Bitcoin and cryptocurrency are terms that have become almost ubiquitous in today’s digital age. Yet, many are still daunted by the complexity of these concepts. This guide aims to demystify Bitcoin using the popular cryptocurrency exchange platform, Coinbase, as a practical example. We’ll walk you through the key features of the Coinbase app, how it works, its pros and cons, and a practical tutorial on how to use it.
Overview
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Coinbase, on the other hand, is a digital currency exchange headquartered in San Francisco, California. They broker exchanges of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin with fiat currencies in approximately 32 countries, and bitcoin transactions and storage in 190 countries worldwide.
Key Features of the Coinbase App
The Coinbase app comes with a host of features designed to make the user experience seamless and secure. This includes a user-friendly interface, secure wallet for your digital currency, the ability to schedule buys daily, weekly or monthly, digital currency conversion, price charts and real-time and historical price tracking, and transaction tracking.
How It Works
Once you’ve downloaded the Coinbase app and set up your account, buying and selling Bitcoin is fairly straightforward. The home screen provides you with a summary of your portfolio balance and price movement over time. From there, you can tap the blue circle button at the center of the screen to buy Bitcoin.
Pros & Cons
Like any platform, Coinbase has its pros and cons. The major advantages include its user-friendly interface, high liquidity and buying limits, and the fact that it’s insured. This means that if Coinbase were to suffer a breach of its online storage, the insurance policy would cover any funds lost as a result. On the downside, limited payment methods, high fees for non-US customers, and customer support could use some improvement.
Practical Walkthrough
To get started with buying Bitcoin on Coinbase, first, ensure you’ve setup your payment method. Next, from the dashboard, select Bitcoin from the list of digital currencies. Enter the amount you want to buy and select your payment method. Review the details before clicking the Buy button. Once the transaction is confirmed, you’ll receive a notification, and the Bitcoin will be added to your wallet.
Practical Tips
When using the Coinbase app, always ensure that your app is up to date to benefit from the latest security features. Also, while Coinbase offers insurance, it’s still essential to follow basic security practices such as using a strong password and enabling two-factor authentication. Lastly, keep an eye on transaction fees, as they can add up if you’re making frequent trades.
FAQ
What is Bitcoin?
Bitcoin is a digital or virtual currency created in 2009 that uses peer-to-peer technology to facilitate instant payments.
What is Coinbase?
Coinbase is a digital currency exchange where you can buy, sell, and store various cryptocurrencies including Bitcoin.
How secure is Coinbase?
Coinbase implements a range of security measures including two-factor authentication, biometric fingerprint logins, insurance in the event of a breach, and securely storing cryptocurrencies in hardware wallets and offline storage.
Exploring the world of Bitcoin and other cryptocurrencies can be an exciting journey. Remember, always take time to understand the platforms and tools you use, make informed decisions, and never invest more than you’re willing to lose.
