The popularity and economic power of cryptocurrency have continued to grow exponentially in recent years, which has led many people to consider investing for the first time. Before you purchase crypto, though, you’ll need to learn how to buy it. Typically, cryptocurrency is purchased with fiat currency through an exchange. With so many exchanges to consider, it can be tricky for those who are newer to the crypto world to know which is the best choice for them. Coinbase remains one of the largest and most trusted crypto exchanges, handling massive trading volume, and is often described as beginner-friendly. Keep reading if you want to know whether or not you should trade with Coinbase.
Should you trade with Coinbase?
There are a number of cryptocurrency exchanges that you can make use of for all your purchasing and trading needs. One of the most popular and widely used is Coinbase. You can read a Coinbase review to learn more about its origin and some of the features it offers, but many experts consider it to be the best exchange for those who are new to crypto. You can access Coinbase on the web or through iOS and Android mobile devices and make withdrawals via PayPal, which makes the transfer process simple for first-time investors.
Coinbase offers Coinbase Pro, which is a premium version of their platform that offers additional advanced charting features for crypto enthusiasts and serious investors. Beginners might struggle with a steep learning curve due to the complexity of Coinbase Pro, but it also offers more trading options like crypto-to-crypto trading pairs. Coinbase Pro also offers over 250 cryptocurrencies for purchase, whereas Coinbase supports about 100.
Coinbase also has the unique distinction of developing their own stablecoin (USDC) which gives users the ability to protect their investment portfolio by selling more volatile assets like Bitcoin or Ethereum in exchange for more stable alternatives like their USDC coin.
How does cryptocurrency work?
Before you start investing in crypto, you should learn as much as you can about what it is and how it works. Put simply, cryptocurrency is a form of digital currency that can be exchanged for goods and services. Its defining feature is that transactions are all stored on a public online ledger that uses strong cryptography to secure them. Many people who purchase cryptocurrencies don’t do so with the intention of using them in the same way as fiat currency, but instead, treat them as assets to invest in.
The technology that supports cryptocurrency is known as the blockchain, which uses a decentralized network of computers all over the world to manage, verify, and store transactions. Though it was developed to be used to support crypto, there are many other types of businesses that are interested in finding new applications for the underlying technology. The appeal of using blockchain is primarily due to its security. You can search for a blockchain consultant near me if you want to know more about blockchain technology.
There are over 14,000 publicly traded cryptocurrencies, with Bitcoin (BTC) being the most popular. Ethereum (ETH) is also gaining strength, particularly due to the growing popularity of NFTs. NFTs, or non-fungible tokens, are units of data (typically media files like images or music) that are entirely unique and with proof of ownership stored on a digital ledger. The majority of NFTs are currently sold on markets based on the Ethereum blockchain.
Cryptocurrency may seem complex and hard to understand, but it’s likely to gain more widespread adoption in the coming years. It’s a good idea for everyone to become familiar with cryptocurrency and the technology that supports it, considering how much it could change the global economic landscape. When deciding between the various exchanges, Coinbase is the best choice for those who are just starting out. Once you get more familiar with trading crypto, you could even consider upgrading to take advantage of the more advanced features of Coinbase Pro.