Tuesday , 21 September 2021

Create A Crypto Portfolio Account With Coinbase and Earn Some Bitcoin – Here’s How

Create your own cryptocurrency portfolio with Coinbase and get financially rewarded for doing so. Here are the details.

An original article by Lorimer Wilson, Managing Editor of munKNEE.com – Your KEY To Making Money!

(Disclosure: Wilson is not invested in Coinbase and owns no shares of its stock. The information below is just information on new offerings in the investment landscape. Do your own due diligence.)

About Coinbase

Coinbase Global Direct Inc. (COIN) is a secure online platform for buying, selling, transferring, and storing digital currency.

  • it supports these 66 cryptocurrencies
  • its quarterly volume traded is approx. $335B
  • it is available in these 100+ countries
  • it has 56+M verified users
  • it is free* to send or receive digital currency between online wallets, friends, or merchants. See detailed Coinbase pricing and fees here.

Coinbase Storage/Security

Coinbase Features

  • You can invest in cryptocurrency slowly over time by scheduling buys daily, weekly, or monthly
  • You can link all transactions directly to your bank account
  • You can use a variety of payment methods of your choosing (Go here for specific payment methods for U.S. customers, here for Canadian customers, here for U.K. customers, here for Australian customers and here for European customers.)

Coinbase Earn

Coinbase Earn enables you to learn about different cryptocurrencies via educational content and rewards you with a bit of the specific crypto you are interested in.

Earn Free Bitcoin

Eligible U.S. residents can receive $5 of free Bitcoin once they have signed up at coinbase.com and completed photo identity verification by uploading a photo of their driver’s license or identification card.

High Interest Coinbase Saving Account

Coinbase offers its customers the opportunity to earn more interest than banks – 4% APY (annual percentage yield) or approximately 8x the national average by lending the USDC (USDCoin), a type of cryptocurrency known as a stablecoin which can always be redeemed at 1 USDC for US $1.00, giving it a stable price is and designed to let dollars move globally from your crypto wallet to other exchanges, businesses, and people, in your account to Coinbase.

Caveat: Keep in mind that the savings account may be a great option for the fixed-income portion of your assets but those savings aren’t guaranteed by the U.S. government meaning that if Coinbase were to go bankrupt there is no guarantee that your savings account principal at Coinbase would be safe. That being said, however, while Coinbase doesn’t appear to be at risk of bankruptcy any time soon as it had about $2 billion in cash at the end of last quarter it just raised another $1.25 billion in convertible debt in May, so should Coinbase get into any sort of trouble over the next few years, those convertible notes would act like debt.

The Not So Small “Small Print” – Coinbase Pricing & Fees 

  1. Wallet Service
    • Coinbase offers its USD Wallet and Hosted Cryptocurrency Wallet Service free of charge, i.e. Coinbase will store your USD and cryptocurrency at no cost to you.
    • Coinbase incurs and pays network transaction fees, such as miner’s fees, for transactions on cryptocurrency networks (i.e., transfers of cryptocurrency off the Coinbase platform) and charges a fee for that based on their estimate of the network transaction fees that they anticipate paying for each transaction.
    • Coinbase establishes the exchange rate for cryptocurrency transactions by adding a margin to the market exchange rate and may also charge a separate fee that is either a flat fee or a percentage of the transaction as described below.
    • In some cases, Coinbase may charge an additional fee on transfers to and from your bank account but before doing so they will notify you of all Coinbase fees (not including the margin) and any other service fees that apply to each transaction immediately before you confirm each transaction.
  2. Buy/Sell Transactions
    • Coinbase charges a spread of about one-half of one percent (0.50%) for cryptocurrency purchases and cryptocurrency sales although the actual spread may be higher, or lower, due to market fluctuations in the price of cryptocurrency between the time they quote a price and the time when the order executes.
    • Coinbase also charges a fee (in addition to the spread), which is the greater of (a) a flat fee or (b) a variable percentage fee determined by region, product feature, and payment type. (see details here)
  3. Credit Transactions
    • If you borrow USD from Coinbase or an affiliate of Coinbase, and they sell your BTC collateral they will charge you a flat fee of 2% of the total transaction.
  4. Coinbase Card
    • Spending USDCoin with Coinbase Card has no fee, however Coinbase charges a flat 2.49% transaction fee on all purchases including ATM withdrawals made with other cryptocurrency.
  5. Cryptocurrency Conversions
    • Coinbase charges a spread margin of up to two percent (2.00%) for cryptocurrency conversions. The actual spread margin charged varies due to market fluctuations in the price of cryptocurrency between the time they quote a price and the time when the order executes.
  6. Variable Fees by Location and Payment Method
  7. Staking Service Commission
    • You may be given the option to “stake” your assets (staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards on Coinbase in a third party proof-of-stake network via staking services provided by Coinbase. Please see their staking information page for more information regarding staking and Appendix 6 of the Coinbase User Agreement for applicable terms and conditions. If you stake your assets with Coinbase, your reward will be determined by the protocols of the applicable network. Coinbase will distribute this reward to you after receipt by Coinbase, minus a 25% commission.

Stock Performance

Coinbase’s initial reference price at launch on April 14th was $250 and while it surged to $342 shortly thereafter it has settled down into the $220 to $250/share range where it currently lingers.

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