Cryptocurrency, whether you’re buying or selling is done entirely online.
Here are some things you should know.
Things to know before investing cryptocurrency
Cryptocurrencies aren’t guaranteed to make you money. There is a possibility that you could lose all the money you put in. Cryptocurrency is a volatile market and can change in value quickly with no notice. Click here to read more.
You should also know that crypto firms are not regulated the same way as financial companies. That means that if something goes wrong, you don’t have protection.
What is Coinbase?
Coinbase is the largest American cryptocurrency exchange platform and does not have any physical headquarters.
Brian Armstrong, former Airbnb engineer and Fred Ehrsam joined together to create Coinbase in June of 2012. It launched in October of that year.
Coinbase offers different products like a crypto wallet and professional asset trading platform.
A crypto wallet is used to send or receive digital currencies. It also keeps your private keys, this is like a password to keep your funds accessible and safe.
How are cryptocurrency transactions recorded?
Cryptocurrency exchanges are saved via blockchain. A blockchain is a collection of electronically stored records. Each block that makes up a blockchain holds valuable information.
Once one block reaches its storage limit, it links to a new block, creating a chain. No blockchain exists in a singular place. This is because cryptocurrency is decentralized.
This means that transaction records are not stored in the bank or with the government like a typical exchange of money.
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