Today i would like to discuss, or rather speak to you about my experiences as a new crypto enthusiast who had recently began using the Coinbase Exchange for the first time.
Disclaimer: The content on this blog is to be treated as informational and entertainment purposes only.
I am not a financial advisor and I truly believe anyone who wants to get into cryptocurrency should do extensive research on the topic themselves, before just leaping right on into it.
With that being said, Coinbase is probably one of the biggest and baddest dogs in the cryptocurrency game as of right now. The platform is surely a top pick for many beginners who may have been wanting to buy and trade assets for quite sometime, but didn’t know exactly where to dive into at. After all, the world of cryptocurrency really is much like a vast ocean ready for exploration. But just like any adventure, before you take off; you might want to be prepared. Lucky for me, the Coinbase mobile application really helped me get started.
I had gotten an ad while i was mindlessly scrolling on my cell phone. The advertisement was for trading and selling cryptocurrency on my phone via Coinbase. Now, i have seen ads for trading cryptocurrency on my phone hundreds of times before. However, something was unique about this ad. It had claimed that i could earn crypto in exchange for learning about the tokens and coins that they had available on their exchange.
I signed up instantly and never looked back. The program that the advertisement I watched was speaking about, was called “Coinbase Earn” and so i launched the app and found my way to that section. After just a few minutes, i had already learned about some cryptocurrencies such as Maker, The Graph, Celo, and many more. For each lesson that I had completed, i was rewarded with one dollar in The Graph or two dollars in Celo and so forth. Each cryptocurrency had multiple lessons and all together i was given around 30 dollars worth of free coins, along with the important knowledge on how the protocols themselves actually work.
Over the next few days i watched my coins value go up and down. So many ups and so little downs meant to me that i was hooked! I began looking into Bitcoin and made my first purchase shortly after. Being a new crypto trader, i knew only what I learned on the Coinbase earn program. So as anyone could imagine, I didn’t know much about wallets or network fees or anything else for that matter. I didn’t even know the difference from a digital wallet, cold storage, or a hardware wallet. After many hours of learning and researching about wallets, i decided to get myself a ledger nano x hardware wallet. With the Ledger device i knew my private keys would be protected. Which leads me to the first problem i found myself having with Coinbase.
On the Coinbase Exchange app they let you buy and sell crypto but i learned fast that if you do not have possession of a private key, then you do not have any crypto in your possession at all. With that being said, the Coinbase app is not a wallet, it is simply an exchange. So yes, you can buy coins on there but all the coins that the Coinbase app has is mostly in cold storage. Which means it is in an offline account safe from hackers, and while that sounds great, it also means the coins held on the Coinbase App are not actually yours until you transfer them out to your own wallet. Which then introduced me to my second problem i have found with Coinbase...
Since Coinbase keeps most if not all assets in cold storage, it means that when i wanted to transfer my coins out to my personal wallet, i would learn the loss that is known as network fees. After looking at the current high gas fees that Ethereum has been facing, i wanted to see if there was any solution. I found a few solutions but none really made me comfortable enough to actually send the earned coins out. I just knew i would lose more money in fees if i sent the crypto to my wallet verses if i kept them on Coinbase. That is what helped me find this extremely handy trick...
Since Coinbase uses the cold storage and keeps coins safe on the exchange, it means that when someone wants to sell or trade a coin for another coin or even just sell the asset off completely; they do not have to pay network fees. When selling an asset on Coinbase you just have to worry about Coinbase fees and they are normally pretty cheap. While this little trick is helpful for the earned alt coins in my account, it however didn’t help me with the Bitcoin since I knew for sure i wanted to transfer it over to my Ledger device. I simply had to pay the network fees and go on with my day.
Overall, Coinbase is a very simple exchange to get started on and i am definitely happy with the Coinbase earn program that helped me earn around 30 dollars in alt coins and just keeps on going up in value. Yeah, as a beginner i may have found a few problems with the exchange but i do think from my personal experience that the positive has so far outweighed the negative. I do hope anyone who is eager to start getting into the crypto space knows that Coinbase is there to help you start learning and earning as soon as you possibly can with the Earn program, but to buy crypto I would pick a different exchange since fees to transfer to a wallet are quite expensive. I haven't yet found the one that’s right for me but when I do I’ll be sure to let you know.