When it comes to growing wealth, a savings account will only get you so far. Don’t get me wrong; holding cash savings and having money available for emergencies is extremely important. But, investing part of your money into assets is equally important, and oftentimes even more important. But how?
There are many ways to invest, including trading stocks and purchasing real estate. But as the saying goes, you don’t want to put all of your eggs in one basket.
That’s why you need to think about diversifying your investments. Holding a diverse portfolio is vital to ensuring that your investments don’t suffer just because there’s a bad day on the market.
There’s another way to diversify, and while it’s not actually new, you probably haven’t tried it: cryptocurrency.
You’ve heard of cryptocurrency before, or at least the most popular form which is Bitcoin. Right now, buying one Bitcoin would cost you many thousands of dollars. But don’t let that discourage you, because investing in most forms of cryptocurrency is a secure way to expand your portfolio and prepare for the future at the same time.
Of course, to start you need to have the right equipment, including the correct digital wallet or platform to exchange cryptocurrency. And one of the best is Coinbase.
Founded in 2012, Coinbase is a digital currency exchange that helps you buy Bitcoin and cryptocurrency to form your online portfolio. Think of it as a secure broker that only deals with cryptocurrency.
How Does Coinbase Work?
Basically, you’ll purchase cryptocurrency within the website or the app. The cryptocurrency that you just bought will go to your portfolio where Coinbase will store it and secure it. You can use your credit or debit card, or even make bank transfers to Coinbase.
As you probably assumed, Coinbase has a fee for the purchases you make. The fees will vary and will depend on your payment method. They’ll also depend on where you’re located. You can find out more about Coinbase fees here. Coinbase fees aren’t the cheapest around, but they are competitive, especially when you take into account the service’s security and how easy it is to start working with its app and website. But more on that later.
Coinbase Is Great for Beginners and Advanced Traders
One of the greatest things about Coinbase is how versatile it is. It doesn’t matter if you’re just starting out, or you’re a seasoned trader, Coinbase is a place for everyone.
Coinbase can teach you a bunch of information about crypto, Bitcoin, and even taxes. It’s a great place to start learning about buying and selling cryptocurrency, and how it’s going to impact your day-to-day finances.
Not only that, but the website and apps are easy to use. Coinbase has an app for both Android and iOS, and they’re pretty straightforward. From creating your account to trading, Coinbase makes it really easy to start your crypto journey.
More experienced traders of cryptocurrency will also find Coinbase Pro to be a great tool for their trading. It helps you stay up to date with information about the market in real-time. And, if you’re a developer looking to create your own trading tool, Coinbase also offers its own API and documentation to create secure apps.
Amazing Security Across the Board
One of Coinbase’s best features is how secure it is. You’ll need to verify your account, create a two-step verification process, and verify your identity. If you don’t do any of these steps, you can’t start using the platform or the app.
Sure, it may seem annoying at first, but in the long run, having your account and your portfolio under so many restrictions is only beneficial for you and your security.
Not only that, but Coinbase states that it stores 98% of its customers’ funds offline. This is meant to protect the cryptocurrency from cyber-attacks. Let’s face it, the biggest fear when using online currency is how easy it could be for someone to steal it. That is if your money isn’t protected enough. Fortunately, that’s not the case with Coinbase.
In addition to the encryption and offline servers, Coinbase also offers an insurance policy if anything malicious happens to the service. As we mentioned before, most of your funds will be held offline, but Coinbase does have online storage which it calls “hot storage.”
If anything were to happen to that hot storage, like a security breach, or employee theft, the insurance policy will cover any loss from that incident. Keep in mind, though, this insurance won’t cover any losses on your account if someone manages to log in. You still need to create a strong enough password to protect your portfolio and your assets.
Should You Try Coinbase?
Coinbase is regarded as one of the best, if not the best, platforms to buy, sell, and trade cryptocurrency. And there’s a reason for that.
Coinbase is a secure platform that makes it easy for newbies and experienced traders alike to use and invest in Bitcoin and other forms of cryptocurrency.
If you’re just starting out and you don’t know where to start, Coinbase offers free documentation that’ll guide you in the right direction to make your first cryptocurrency purchase.
On the other hand, if you’re already a professional, not only will you find Coinbase easy to dive into, but you’ll also have a bunch of tools at your disposal to stay up-to-date with the current state of the market and start trading in no time.
Combine that with the fact that your funds will be secure behind encrypted wallets, a two-step verification process, and offline servers to store your funds, you’ll find Coinbase to be a secure, easy way to dive into the world of Bitcoin and cryptocurrency for both beginners and professionals alike.
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