Trading of digital currencies is a booming trend in the markets across the globe. Various exchange platforms have been designed to help investors buy and sell the currency with ease. Coinbase is amongst the most efficient exchange platforms for cryptocurrencies. It acts as an intermediary to communicate with the network. Coinbase is a digital asset exchange company that enables users to trade currencies globally. Transactions’ data is sent to the Blockchain network for verification. Similar to any other cryptocurrency exchange platform, it is essential to have a few tips that will boost your trade. They include:
1) Fees
Coinbase fees are categorized into three groups. They include exchange and conversion, mining, and transfer fees. Exchange fees are incurred when you trade the currencies while the transfer is charged when you transfer the funds to a different wallet other than Coinbase. A mining fee is a fixed cost incurred during any crypto transaction. It varies with the type of cryptocurrency you are trading. Overall, you will be charged higher costs when the transactions are few and less for several transactions.
2) Fraudulent Schemes
Fraudulent and hacking schemes have increased over the years on any crypto exchange platform. It is essential to use the security measures given by Coinbase to reduce the risk of being hacked. The company has various safety measures that protect your keys and personal data. You are also required to play a role by ensuring you avoid falling for the phishing schemes such as clicking on sketchy emails. Access trading sites via bookmarks and store your cryptocurrency on a hardware wallet away from the cryptocurrency exchange platform.
3) Bank Account
The administration will require linking your crypto account with your bank to facilitate the trade. Connecting your bank account to Coinbase will help you access even higher limits. After a sale, the currency may take up to 2-4 days to reflect into your Coinbase wallet. However, when purchasing currency, your funds can be transferred directly from your bank account to the site.
4) Funds Limit
There are weekly limits of trading cryptocurrency. Your limits will increase as you proceed to use your account. They can verify your account and details over time thus allowing you to access a higher ceiling. So do not expect to start off with an upper limit. The limit may vary with the medium of payment you are using.
5) Proper Research
Trading digital currencies requires research irrespective of the automation of software used on cryptocurrency exchange platforms. Automated software analyzes the market patterns and helps you trade successfully. Some investors and users prefer to do the analysis independently. If you opt for independent research, be keen to avoid sites that are prone to fraudsters and scammers. Compare the trends on different cryptocurrency exchange platforms and seek advice from veteran investors to understand the functioning. Remember to keep your keys and cryptocurrency in an offline wallet when you are not trading. Losing the currencies to scammers or erroneous transfer is irreversible.
