Cryptocurrency and their trading and general commerce has experienced a general upward trend with the increase in overall financial system awareness in the coeval population. The general trend has observed a precipitating increase with the youth involving in trading of assets, commodities, option contracts and the relatively new and mighty cryptocurrencies such as bitcoins. The decade has already made millionaires out of scratch.
Entrepreneurship has been the part in parcel of mankind and with increasing modernity and technological out break and universalism has opened another avenue for amalgamating passive income – and the results have been far superior and less troublesome according to modern trading individuals.
The shorthand is aimed to review a leading cryptocurrency trading platform, Coinbase. This article is basically a review of Coinbase and how you can get benefits from it. Let’s get you started.
What is it?
Coinbase is considered as one of the leading cryptocurrency companies in the world. It can be accessed by over one hundred and above countries and has approximately thirty million users. Although the company offers you a lot of services but its main focus is buying and selling bitcoins and information regarding bitcoin interest rates. It is also considered as one of the oldest exchanges all around the world.
There are many services that Coinbase offers you. These are categorized below:
This is one of the primary services that Coinbase offers you. Whenever a person wants to buy a cryptocurrency, they go through Coinbase first, thanks to the trusted services this company has provided in terms of buying and selling cryptocurrencies. Brokerage service offers you a lot of control on your funds.
Coinbase pro is also known as GDAX. This offers you a lot of benefits if you compare it with brokerage service. Brokerage service simplifies the purchasing of cryptocurrencies and is basically meant for beginners. While Coinbase pro is meant for people who are experienced in this field. When they opt for Coinbase pro, they get advanced functions on their funds. Not only just that, but the fees of this service is relatively low if compared with the brokerage service.
Coinbase also has application services for both, IOS and android. This will help you to have access of your funds on your mobile phones. The company only used to offer brokerage services. But with the increasing amount of users, they have also increased their services and Coinbase wallet is one of them.
Coinbase also offers online merchants. They will accept the cryptocurrency on their website and use that website as a platform for trading. This platform is supported by one of the top and well known systems on the web such as CMS.
The fees can sometimes get really confusing but with the help of this breakdown, it will be easy for you to learn more about it. Whenever you purchase a bitcoin from Coinbase, the price that you get consists of several components. The spot price on Coinbase pro is +0.5%. The transaction fee (1.49%) the fee retained by Coinbase to generate its revenue, is uniformed for every transaction below $200, however, for other transactions involving a larger sum, a predetermined percentage is applied. Alternatively, buying from credit card – which involves greater credit risk – the afore mentioned percentage is inflated to 3.99% for the transaction. Money can be deposited from ACH. If you don’t, then you might be charged $10. In extreme cases of precipitous price fluctuation, the purchases can be declined by Coinbase. However, a comparative analysis of various trading platforms reveals that Coinbase is quite competitive in its pricing, and the fees in the entire online trading industry. A comparison between Coinbase and other platforms is drawn below for reference:
If you are new to this platform, then you might find brokerage service from Coinbase easy. But if you are an experienced trader, then Coinbase pro will suit you best. Similarly, the fee structure of Gemini, another online trading platform which deals with cryptocurrencies is more complicated and confusing. Perhaps that may be due to the fact that Gemini database is more oriented towards experienced traders. Another big player in the industry is Binance which takes an entirely crypto currency centric approach towards dealing. The platform however had certain limitations and only recently started to accept credit card payments. Additionally, it also charges a tellingly augmented fee that is at time well over 5 percent which may discourage traders looking for cheaper alternatives. In contrast, the fee for non-credit cards purchases is significantly lower than Coinbase. Strategies, Strategies!
Another impressive player is the American based Robinhood, with an interesting rather ironic name in the industry considering the life’s purpose of Robinhood was to impoverish the rich. Why would any affluent trader want to trade on a platform that vilifies wealth? Quite quintessential that the investors on Robinhood do not have direct access to their coins, which means that traders cannot withdraw Bitcoins from the app but merely trade them using the facility. However, on the bright side, the platform does not charge any commission fee since the business model is aimed at generating revenue from pooling money vis a vis an agency relationship that charges commission for continued trading.
Conclusively, Coinbase is among one of the most trusted name in the industry for beginner and experienced trading and for being an all-encompassing software for online trading. With a comprehensive database and a global outreach (more than 100 countries and the portfolio still growing) attracts about thirty million users. The platform is quite competitive in its commission fee and other transactional prices compared to other players in the industry. While charging a commission fee is a bit discouraging for the new investors, the cost/benefit analysis overrides this condition for monetary compensation. With a user friendly operating software, lower industry fees coupled with rising financial awareness and the desire to generate passive income by endemic elephantiasis in the youth, Coinbase provides the traders and to-be traders and impressive trading infrastructure which at times dwarf major industry players due to its competitiveness!