Hello crypto enthusiasts! This blog is intended for those who want to begin using Coinbase for trading! And it is crucial to understand how to use Coinbase wallet and how to profit from the exchange before beginning your trading career. For any new traders, understanding these two is crucial.
Let’s start the blog with the fundamentals before moving on to the main topics. So that you can have a better understanding of how to use Coinbase exchange and its wallet.
So, let’s get started…
Who is Coinbase?
Coinbase is one of the most popular crypto exchanges that operates in 100+ countries worldwide. It allows millions of users to buy, sell and store cryptocurrencies. The platform is known for its user-friendly interface and high level of security, which includes two-factor authentication and a digital wallet for user funds.
Coinbase offers a variety of services including a trading platform, mobile app, digital wallet, debit card, educational resources, institutional services, trading tools such as charts and order books, and more. Although it offers many services they are popular for two services,
Coinbase Exchange allows users to buy and sell a wide range of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and many others.
Coinbase Wallet provides a secure and multi-functional digital wallet that allows users to store their cryptocurrencies safely and securely.
Therefore, Coinbase offers services to a wide range of users, from individual investors to large institutions. Now, let’s take a closer look at these two services and related questions like how to use Coinbase wallet and how to make money in the following discussions.
What is Coinbase Exchange?
Coinbase exchange is a cryptocurrency trading platform that allows users to buy, sell, and trade cryptocurrencies of bitcoins and other altcoins. It was founded in 2012 and has since become one of the most popular and well-respected cryptocurrency exchanges in the world.
Coinbase provides a user-friendly interface that makes it easy for beginners to start investing in cryptocurrencies. It is known for its strong security measures, such as auto-enrolled 2 factor-authentication (with security key support), multi-approval withdrawals in its Vault, and password protection.
Additionally, it is regulated in the US and other countries, which adds an extra layer of security and protection for its users. Being a trusted and respected exchange for buying and selling cryptos, it has played a significant role in making cryptocurrencies accessible to the general public.
How to use Coinbase to make money?
How to use Coinbase to make money? This is the most asked question by many users on community forums and the web. There are several ways to use Coinbase to potentially make money.
Here are a few strategies that some users employ,
1. Buy & Hold
One common strategy is to buy cryptocurrencies and holds onto them for the long term, intending to sell them at a higher exchange rate in the future. This process is also known as hodling (a misspelling of holding in the crypto community).
2. Trading Cryptos
Another way to make money is by trading cryptocurrencies. It involves buying and selling cryptos to profit from price movements. However, it should be noted that trading requires a good understanding of market dynamics and technical analysis. For that, Coinbase provides its users with various charts, tips, and tools for trading effectively.
3. Staking Cryptos
Some cryptocurrencies, such as Ethereum, offer stakes as a way to earn rewards. Staking is the process of holding a certain amount of cryptocurrency in a wallet and participating in the blockchain network to verify transactions. Alternatively, users can earn rewards in the form of additional cryptocurrency.
4. Coinbase Earn
Coinbase Earn is a program that allows users to earn cryptocurrencies by watching educational videos and completing quizzes. This is a great way to learn about new cryptocurrencies and earn some money at the same time.
The above discussed are some of the ways to use Coinbase to potentially make money. Hope now you may know the answer to the question of how to use Coinbase to make money.
Now, let’s move on to how to use Coinbase Wallet, but before that let’s see what it is.
What is Coinbase Wallet?
Coinbase Wallet is a self-managed crypto wallet that allows users to securely store, manage and send cryptocurrencies of their choice. It supports a wide range of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Binance, Dogecoin, and more.
Also, it supports the storage of new cryptocurrencies and tokens. Importantly, it supports the storage and management of various Ethereum blockchain-based standard tokens, especially ERC-20, which is the technical standard for tokens on the Ethereum blockchain.
One of the key features of this Wallet is its strong security measures. It allows users to store their private keys locally on their mobile devices itself. That means users have full control over their funds and private key protection.
In addition to its security features, Coinbase Wallet offers a variety of tools to make it easier for users to manage their cryptocurrency holdings. These include the ability to easily send and receive cryptocurrencies, view transaction histories, and access dApps built on the Ethereum blockchain.
Moreover, it is a standalone mobile app and is not linked to the Coinbase exchange platform. The app provides users with a backup seed phrase (a series of 12 or 24 random words) that they can use to recover their wallet if they lose their device or forget their password.
Hence, Coinbase Wallet is an optimal choice for those looking for a secure and multi-functional mobile crypto wallet. Next, let’s see how to use Coinbase wallet.
How to Use Coinbase Wallet?
Hope you have a clear understanding of the Coinbase wallet that we have discussed above. If you decided to use this wallet then continue your reading. Many people don’t know how to use Coinbase Wallet. Using it is a simple process, and as it follows
Step 1: Download Coinbase Wallet App
Firstly, you should download the Coinbase wallet app from the App Store (for iOS) or Google Play Store (for Android).
Step 2: Sign Up for an Account
After downloading, you’ll need to sign up if you don’t already have a Coinbase account. This involves providing your name, and email address, and creating a password.
Step 3: Create New Wallet
After signing up, open the app and select ‘Create a New Wallet’ option. Follow the prompts to set up a new wallet and create a unique password.
Step 4: Add Funds/Cryptos
Then, go to the ‘Accounts tab’ and select ‘Add Account’ to add funds or cryptocurrencies to your wallet. Choose the cryptocurrency you want to add and follow the prompts to complete the process.
Step 5: Send & Receive Cryptos
To send, select the cryptocurrency you want to send and enter the recipient’s address and the amount you want to send.
To receive, select the cryptocurrency you want to receive and share your wallet address with the sender.
Step 6: Manage Your Account
You can also use the Coinbase wallet app to manage your account, including viewing your transaction history, setting up price alerts, and more.
Therefore, the Coinbase wallet is a great choice for storing and managing cryptocurrencies and also for holding large amounts of funds online. Consider using additional security measures like two-factor authentication and keeping your recovery (seed) phrase in a safe and secure location.
Hope you have gained some knowledge of how to use Coinbase wallet and how to use Coinbase to make money. Fine! Now, it’s time to end up the session with a few words…
As a final note, Coinbase has a strong reputation for wallet security and takes proactive measures to protect user funds. On the other hand, its exchange offers a user-friendly interface with a wide range of trading tools for its users to trade the cryptos of the users’ choice. So, make good use of both your Coinbase wallet and trading platform to increase your passive income!
If you have any questions, use our free consultation option to contact our expert. They have done several cryptocurrency exchange development and worked on solutions like the Coinbase clone script. Hence, they can easily assist and share their knowledge and provide unbiased solutions to your queries.