus?
In order to receive the referral bonus, keep in mind that:
1) Your friend must not have an existing Coinbase account.
2) It may take up to four business days to receive the referral bonus.
3) Buys can take up to four business days to complete. Meaning, it can take some time for payments to go out, and they may not arrive immediately.
Why haven’t I received a bonus?
Here are a few possible reasons why you haven’t received a bonus:
1) The invitee must sign up and create a new Coinbase account using your unique referral link. Referrals are not captured if the referred person signs up using the Coinbase app instead of the unique referral link.
2) The invitee must use https://www.coinbase.com/trade to complete their qualifying buy or sell. Orders placed on Coinbase Pro or Advanced Trade accounts will not count toward referral bonus eligibility.
3) Referral bonuses are only paid if the invitee verifies their account and completes a buy or sell of the minimum amount or more within 180 days of opening their qualifying account.
4) We do not pay out referral bonuses on duplicate or false accounts. Duplicate or shared financials will cause disqualification.
5) If an invitee fails to complete the requirements to obtain a bonus within 180 days of opening their account, neither party will receive a bonus.
Will I be taxed on referral bonuses?
Referral bonuses and other reward amounts exceeding $600 will result in a 1099-MISC being issued.
To view your total rewards:
1) From a web browser, go to Reports.
2) Click Generate report.
3) Select Rewards Income from the transaction list dropdown.
4) Then select Generate report to download a PDF or CSV report of your rewards income.
Additional Terms and Conditions
Promoting your referral code through the use of paid advertising based on 'Coinbase' or Coinbase-related keywords is prohibited. This includes, but is not limited to, bidding on or running ads on search based on keywords that include 'Coinbase' or variations thereon. Using 'Coinbase'-branded terms in your ad copy is not appropriate. Referrers who engage in such activities will have their referral codes deactivated and all referrals resulting from such activities are ineligible for referral payments.
Important Notice: Unfortunately, we can't guarantee payout on every account you refer due to the limitations mentioned above and risk of fraud, but we make a good faith effort to do so whenever possible. In addition, Coinbase reserves the right to withdraw, suspend, or change the terms of the referral program at any time, at its sole discretion, including due to changing market conditions, risk of fraud, or other reasons. By participating in the referral program you acknowledge that receiving payouts is not guaranteed by Coinbase.
