May 01, 2013 - Bitcoin Price: $124.50 USD.
Your Investment: $2,000 => You Receive: 16 Bitcoin.
January 2018 - Bitcoin price: $18,000 => Your investment is now worth $287,982
Yeah, it might hurt knowing you could have made a lot of money if you had known about Bitcoin in 2013. However, your golden opportunity is still here. Bitcoin is still new; it still has yet to be adopted at a large scale and generally the economy has yet to find active use cases for it right now -- it's more-so seen as a store of value, similar to gold (which is why Bitcoin can be a good investment in a recession). However, and even better yet, there are thousands of other crypto projects that are under $1.00 which can easily be valued over $100 in 4-5 years.
Now, you just need to know how to invest in these projects in a safe manner.
You can buy crypto from almost anywhere, but that doesn't necessarily mean you should. Some exchanges are scams meaning you'll buy Bitcoin, for example, then a week later the exchange could be taken down. As a result, here are three exchanges that the Bitcoin Digital Dash uses to Buy Crypto such as Bitcoin, Basic Attention Token, Ethereum, Dash, and more.
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Robinhood has such a straight forward interface that any beginner can easily download the app and start buying crypto as well as stock.
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With the interest and investment in cryptocurrencies having surged this year, the requirement for safe and secure exchanges to facilitate the purchase of crypto has become increasingly important. One of the most popular exchanges that is currently available is Coinbase.
Launched in San Francisco in 2012, Coinbase operates in 32 countries and has served over 12 million customers to exchange over $40 billion in digital currencies.
By 2013, Coinbase was the highest funded Bitcoin startup as well as the largest exchange of cryptocurrency in the world. Unlike other exchanges that require users to trade on a market, Coinbase allows users to trade their cryptocurrency at a set price that is based on their market value, which allows users to purchase their cryptocurrencies faster than other exchanges.
Coinbase is also one of the few cryptocurrency exchanges that accepts credit cards (in addition to bank transfers).
Coinbase charges fees ranging from roughly 1.49% to 3.99%, depending on your payment method, with credit card transactions resulting in fees at the higher end of the scale. Coinbase fees are generally lower than other competitors who operate a similar business model, such as Coinmama or CEX.
By following the below step by step guide, you will be able to buy cryptocurrency through Coinbase.
One of the perceptions of cryptocurrency among newcomers to the platform is that it is still risky to invest in. And although it is correct that there have been issues around cryptocurrency exchanges in the past, Coinbase is considered to be one of the most secure platforms currently available.
First of all, Coinbase is US based and is therefore required to comply with US State and Federal law. This can be contrasted with some of their competitors that operate in countries that may have lighter regulations when it comes to such platforms.
Coinbase has actively pursued discussions with regulators in order to ensure that they were providing an open and innovative financial system and the regulation of Coinbase is considered by some to have restored confidence in cryptocurrencies following the Mt Gox collapsed (although other commentators have complained that Coinbase operates more like a bank, which, within the community, is against the fundamental nature of a decentralized cryptocurrency).
In addition, Coinbase has received investment from a number of high-profile backers, including the Bank of Tokyo and BBVA, which boosts its legitimacy.
When it comes to storage of funds, Coinbase is transparent about its methods. Coinbase segregates customer funds from company operational funds, with Coinbase stating on their website that any funds held on behalf of customers are stored in custodial bank accounts and, in the event of insolvency, neither Coinbase nor its creditors would have any rights or entitlements to such customer funds.
In terms of its cryptocurrency storage, Coinbase states that 98% of customers’ cryptocurrency funds and stored offline, through hardware wallets and paper wallets that are stored in vaults and safety deposit boxes worldwide.
In addition, Coinbase states that the remaining portion of cryptocurrency that is stored online is insured, and that in the event of a hack, customers will be entitled to receive any funds lost through this insurance policy.
Coinbase offers customers a 2-factor authentication method, which can be through SMS to your phone, or through third party apps such as Google Authenticator or Duo.
In addition, Coinbase notifies users if a new device or IP address attempts to access your customer account. However, despite this, if customer accounts are compromised, Coinbase does not accept any liability for funds being lost. For that reason, it is typically recommended that once you have purchased any cryptocurrency on the Coinbase exchange, you store this cryptocurrency offline in a wallet that you control.
Coinbase offers customer support through email, as well as having a Knowledge Base and FAQs page available for customers. Wait times for customer support may vary, with the huge increase in demand for the service in recent months resulting in some delays. However, typical response times tend to be within 24-72 hours. Some users have expressed frustration with receiving “canned responses” that don’t entirely address the issue raised.
Coinbase serves customers in the following countries:
Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Italy, Jersey, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom and the United States.
Transaction limits vary from country to country, as well as variations as a result of payment methods and verification status. You can view your limits through a link on the account’s limits page. Coinbase also allows users to apply for higher limits, although these applications are not generally applicable to credit card transactions.
To apply for higher limits you will need to verify your identity and fully verified US residents can transaction up to $50,000 per week, while verified European customers may have a maximum of $30,000 in their account at any time. Users can check their limits through their account.
It is easy to store, send and receive cryptocurrency through Coinbase:
CEX.io is one of the oldest Bitcoin exchanges around. The company supplies both a trading platform and brokerage services for Bitcoin, Ethereum and a range of other cryptocurrencies. In this post I’ll review the company, its services and compare it to other other exchanges around. CEX.io Review summary CEX.io is one of the more popular options for buying and selling Bitcoin and several other cryptocurrencies. The site offers a brokerage service that supports multiple coins and a trading platform for trading BTC, BCH, ETH and XRP. If you’re a beginner it’s recommended to use the brokerage option rather than the site’s trading platform. For a detailed review keep on reading, here’s what I’ll cover in this guide:
2. CEX.io Services
3. Currencies and Payment Methods
5. Buying Limits
6. Supported Countries
7. Customer Support
8. Reviews CEX.io vs. Coinbase
CEX.io started out in 2013 in London as a Bitcoin exchange and cloud mining provider. At some point its mining pool, known as Ghash.io, was so big it held 42% of the total network mining power. On January 2015 the cloud mining operations were closed and today CEX.io operates solely as a cryptocurrency exchange. CEX.io is registered with FINCEN and it applies standard KYC (know your customer) and AML (anti money laundering) policies. This means you’ll need to verify your identity before you will be able to buy cryptocurrency via the exchange.
CEX.io allows you to buy cryptocurrency using your credit card, a wire transfer or a SEPA transfer (if you live in the EU). The site supplies two ways for purchasing crypto – a trading platform and a brokerage service. CEX.IO brokerage service CEX.io’s brokerage service is a way for new users to buy cryptocurrencies through an easy (though somewhat more expensive) process. This means CEX.io will trade cryptocurrencies for you at a premium. CEX.io brokerage transactions are based on Fill-or-Kill orders (also known as FOK). FOK orders are orders that are executed immediately and in full. This is different than placing your own order on the trading platform since different type of orders (i.e. market, limit, stop loss) will give you different type of results.
Bottom line – The brokerage service is a simplified way for beginners to get started with buying Bitcoin or any other crypto without needing to go through a complete course on trading. The downside is that for this to work CEX.io has to charge customers a premium so that they will always be able to fulfill their orders, hence the higher exchange rate. The difference between the brokerage service exchange rate and a normal trading platform exchange rate can reach up to an 7% difference. CEX.IO has a very clear explanation on their site about how this service works, here’s a summary of it:
When you enter a trade, CEX.io calculates the price and freezes it for 120 seconds. You input the amount of money you wish to spend and you see the amount of coins you can receive. After you press the Buy/Sell Button, the system checks to see that you have enough funds available.
If the situation on the market allows the execution of your order on conditions not worse than you agreed on, the order will be filled (The order can also be filled on more favourable conditions). If there is a sudden spike in the exchange rate, preventing the execution of the order on the agreed conditions, you will be notified. After you confirm the trade, your order is matched to other orders on the exchange, and your balance is adjusted. Sometimes the amount can be even greater than agreed on, but is never smaller.
More advanced users can use CEX.io’s trading platform. The upside for using the platform is that fees are extremely lower. Just for comparison, while fees on a brokerage trade can reach up to 7%, fees on the trading platform reach 0.25% at max. The trading platform is pretty advanced and supplies all of the features you’d expect such as market and limit orders. The trading platform has decent liquidity, allows cross platform trading (via a mobile app and several APIs) and also supplies you with advanced reporting. Bottom line – if you’re an experienced trader CEX.io’s trading platform is where you should conduct your transactions (as opposed to the brokerage service).
In the past, CEX.io allowed users to conduct margin trading. straight from its trading platform. However, since 2019 CEX.io opened a dedicated margin trading service called CEX.io Broker. CEX.io Broker is a platform for cryptocurrency trading via CFDs featuring a variety of orders types, technical analysis instruments and advanced trading tools. It allows users to leverage their position and increase their profit possibilities (while also increasing the risk they are exposed to). Margin trading is only recommended to experienced traders. when trading CFDs you aren’t buying actual coins, you’re just speculating on a coin’s price. This means you won’t be able to withdraw profits in the actual cryptocurrency you’re trading, only in fiat or Bitcoin. At the moment margin trading on CEX.io is available for Bitcoin and Ethereum only.
Supported cryptocurrencies for buying via the brokerage service:
Bitcoin Cash (BCH)
Bitcon Gold (BTG)
Bitcoin Cash (BCH)
Bitcoin Cash (BCH)
Bitcon Gold (BTG)
Gemini Dollar (GUSD)
Supported payment methods:
Credit / debit card Wire transfers (including SEPA) Domestic bank transfer (ACH)
One of the biggest complaints users have about CEX.io is the amount of fees and hidden charges the company has. For example, CEX.io can take up to an 7% fee from the amount of fiat currency you pay for a service. For example. if you buy $1000 worth of Bitcoins you’ll get only $920 worth. This means that the high exchange rate you see on CEX.io already includes the service fee within it, but no other fees will apply. However, the fee stated above is only relevant to the brokerage service. Different fees apply to the trading platform. In order to trade you’ll need to fund your CEX.io account with either a bank wire, SEPA transfer (both have no commission on CEX.io’s part) or a credit card (2.99% fee). Withdrawal fees can reach up to 3% depending on your currency and payment method (credit cards are the most expensive option).
Transaction fees work on a maker-taker model. This means that the person who created the order (the maker) usually pays a lower fee than the person who fulfilled the order (the taker). Depending on your side in the transaction you’ll pay anywhere between 0.16%-0.25% at the most. A complete table of CEX.io’s trading fees can be found here. For margin trading there’s a 0.2% fee.
There are four different account verification tiers on CEX.io: Identity Address Enhanced Corporate. Identity verified accounts can buy up to $1000 worth of Bitcoins per day and $3000 worth of Bitcoins a month. These users can only use a credit card to fund their purchases. Address verified accounts can buy up to $200,000 worth of Bitcoins per day and $500,000 worth of Bitcoins a month through a bank wire transfer. Enhanced Corporate verified accounts have no limitations on the amount of Bitcoins that can be bought. In order to become verified you’ll need to supply a government issued id and personal information about yourself.
CEX.io has strong worldwide support for most countries and states except for the following exceptions: Countries not supported for credit card purchases: Afghanistan, Algeria, Bosnia and Herzegovina, Bahrain, Bangladesh, Bolivia, Burundi, Cambodia, Democratic Republic of the Congo, Central African Republicc, Cuba, Algeria, Ecuador, Ethiopia, Iraq, Iran, Iceland, Kuwait, Laos, Lebanon, Libya, Morocco, Nepal, Nigeria, North Korea, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Somalia, South Sudan, Sudan, Syria, Uganda, Vietnam, Vanuatu, Yemen, Zimbabwe. Also MasterCard withdrawals for users from India are disabled. Countries not support for wire transfers: Afghanistan, Bosnia and Herzegovina, Burundi, Democratic Republic of the Congo, Central African Republicc, Côte d’Ivoire, Cuba, Eritrea, Ethiopia, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Kenya, North Korea, Laos, Lebanon, Liberia, Libya, Nigeria, São Tomé and Príncipe, Somalia, South Sudan, Sudan, Syria, Tanzania, Tunisia, Uganda, Vietnam, Vanuatu, Yemen, Zimbabwe.
Perhaps one of the most controversial issues about CEX.io is the user reviews it gets online. TrustPilot gives CEX.io an average rating of 6.1 out of 10 stars. Reddit also has its share of CEX.io reviews but I couldn’t find anything particularly good or bad Redditors had to say about the exchange.. For the TrustPilot reviews, it seems that the majority of dissatisfied user reviews are either complaining about the hidden fees (i.e. high exchange rate), the identity verification process or the site’s customer support. The first two issues are usually related to people not understanding the fine print, and CEX.io has made relatively clear how much will you pay for your coins.
Coinbase charges a 3.99% fee for credit card purchase which is higher than the 2.99% CEX.io charges. However Coinbase’s exchange fee is much lower than CEX.io. When comparing the actual cost of buying 1 Bitcoin through both companies it turns out that Coinbase is 4% cheaper than CEX.io and is probably the cheapest option.
Is CEX.io a Wallet?
No. CEX.io is a cryptocurrency exchange. While you can hold your funds on the exchange’s web wallet its highly recommended to move them to your own wallet.
Does CEX.io require ID?
Yes. All verification levels on CEX.io require An international passport/national ID card/driver’s license. This document should be valid and internationally recognized. Check that it’s issued with Latin characters or with Latin transliteration of the main fields
How do I Buy Bitcoins on CEX.io?
Go to CEX.io
Click on “buy/sell”
Choose the cryptocurrency you want to buy and your payment currency
Choose an amount to buy
Click on “buy”
Complete the sign up process and verify your identity
Enter your payment information Withdraw the coins to your wallet
Until today I have used CEX.io several times and haven’t had any issues. I think it’s a solid exchange, with the only downside being the high fees they charge for their brokerage service. If you’re a more advanced users you can cut dramatically on fees by using the trading platform and not the brokerage service. In the past year or so the exchange has leapfrogged forward and has become one of the leading exchanges around. The user interface is very intuitive and even complete newbies will manage to buy cryptocurrencies with it. Bottom line – you’re good to go, as long as you are aware of the fees and the verification process needed to buy more substantial amounts of Bitcoin.