A cryptocurrency prices Coinbase report stated that there was a huge fall in the value and trading volume of cryptocurrency in 2021. The trading volume reduced to 327 dollars from 462 dollars in the first quarter this year.
Cryptocurrency is a type of digital currency which allows you to buy services through it. It needs a hardware wallet with a strong key to protect all your transactions. These currencies give you a lot of profit in online trading but there is always a rise and fall in the value of these currencies.
What Is Cryptocurrency?
Cryptocurrency is used online for exchanging it to buy various goods. Many companies have issued their cryptocurrencies, and their value varies from one type to another. The technology used in exchanging cryptocurrencies is blockchain. It is used because of its strong security and well management of the transactions.
About 15,000 different cryptocurrencies are being used publicly. Their prices rise and fall from time to time. In the last week, on 3 December 2021, the total value of cryptocurrencies fell from 2.9 trillion dollars to 2.6 trillion. The cryptocurrencies like Bitcoin, Tether, XRP, etc., vary in their worth. According to the latest report, the worth of Bitcoin is 1.1 trillion dollars while that of Tether is 74.2 billion dollars.
Now, this currency is gaining a lot of popularity. There are several platforms available on the internet that allow you to buy and sell cryptocurrency. The common apps on the internet are Venmo and Robinhood. However, Coinbase is also a popular option. This platform has about 73 million verified users.
Introduction to Coinbase
Coinbase is an American company that provides a platform for the exchange of cryptocurrency. It only works online as there are no physical headquarters of Coinbase. In this trading platform, you can either trade your cryptocurrency for services or save them. Coinbase works well with more than 30 different types of cryptocurrencies.
There are two kinds of services provided by Coinbase.
- Coinbase is mainly for beginners that make small transactions and are pioneers of online trading.
- Coinbase pro provides premium services for experienced traders that make large transactions for trading purposes.
This company is increasing its network gradually in various countries. It now operates in approximately 100 countries. The working of Coinbase is as simple as many trading applications. Users can track its balance, and also the cryptocurrency prices. Coinbase is an easy-to-handle platform. In this application, traders can also know about the latest trend of various currencies for better trading.
To ease its customer, this company announced a new direct deposit option in September 2021. Users can deposit their salaries directly to Coinbase. That amount is directly converted to any cryptocurrency like Bitcoin.
Charges for Using Coinbase
Like many trading platforms, Coinbase charges some fees for trading. The fee varies with services on Coinbase and Coinbase Pro. Coinbase fee is a flat fee that is charged when you buy or sell cryptocurrencies. It depends on the type of cryptocurrency you are using for the transactions and the location of transactions.
The fee details are present on the fee page of Coinbase. The large transactions are carried out via Coinbase pro. The larger the volume of transactions, the lower will be the transaction fee. The fee ranges from 0 to 0.5 percent, depending upon the amount you are trading with. For example, if your trading amount is less than 10000 dollars, the fee will be 0.5 percent. It will drop to 0.35 percent for transactions lower than 50000 dollars but higher than 10000 dollars.
The best thing about Coinbase is that it would not charge you to keep your currency in a digital wallet or transfer it from one wallet to another but within the Coinbase network. You can transfer your money from Coinbase to Coinbase pro free of charge.
Setting up a Coinbase Account
It is an easier practice to open a Coinbase account. The following details are needed for setting up an account on Coinbase.
- The photo ID issued by the government
- Your phone number
- Last four digits of your social security number
You would be asked questions like the purpose of using this platform. Be ready for that. Choosing a password is a tricky thing there. Many hackers are now working worldwide to hack digital currency wallets. Choose multi-factor authentication for the protection of your cryptocurrency.
Choose your password wisely. Avoid the common passwords and use the combination of various keys to drive away from the hackers. You can start trading after entering a trading method on your Coinbase account. You can use the bank account or debit cards etc., for depositing or withdrawing money. Not all digital currencies are supported by Coinbas,e but it works perfectly with the supported ones.
The Recent Trend of Cryptocurrency Prices: Coinbase and Its Evolution
In the last few months of 2021, there is a huge increase in the prices of various top cryptocurrencies. The price of the largest cryptocurrency, bitcoin, was 68,000 dollars in November that is more than double its price was in July. The worth of Ethereum, which is the second-largest digital currency, increased too. Other cryptocurrencies like Altcoins, Shiba Inu coin, and Dogecoin, etc., are grabbing the attention of traders.
The rise in prices is not good for the investors. Their main goal is to buy the cryptocurrency at low prices and sell at high prices for getting high profits. No one is sure about the future of the worth of cryptocurrencies. According to the recent cryptocurrency prices Coinbase trend, it is getting harder and harder for investors to buy cryptocurrencies.
Coinbase vs. Coinbase Pro
There are different types of people who use this platform for trading being very much interested in the cryptocurrency prices: Coinbase is better used by newbies for selling or buying on a smaller scale. Coinbase Pro has advanced features for professional and experienced traders. Some of the features of both of these are:
- Ease of Mobile Applications
Although you can use any of these accounts on the web browser, trading becomes much easier with mobile applications. Each of these accounts has well secured and widely recommended and appreciated applications.
- Guidance for the user
For the understanding of its users, especially newcomers, complete guidance in the form of tutorials, guides with the latest updates is provided.
- Trading amount limits
There are limitations on the amount for trading. The limit on the amount of trading for Coinbase is based on your area and the method you are using for the payment. While on Coinbase Pro, there is no limit on the amount for trading.
- Digital wallets
The digital Coinbase wallet can be used by both Coinbase and non-Coinbase users. It supports your digital currency and provides ways to earn more.
- Security features
Coinbase is committed to providing maximum security to the assets of its users. There are various types of security and insurance options provided by Coinbase for the ease of traders. Both these apps provide the following security features to their users:
- Insurance in the case of Coinbase security breach
- Biometric logins
- Two-step verification option
- AES-256 encryption for digital wallets
- USD balance insured by FDIC
- Availability of the services
Coinbase is supported now in more than 100 countries, but the availability of services differs according to the area of the traders. Coinbase is not supported in countries like Pakistan and Hawaii. In some areas, some of the services are unavailable. For example, selling on this platform is not possible if the user is in Mexico.
The users of Coinbase Pro enjoy better features like the types of transactions. You can view your trade history and price charts easily on these platforms. Options like stop, limit, or margin orders are only available on the Coinbase Pro.
How to Use Coinbase for Trading?
The safest cryptocurrencies to use are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. These are secured completely by blockchain technology from hackers. These coins cost a large amount per coin. It is not a recommended option to buy a Bitcoin for 68,000 dollars or an Ethereum coin for 4,000 dollars.
Coinbase allows its users to buy and sell small fractions of a coin. You can trade goods for as little as 2 dollars’ worth of a cryptocurrency. While investing in cryptocurrency, it is recommended that you invest as much as you are willing to use. We are never aware of where the price of the cryptocurrency will be headed to.
In the last few years, traders have seen large differences in the prices of digital currencies in just a few months. Investors must be confident about their interest in the cryptocurrency prices. Coinbase as digital platform, show how volatile are these digital currencies.
Is It Safe to Use Coinbase for Trading Digital Currency?
There are many security concerns for the digital wallets that are needed to trade digital currency. People are usually worried about the protection of their cryptocurrency from hackers. There are various security options available on Coinbase to keep your cryptocurrency safe and sound.
Many traders have faced huge losses because they forgot the passwords of their digital wallets. The best way to save yourself from this issue is using a hosted wallet like the one provided by Coinbase in this case. This wallet keeps your digital currency separate from the main app Coinbase.
Using this wallet means that a fraction of your cryptocurrency is saved in the case of forgetting a password.
The cryptocurrency cannot be insured by the Federal Deposit Insurance Corporation or other Corporations. According to the company’s term of Coinbase, it insured all the cryptocurrency of the users in case of any default at their end. It could be in the case of theft from the breach of their security or any employee theft.
There is no fault of the company in the case of theft because of unauthorized access to the wallet of a person. The company keeps most of the currency offline to provide maximum protection to it. The option of using a non-custodial wallet is still available to protect your currency from any third party. The cold wallets, also called hardware wallets, are also available to provide additional security.
The Volatility of the Cryptocurrency Prices: Coinbase in 2021
On 5 December 2021, the price of Bitcoin dropped below 46,000 dollars. It’s the biggest fall in the price of Bitcoin since October. Many experts are predicting the increase of Bitcoin’s price in the next year. They are predicting it to rise above 100,000 dollars in 2022.
The other currencies like Ethereum, which is ranked as the second-largest cryptocurrency, have also faced various ups and downs in their worth. Recently the price of Ethereum went over 4,850 dollars which is its all-time highest.
After the ban on cryptocurrency from the central bank of China following the declaration of cryptocurrencies being illegal in the country at the start of this year, their prices were severely affected. At the end of 2021, Bitcoin is now way up than it was in July when the price of this digital currency dropped to 30,000 dollars.
Even the experts are not sure of the volatility of cryptocurrency prices. Coinbase is, however, a trustworthy platform. It is never recommended by them their clients to prioritize digital currency over other financial stability options like savings. You could not always get a chance of winning big through digital currency. There is a high possibility of losing it all for every trader. So, choose your priorities wisely otherwise, it can cost you a lot.
Final Verdict on Cryptocurrency Prices, Coinbase Platform and Digital Trading
This article is an introduction to the use of Coinbase as a trading platform using cryptocurrency. It provides support and required security to both pioneers and professional traders. The digital wallet is the best option to keep your cryptocurrency safe in case you forget your password.
The updated cryptocurrency prices Coinbase charts are provided on the website to help the traders to know the recent trends of different cryptocurrencies. All the security features are advanced enough to save the digital currencies of millions of users in over 100 countries. The cryptocurrency investment is riskier than stock trading. Coinbase provides the safest platform for trading in cryptocurrency.