Top Coinbase Questions Answered: Is It Safe, How To Buy Bitcoin & More!

The financial industry has seen a revolution in the past few years, and there have been several new and radical ways to make payments -- the most famous of which is cryptocurrency.

With the dawn of Bitcoin in the early 2000s, the digital currency has risen in both relevancy and variety in the last two decades, shaping the future of e-commerce. Today, more and more merchants are turning to cryptocurrencies as a cheaper and more efficient payment solution.

In the same way, cryptocurrencies have also been a viable investment for millions of Americans -- from new investors to multi-billion corporations. Just look at how Bitcoin's price surged 85% in the last year.

If you're new to Bitcoin, Ethereum, Litecoin or even Dogecoin, and have a ton of questions about where and how to buy cryptocurrencies, you've come to the right place. Here, we answer all your budding questions about cryptocurrencies and the exchange platform you should use.

How to buy cryptocurrency?

To be able to buy and trade crypto, you need to use a cryptocurrency exchange, the most famous of which is Coinbase. The leading mainstream cryptocurrency exchange in the U.S. since 2012, Coinbase is the standard on-ramp when it comes to new crypto investors. It has everything you'll need to get your crypto feet wet.

It offers a wide variety of products such as custodial accounts for institutions, a wallet for retail investors, an advanced trading platform, cryptocurrency investing and even its own U.S. dollar stable-coin.

All of this can be confusing for a newcomer, so here are answers to some of your top Coinbase questions:

1. Is Coinbase safe and legit?

Yes. Coinbase is a fully regulated and licensed cryptocurrency exchange that supports all U.S. states except Hawaii, and currently has more than 30 million customers around the world. Initially founded in 2012 (four years after Bitcoin was created) in San Francisco, CA, Coinbase has quickly grown into one of the largest exchanges in the world, currently ranked second on coinmarketcap.com.

As for its security, Coinbase is known for putting emphasis on security to reduce risks that usually come with the financial market. As such, Coinbase has never been hacked. The company prides itself in that all of the digital currency it holds online is insured, which covers losses related to Coinbase cybersecurity or employee theft. Meanwhile, cash balances are held in either money market funds or U.S. custodial funds. If your funds are in a U.S. bank, the FDIC will insure you up to $250,000.

2. Can a beginner use Coinbase?

Yes, trading on Coinbase is an extremely easy process that is geared more towards beginners, all thanks to the user-friendly interface. This platform can also be accessed through both Android and iOS devices.

Both Coinbase and Coinbase Pro offer a trading experience that is easy to understand for beginners and newcomers. The standard Coinbase is a great-enough tool to purchase, trade or sell crypto, but upgrading to Coinbase Pro offers a more advanced platform with more features and lower fees.

You can get started by creating an account here.

3. How to buy and send bitcoin?

Like most processes on Coinbase, buying Bitcoin is easy. Start by creating an account, which should just take a few minutes. After verifying your account, select Buy/ Sell in the options menu. Click the Buy field and choose the asset you'd like to purchase -- you can choose the amount in your local currency or denominate in crypto. Then, select your preferred payment option. When all is set, click Buy.

Note that if you link a bank account, you get a higher buying limit but your purchases will be on hold for a few days; linking a debit card gives you a lower buying limit with instant access to the asset you purchased.

You can check current crypto prices from Coinbase here.

4. How to transfer funds to your wallet?

The Coinbase wallet, like most crypto wallets, lets you securely keep your assets online, ready for use anytime should you wish to trade with them.

To transfer funds to your wallet, start by opening it on either a mobile device or computer. Open your settings at the bottom and tap transfer on the options. Select the supported coin, enter the amount you want to transfer, and simply confirm it to complete the transfer.

Do remember, however, that you can only transfer funds to your wallet if they are available and not on-hold. You may learn all about Coinbase's crypto wallet here.

There you go, all of the basics that you need to get started in investing and trading crypto on Coinbase. Boasting a user-friendly and easy-to-use interface, Coinbase is the perfect cryptocurrency exchange for beginners that want to dip their toes in crypto and eventually become a more experienced trader.