Wondering Which Crypto Exchange To Use? Here’s Why I Like Coinbase! – MoneyMagpie
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Cryptocurrency is quickly growing to be a popular investment for people who want to diversify their portfolios. In fact, an estimated 3.3 million UK adults invested in crypto in 2023 – and this is expected to go up! The key to investing in cryptocurrencies whilst they are undervalued is to join the wave of early adopters. To do this, you will need to find a good crypto exchange.
At the time of writing, Bitcoin is priced at $71,000 USD. At first, it might seem like the coin has already reached its peak. After all, it started at a humble price of just $1.
However, according to experts, there is still a lot of room for growth!
Cathie Wood, CEO of Ark Invest, predicts that the price of Bitcoin will reach $1.48 million by 2030.
So, investing now could be a great way to see potential long-term returns (although these are never guaranteed.)
As I mentioned above, investing in cryptocurrency requires finding a good platform. Just like investing in stocks and shares, you can buy cryptocurrencies online through an exchange.
There are hundreds (if not thousands) of exchanges available online, which makes picking one pretty confusing!
I’ve been investing in cryptocurrency for around 5 years now and have tried my fair share of platforms. In this post, I wanted to share my top choice for buying crypto in 2024. Here’s why I like Coinbase!
What is Coinbase?
Coinbase is a centralized cryptocurrency exchange that you can use on a desktop or mobile.
‘Centralized’ means that a central organization controls the platform, ensuring that correct security procedures and safety protocols are in place. Just like a stock broker, centralized cryptocurrency exchanges protect customers through KYC, anti-money laundering, and data encryption.
Coinbase can be used to buy, sell, trade, and store cryptocurrencies. Users can create an account and connect a payment method to buy crypto with fiat money. It is also possible to invest in cryptocurrencies by transferring crypto that you already own to the platform and swapping one coin for another.
Coinbase acts as the middleman between investors and cryptocurrencies. It is currently the largest cryptocurrency exchange by trading volume in the states and one of the most popular choices for UK investors.
5 Reasons Why I Think Coinbase is the Best Exchange
So, what makes Coinbase stand out from other crypto exchanges?
I’ve used my fair share of platforms over the last few years and Coinbase comes out on top for me!
Of course, everyone’s preference will differ and it is worth shopping around a bit to find a platform that is best suited to your investing strategy. However, here are the reasons why I like Coinbase.
1. Fiat payments
First and foremost, Coinbase allows you to invest in cryptocurrency with fiat money. You can connect your debit card or bank account and buy cryptocurrency just like you would purchase something from Amazon (but obviously with higher risk!).
This is excellent for new investors who don’t already own cryptocurrencies.
Coinbase isn’t the only exchange to offer this feature. However, I personally find Coinbase payments to be the quickest and also pretty low-cost in terms of fees.
2. Mobile wallet app
Another reason why I like using Coinbase is that it comes with an easy-to-use mobile wallet app.
A cryptocurrency wallet is a safe space to store your cryptocurrencies. The Coinbase wallet allows you to easily move your cryptocurrencies from the wallet to the exchange, which makes the process of managing your portfolio a little easier.
Coinbase is one of the only cryptocurrency exchanges to offer its own wallet. In other cases, you would need to create a separate wallet and transfer your cryptocurrencies using the relevant address.
For new investors, transferring cryptos between exchanges and external wallets can be a bit of a faff! Which is why I like to use Coinbase.
3. Simple user interface
Complex platforms and processes are a big reason why many people still aren’t buying crypto.
Some advanced exchanges can be tricky to use, especially if you are new to the crypto market!
On the other hand, Coinbase has a very simple interface that is easy to navigate. It was one of the first exchanges that I explored as a new investor and I was able to work my way around right away!
The simplicity of the exchange means that it might not be the most suitable option for professional cryptocurrency traders. But, it is a pretty good option for us amateurs.
4. A good selection of reputable coins
Although there are plenty of promising investment opportunities in the crypto space, there are also a lot of scams that you should be aware of.
To get listed on Coinbase, cryptocurrencies must meet strict criteria that have been put in place to ensure that only reputable tokens are available on the exchange.
There are over 200 different coins available on the exchange and all of them have been vetted to ensure legitimacy.
However, even reputable crypto projects come with a high level of risk!
5. Low account minimum
Last but not least, you don’t have to invest hundreds of pounds to buy crypto through Coinbase.
Instead, it is possible to start with as little as $2. This means that you can test the water before putting any significant funds at risk.
Fees are taken as a percentage of your purchase amount which means that they will vary depending on how much crypto you buy.
How To Use Coinbase Safely
Coinbase is my favourite cryptocurrency exchange for a number of reasons. However, investing in crypto always comes with risk – even if you use a reliable platform to do so.
To minimize risk, it is important that you follow best practices when using a cryptocurrency exchange. Here is an overview of how to use Coinbase safely.
- Create an account on the desktop platform: I recommend signing up using the desktop platform rather than the mobile app. Most PCs come with advanced anti-virus software that will protect your private information from being hacked.
- Enable 2FA: The best way to protect your Coinbase account is to enable 2FA. This makes it difficult for cybercriminals to access your trading account, even if they manage to get hold of your password!
- Use a private WiFi connection to connect your payment method: When connecting a payment method to your account, make sure that you are using a private and secure WiFi network. Public networks are less robust.
- Start with the minimum purchase: I recommend investing a minimum of $2 for your first purchase on the exchange. This will allow you to test the platform without putting too much money at risk.
- Store your crypto in the wallet: Once you have purchased cryptocurrency, move your coins to the secure Coinbase wallet. This is much safer than keeping them on the exchange!
Start investing with Coinbase here.
Although Coinbase is one of my preferred exchanges, it might not be the best option for you!
Always remember to conduct your own research into different platforms before deciding which one to use. Some investors may prefer to use a platform that offers both crypto and stocks, for example.
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MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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