What is Coinbase and how does it work?

What is Coinbase

What is Coinbase?

Coinbase is an online platform that acts as a digital wallet on the one hand, which means you can use it to store all your cryptocurrencies in one place. In this aspect, you can think of it as the application of your bank, where you can see the number of cryptocurrencies you have and the evolution of their value.

In addition to this, as a digital wallet, you will also have a unique address with which other people can send you cryptocurrencies, allowing you to receive or make payments with them without having to go through other services.

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On the other hand, it is also a cryptocurrency trading service, which is known as a cryptocurrency exchange. This means that you can link your credit card to the service and use your real money to buy different types of cryptocurrencies, and then, at any time you want, you can sell them again.

With this, you have a service whose operation can be very similar to others such as PayPal or your bank’s app when paying and obtaining cryptocurrencies. You can also manage them as if it were a stock market application, only instead of speculating on the stock market, you can do it with the cryptocurrency market. Of course, you have to keep in mind that the value of cryptocurrencies is quite volatile, so be careful not to take too many risks.

The platform is based in San Francisco, California, and was founded in 2012 by Brian Armstrong and Fred Ehrsam. One of its main investors has been BBVA with its BBVA Ventures program, and in July 2019 it claimed to have 30 million users on its platform.

As we have told you, Coinbase is going to charge you commissions when you buy or sell cryptocurrencies. When you go to buy cryptocurrencies the commission will be 1.49%, while when you go to sell them to exchange cryptocurrencies for real money, the commission will be 1%. What has no commission is the transfer of assets to other virtual wallets.

Signing up for this service is very simple. You just need to be over 18 years old and provide the service with your first name, last name, email, and the password you want to use on your account. Then, to buy cryptocurrencies you will have to link a payment method that can be a PayPal account, your bank account, or a credit or debit card.

How Coinbase works

You can use Coinbase both on your mobile and through its website. In them, the first page you will see is the home page, where you will have all the information you need. For example, you can see the real money value of your assets, as well as the evolution of the value of the main cryptocurrencies and decide which ones you want to be shown, and see a summary of the most important news in the sector.

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