Coinbase

If we had to choose two words to describe Coinbase, we would pick organized and accessible. This crypto platform is straightforward to navigate, offers a wide range of tokens, and, contrary to many of its competitors, every functionality is accessible in a transparent way. In this article, we discuss the main Coinbase features, capabilities, and opening a crypto wallet in the US.

How to Open a Coinbase Account in the US

Quickly done in three steps, you fill in the basic information and are ready to start trading cryptos. Note that additional identity checks might occur upon opening your account or withdrawing. They try to verify you electronically, but if they can't, you'll need to send proof of identity and address before withdrawing your funds.

What Type of Wallet Can I Set Up with Coinbase?

A crypto wallet is a place where you can securely keep your crypto. There are a few different types, the most popular of which are hosted and non-custodial wallets. Which one is right for you depends on what you want to do with your crypto and what kind of safety net you want.

• HOSTED WALLETS: The most popular and easy-to-set-up crypto wallet is a hosted wallet. When you buy crypto using an app like Coinbase, your crypto is automatically held in a hosted wallet. It's hosted because a third party keeps your crypto for you, similar to how a bank saves money. You may have heard of people "losing their keys" or "losing their USB wallet", but you don't have to worry about any of that with a hosted wallet. Pro: You won't lose your crypto if you forget your password. Con: You can't access everything crypto has to offer.

• NON-CUSTODIAL WALLETS: A non-custodial wallet like Coinbase puts you in complete control of your crypto. They don't rely on a third party — or a "custodian" — to keep your crypto safe. While they provide the software necessary to store your crypto, remembering and safeguarding your password falls entirely on you. If you lose or forget your password — often referred to as a "private key" or "seed phrase" — there's no way to access your crypto. And if someone else discovers your private key, they'll get full access to your assets. Pro: You may access more advanced crypto activities like yield farming, staking, lending, borrowing, etc. Con: Lose your password, and your crypto is gone. If all you want is to buy, sell, send, and receive crypto, a hosted wallet is the easiest solution.

If you're a Coinbase customer, you can choose a hosted or non-custodial wallet. The Coinbase app, where you buy and sell crypto, is a hosted wallet. You can also download the standalone Coinbase Wallet app to take advantage of the benefits of a non-custodial wallet. Some Coinbase customers have both, making it easy to buy crypto and participate in advanced crypto activities. Setting up either wallet is free.

What About the offered Cryptos?

There are plenty of crypto trading platforms out there. Still, only a few have impressed asinko.com with the range of tokens and trading functionalities they offer. On top of these, navigating around Coinbase never feels like a challenge, and finding what you're looking for is relatively easy.

Coinbase offers +4800 tokens ranging from the obvious and top traded ones like Bitcoin, Ether, Ripple, etc., to recently launched ones.

Is it easy to trade with Coinbase?

As mentioned previously, Coinbase allows crypto trading straightforwardly through an optimized trading app, so, yes, it is easy. Its app is designed so that you can learn and optimize it without needing much prior knowledge. To buy, for example, Bitcoin or the considerable amount of available altcoins, you have to:

1. open the trading account as explained before,

2. deposit money,

3. Search for "Bitcoin" or "NEO" (Or whichever token you wish to acquire) at the Coinbase trading platform and

4. Press the "Buy" button.

And, done, you are officially trading crypto assets with Coinbase.

4 Ways to Earn Crypto Rewards with Coinbase in the US

Crypto stakers encountered a problem: "If I buy a token and hold it, that investment isn't working for me. So, how do I earn interest on this?". A basic investment principle is that you lock money with the expectation of receiving a reward. Coinbase solved this fair concern by offering 4 ways of earning crypto rewards:

Coinbase Earn (I)

In exchange for learning the basics about specific cryptocurrencies (usually by watching short videos), you can get some to try for yourself. This is the easiest way to start generating crypto rewards on Coinbase.

Staking your Cryptos (II)

Many cryptocurrencies are used as a "Proof of Stake" consensus mechanism. In plain English, it is a way to ensure their decentralised networks can verify and secure all transactions without a bank or payment processor in the middle.

By acquiring and holding such cryptocurrencies, you can earn rewards. You contribute to the crypto network's security when you "lock" a percentage of your holdings into a staking pool for a specific timeframe. The network pays you back with rewards in the form of extra tokens. It works like a fixed-term deposit, where you deposit cash, freeze it for a specific period, and receive your investment plus a reward. This is an excellent option if you hold onto the crypto for extended periods. Instead of having it sit idle, you can put it to work for you. Via the main Coinbase app or website, eligible users can stake Tezos, Cosmos, or ETH and earn as much as 5% interest (depending on the type of asset being staked) as of June 2021.

CeFi Lending (III)

Stablecoins have allowed one to hold dollar-equivalent cryptos in a traditional savings account and safely earn meaningful yield. A growing number of centralised finance (or CeFi) products have emerged that provide yield for keeping some of your crypto holdings in stable coin form. Coinbase customers looking for a low-risk investment can start earning 4.00% APY via USDC -USD Coin is fully backed by cash, equivalents, and short-duration US Treasuries. Hence, it is always redeemable 1:1 for US dollars. While crypto deposits aren't eligible for any regulator's insurance, Coinbase guarantees all USDC held in your Coinbase account.

DeFi Lending (IV)

If you are comfortable with higher potential risks for higher returns, you can experiment with lending some of your cryptos via DeFi apps. DeFi can enable transparent, peer-to-peer lending for potentially higher yields than traditional financial offerings. Investors who supply their cryptocurrency to DeFi lending protocols receive rewards in the form of interest charged to borrowers. It would be best to have a crypto wallet compatible with DeFi apps. Coinbase Wallet (a separate product from the main Coinbase app and can be used by anyone, not just Coinbase customers). Via Coinbase Wallet, you can experiment with lending some of your cryptos — the simplest way to start is with a stablecoin — via DeFi protocols such as Compound or Aave. DeFi remains an emerging technology, so do not invest more than you can afford to lose if you experiment with these protocols.

Bottomline

Coinbase is one of the big players in the crypto space. There's so much about Coinbase that we could write an encyclopedia: They have a great selection of tokens and a friendly and neat website/mobile app layout.

Also, they have partnered with many eSports teams and influencers. In our experience, when a trading platform can afford that many sponsorships and partnerships, it is an excellent indicator of their trustworthiness and seriousness in providing high-quality services. However, since nothing can be perfect, we must say a few words about crypto trading. First, you should remember that risks in trading cryptocurrencies are related to their volatility. This means that unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for cryptocurrencies' value to drop quickly by hundreds, if not thousands, of dollars. Also, Cryptos are unregulated by both governments and central banks. So, you won't have any way of claiming or filing a complaint if anything goes wrong.

However, the previous comments won't stop you from starting to trade cryptos. So, if you decide to go ahead, your best chance relies on a powerful trading platform—and that is what Coinbase is.