Coinbase is an exchange for Bitcoin, Ethereum and Litecoin. Can it help you to get rich and can you trust it?
Coinbase offers a website and mobile app for trading. It supports only Bitcoin, Ethereum and Litecoin at the moment of writing (will not support Bitcoin Cash after the hard fork). Those cryptocurrencies are the biggest and most stable, making them ideal for beginners.
Set up and account creation is very easy: go to coinbase.com or download the app, verify your account, send euro’s or dollars to your account via credit card or sepa bank transfer and you can start trading! But is it safe? According to info on their website and other reviews it turned out that Coinbase is not a scam and your personal info and money is as safe as it can be on an online platform. Altough it is safe, people recommend that you store your coins in another wallet (preferably a hardware wallet) that the default wallet Coinbase creates for you. In case there is a security breach your coins could be transferred to another account… but it is up to you to decide.
Bonus: There is a share/partner program! If you register your account with the link below you (and I) will get 10 dollars in bitcoin for free after you buy for at least 100 dollar of bitcoins (you want to use at least 100 dollars, I will tell you why in the fees part coming next!). Help me and yourself and use https://www.coinbase.com/join/5969f8e01345da009fbadb91 to register your account!
Will it make you rich? Maybe. One golden tip is to only invest what you can afford to lose, and that is a good summary about trading cryptocurrencies. There are also fees involved in the transaction process that minimize your profits.
1. fund deposit via sepa bank transfer: free
2. fund redrawal to your bank account: 0.15euro (no matter the amount)
3. trading fees: depend on the amount you want to trade, will apply when buying and selling coins. For 1-10 euro the fee is 0.99 euro, for 11-25 the fee is 1.49 euro, for 26-50 the fee is 1.99 euro and above 50 euro the fee is 2.99 euro. If you do the math you will see that it is better to trade 50 euro than to trade 51 euro. The higher the trade amount the less procentual fee you pay, so I suggest to use 50 euro or at least 100 euro as small amounts to minify your fee losses! Buy and sell fees included, if you invest 50 euro the coin must go up by 9% before you can make profit. When investing 100 euro you start making profit when the coin went up 7%, for 200 euro that is only 4%. As you see, day to day trading is only profitable when using reasonable investments, for very low investments coinbase will make more money than you do! (They even make money when you lose…)
Summary: only start trading with amounts over 150 euro, that you can afford to lose. I wish you all much luck in trading your coins and getting rich(er)! To get kickstarted with 10 dollar of bitcoins, register your own account with the following link: https://www.coinbase.com/join/5969f8e01345da009fbadb91