Coinbase Kenya (2023) : How to Register, Trade, Transaction fees, Wallets, and everything you need to know
This tutorial will take you through everything you need to understand Coinbase if you are starting with cryptocurrency and Blockchain technology. Everything is included in this guide.
Coinbase is a popular platform for buying, selling, and storing cryptocurrency. The platform is user-friendly and allows users to easily buy and sell a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. In this review, we'll cover everything you need to know about Coinbase in Kenya, including how to register, trade, and pay transaction fees. We'll also discuss Coinbase's wallets and provide some tips for getting started on the platform.
How to get started and register for Coinbase
Getting started with Coinbase is easy. Visit the website and enter your email address to get started. You'll be prompted to enter your traditional last name, first name, and password to complete the registration process.
Coinbase now requires users to verify their identity before making any transactions. This process, known as "Know Your Customer" (KYC), involves providing a phone number, an identity document (such as a driver's license), and proof of address that is less than three months old. It's also a good idea to enable double-factor authentication (2FA) as soon as possible after establishing an account to ensure the security of your funds.
How to make a deposit
Coinbase allows users to fill their accounts using a credit card (Visa and Mastercard are currently accepted). Unfortunately, there is no option to make a deposit using Mpesa now.
To make a transfer, Coinbase generates a sequence of numbers that must be entered in the subject line of the transfer. If this step is not completed, the transfer will be rejected. The process is straightforward, and Coinbase provides clear instructions to guide you.
Coin base's asset offerings
One of the standout features of Coinbase is the variety of assets it offers for trading. The platform has significantly increased the number of assets it shows in recent quarters, with over 150 available at the time of writing. Prices are displayed in real-time and include variations over the last 24 hours, making it easy to assess investment opportunities. The purchasing process is simple, with clear and intuitive screens guiding you. Once a purchase is made, the cryptocurrencies are immediately available in your Coinbase wallet.
Coinbase transaction fees
One potential downside of Coinbase is its transaction fees, which can be as high as 2% for crypto purchases made with a credit or debit card and 1.49% for all other transactions. It's also worth noting that each trade has a minimum cost. For example, if you purchase a cryptocurrency for less than KSH 1500, the fee is KSH 125. This exceeds the standard 1.49% commission applied to all orders over KSH 24,540. Below is a table of the fixed costs that are charged in smaller amounts:
|Amount (KSH)||Fixed Commission (KSH)|
|Less than 1500||125|
|1500 - 3065||182.69|
|3065 - 6130.80||244.01|
|6130.80 - 24,523||366.23|
How to start trading
To start trading on Coinbase, it's essential to understand the concept of the Bid-Ask spread. This refers to the difference between the highest price a buyer is willing to pay for an asset (the "bid") and the lowest price a seller is willing to accept (the "ask"). The spread is typically expressed as a percentage of the asset's market value.
To start trading, select the asset you want to trade and enter the amount you want to buy or sell. The platform will show you the current market price and the corresponding fees for the trade. You can then review and confirm the trade details before completing the transaction.
It's worth noting that Coinbase charges different fees for different types of trades. For example, the price for buying or selling cryptocurrency using a bank transfer is typically lower than for using a credit or debit card. You can find a full breakdown of Coinbase's fees on the platform's website.
Coinbase offers several types of wallets to store your cryptocurrencies, including a web wallet, a mobile wallet, and a hardware wallet. The web wallet is accessible from any device with an internet connection, while the mobile wallet can be used on the go from your smartphone. The hardware wallet, also known as a cold storage wallet, is a physical device that stores your cryptocurrencies offline, making it more secure than the other wallet types.
Tips for getting started on Coinbase
If you're new to Coinbase, here are a few tips to help you get started:
- Enable 2FA: As mentioned earlier, enabling 2FA to protect your account and funds is a good idea.
- Use a hardware wallet: If you have a large amount of cryptocurrency, consider using a hardware wallet to store it offline. This is a more secure option than the web or mobile wallet.
- Understand the fees: Make sure you understand the costs associated with each type of trade and choose the most cost-effective option.
- Diversify your portfolio: Don't put all your eggs in one basket. Consider investing in a variety of cryptocurrencies to diversify your portfolio.
Coinbase is a reliable and user-friendly platform for buying, selling, and storing cryptocurrency. While it does charge relatively high transaction fees, the platform offers a wide range of assets and has a simple, intuitive interface. If you're interested in using Coinbase in Kenya, we hope this review has provided the information you need to get started.