The Best Cryptocurrency Wallet
Manage your virtual wealth with the best wallet..
In 2012, Coinbase was launched in San Francisco, California. Since their launch, they’ve served over 8 million customers and helped users exchange over $20 Billion worth of digital currency. Currently users from 32 countries can use their services, including the United States.
Coinbase operates differently from traditional cryptocurrency exchanges. Instead of requiring users to trade on a market, Coinbase directly sells cryptocurrency to users at a set price (based off the current market price). This allows users to buy their cryptocurrencies more quickly than on an exchange. It also allows them to accept credit cards (in addition to bank transfers), something few exchanges offer. After users have verified their Coinbase accounts, they can then purchase cryptocurrency instantly.
Fees range from roughly 1.49% to 3.99% fee, depending on your payment method. Credit cards come with the higher fee, due to the fees charges by credit card companies and risks of fraudulent chargebacks. This means you can save around 2.5% by using bank transfers. These fees are lower than other competitors who directly sell cryptocurrency to their users (Coinmama, CEX.IO).
Coinbase allows its users to buy and sell three of the most popular cryptocurrencies; Bitcoin, Ethereum, and Litecoin. While they plan to add more cryptocurrencies in the future, you’ll currently have to look elsewhere if you want to buy other altcoins.
How to Use Coinbase to Buy Cryptocurrency
In this step by step guide, I’ll show exactly how to buy cryptocurrency through Coinbase.
1) Signup and Verify Your Email Address
The first step is to create an account. Initially you will only be asked for your name, email, password, and state.
2) Choose Your Account Type
After you confirm your email address, you will be taken through a 4 part process to buy.
Choose whether you want to create an individual or business account.
3) Verify Your Phone Number
You will then need to verify your phone number. This is used as a form of 2-Factor Authentication, helping to secure your account.
4) Set Up Payment Method
The next step is to set up a payment method.
Coinbase accepts payment through bank transfer and credit card.
When setting up your bank account with Coinbase, they may first initiate two small transactions, then require you to verify the amounts.
When setting up a credit card, you’ll likely need to upload pictures of your credit card.
Both methods may require you to verify your identity. This is required by almost all cryptocurrency exchanges who handle fiat currencies (USD, EUR, Etc.), to comply with various government regulations.
5) Buy Bitcoin, Ethereum, and/or Litecoin
Lastly, it’s time to make your cryptocurrency purchase. The price and all Coinbase fees are clearly stated at the time of placing your order.
Your account will then be credited with the amount of cryptocurrency you purchased.
Note: This process may have changed slightly by the time you’re signing up to Coinbase. They have continuously made small adjustments to their design and sign up process, but we’ll be sure to update any major changes.
The Best Hardware Wallet
Hardware wallets are small computers or smartcards built with the sole purpose of generating Bitcoin private keys offline. Hardware wallets securely sign transactions in the same offline environment.
The Ledger Nano is a smartcard based hardware wallet. Private keys are generated and signed offline in the smartcard’s secure environment. The Nano is setup using the Ledger Chrome Application. A random 24-word seed is generated upon setup and backed offline by writing it down on a piece of paper. In case of theft, damage or loss, the entire wallet can be recreated with the seed. A user selected PIN code is also assigned to the device to protect against physical theft or hacking.
The Ledger Nano may be used on any computer, or Android phones with Mycelium or GreenBits.
The Ledger HW.1 is a more affordable version of the Ledger Nano.
The Ledger Unplugged is a credit card-size wireless hardware wallet. Private keys are generated offline. Transactions are signed on the device and sent to a mobile phone via NFC.
The Ledger Unplugged is ideal for everyday use, since the device fits perfectly into wallets and no OTG cable is required.